### the commission may reject a proposal retained by independent experts for justified reasons , including compliance with the objectives of union policies . ### the commission may reject a proposal retained by independent experts for justified reasons , including non - compliance with the objectives of union policies .


### the eit , primarily through its knowledge and innovation communities , should aim at strengthening innovation ecosystems that tackle global challenges , by fostering the integration of business , research , higher education and entrepreneurship . the eit should foster innovation in its activities and should support the integration of higher education within the innovation ecosystem , in particular by : stimulating entrepreneurial education , fostering strong non - disciplinary collaborations between industry and academia ; and identifying prospective skills for future innovators to address global challenges , which includes advanced digital and innovation skills . support schemes provided by the eit should benefit to eic beneficiaries , while start - ups emerging from eit kics should have access to eic actions . while the eit’s focus on innovation ecosystems should make it naturally fit within the pillar ' open innovation ' , the planning of its kics should be aligned through the strategic planning process with the pillar ' global challenges and industrial competitiveness ' . ### the eit , primarily through its knowledge and innovation communities , should aim at strengthening innovation ecosystems that tackle global challenges , by fostering the integration of business , research , higher education and entrepreneurship . the eit should foster innovation in its activities and should support the integration of higher education within the innovation ecosystem , in particular by : stimulating entrepreneurial education , fostering strong non - disciplinary collaborations between industry and academia ; and identifying prospective skills for future innovators to address global challenges , which includes advanced digital and innovation skills . local and regional authorities could contribute by supporting the creation and operation of innovation groups . support schemes provided by the eit should benefit to eic beneficiaries , while start - ups emerging from eit kics should have access to eic actions . while the eit’s focus on innovation ecosystems should make it naturally fit within the pillar ‘ innovative europe’ , the planning of its kics should be aligned through the strategic planning process with the pillar ' global challenges and industrial competitiveness ' .


### reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the united nations sustainable development goals , this programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the eu budget expenditures supporting climate objectives . ### acknowledging climate change as one of the most important global challenges and reflecting the urgency of responding to it in line with the union ' s commitments to implement the paris agreement and the united nations sustainable development goals , this programme should commit to eliminating activities that are harmful to the climate and contribute to mainstream climate actions and to the achievement of an overall target of 30 % of the eu budget expenditures supporting climate objectives and the development of the circular economy , which will allow the union to stay at the forefront of climate change fight . in order to address the european court of auditors recommendations [ report 31 / 2016 ] , climate action targets could be laid out in the specific programme legislation and earmarked ex - ante through the programming .


### the commission ' s communication on the interim evaluation of horizon 2020 2 final ) has provided a set of recommendations for this programme , including its rules for participation and dissemination , building on the lessons learnt from the previous programme as well as input from eu institutions and stakeholders . those recommendations include to invest more ambitiously in order to reach critical mass and maximise impact ; to support breakthrough innovation ; to prioritise union research and innovation investments in areas of high added value , notably through mission - orientation , citizen involvement and wide communication ; to rationalise the union funding landscape , including by streamlining the range of partnership initiatives and co - funding schemes ; the development of more and concrete synergies between different union funding instruments , notably with the aim of helping to mobilise under - exploited r&i potential across the union ; to strengthen international cooperation and reinforce openness to third countries ' participation ; and to continue simplification based on implementation experiences from horizon 2020 . ### the commission ' s communication on the interim evaluation of horizon 2020 2 final ) and the european parliament resolution of 13 june 2017 on the assessment of horizon 2020 implementation in view of its interim evaluation and the framework programme 9 proposal 0253 ) have provided a set of recommendations for this programme , including its rules for participation and dissemination , building on the lessons learnt from the previous programme as well as input from eu institutions and stakeholders . those recommendations include to invest more ambitiously in order to reach critical mass and maximise impact ; to support breakthrough innovation ; to prioritise union research and innovation investments in areas of high added value , notably through mission - orientation , citizen involvement and wide communication ; to rationalise the union funding landscape in order to fully use the rdi potential of all member states , including by streamlining the range of partnership initiatives and co - funding schemes ; the development of more and concrete synergies between different union funding instruments , notably with the aim of helping to mobilise under - exploited r&i potential across the union ; to strengthen international cooperation and reinforce openness to third countries ' participation while safeguarding eu interest and pursue further simplification to support faster innovation cycles and lower administrative burden for applicants , especially for smes and for beneficiaries and to continue simplification based on implementation experiences from horizon 2020 .


### for actions related to union strategic assets , interests , autonomy or security , the work programme may provide that the participation can be limited to those legal entities established in member states only , or to those legal entities established in specified associated or other third countries in addition to member states . ### for actions related to union strategic assets , interests , autonomy or security , the work programme may provide that the participation can be limited to those legal entities established in member states only , or to those legal entities established in specified associated countries in addition to member states .


### in order to respond to unforeseen situations or to new developments and needs , the commission may , within the annual budgetary procedure , deviate from the amounts referred to in paragraph 2 up to a maximum of 10% . no such deviation shall be allowed in respect of the amounts referred to in points of paragraph 2 of this article and the total amount set out for part ' strengthening the european research area ' of paragraph 2 of this article . ### in order to ensure that europe remains at the forefront of global research and innovation in the digital field and to take account of the necessity to step up investments to benefit from growing opportunities of digital technologies , at least €16 billion of the total budget of the framework programme will be allocated to core digital priorities .


### reflecting the importance of tackling climate change in line with the union ' s commitments to implement the paris agreement and the united nations sustainable development goals , this programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the eu budget expenditures supporting climate objectives . ### acknowledging climate change as one of the biggest global and societal challenges , and reflecting the importance of urgent action to tackling climate change in line with the union ' s commitments to implement the paris agreement and the united nations sustainable development goals , this programme will contribute actively to mainstream climate actions and to the achievement of an overall target of 30 % of the eu budget expenditures supporting climate objectives .


### ethics checks shall be carried out with the support of ethics experts . ### ethics checks shall be carried out with the support of independent ethics experts .


### participation in and financial contribution to a programme of research and innovation activities , based on the commitment of the partners for financial and in - kind contributions and integration of their relevant activities using a programme co - fund action ; ### participation in and financial contribution to a programme of research and innovation activities , based on the commitment of the partners for financial and / or in - kind contributions and integration of their relevant activities using a programme co - fund action ;


### article 11 is amended as follows : in paragraph , the following subparagraph is added : ' by way of derogation from point of the first subparagraph , the use or keeping on board of bottom set gillnets , entangling nets or trammel nets shall not be prohibited where the conditions established in that point cannot be complied with because of unintended catches of marine organisms subject to the landing obligation set out in article 15 of regulation [ xxxx ] . those unintended catches shall be landed and counted against quotas . ' ### article 11 is amended as follows : in paragraph , the following subparagraph is added : ' by way of derogation from point of the first subparagraph , the catch composition rules set out in annexes vi to vii to this regulation shall not apply in the case of fisheries to which the landing obligation set out in article 15 of regulation 1380 / 2013 applies as from 1 january 2015 . '


### all catches below the applicable minimum conservation reference size retained on board a union fishing vessel shall be placed in boxes , compartments or containers separately for each stock in such a way that they are identifiable from other boxes , compartments or containers . ### all catches below the applicable minimum conservation reference size retained on board a union fishing vessel shall be placed in boxes , compartments or containers in such a way that they are identifiable from other boxes , compartments or containers .


### article 29e , the following subparagraph is added : ' where the fish referred to in point of the first subparagraph is subject to the landing obligation set out in article 15 of regulation [ xxxx ] , the condition laid down in that point shall be replaced by the condition that such fish is not targeted . unintended catches of such fish shall be landed and counted against quotas . ' ### article 29e , the following subparagraph is added : ' unintended catches of species subject as from 1 january 2015 to the landing obligation set out in article 15 of regulation 1380 / 2013 shall be landed and counted against quotas . however , targeted fishing for species not listed in point b ) shall be prohibited” ;


### the delegation of powers referred to in article 25a shall be conferred for an indeterminate period of time . ### the delegation of powers referred to in article 25a shall be conferred for a period of three years .


### a new technical measures framework is awaited pending the reform of the common fisheries policy . the unlikelihood that such a new framework will be in place by the start of 2015 when the landing obligation will be first introduced justifies the amendment or removal of certain elements of the current technical measures regulations to remove the incompatibility between these regulations and the landing obligation . ### certain elements of the current technical measures regulations should be amended or removed to remove the incompatibility between these regulations and the landing obligation .


### unintended catches of undersized marine organisms which are subject to the landing obligation set out in article 15 of regulation [ xxxx ] shall be retained on board , and landed . they shall not be sold , displayed or offered for sale for human consumption . ### unintended catches of undersized marine organisms which are subject as from 1 january 2015 to the landing obligation set out in article 15 of regulation no 1380 / 2013 , which is to say sardines , anchovies , mackerel and horse mackerel caught using pelagic gear , shall be retained on board , and landed . they shall not be sold , displayed or offered for sale for human consumption .


### “i ) unintended catches means incidental catches of marine organisms the fishing for which is prohibited in the relevant circumstances . ' ### “i ) unintended catches means incidental catches of marine organisms which , under article 15 of regulation no 1380 / 2013 of the european parliament and of the council1a , must be landed and counted against quotas either because they are smaller than the minimum conservation reference size or because they are caught in excess of the catch composition rules or of the available quotas . _____________ regulation no 1380 / 2013 of the european parliament and of the council of 11 december 2013 on the common fisheries policy , amending council regulations no 1954 / 2003 and no 1224 / 2009 and repealing council regulations no 2371 / 2002 and no 639 / 2004 and council decision 2004 / 585 / ec . ”


### council regulations no 850 / 98 , no 2187 / 2005 , no 1967 / 2006 , no 1098 / 2007 , no 254 / 2002 , no 2347 / 2002 and no 1224 / 2009 should therefore be amended accordingly . ### council regulations no 850 / 98 , no 2187 / 2005 , no 1967 / 2006 , no 1098 / 2007 , 1967 / 2006 , no 1098 / 2007 and no 1224 / 2009 should therefore be amended accordingly .


### as discards constitute a substantial waste and affect negatively the sustainable exploitation of marine biological resources and marine ecosystems and as a general observance of the landing obligation by operators is essential for its success a violation of the landing obligation should be defined as a serious infringement . the introduction of the landing obligation in combination with certain new inter - annual quota flexibility rules , requires adjustment of the rules on the deduction of quotas and effort . ### as discards constitute a substantial waste and affect negatively the sustainable exploitation of marine biological resources and marine ecosystems and as a general observance of the landing obligation by operators is essential for its success a violation of the landing obligation should be defined as a serious infringement . nevertheless , bearing in mind the fundamental change that this will involve for fisheries , a two - year adaptation period should be granted , during which infringements of the landing obligation are not considered to be serious infringements . the introduction of the landing obligation in combination with certain new inter - annual quota flexibility rules , requires adjustment of the rules on the deduction of quotas and effort .


### by way of derogation from point of the first subparagraph , the use or keeping on board of bottom set gillnets , entangling nets or trammel nets shall not be prohibited where the conditions established in that point cannot be complied with because of unintended catches of marine organisms subject to the landing obligation set out in article 15 of regulation [ xxxx ] . those unintended catches shall be landed and counted against quotas . ### by way of derogation from point of the first subparagraph , the catch composition rules set out in annexes vi to vii to this regulation shall not apply in the case of fisheries to which the landing obligation set out in article 15 of regulation no 1380 / 2013 applies as from 1 january 2015 .


### a progressive reduction of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy . this reduction should avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste . in addition , in order to ensure consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the landfill reduction target defined in article 5 of this directive and to ensure a coordinated planning of the infrastructures and investments needed to meet those targets , member states which may obtain additional time for the attainment of the municipal waste recycling targets should also be given additional time to attain the landfill reduction target for 2030 as laid down in this directive . ### a progressive reduction of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy as laid down in directive 2008 / 98 / ec . that progressive reduction of landfilling will bring a major change in waste management in many member states . with improved statistics on waste collection and treatment , it should be possible to avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste and will help to achieve a high quality of sorted material . in addition , in order to ensure consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the landfill reduction target defined in article 5 of this directive and to ensure a coordinated planning of the infrastructures and investments needed to meet those targets , member states which may obtain additional time for the attainment of the municipal waste recycling targets should also be given additional time to attain the landfill reduction target for 2030 as laid down in this directive . it is also necessary to ensure that there is coordinated planning in relation to shipments of waste within the union so that waste is treated in the most cost - efficient and sustainable way .


### a progressive reduction of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy . this reduction should avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste . in addition , in order to ensure consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the landfill reduction target defined in article 5 of this directive and to ensure a coordinated planning of the infrastructures and investments needed to meet those targets , member states which may obtain additional time for the attainment of the municipal waste recycling targets should also be given additional time to attain the landfill reduction target for 2030 as laid down in this directive . ### a progressive reduction of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy as laid down in directive 2008 / 98 / ec . that progressive reduction of landfilling will bring a major change in waste management in many member states . with improved statistics on waste collection and treatment , it should be possible to avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste and will contribute to achieve a high quality of sorted material . in addition , in order to ensure consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the landfill reduction target defined in article 5 of this directive and to ensure a coordinated planning of the infrastructures and investments needed to meet those targets , member states which may obtain additional time for the attainment of the municipal waste recycling targets should also be given additional time to attain the landfill reduction target for 2030 as laid down in this directive . it is also necessary to ensure that shipments of waste is treated in the most cost - efficient and sustainable way .


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness , especially infrastructure measures . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures , without adding to administrative burden or creating additional payment systems , which would undermine the efficiency of the efsi’s objectives , so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use .


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


### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib . the eiah shall have as its objective to build upon existing eib and commission advisory services in order to provide advisory support for investment project identification , preparation and development and act as a single technical advisory hub for project financing within the union . this shall include support on the use of technical assistance for project structuring , use of innovative financial instruments , use of public - private partnerships and advice , as appropriate , on relevant issues of eu legislation . ### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib , without , however , creating additional administrative burden or other systems . the eiah shall have as its objective to build upon existing eib and commission advisory services in order to provide advisory support for investment project identification , preparation and development and act as a single technical advisory hub for project financing within the union . this shall include support on the use of technical assistance for project structuring , use of innovative financial instruments , use of public - private partnerships and advice , as appropriate , on relevant issues of eu legislation .


### infrastructure projects in the environmental , natural resources , urban development and social fields ; ### infrastructure projects in the environmental , natural resources , urban and rural development and social fields ;


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


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib , with special priority being assigned to enterprises in rural areas , structurally weak and disadvantaged areas , mountainous areas and the outermost regions and islands , as well as to driving forward projects promoting territorial cohesion and interconnection in rural areas through the use of tools furthering broadband development or innovative measures of other kinds that enable the aforesaid areas to achieve greater profitability .


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on micro , small and medium enterprises , through the supply of risk bearing capacity to the eib .


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi . ### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . it is also necessary to build fully on the cap policy instruments which have already generated particular added value in many parts of the european union . the efsi must be fully aligned with the innovative financial instruments used in farm policy . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi .


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


### the commission and the eib , with support from the member states , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union . the pipeline is without prejudice to the final projects selected for support according to article 3 . ### the commission and the eib , with support from the member states , and in consultation with the regional authorities , the private sector and civil society , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union . the pipeline is without prejudice to the final projects selected for support according to article 3 .


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


### the purpose of the efsi should be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . it is intended that increased access to financing should be of particular benefit to small and medium enterprises . it is also appropriate to extend the benefit of such increased access to financing to mid - cap companies , which are companies having up to 3000 employees . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s economic , social and territorial cohesion . ### the purpose of the efsi should be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . it is intended that increased access to financing should be of particular benefit to small and medium enterprises , including family farms . it is also appropriate to extend the benefit of such increased access to financing to mid - cap companies , which are companies having up to 3000 employees . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s economic , social and territorial cohesion .


### infrastructure projects in the environmental , natural resources , urban development and social fields ; ### infrastructure projects in the environmental , agricultural , natural resources , rural and urban development and social fields ;


### development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; ### development of infrastructure , including in the areas of transport , particularly in industrial and agricultural centres ; energy , in particular energy interconnections ; and digital infrastructure ;


### ’existing combustion plant’ means a combustion plant put into operation before [ 1 year after the date of transposition ] ; ### ’existing combustion plant’ means a combustion plant put into operation before [ 3 year after the date of transposition ] or for which a permit was granted before [ 2 years after the date of transposition ] pursuant to national legislation provided that the plant is put into operation no later than [ 3 years after the date of transposition ] ;


### in zones not complying with eu air quality limit values laid down in directive 2008 / 50 / ec , member states shall apply , for individual medium combustion plants in those zones , emission limit values based on the benchmark values laid down in annex iii or on stricter values established by the member states , unless it is demonstrated to the commission that applying such emission limit values would entail disproportionate costs and that other measures ensuring compliance with the air quality limit values have been included in the air quality plans required under article 23 of directive 2008 / 50 / ec . ### in zones not complying with eu air quality limit values laid down in directive 2008 / 50 / ec , member states may apply , for individual medium combustion plants in those zones , emission limit values based on the benchmark values laid down in annex iii or on stricter values established by the member states , unless applying such emission limit values would entail disproportionate costs and that other measures ensuring compliance with the air quality limit values have been included in the air quality plans required under article 23 of directive 2008 / 50 / ec .


### member states shall bring into force the laws , regulations and administrative provisions necessary to comply with this directive by [ date : 1 , 5 years after the entry into force ] at the latest . they shall forthwith communicate to the commission the text of those provisions . ### member states shall bring into force the laws , regulations and administrative provisions necessary to comply with this directive by [ date : 2 years after the entry into force ] at the latest . they shall forthwith communicate to the commission the text of those provisions .


### combustion plants which are covered by chapter iii or chapter iv of directive 2010 / 75 / eu ; ### combustion plants which are covered by directive 2010 / 75 / eu ;


### combustion plants in which the gaseus products of combustion are used for the direct heating , drying or any other treatment of objects or materials ; ### combustion plants in which the products of combustion are used for the direct heating , drying or any other treatment of objects or materials , e . g . melting furnaces , reheating furnaces , furnaces for heat treatment ;


### ‘ operating hours’ means the time , expressed in hours , during which a combustion plant is discharging emissions into the air ; ### ‘ operating hours’ means the time , expressed in hours , during which a combustion plant is operating and discharging emissions into the air , excluding start - up and shut - down periods ;


### energy related products which are covered by implementing measures adopted in accordance with directive 2009 / 125 / ec where those implementing acts are setting emission limit values for the pollutants listed in annex ii of this directive ; ### combustion plants which are covered by implementing measures adopted in accordance with directive 2009 / 125 / ec where those implementing acts are setting emission limit values for the pollutants listed in annex ii of this directive ;


### member states may exempt new medium combustion plants which do not operate more than 500 operating hours per year from compliance with the emission limit values set out in part 2 of annex ii . in that case , for plants firing solid fuels , an emission limit value for particulate matter of 100 mg / nm³ shall apply . ### member states may exempt new medium combustion plants which do not operate more than 1000 operating hours per year as a rolling average over a period of five years from compliance with the emission limit values set out in part 2 of annex ii . in that case , for plants firing solid fuels , an emission limit value for particulate matter of 100 mg / nm³ shall apply .


### a large proportion of road accidents occur on a small proportion of roads where traffic volumes and speeds are high and where there is a wide range of traffic travelling at different speeds . therefore the limited extension of the scope of directive 2008 / 96 / ec to motorways and primary roads beyond the ten - t network should contribute significantly to the improvement of road infrastructure safety across the union . ### a large proportion of road accidents occur on a small proportion of roads where traffic volumes and speeds are high and where there is a wide range of traffic travelling at different speeds . therefore the limited extension of the scope of directive 2008 / 96 / ec to all motorways beyond the ten - t network should contribute significantly to the improvement of road infrastructure safety across the union .


### the design and maintenance of road markings and road signs is an important element in ensuring road infrastructure safety , especially in light of the development of vehicles equipped with driver assistance systems or higher levels of automation . in particular , it is necessary to ensure that road markings and signs can be easily and reliably recognised by such vehicles . ### the design and maintenance of road markings and road signs is an important element in ensuring road infrastructure safety , especially in light of the development of vehicles equipped with driver assistance systems or higher levels of automation . in particular , it is necessary to ensure that road markings and signs can be easily and reliably recognised by such vehicles on all roads in europe .


### the commission shall develop general performance requirements to facilitate the recognition of road markings and road signs . for this purpose , the commission shall adopt an implementing act in accordance with the procedure referred to in article 13 . ### the commission shall develop general performance requirements to facilitate the recognition of road markings and road signs . in addition , the commission shall establish a central european register for all road signs and additional symbols used in the eu . for this purpose , the commission shall adopt an implementing act in accordance with the procedure referred to in article 13 .


### a range of union measures enhance member states’ ability to meet their climate commitments and are crucial to achieving necessary emission reductions in the sectors covered by this regulation . these include legislation on fluorinated greenhouse gases , co2 - reductions from road vehicles , energy performance of building , renewables , energy efficiency and the circular economy , as well as union funding instruments for climate - related investments . ### a range of union measures enhance member states’ ability to meet their climate commitments and are crucial to achieving necessary emission reductions in the sectors covered by this regulation . these include legislation on fluorinated greenhouse gases , co2 - reductions from road vehicles , promoting better energy performance including for buildings , renewables , energy efficiency and the promotion of the circular economy , as well as union funding instruments for climate - related investments .


### to the extent that a member state ' s emissions exceed its annual emission allocations for a given year , a quantity up to the sum of total net removals and total net emissions from the combined accounting categories of deforested land , afforested land , managed cropland and managed grassland referred to in article 2 of regulation [ ] [ lulucf ] may be taken into account for its compliance under article 9 of this regulation for that year , provided that : ### to the extent that a member state ' s emissions exceed its annual emission allocations for a given year , a quantity up to the sum of total net removals and total net emissions from the combined accounting categories of deforested land , afforested land , managed cropland , managed grassland , managed forest land and harvested wood products referred to in article 2 of regulation [ ] [ lulucf ] may be taken into account for its compliance under article 9 of this regulation for that year , provided that :


### this regulation should be reviewed as of 2024 and every 5 years thereafter in order to assess its overall functioning . the review should take into account evolving national circumstances and be informed by the results of the global stocktake of the paris agreement . ### this regulation should be reviewed as of 2024 and every 5 years thereafter , which is both in accordance with the compliance cycle of the lulucf and the international cycle under the paris agreement , in order to assess its overall functioning . the review should take into account evolving national circumstances and be informed by the results of the global stocktake of the paris agreement . with that in mind , any such review should take into account the potential economic consequences that may arise in the event of a member state exiting the union under article 50 of the treaty on european union .


### no later than twelve months before the end of the programme , the commission shall submit to the european parliament and the council an evaluation report on the achievement of the programme ' s objectives . that report shall appraise the overall relevance and added value of the programme , the effectiveness and efficiency of its execution and the overall and individual effectiveness of the beneficiaries ' performance in terms of achievements of the objectives set out in article 2 . ### no later than sixteen months before the end of the programme , the commission shall submit to the european parliament and the council an evaluation report on the achievement of the programme ' s objectives . that report shall appraise the overall relevance and added value of the programme , the effectiveness and efficiency of its execution , including quantitative indicators such as activities in member states , and the overall and individual effectiveness of the beneficiaries ' performance in terms of achievements of the objectives set out in article 2 . the report should assess the possible prolongation of the programme beyond 2020 taking into account that after this period the programme should be subject to an open call procedure to select the beneficiaries .


### in order to benefit from the programme , these beneficiaries shall remain non - governmental , non - profit - making legal entities , independent of industry , commerce or business . they shall have no other conflicting interests and represent through their members the interests of union consumers and other end - users in the field of financial services . the commission shall ensure continued compliance with these criteria for the duration of the programme by including them in the annual work programmes referred to in article 7 and by assessing annually whether the beneficiaries meet these criteria before awarding the action grants referred to in article 4 . ### in order to benefit from the programme , these beneficiaries shall remain non - governmental , non - profit - making legal entities , independent of industry , commerce or business . they shall have no other conflicting interests and represent through their members the interests of union consumers and other end - users in the field of financial services . their activities should aim to cover the interests of relevant consumers and end - users in as many member states as possible . the beneficiaries shall strive to ensure balanced geographical coverage within the union . the commission shall ensure continued compliance with these criteria for the duration of the programme by including them in the annual work programmes referred to in article 7 and by assessing annually whether the beneficiaries meet these criteria before awarding the action grants referred to in article 4 .


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


### there is currently no comprehensive framework at eu - level for the screening of foreign direct investments on the grounds of security or public order . ### there is currently no comprehensive framework and no measures in place at union level for the screening or restriction of foreign direct investments on the grounds of security or public order or on the grounds of being directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge , and being part of a state - led industrial policy strategy in support of strategic national interests .


### a mechanism which enables member states to cooperate and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states should be able to provide comments to a member state in which the investment is planned or has been completed , irrespective of whether the member states providing comments or the member states in which the investment is planned or has been completed maintain a screening mechanism or are screening the investment . the comments of member states should also be forwarded to the commission . the commission should also have the possibility , where appropriate , to issue an opinion to the member state in which the investment is planned or has been completed , irrespective of whether this member state maintains a screening mechanism or is screening the investment and irrespective of whether other member states have provided comments . ### a mechanism should be set up , which enables member states to cooperate , exchange information , share best practices and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states . member states should be able to provide an opinion to a member state in which the investment is planned or has been completed , irrespective of whether the member states providing opinion or the member states in which the investment is planned or has been completed maintain a screening mechanism or are screening the investment . the opinions of the member states should also be forwarded to the commission . the commission should also issue an opinion to the member state in which the investment is planned or has been completed , irrespective of whether this member state maintains a screening mechanism or is screening the investment and irrespective of whether other member states have provided an opinion .


### confidential information , including commercially - sensitive information , made available by foreign investors and undertaking concerned shall be protected . ### all confidential information , including commercially - sensitive information , price sensitive , strategic and personal information , made available by foreign investors to member states and the commission , in relation to an foreign direct investment screening , must be treated with the highest level and standards of protection and confidentially .


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission may issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed . ### where the commission or one or more member states consider that a foreign direct investment is likely to affect the security and public order of one or more than one member state , or projects or programmes of union interest on grounds of security or public order , or is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and to be part of a state - led industrial policy strategy in support of strategic national interests , the commission shall screen the investment .


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


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


### projects or programmes of union interest shall include in particular those projects and programmes which involve a substantial amount or a significant share of eu funding , or which are covered by union legislation regarding critical infrastructure , critical technologies or critical inputs . an indicative list of projects or programmes of union interest is included in annex 1 . ### projects or programmes of union interest shall include in particular those projects and programmes which involve eu funding , or which are covered by union legislation regarding critical infrastructure , defence , critical technologies or critical inputs . an indicative and non - exhaustive list of projects or programmes of union interest is included in annex 1 .


### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex . ### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex and shall be amended through the ordinary legislative procedure .


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission may issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed . ### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission shall issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed .


### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex . ### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs , security , strategic interest and competitiveness . this should include in particular projects and programmes involving eu funding or established by union legislation regarding critical infrastructure , defence , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment should be subject to a screening by the commission should be listed in an annex . this list should be promptly updated whenever new projects or programmes are established .


### member states may maintain , amend or adopt measures necessary to prevent circumvention of the screening mechanisms and screening decisions . ### member states shall maintain , amend or adopt measures necessary to prevent circumvention of the screening mechanisms and screening decisions .


### foreign investors and undertakings concerned shall have the possibility to seek judicial redress against screening decisions of the national authorities . ### foreign investors and undertakings concerned shall have the possibility to seek judicial redress against screening decisions of the national authorities , unless such action is considered contrary to the essential security interests of the member state .


### the member states where the foreign direct investment is planned or has been completed shall take utmost account of the commission ' s opinion and provide an explanation to the commission in case its opinion is not followed . ### in case a member state and the commissions screen the same foreign investment and they come to different conclusions , the foreign direct investment shall be restricted if either the member state or the commission or both so decide .


### the commission may screen foreign direct investments that are likely to affect projects or programmes of union interest on the grounds of security or public order . ### the commission shall screen foreign direct investments that are considered to affect projects or programmes of union interest on the grounds of security or public order


### factors that may be taken into consideration in the screening ### factors that shall be taken into consideration in the screening


### the funding of the investment , on the basis of information available to the member state . ### the funding of the investment , on the basis of all information available to the member state .


### the commission shall evaluate and present to the european parliament and the council a report on the application of this regulation no later than 3 years after its entry into force . member states shall be involved in this exercise and shall provide the commission with necessary information for the preparation of that report . ### the commission shall evaluate and present to the european parliament and the council a report on the application of this regulation no later than . . . [ 4 years after the entry into force of this regulation ] , and every 5 years thereafter . member states shall be involved in this exercise and shall provide the commission with necessary information for the preparation of that report .


### to that end , it is also important to ensure a minimum level of information and coordination with regard to foreign direct investments falling under the scope of this regulation in all member states . this information should be made available by the member states in which the foreign direct investment is planned or has been completed upon request of the member states or of the commission . relevant information includes aspects such as the ownership structure of the foreign investor and the financing of the planned or completed investment , including , when available , information about subsides granted by third countries . ### to that end , it is also important to ensure a sufficient level of information and coordination with regard to foreign direct investments falling under the scope of this regulation in all member states . all this information should be made available by the member states in which the foreign direct investment is planned or has been completed upon request of the member states or of the commission . relevant information includes aspects such as the ownership structure of the foreign investor and the financing of the planned or completed investment , including , when available , information about subsides granted by third countries . sensitive information should be excluded from the reporting scope and the commission should in no way interfere with the right of each member state to protect sensitive or confidential information .


### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies , and inputs which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . in that regard , member states and the commission should also be able to take into account whether a foreign investor is controlled directly or indirectly by the government of a third country . ### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies and knowledge , and inputs which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . it should also be possible for the commission to screen investment which is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and to be part of a state - led industrial policy strategy in support of strategic national interests . in that regard , member states and the commission should also be able to take into account whether a foreign investor is controlled directly or indirectly by the government of a third country .


### comments pursuant to paragraphs 2 or opinions pursuant to paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 . in cases where the opinion of the commission follows comments from other member states , the commission shall have 25 additional working days for issuing the opinion . ### indications pursuant to paragraphs 2 or paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed and to the commission within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 .


### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex . ### furthermore , the commission should screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes , which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex . that list should be updated regularly through delegated acts on the basis of consultations between the european parliament , the council and the commission within the framework of the interinstitutional agreement of 13 april 2016 on better law - making .


### in determining whether a foreign direct investment is likely to affect security or public order , member states and the commission may take into account whether the foreign investor is controlled by the government of a third country , including through significant funding . ### in determining whether a foreign direct investment is likely to affect security or public order , member states and the commission shall take into account whether the foreign investor is controlled by the government , directly or indirectly , of a third country , including through significant funding , especially if that government does not fully respect international human rights law , international humanitarian law and is not complying with relevant international arms control norms such as the arms trade treaty , whether opaque ownership structures are used where the ultimate owner is not clear , or if common market rules are contravened . the commission or member states may assess positively geopolitical factors , such as whether the undertaking is based in a nato country .


### ' foreign direct investment ' means investments of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and the entrepreneur to whom or the undertaking to which the capital is made available in order to carry on an economic activity in a member state , including investments which enable effective participation in the management or control of a company carrying out an economic activity ; ### ' foreign direct investment ' means investments of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and the entrepreneur to whom or the undertaking to which the capital is made available in order to carry on an economic activity in the territory of a member state or in its exclusive economic zone declared pursuant to the united nations convention on the law of the sea , including investments which enable effective participation in the management or control of a company carrying out an economic activity ;


### pursuant to the international commitments undertaken in the world trade organisation , the organisation for economic cooperation and development , and in the trade and investment agreements concluded with third countries , the union and members states may adopt restrictive measures relating to foreign direct investment on the grounds of security or public order , subject to certain requirements . ### pursuant to the international commitments undertaken in the world trade organisation , the organisation for economic cooperation and development , and in the trade and investment agreements concluded with third countries , the union and members states may adopt restrictive measures relating to foreign direct investment only on the grounds of security or public order , subject to certain requirements .


### confidential information , including commercially - sensitive information , made available by foreign investors and undertaking concerned shall be protected . ### all confidential information , including commercially - sensitive information , price sensitive , strategic and personal information , made available by foreign investors to member states and the commission , in relation to an foreign direct investment screening , must be treated with the highest level and standards of protection and confidentially .


### the framework for the screening of foreign direct investment should provide the member states and the commission with the means to address risks to security or public order in a comprehensive manner , and to adapt to changing circumstances , whilst maintaining the necessary flexibility for member states to screen foreign direct investments on grounds of security and public order taking into account their individual situations and national circumstances . ### the framework for the screening of foreign direct investment should provide the member states and the commission with a legal and financial framework to address risks to security or public order in a comprehensive manner , and to adapt to changing circumstances , whilst maintaining the necessary flexibility for member states to screen foreign direct investments on grounds of security and public order taking into account their individual situations and national circumstances .


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


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission should have the possibility to address an opinion to the member states in which such investment is planned or completed within a reasonable timeframe . the member states should take utmost account of the opinion and provide an explanation to the commission if they do not follow this opinion , in compliance with their duty of sincere cooperation under article 4 teu . the commission should also have the possibility to request from those member states the information necessary for its screening of such investment . ### where the commission or more than one member state considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission should address an opinion to the member states in which such investment is planned or completed within a reasonable timeframe . the member states should take account of the opinion and provide an explanation to the commission if they diverge from the opinion , in compliance with their duty of sincere cooperation under article 4 teu . the commission should also have the possibility to request from those member states the information necessary for its screening of such investment .


### member states and the commission shall ensure the protection of confidential information acquired in application of this regulation . ### member states and the commission shall ensure the highest levels and standards of protection of confidential information , including commercially - sensitive information , price sensitive , strategic and personal information , acquired in application of this regulation .


### comments pursuant to paragraphs 2 or opinions pursuant to paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 . in cases where the opinion of the commission follows comments from other member states , the commission shall have 25 additional working days for issuing the opinion . ### the opinions drawn up pursuant to paragraphs 2 or opinions pursuant to paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 . in cases where the opinion of the commission follows the opinions from other member states , the commission shall have 10 additional working days for issuing the opinion .


### member states may maintain , amend or adopt mechanisms to screen foreign direct investments on the grounds of security or public order , under the conditions and in accordance with the terms set out in this regulation . ### member states shall maintain , amend or adopt mechanisms to screen foreign direct investments on their own territory . screening may be undertaken if necessary to protect security or to maintain public order and shall be done in particular on the basis of the terms set out in this regulation .


### the commission shall address its opinion to the member state concerned within a reasonable period of time , and in any case no later than 25 working days following receipt of the information requested by the commission pursuant to paragraph 2 . where a member state has a screening mechanism in place as referred to in article 3 and the information on foreign direct investment undergoing screening has been received by the commission pursuant to article 8 , the opinion shall be delivered no later than 25 working days following receipt of such information . where additional information is needed to issue an opinion , the 25 - day period shall run from the date of receipt of the additional information . ### the commission shall address its opinion to the member state concerned within a reasonable period of time , and in any case no later than 25 working days following receipt of the information requested by the commission pursuant to paragraph 2 . where a member state has a screening mechanism in place as referred to in article 3 and the information on foreign direct investment undergoing screening has been received by the commission pursuant to article 8 , the opinion shall be delivered no later than 25 working days following receipt of such information . where additional information is needed to issue an opinion or a member state has issued an opinion , the 10 - day period shall run from the date of receipt of the additional information .


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission may issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed . ### where the commission or one or more member states consider that a foreign direct investment is likely to affect the security and public order of one or more than one member state , or projects or programmes of union interest on grounds of security or public order , or is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and to be part of a state - led industrial policy strategy in support of strategic national interests , the commission shall screen the investment .


### member states shall establish timeframes for issuing screening decisions . such timeframes shall allow them to take into account the comments of member states referred to in article 8 and the opinion of the commission referred to in articles 8 and 9 . ### member states shall establish timeframes for issuing screening decisions . such timeframes shall allow them to take into account the comments of member states and the commission referred to in article 8 .


### it is important to provide legal certainty and to ensure eu wide coordination and cooperation by establishing a framework for the screening of foreign direct investment in the union on grounds of security or public order . this is without prejudice to the sole responsibility of the member states for the maintenance of national security . ### it is important to provide legal certainty and to ensure eu wide coordination and cooperation by establishing a framework for the screening of foreign direct investment in the union on grounds of security or public order . this is without prejudice to the sole responsibility of the member states for the maintenance of national security . the current legal framework must be bolstered in the light of changes in practices relating to direct foreign investment and in screening systems around the world .


### - critical infrastructure , including energy , transport , communications , data storage , space or financial infrastructure , as well as sensitive facilities ; ### - critical infrastructure , including energy , transport networks and services , port , rail , airport , aerospace and space infrastructure , media and communications networks and services , data storage , large - scale data analysis , space or financial infrastructure , as well as sensitive facilities ;


### the commission or a member state which duly considers that a foreign direct investment is likely to affect its security or public order may request from the member state where the foreign direct investment is planned or has been completed , any information necessary to provide comments referred to in paragraph 2 , or to issue the opinion referred to in paragraph 3 . ### the commission or a member state which duly considers that a foreign direct investment is likely to affect its security or public order or that it is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and be part of a state - led industrial policy strategy in support of strategic national interests may request from the member state where the foreign direct investment is planned or has been completed , the investor or the target company any information necessary to take an informed decision , while paying utmost attention to the potential sensitivity of the information .


### the commission may screen foreign direct investments that are likely to affect projects or programmes of union interest on the grounds of security or public order . ### the commission may screen foreign direct investments that are likely to : a ) affect the security or public order of one or more than one member state or the union as a whole ; b ) affect projects or programmes of union interest on the grounds of the security or public order of one or more member states or the union as a whole ; c ) be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and to be part of a state - led industrial policy strategy in support of strategic national interests .


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


### to guide member states and the commission in the application of the regulation , it is appropriate to provide a list of factors that may be taken into consideration when screening foreign direct investment on the grounds of security or public order . this list will also improve transparency of the screening process for investors considering making or having made foreign direct investments in the union . this list of factors that may affect security or public order should remain non - exhaustive . ### to guide member states and the commission in the application of the regulation , it is appropriate to provide a list of factors that should be taken into consideration when screening foreign direct investment on the grounds of security or public order . this list will also improve transparency of the screening process for investors considering making or having made foreign direct investments in the union . this list of factors that may affect security or public order should remain non - exhaustive . when screening foreign direct investment , member states and the commission should also consider whether similar possibilities for investment exist for european investors in the third countries concerned thus respecting the principle of reciprocity .


### ' foreign direct investment ' means investments of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and the entrepreneur to whom or the undertaking to which the capital is made available in order to carry on an economic activity in a member state , including investments which enable effective participation in the management or control of a company carrying out an economic activity ; ### ' foreign direct investment ' means investments of any kind by a foreign investor aiming to establish or to maintain , lasting , direct or indirect&#160 ; links between the foreign investor and the entrepreneur to whom or the undertaking to which the capital is made available in order to carry on an economic activity in a member state , including investments which enable effective participation in the management or control of a company carrying out an economic activity ;


### comments pursuant to paragraphs 2 or opinions pursuant to paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 . in cases where the opinion of the commission follows comments from other member states , the commission shall have 25 additional working days for issuing the opinion . ### indications pursuant to paragraphs 2 or paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed and to the commission within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 .


### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex . ### furthermore , the commission should screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission and member states a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , a list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex .


### the framework for the screening of foreign direct investment should provide the member states and the commission with the means to address risks to security or public order in a comprehensive manner , and to adapt to changing circumstances , whilst maintaining the necessary flexibility for member states to screen foreign direct investments on grounds of security and public order taking into account their individual situations and national circumstances . ### the framework for the screening of foreign direct investment should provide the member states and the commission with the means to address risks to security or public order in a comprehensive manner , and to adapt to changing circumstances in global trade , whilst fully safeguarding the prerogatives of the member states to screen foreign direct investments on grounds of security and public order , including , among others , strategic interests , enabling key technologies , strategic assets , strategic and sensitive data , etc . , and taking into account their individual situations and national circumstances . the framework should also facilitate the member states without a screening mechanism adopting one .


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission should have the possibility to address an opinion to the member states in which such investment is planned or completed within a reasonable timeframe . the member states should take utmost account of the opinion and provide an explanation to the commission if they do not follow this opinion , in compliance with their duty of sincere cooperation under article 4 teu . the commission should also have the possibility to request from those member states the information necessary for its screening of such investment . ### where the commission or one or more member states considers that a foreign direct investment is likely to affect the security and public order of one or more member states , or projects or programmes of union interest on grounds of security or public order , or is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and to be part of a state - led industrial policy strategy in support of strategic national interests , the commission should have the possibility to screen and restrict the foreign direct investment . the commission shall take utmost account of the opinion of the member states concerned and provide an explanation to the member state if they do not follow this opinion , in compliance with their duty of sincere cooperation under article 4 teu . the commission should also have the possibility to request from those member states , the investor and the targeted company as well as the information necessary for its screening of such investment .


### - critical infrastructure , including energy , transport , communications , data storage , space or financial infrastructure , as well as sensitive facilities ; ### - critical infrastructure , including energy , transport networks and services , communications , port , rail , airport , aerospace and space infrastructure , shipyards , data storage , large - scale data analysis centres , financial infrastructure , betting services as well as sensitive facilities ;


### no later than three years after the entry into force of this regulation , the commission should present to the european parliament and the council a report on the application of this regulation . where the report proposes modifying the provisions of this regulation , it may be accompanied , where appropriate , by a legislative proposal . ### no later than three years after the entry into force of this regulation , the commission should present to the european parliament and the council a detailed report on the application of this regulation . where the report proposes modifying the provisions of this regulation , it may be accompanied , where appropriate , by a legislative proposal .


### member states and the commission should take all necessary measures to ensure the protection of confidential and other sensitive information . ### member states and the commission should take all necessary measures to ensure the protection of confidential and other sensitive information , particularly where the security and integrity of a member state are concerned .


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