### to ensure that the creditors do not suffer detriment , the stay should not be granted or , if granted , should not be prolonged or should be lifted when creditors are unfairly prejudiced by the stay of enforcement . in establishing whether there is unfair prejudice to creditors , judicial or administrative authorities may take into account whether the stay would preserve the overall value of the estate , whether the debtor acts in bad faith or with the intention of causing prejudice or generally acts against the legitimate expectations of the general body of creditors . a single creditor or a class of creditors would be unfairly prejudiced by the stay if for example their claims would be made substantially worse - off as a result of the stay than if the stay was not granted , or if the creditor is put more at a disadvantage than other creditors in a similar position . ### to ensure that the creditors do not suffer detriment , every creditor should have the right to apply for the stay of enforcement to be withdrawn or lifted if it unfairly prejudices that creditor . in establishing whether there is unfair prejudice to the creditor , judicial or administrative authorities may take into account whether the stay would preserve the overall value of the estate , whether the debtor acts in bad faith or with the intention of causing prejudice or generally acts against the legitimate expectations of the general body of creditors . a single creditor or a class of creditors would be unfairly prejudiced by the stay if for example their claims would be made substantially worse - off as a result of the stay than if the stay was not granted , or if the creditor is put more at a disadvantage than other creditors in a similar position .


### while a restructuring plan should always be deemed adopted if the required majority in each affected class supports the plan , a restructuring plan which is not supported by the required majority in each affected class may still be confirmed by a judicial or administrative authority provided that it is supported by at least one affected class of creditors and that dissenting classes are not unfairly prejudiced under the proposed plan . in particular , the plan should abide by the absolute priority rule which ensures that a dissenting class of creditors is paid in full before a more junior class can receive any distribution or keep any interest under the restructuring plan . the absolute priority rule serves as a basis for the value to be allocated among the creditors in restructuring . as a corollary to the absolute priority rule , no class of creditors can receive or keep under the restructuring plan economic values or benefits exceeding the full amount of the claims or interests of such class . the absolute priority rule makes it possible to determine , when compared to the capital structure of the enterprise under restructuring , the value allocation that parties are to receive under the restructuring plan on the basis of the value of the enterprise as a going concern . ### while a restructuring plan should always be deemed adopted if the required majority in each affected class supports the plan , a restructuring plan which is not supported by the required majority in each affected class may still be confirmed by a judicial or administrative authority provided that it is supported by the majority of affected classes of creditors and that dissenting classes are not unfairly prejudiced under the proposed plan . in particular , the plan should abide by the absolute priority rule which ensures that a dissenting class of creditors is paid in full before a more junior class can receive any distribution or keep any interest under the restructuring plan . the absolute priority rule serves as a basis for the value to be allocated among the creditors in restructuring . as a corollary to the absolute priority rule , no class of creditors can receive or keep under the restructuring plan economic values or benefits exceeding the full amount of the claims or interests of such class . the absolute priority rule makes it possible to determine , when compared to the capital structure of the enterprise under restructuring , the value allocation that parties are to receive under the restructuring plan on the basis of the value of the enterprise as a going concern . for creditors , compliance with the absolute priority rule is guaranteed by the involvement of the judicial or administrative authority . member states may decide to vary the minimum number of affected classes necessary for approval of the restructuring plan , as long as the minimum number represents the majority of the classes .


### while a restructuring plan should always be deemed adopted if the required majority in each affected class supports the plan , a restructuring plan which is not supported by the required majority in each affected class may still be confirmed by a judicial or administrative authority provided that it is supported by at least one affected class of creditors and that dissenting classes are not unfairly prejudiced under the proposed plan . in particular , the plan should abide by the absolute priority rule which ensures that a dissenting class of creditors is paid in full before a more junior class can receive any distribution or keep any interest under the restructuring plan . the absolute priority rule serves as a basis for the value to be allocated among the creditors in restructuring . as a corollary to the absolute priority rule , no class of creditors can receive or keep under the restructuring plan economic values or benefits exceeding the full amount of the claims or interests of such class . the absolute priority rule makes it possible to determine , when compared to the capital structure of the enterprise under restructuring , the value allocation that parties are to receive under the restructuring plan on the basis of the value of the enterprise as a going concern . ### while a restructuring plan should always be deemed adopted if the required majority in each affected class supports the plan , a restructuring plan which is not supported by the required majority in each affected class may still be confirmed by a judicial or administrative authority provided that it is supported by at least one affected class of creditors , representing a majority of the claims , and that dissenting classes are not unfairly prejudiced under the proposed plan . in particular , the plan should abide by the absolute priority rule which ensures that a dissenting class of creditors is paid in full before a more junior class can receive any distribution or keep any interest under the restructuring plan . the absolute priority rule serves as a basis for the value to be allocated among the creditors in restructuring . as a corollary to the absolute priority rule , no class of creditors can receive or keep under the restructuring plan economic values or benefits exceeding the full amount of the claims or interests of such class . the absolute priority rule makes it possible to determine , when compared to the capital structure of the enterprise under restructuring , the value allocation that parties are to receive under the restructuring plan on the basis of the value of the enterprise as a going concern .


### throughout the preventive restructuring procedures , workers should enjoy full labour law protection . in particular , this directive is without prejudice to workers ' rights guaranteed by council directive 98 / 59 / ec68 , council directive 2001 / 23 / ec69 , directive 2002 / 14ec of the european parliament and of the council70 , directive 2008 / 94 / ec of the european parliament and of the council71 and directive 2009 / 38 / ec of the european parliament and of the council72 . the obligations concerning the information and consultation of workers under national law implementing the above - mentioned directives remain fully intact . this includes obligations to inform and consult workers ' representatives on the decision to have recourse to a preventive restructuring framework in accordance with directive 2002 / 14 / ec . given the need to ensure an appropriate level of protection of workers , member states should in principle exempt workers ' outstanding claims , as defined in directive 2008 / 94 / ec , from any stay of enforcement irrespective of the question whether these claims arise before or after the stay is granted . such a stay should be permissible only for the amounts and for the period that the payment of such claims is effectively guaranteed by other means under national law . where member states extend the cover of the guarantee of payment of workers ' outstanding claims established by directive 2008 / 94 / ec to preventive restructuring procedures set up by this directive , the exemption of workers ' claims from the stay of enforcement is no longer justified to the extent covered by that guarantee . where under national law there are limitations to the liability of guarantee institutions , either in terms of the length of the guarantee or the amount paid to workers , workers should be able to enforce their claims for any shortfall against the employer even during the stay of enforcement period . _________________ 68 council directive 98 / 59 / ec of 20 july 1998 on the approximation of the laws of the member states relating to collective redundancies , oj l 225 , 12 . 08 . 1998 , p . 16 . 69 council directive 2001 / 23 / ec of 12 march 2001 on the approximation of the laws of the member states relating to the safeguarding of employees ' rights in the event of transfers of undertakings , businesses or parts of undertakings or businesses , oj l 82 , 22 . 03 . 2001 , p . 16 . 70 directive 2002 / 14 / ec of the european parliament and of the council of 11 march 2002 establishing a general framework for informing and consulting employees in the european community , oj l 80 , 23 . 3 . 2002 , p . 29 . 71 directive 2008 / 94 / ec of the european parliament and of the council of 22 october 2008 on the protection of employees in the event of the insolvency of their employer , oj l 283 , 28 . 10 . 2008 , p . 36 . 72 directive 2009 / 38 / ec of the european parliament and of the council of 6 may 2009 on the establishment of a european works council or a procedure in community - scale undertakings and community - scale groups of undertakings for the purpose of informing and consulting employees , oj l 122 , 16 . 5 . 2009 , p . 28 . ### workers should enjoy full labour law protection throughout preventive restructuring procedures and their rights to information should in no way be restricted . in particular , this directive is without prejudice to workers ' rights guaranteed by council directive 98 / 59 / ec68 , council directive 2001 / 23 / ec69 , directive 2002 / 14ec of the european parliament and of the council70 , directive 2008 / 94 / ec of the european parliament and of the council71 and directive 2009 / 38 / ec of the european parliament and of the council72 . the obligations concerning the information and consultation of workers under national law implementing the above - mentioned directives remain fully intact . this includes obligations to inform and consult workers ' representatives on the decision to have recourse to a preventive restructuring framework in accordance with directive 2002 / 14 / ec . given the need to ensure an appropriate level of protection of workers , member states should in principle exempt workers ' outstanding claims , as defined in directive 2008 / 94 / ec , from any stay of enforcement irrespective of the question whether these claims arise before or after the stay is granted . such a stay should be permissible only for the amounts and for the period that the payment of such claims is effectively guaranteed by other means under national law . where member states extend the cover of the guarantee of payment of workers ' outstanding claims established by directive 2008 / 94 / ec to preventive restructuring procedures set up by this directive , the exemption of workers ' claims from the stay of enforcement is no longer justified to the extent covered by that guarantee . where under national law there are limitations to the liability of guarantee institutions , either in terms of the length of the guarantee or the amount paid to workers , workers should be able to enforce their claims for any shortfall against the employer even during the stay of enforcement period . _________________ 68 council directive 98 / 59 / ec of 20 july 1998 on the approximation of the laws of the member states relating to collective redundancies , oj l 225 , 12 . 08 . 1998 , p . 16 . 69 council directive 2001 / 23 / ec of 12 march 2001 on the approximation of the laws of the member states relating to the safeguarding of employees ' rights in the event of transfers of undertakings , businesses or parts of undertakings or businesses , oj l 82 , 22 . 03 . 2001 , p . 16 . 70 directive 2002 / 14 / ec of the european parliament and of the council of 11 march 2002 establishing a general framework for informing and consulting employees in the european community , oj l 80 , 23 . 3 . 2002 , p . 29 . 71 directive 2008 / 94 / ec of the european parliament and of the council of 22 october 2008 on the protection of employees in the event of the insolvency of their employer , oj l 283 , 28 . 10 . 2008 , p . 36 . 72 directive 2009 / 38 / ec of the european parliament and of the council of 6 may 2009 on the establishment of a european works council or a procedure in community - scale undertakings and community - scale groups of undertakings for the purpose of informing and consulting employees , oj l 122 , 16 . 5 . 2009 , p . 28 .


### throughout the preventive restructuring procedures , workers should enjoy full labour law protection . in particular , this directive is without prejudice to workers ' rights guaranteed by council directive 98 / 59 / ec68 , council directive 2001 / 23 / ec69 , directive 2002 / 14ec of the european parliament and of the council70 , directive 2008 / 94 / ec of the european parliament and of the council71 and directive 2009 / 38 / ec of the european parliament and of the council72 . the obligations concerning the information and consultation of workers under national law implementing the above - mentioned directives remain fully intact . this includes obligations to inform and consult workers ' representatives on the decision to have recourse to a preventive restructuring framework in accordance with directive 2002 / 14 / ec . given the need to ensure an appropriate level of protection of workers , member states should in principle exempt workers ' outstanding claims , as defined in directive 2008 / 94 / ec , from any stay of enforcement irrespective of the question whether these claims arise before or after the stay is granted . such a stay should be permissible only for the amounts and for the period that the payment of such claims is effectively guaranteed by other means under national law . where member states extend the cover of the guarantee of payment of workers ' outstanding claims established by directive 2008 / 94 / ec to preventive restructuring procedures set up by this directive , the exemption of workers ' claims from the stay of enforcement is no longer justified to the extent covered by that guarantee . where under national law there are limitations to the liability of guarantee institutions , either in terms of the length of the guarantee or the amount paid to workers , workers should be able to enforce their claims for any shortfall against the employer even during the stay of enforcement period . _________________ 68 council directive 98 / 59 / ec of 20 july 1998 on the approximation of the laws of the member states relating to collective redundancies , oj l 225 , 12 . 08 . 1998 , p . 16 . 69 council directive 2001 / 23 / ec of 12 march 2001 on the approximation of the laws of the member states relating to the safeguarding of employees ' rights in the event of transfers of undertakings , businesses or parts of undertakings or businesses , oj l 82 , 22 . 03 . 2001 , p . 16 . 70 directive 2002 / 14 / ec of the european parliament and of the council of 11 march 2002 establishing a general framework for informing and consulting employees in the european community , oj l 80 , 23 . 3 . 2002 , p . 29 . 71 directive 2008 / 94 / ec of the european parliament and of the council of 22 october 2008 on the protection of employees in the event of the insolvency of their employer , oj l 283 , 28 . 10 . 2008 , p . 36 . 72 directive 2009 / 38 / ec of the european parliament and of the council of 6 may 2009 on the establishment of a european works council or a procedure in community - scale undertakings and community - scale groups of undertakings for the purpose of informing and consulting employees , oj l 122 , 16 . 5 . 2009 , p . 28 . ### throughout the preventive restructuring procedures , workers should enjoy full labour law protection . in particular , this directive is without prejudice to workers ' rights guaranteed by council directive 98 / 59 / ec68 , council directive 2001 / 23 / ec69 , directive 2002 / 14ec of the european parliament and of the council70 , directive 2008 / 94 / ec of the european parliament and of the council71 and directive 2009 / 38 / ec of the european parliament and of the council72 . the obligations concerning the information and consultation of workers under national law implementing the above - mentioned directives remain fully intact . this includes obligations to inform and consult workers ' representatives on the decision to have recourse to a preventive restructuring framework in accordance with directive 2002 / 14 / ec . given the need to ensure a high level of protection of workers , member states should in principle exempt workers ' outstanding claims , as defined in directive 2008 / 94 / ec , from any stay of enforcement irrespective of the question whether these claims arise before or after the stay is granted . such a stay should be permissible only for the amounts and for the period that the payment of such claims is effectively guaranteed by other means under national law . where member states extend the cover of the guarantee of payment of workers ' outstanding claims established by directive 2008 / 94 / ec to preventive restructuring procedures set up by this directive , the exemption of workers ' claims from the stay of enforcement is no longer justified to the extent covered by that guarantee . where under national law there are limitations to the liability of guarantee institutions , either in terms of the length of the guarantee or the amount paid to workers , workers should have the right to enforce their claims for any shortfall against the employer even during the stay of enforcement period . _________________ 68 council directive 98 / 59 / ec of 20 july 1998 on the approximation of the laws of the member states relating to collective redundancies , oj l 225 , 12 . 08 . 1998 , p . 16 . 69 council directive 2001 / 23 / ec of 12 march 2001 on the approximation of the laws of the member states relating to the safeguarding of employees ' rights in the event of transfers of undertakings , businesses or parts of undertakings or businesses , oj l 82 , 22 . 03 . 2001 , p . 16 . 70 directive 2002 / 14 / ec of the european parliament and of the council of 11 march 2002 establishing a general framework for informing and consulting employees in the european community , oj l 80 , 23 . 3 . 2002 , p . 29 . 71 directive 2008 / 94 / ec of the european parliament and of the council of 22 october 2008 on the protection of employees in the event of the insolvency of their employer , oj l 283 , 28 . 10 . 2008 , p . 36 . 72 directive 2009 / 38 / ec of the european parliament and of the council of 6 may 2009 on the establishment of a european works council or a procedure in community - scale undertakings and community - scale groups of undertakings for the purpose of informing and consulting employees , oj l 122 , 16 . 5 . 2009 , p . 28 .


### it is necessary to maintain and enhance the transparency and predictability of the procedures in delivering outcomes that are favourable for the preservation of businesses and for giving entrepreneurs a second chance or that permit the efficient liquidation of non - viable enterprises . it is also necessary to reduce the excessive length of insolvency procedures in many member states , which results in legal uncertainty for creditors and investors and low recovery rates . finally , given the enhanced cooperation mechanisms between courts and practitioners in cross - border cases set up by regulation 2015 / 848 , the professionalism of all actors involved needs to be brought to comparable high levels across the union . to achieve these objectives , member states should ensure that members of the judicial and administrative bodies are properly trained and have specialised knowledge and experience in insolvency matters . such specialisation of members of the judiciary should allow making decisions with potentially significant economic and social impacts within a short period of time and should not mean that members of the judiciary have to deal exclusively with restructuring , insolvency and second chance matters . for example , the creation of specialised courts or chambers in accordance with national law governing the organisation of the judicial system could be an efficient way of achieving these objectives . ### specialised insolvency practitioners and judges and the availability of digital tools can greatly help reduce the length of proceedings , lower costs and improve the quality of assistance or supervision . it is necessary to maintain and enhance the transparency and predictability of the procedures in delivering outcomes that are favourable for the preservation of businesses and for giving honest entrepreneurs a second chance or that permit the prompt and efficient liquidation of non - viable enterprises . it is also necessary to reduce the excessive length of insolvency procedures in many member states , which results in legal uncertainty for creditors and investors and low recovery rates . it is also necessary to integrate digital communication tools into insolvency procedures to reduce the excessive duration thereof . finally , given the enhanced cooperation mechanisms between courts and practitioners in cross - border cases set up by regulation 2015 / 848 , the professionalism and specialisation of all actors involved needs to be brought to comparable high levels across the union . to achieve these objectives , member states should ensure that members of the judicial and administrative bodies are properly trained and have specialised knowledge and experience in insolvency matters . such specialisation of members of the judiciary should allow making decisions with potentially significant economic and social impacts within a short period of time and should not mean that members of the judiciary have to deal exclusively with restructuring , insolvency and second chance matters . for example , the creation of specialised courts or chambers in accordance with national law governing the organisation of the judicial system could be an efficient way of achieving these objectives .


### member states should also ensure that the practitioners in the field of restructuring , insolvency and second chance which are appointed by judicial or administrative authorities are properly trained and supervised in the carrying out of their tasks , that they are appointed in a transparent manner with due regard to the need to ensure efficient procedures and that they perform their tasks with integrity . practitioners should also adhere to voluntary codes of conduct aiming at ensuring an appropriate level of qualification and training , transparency of the duties of such practitioners and the rules for determining their remuneration , the taking up of professional indemnity insurance cover and the establishment of oversight and regulatory mechanisms which should include an appropriate and effective regime for sanctioning those who have failed in their duties . such standards may be attained without the need in principle to create new professions or qualifications . ### member states should also ensure that the practitioners in the field of restructuring , insolvency and second chance which are appointed by judicial or administrative authorities are properly trained and supervised in the carrying out of their tasks , that they are appointed in a transparent manner with due regard to the need to ensure efficient procedures and that they perform their tasks with integrity . practitioners should also adhere to voluntary codes of conduct aiming at ensuring an appropriate level of qualification and training , transparency of the duties of such practitioners and the rules for determining their remuneration , the taking up of professional indemnity insurance cover and the establishment of oversight and regulatory mechanisms which should include an appropriate and effective regime for sanctioning those who have failed in their duties . such standards may be attained without the need in principle to create new professions or qualifications . member states should ensure that information about the administrative authorities exercising supervision or control over practitioners in the field of restructuring , insolvency and second chance is publicly available .


### member states should also ensure that the practitioners in the field of restructuring , insolvency and second chance which are appointed by judicial or administrative authorities are properly trained and supervised in the carrying out of their tasks , that they are appointed in a transparent manner with due regard to the need to ensure efficient procedures and that they perform their tasks with integrity . practitioners should also adhere to voluntary codes of conduct aiming at ensuring an appropriate level of qualification and training , transparency of the duties of such practitioners and the rules for determining their remuneration , the taking up of professional indemnity insurance cover and the establishment of oversight and regulatory mechanisms which should include an appropriate and effective regime for sanctioning those who have failed in their duties . such standards may be attained without the need in principle to create new professions or qualifications . ### member states should also ensure that the practitioners in the field of restructuring , insolvency and second chance which are appointed by judicial or administrative authorities have sufficient expertise and are properly supervised in the carrying out of their tasks , that they are appointed in a transparent manner with due regard to the need to ensure efficient procedures and that they perform their tasks with integrity bearing in mind the main objective of restoring the viability of the company . practitioners should be rescuers not liquidators and it is essential that they also adhere to a professional code of conduct aiming at ensuring an appropriate level of qualification and training , transparency of the duties of such practitioners and the rules for determining their remuneration , the taking up of professional indemnity insurance cover and the establishment of oversight and regulatory mechanisms which should include an appropriate and effective regime for sanctioning those who have failed in their duties . such standards may be attained without the need in principle to create new professions or qualifications .


### preventive restructuring procedures available for debtors in financial difficulty when there is a likelihood of insolvency ; ### rapid preventive restructuring procedures available for debtors in financial difficulty when there is a likelihood of insolvency and a genuine possibility of saving the company from an insolvency procedure ;


### ' a cross - class cram - down ' means the confirmation by a judicial or administrative authority of a restructuring plan over the dissent of one or several affected classes of creditors ; ### ' a cross - class cram - down ' means the confirmation by a judicial or administrative authority of a restructuring plan over the dissent of several affected classes of creditors ;


### ' new financing ' means any new funds , whether provided by an existing or a new creditor , that are necessary to implement a restructuring plan that are agreed upon in that restructuring plan and confirmed subsequently by a judicial or administrative authority ; ### ' new financing ' means any new funds , whether provided by an existing or a new creditor , that are necessary to implement a restructuring plan that are agreed upon in that restructuring plan .


### ' full discharge of debt ' means cancellation of outstanding debt subsequent to a procedure comprising a realisation of assets and / or a repayment / settlement plan ; ### ' full discharge of debt ' means cancellation of outstanding debt subsequent to an insolvency procedure ;


### ' practitioner in the field of restructuring ' means any person or body appointed by a judicial or administrative authority to carry out one or more of the following tasks : ### ' practitioner in the field of restructuring ' means any person or body that carries out one or more of the following tasks :


### the appointment by a judicial or administrative authority of a practitioner in the field of restructuring shall not be mandatory in every case . ### member states may provide for expert supervision of the restructuring procedure to be mandatory . member states may , in order to respect the creditors ' rights , give them a major role to play in deciding on the need for the appointment of an insolvency practitioner and in the selection of such a practitioner to supervise the procedure for restructuring a ‘ debtor in possession’ .


### member states shall ensure that judicial or administrative authorities may lift the stay of individual enforcement actions , in whole or in part : ### member states shall ensure that judicial or administrative authorities - in line with their remit under national law - may lift the stay of individual enforcement actions , in whole or in part :


### member states shall ensure that , during the stay period , creditors to which the stay applies may not withhold performance or terminate , accelerate or in any other way modify executory contracts to the detriment of the debtor for debts that came into existence prior to the stay . member states may limit the application of this provision to essential contracts which are necessary for the continuation of the day - to - day operation of the business . ### member states shall ensure that , during the stay period , creditors to which the stay applies may not withhold performance or terminate , accelerate or in any other way modify essential executory contracts to the detriment of the debtor for debts that came into existence prior to the stay on condition of not causing severe financial difficulties to the creditors . for the purposes of this paragraph , an executory contract is essential when it is necessary for the continuation of the day - to - day operation of the business , including any supplies where a suspension of deliveries would lead to the company’s activities coming to a standstill .


### the classes into which the affected parties have been grouped for the purposes of adopting the plan , together with a rationale for doing so and information about the respective values of creditors and members in each class ; ### the classes into which the affected parties have been grouped - in line with national law on the basis of objective and transparent criteria - for the purposes of adopting the plan , together with a rationale for doing so and information about the respective values of creditors and members in each class ;


### a restructuring plan shall be deemed to be adopted by affected parties , provided that a majority in the amount of their claims or interests is obtained in each and every class . member states shall lay down the required majorities for the adoption of a restructuring plan , which shall be in any case not higher than 75% in the amount of claims or interests in each class . ### a restructuring plan shall be deemed to be adopted by affected parties , provided that a majority in the amount of their claims or interests and in terms of the number of members with voting rights is obtained in each and every class including the workers’ class . member states shall lay down the required majorities for the adoption of a restructuring plan , which shall be in any case not higher than 75% in the amount of claims or interests in each class . a sale plan shall be authorised by the competent jurisdiction in accordance with the national law allowing the sale to be authorised and effected .


### member states shall ensure that any affected creditors have a right to vote on the adoption of a restructuring plan . member states may also grant such voting rights to affected equity holders , in accordance with article 12 . ### member states shall ensure that any affected creditors have a right to vote on the adoption of a restructuring plan . member states may also grant such voting rights to affected equity holders , in accordance with article 12 , guaranteeing the application of the criterion of respect for creditors ' interests set out in article 2 .


### member states shall ensure that affected parties are treated in separate classes which reflect the class formation criteria . classes shall be formed in such a way that each class comprises claims or interests with rights that are sufficiently similar to justify considering the members of the class a homogenous group with commonality of interest . as a minimum , secured and unsecured claims shall be treated in separate classes for the purposes of adopting a restructuring plan . member states may also provide that workers are treated in a separate class of their own . ### member states shall ensure that affected parties are treated in separate classes which reflect the class formation criteria . classes shall be formed in such a way that each class comprises claims or interests with rights that are sufficiently similar to justify considering the members of the class a homogenous group with commonality of interest . as a minimum , secured and unsecured claims shall be treated in separate classes for the purposes of adopting a restructuring plan . all the debtor’s creditors of a given class shall have equal rights in respect of the restructuring plan . member states may also provide that workers are treated in a separate class of their own .


### any new financing is necessary to implement the restructuring plan and does not unfairly prejudice the interests of creditors . ### any new financing is necessary and proportionate to implement the restructuring plan .


### member states shall ensure that judicial or administrative authorities may refuse to confirm a restructuring plan where that plan does not have a reasonable prospect of preventing the insolvency of the debtor and ensuring the viability of the business . ### member states shall ensure that judicial or administrative authorities refuse to confirm a restructuring plan where that plan does not have a reasonable prospect of preventing the insolvency of the debtor and ensuring the viability of the business .


### member states shall ensure that a restructuring plan which is not approved by each and every class of affected parties may be confirmed by a judicial or administrative authority upon the proposal of a debtor or of a creditor with the debtor ' s agreement and become binding upon one or more dissenting classes where the restructuring plan : ### member states shall ensure that a restructuring plan which is not approved by each and every class of affected parties may be confirmed by a judicial or administrative authority upon the proposal of a debtor or , when so provided by national law , of a creditor with the debtor ' s agreement and become binding upon one or more dissenting classes where the restructuring plan :


### member states may vary the minimum number of affected classes required to approve the plan laid down in point of paragraph . ### member states may vary the minimum number of affected classes required to approve the plan laid down in point of paragraph to the extent that the minimum number covers the majority of classes .


### a liquidation value shall be determined by the judicial or administrative authority where a restructuring plan is challenged on the grounds of an alleged breach of the best interest of creditors test . ### a liquidation value shall be determined by the authorities of the member states and the legality thereof by the judicial or administrative authority where a restructuring plan is challenged on the grounds of an alleged breach of the best interest of creditors test .


### member states may require the transactions referred to in point of paragraph 2 to be approved by a practitioner in the field of restructuring or by a judicial or administrative authority in order to benefit from the protection referred to in paragraph 1 . ### member states shall require the transactions referred to in point of paragraph 2 to be approved by a practitioner in the field of restructuring or by a judicial or administrative authority in order to benefit from the protection referred to in paragraph 1 .


### member states shall ensure that over - indebted entrepreneurs may be fully discharged of their debts in accordance with this directive . ### member states shall ensure that honest over - indebted entrepreneurs may be fully discharged of their debts in accordance with this directive after they have undergone an insolvency procedure .


### the over - indebted entrepreneur does not adhere to a repayment plan or to any other legal obligation aimed at safeguarding the interests of creditors ; ### the over - indebted entrepreneur does not substantially adhere to a repayment plan or to any other legal obligation aimed at safeguarding the interests of creditors , taking into consideration the difficulties in terms of adherence to insolvency and restructuring procedures , which micro and small enterprises encounter .


### member states shall compile statistics from the aggregate data referred to in paragraphs 1 and 2 for full calendar years ending on 31 december of each year , starting with data collected for the first full calendar year following [ the date of start of application of implementing measures ] . these statistics shall be communicated to the commission on the basis of a standard data communication form annually , by 31 march of the calendar year following the year for which data is collected . ### member states shall compile statistics from the aggregate data referred to in paragraphs 1 and 2 for full calendar years ending on 31 december of each year , starting with data collected for the first full calendar year 12 months after [ the date of start of application of implementing measures ] . these statistics shall be communicated to the commission on the basis of a standard data communication form annually , by 31 march of the calendar year following the year for which data is collected .


### the tasks of the european asylum support office should be expanded , and to reflect those changes , it should be renamed european union agency for asylum . the agency should be a centre of expertise and its main role should be to strengthen practical cooperation and information exchange among member states on asylum , promote union law and operational standards to ensure a high degree of uniformity as regards asylum procedures , reception conditions and the assessment of protection needs across the union , monitor the operational and technical application of union law and standards as regards asylum , support the dublin system and provide increased operational and technical support to member states for the management of the asylum and reception systems , in particular those whose systems are subject to disproportionate pressure . ### the tasks of the european asylum support office should be targeted , and to reflect those changes , it should be renamed european union agency for asylum . the agency should be a centre of expertise and its main role should be to strengthen and encourage practical cooperation and information exchange on best practices among member states on asylum , promote union law and operational standards to ensure increased operational and technical support to member states for the management of the asylum and reception systems , in particular those whose systems are subject to disproportionate pressure , increased coordination between frontex and member states with a view to acting more effectively in the protection of the union’s external borders and with a view to preventing unmanageable situations of migratory pressure , strengthening the combating of trafficking in human beings and managing secondary movements in a regulated way .


### the european union agency for asylum should gather and analyse information on the situation of asylum in the union and in third countries insofar as this may have an impact on the union . that should enable the agency to assist member states in better understanding the factors for asylum - related migration towards and within the union , as well as for the purpose of early warning and preparedness of member states . ### the european union agency for asylum should gather and analyse information on the situation of asylum in the union , in third countries and in transit countries , in cooperation with the unhcr and the consultative forum , insofar as this may have an impact on the union and specifically on a member state directly affected due to proximity with the third country . that should enable the agency to assist member states in better understanding the factors for asylum - related migration towards and within the union , as well as for the purpose of early warning and preparedness of member states .


### the european union agency for asylum should ensure a more structured and streamlined production of information on countries of origin at the level of the european union . it is necessary for the agency to gather information and draw up reports providing for country of origin information by making use of european networks on country of origin information so as to avoid duplication and create synergies with national reports . furthermore , to ensure convergence in the assessment of applications for international protection and the nature and quality of protection granted , the agency should , together with member states , engage in and develop a common analysis providing guidance on the situation in specific countries of origin . ### the european union agency for asylum should ensure a more structured and streamlined production of information on countries of origin and transit at the level of the european union . it is necessary for the agency to gather information and draw up reports providing for country of origin and transit information by making use of european networks , in particular the eeas , union delegations and diplomatic missions of member states , on country of origin information so as to avoid duplication and create synergies with national reports . furthermore , to ensure convergence and high standards in the assessment of applications for international protection and the nature and quality of protection granted , the agency should , together with member states , engage in and develop a common analysis providing guidance on the situation in specific countries of origin . such common analysis should be developed taking into account the most recent relevant information and reports of the iom , international and national organisations and the unhcr , such as fact - finding missions reports and country / situation specific position papers and eligibility guidelines relating to the specific country of origin and transit . where there is a conflict between the common analysis and unhcr guidance , the latter should be carefully taken into account by member states when examining individual applications for international protection in accordance with the supervisory responsibility of the unhcr as set out in paragraph 8 of the statute of the office of the high commissioner for refugees , read in conjunction with article 35 of the 1951 convention relating to the status of refugees and article ii of the 1967 protocol relating to the status of refugees .


### the common eu list of safe countries of origin established by regulation no xxx / xxx 9 should be regularly reviewed by the commission . having regard to the agency ' s expertise , it should assist the commission in reviewing that list . the agency should also , at the request of the commission , provide it with information on specific third countries which could be included in the common eu list of safe countries of origin , and on third countries designated as safe countries of origin or safe third countries or to which the concepts of safe third country , first country of asylum or european safe third country by member states apply . __________________ 9 oj l [ … ] ### the common eu list of safe countries of origin established by regulation no xxx / xxx of the european parliament and the council 9 should be regularly reviewed by the commission , in cooperation with the eeas , while ensuring that the principle of non - refoulement and the individual right to asylum , in particular of persons belonging to vulnerable groups such as unaccompanied minors , are not undermined . having regard to the agency ' s expertise , it should assist the commission in reviewing that list . the agency should also provide the commission and the european parliament with information on specific third countries which could be included in the common eu list of safe countries of origin , and on third countries designated as safe countries of origin or safe third countries or to which the concepts of safe third country , first country of asylum or european safe third country by member states apply . __________________ 9 oj l [ … ]


### to ensure a high degree of uniformity as regards asylum procedures , reception conditions and the assessment of protection needs across the union , the agency should organise and coordinate activities promoting union law . for that purpose , the agency should assist member states by developing operational standards and indicators for monitoring compliance with those standards . the agency should also develop guidelines on asylum - related matters and should enable the exchange of best practices among member states . ### to ensure a high degree of uniformity as regards asylum procedures , reception conditions and the assessment of protection needs across the union , the agency should organise and coordinate activities promoting international and union law . for that purpose , the agency should assist member states by developing operational standards and indicators for monitoring compliance with those standards . the agency should also develop guidelines on asylum - related matters and should enable , encourage and coordinate the exchange of best practices among member states , in collaboration with the fundamental rights agency , the unhcr and the consultative forum


### the european union agency for asylum , in close cooperation with the commission and without prejudice to the commission ' s responsibility as guardian of the treaties , should establish a mechanism to monitor and assess the implementation of the ceas , the compliance by member states with operational standards , guidelines and best practices on asylum and to verify the functioning of the asylum and reception systems of member states . the monitoring and assessment should be comprehensive and should be based , in particular , on information provided by member states , information analysis on the situation of asylum developed by the agency , on - site visits and case sampling . the agency should report its findings to the management board which in turn should adopt the report . the executive director should , after consultation with the commission , make draft recommendations to the member state concerned outlining the necessary measures to address serious shortcomings , which in turn shall be adopted by the management board as recommendations . ### the european union agency for asylum , in close cooperation with the commission and without prejudice to the commission ' s responsibility as guardian of the treaties , should establish a mechanism to monitor and assess the implementation of the ceas , the compliance by member states with operational standards , guidelines and best practices on asylum and to verify the functioning of the asylum and reception systems of member states . the monitoring and assessment should be comprehensive and should be based , in particular , on information provided by member states , international organisations and non - governmental organisations at national or union level and relevant united nations human rights treaty monitoring bodies and council of europe human rights monitoring mechanisms , information analysis on the situation of asylum developed by the agency , on - site visits , exchange with national authorities and experts , as well as case sampling . the agency should report its findings to the management board which in turn should adopt the report . the executive director should , after consultation with the commission , provide the member state with recommendations concerned outlining the necessary measures to address serious shortcomings , which in turn shall be adopted by the management board as recommendations .


### the recommendations should be followed up on the basis of an action plan prepared by the member state concerned . if , within the set period of time , the member state concerned does not take the necessary measures to address the recommendations , and the shortcomings in the asylum and reception systems are so serious that they jeopardize the functioning of the ceas , the commission should , based on its own assessment of the implementation of the action plan and the seriousness of the shortcomings , adopt recommendations addressed to that member state outlining the measures needed to remedy the serious shortcomings . the commission may need to organise on - site visits to the member state concerned to verify the implementation of the action plan . where necessary , the commission should also identify the measures that should be taken by the agency in support of that member state . if the member state should remain non - compliant for a certain period of time , the commission may take further action requiring the agency to intervene in support of that member state . ### the recommendations should be followed up on the basis of an action plan prepared by the member state concerned . the commission should also identify the measures that should be taken by the union and the agency in support of that member state . if , within the set period of time , the member state concerned does not take the necessary measures to address the recommendations , and the shortcomings in the asylum and reception systems are so serious that they jeopardize the functioning of the ceas , the commission should , based on its own assessment of the implementation of the action plan and the seriousness of the shortcomings , adopt recommendations addressed to that member state outlining the measures needed to remedy the serious shortcomings . the commission may need to organise on - site visits to the member state concerned to verify the implementation of the action plan . if the member state should remain non - compliant for a certain period of time , the commission may take further action requiring the union and the agency to intervene in support of that member state and continue insisting on the need for compliance .


### to facilitate and improve the proper functioning of the ceas and to assist member states in implementing their obligations within the framework of ceas , the european union agency for asylum should provide member states with operational and technical assistance , in particular when their asylum and receptions systems are subject to disproportionate pressure . the agency should provide the necessary operational and technical assistance through the deployment of asylum support teams consisting of experts from the agency ' s own staff , experts from member states or experts seconded by member states to the agency , and based on an operational plan . those teams should support member states with operational and technical measures , including by providing expertise relating to identification and registration of third countries nationals , interpreting services , information on countries of origin and knowledge of the handling and management of asylum cases , as well as by assisting national authorities competent for the examination of applications for international protection and by assisting with relocation . the arrangements for the asylum support teams should be governed by this regulation in order to ensure their effective deployment . ### to facilitate and improve the proper functioning of the ceas and to assist member states in implementing their obligations within the framework of ceas , the european union agency for asylum should provide member states with operational and technical assistance , in particular when their asylum and receptions systems are subject to disproportionate pressure . the agency should provide the necessary operational and technical assistance through the deployment of asylum support teams consisting of experts from the agency ' s own staff , experts from member states or experts seconded by member states to the agency , and based on an operational plan . experts in the asylum support teams should be trained by the agency and have relevant experience . those teams should support member states with operational and technical measures , including by providing expertise relating to identification and registration of third countries nationals , interpreting services , information on countries of origin and knowledge of the handling and management of asylum cases , as well as by assisting national authorities competent for the examination of applications for international protection and by assisting with relocation . the arrangements for the asylum support teams should be governed by this regulation in order to ensure their effective deployment .


### for member states that are faced with specific and disproportionate pressure on their asylum and reception systems due , in particular , to their geographical or demographic situation , the european union agency for asylum should support the development of solidarity within the union and assist in the better relocation of beneficiaries of international protection among member states , while ensuring that asylum and reception systems are not abused . ### for member states that are faced with specific and disproportionate pressure on their asylum and reception systems due , in particular , to their geographical , economic or demographic situation , the european union agency for asylum should support the development of solidarity within the union and the fair sharing of responsibility , assisting in the fastest possible relocation of applicants for and beneficiaries of international protection among member states , while ensuring that asylum and reception systems are not abused and supporting member states affected in their efforts to prevent abuse through illegal migration .


### the european union agency for asylum should cooperate with international organisations , in particular the united nations high commissioner for refugees in matters covered by this regulation in the framework of working arrangements so as to benefit from their expertise and support . to that end , the roles of unhcr and the other relevant international organisations should be fully recognised and those organisations should be involved in the work of the agency . the working arrangements should receive the commission ' s prior approval . ### the european union agency for asylum should cooperate with international organisations , in particular the unhcr , the iom and the office of the high commissioner on human rights in matters covered by this regulation in the framework of working arrangements so as to benefit from their expertise and support . to that end , the roles of unhcr and the other relevant un entities and international organisations should be fully recognised and those organisations should be involved in the work of the agency . the working arrangements should receive the commission ' s prior approval .


### the european union agency for asylum should facilitate operational cooperation between member states in matters covered by this regulation . it should also cooperate with authorities of third - countries in the framework of working arrangements which should receive the commission ' s prior approval . the agency should act in accordance with the union ' s external relations policy and under no circumstances should it formulate any independent external policy . in their cooperation with third countries , the agency and the member states should comply with norms and standards at least equivalent to those set by union legislation also when the cooperation with third countries takes place on the territory of those countries . ### the european union agency for asylum should facilitate operational cooperation between member states in matters covered by this regulation . it should also cooperate with authorities of third - countries on issues relating to asylum and resettlement in the framework of working arrangements which should receive the commission’s prior approval in consultation with the eeas . the european parliament should be kept informed in due time of these working arrangements before and after their conclusion . the agency should act in accordance with the union ' s external relations policy and under no circumstances should it formulate any independent external policy . in their cooperation with third countries , the agency and the member states should comply with norms and standards at least equivalent to those set by union legislation and international law , including international humanitarian law , also when the cooperation with third countries takes place on the territory of those countries . the commission and the agency shall report to the european parliament in a timely manner on the state of cooperation with any particular third country .


### monitor and assess the implementation of the ceas as well as the asylum and reception systems of member states ; ### in accordance with the applicable union law , monitor and assess the implementation of the ceas in relation to the asylum and reception systems of member states , which are to be supported at the request of any member state ;


### the agency shall support member states in relation to the external dimension of the ceas . in this regard , and in agreement with the commission , the agency shall coordinate the exchange of information and other action taken on issues arising from the implementation of instruments and mechanisms relating to the external dimension of the ceas . ### the agency shall support member states in their relations with third - country authorities in matters covered by this regulation and in relation to the external dimension of the ceas . in this regard , and in agreement with the commission , the agency shall coordinate the exchange of information and other action taken on issues arising from the implementation of instruments and mechanisms relating to the external dimension of the ceas . for this purpose and in agreement with the commission , the agency shall have the possibility to post its representatives to union delegations .


### the agency shall gather and analyse information on the situation of asylum in the union and third countries insofar as this may have an impact on the union , including up - to - date information on root causes , migratory and refugee flows as well as on any sudden arrivals of large numbers of third - country nationals which may cause disproportionate pressure on asylum and reception systems , with a view to foster quick and reliable mutual information to the member states and to identify possible risks to the member states ' asylum systems . ### the agency shall gather and analyse information on the situation of asylum in the union and third countries insofar as this may have an impact on the union or on an individual member state , including up - to - date information on root causes , migratory and refugee flows as well as on any sudden arrivals of large numbers of third - country nationals which may cause disproportionate pressure on asylum and reception systems , with a view to foster quick and reliable mutual information to the member states and to identify possible risks to the member states ' asylum systems .


### the agency shall establish and develop training for members of its own staff , members of all national administrations , courts and tribunals , and national services responsible for asylum matters in the member states . ### the agency shall establish and develop training for members of its own staff , members of all national administrations , courts and tribunals , national services responsible for asylum matters in the member states and , with the agreement of their administrative authorities , officials from third countries .


### interview techniques , including special attention given to children , vulnerable groups and victims of torture ; ### interview techniques , including special attention given to both accompanied and unaccompanied children , vulnerable groups and victims of torture ;


### the agency shall be a centre for gathering relevant , reliable , accurate and up - to date information on countries of origin of persons applying for international protection , including child - specific information and targeted information on persons belonging to vulnerable groups . it shall draw up and regularly update reports and other products providing for information on countries of origin at the level of the union including on thematic issues specific to countries of origin . ### the agency shall be an independent centre for gathering relevant , reliable , transparent , traceable accurate and up - to date information on countries of origin of persons applying for international protection , including child , gender and sexual orientation - specific as well as targeted information on persons belonging to vulnerable groups . it shall draw up and regularly update reports and other products providing for information on countries of origin at the level of the union including on thematic issues specific to countries of origin , including on torture and ill - treatment in places of detention and including the principles referred to in article 21 teu .


### make use of all relevant sources of information , including its information analysis on the situation of asylum and other information gathered from governmental , non - governmental and international organisations , including through the networks referred to in article 9 , as well as union institutions , agencies , bodies , offices and the european external action service ; ### make use of all relevant sources of information , including its information analysis on the situation of asylum and other information gathered from governmental , non - governmental and international organisations , in particular unhcr , including through the networks referred to in article 9 , fact finding missions to countries of origin , as well as union institutions , agencies , bodies and offices and the european external action service and union delegations ;


### manage and further develop a portal for gathering information on countries of origin ; ### manage and further develop a fully transparent , publicly accessible portal for gathering and disseminating information on countries of origin including on use of sources , in accordance with regulation no 1049 / 2001 ;


### submit queries to the agency related to specific questions of fact that may arise from applications for international protection , without prejudice to confidentiality rules as established in national law . ### submit , and assist in responding to , queries to the agency related to specific questions of fact that may arise from applications for international protection , without prejudice to confidentiality rules as established in national law .


### the agency shall assist the commission in regularly reviewing the situation in third countries which are included in the common eu list of safe countries of origin established by regulation no xxx / xxx , including those that have been suspended by the commission and those that have been removed from that list . ### the agency shall assist the commission in regularly reviewing the situation in third countries which are included in the common eu list of safe countries of origin established by regulation no xxx / xxx , including those countries with which the union has , or is in the process of concluding , a ' compact ' under the partnership framework , as well as countries that have been suspended by the commission and those that have been removed from that list .


### the agency shall , at the request of member states , assist them to apply the operational standards , guidelines and best practices to their asylum and reception systems by providing the necessary expertise or operational and technical assistance . ### the agency shall , on its own initiative , or , in any event , at the request of the commission or member states , assist them to apply the operational standards , guidelines and best practices to their asylum and reception systems by providing the necessary expertise or operational and technical assistance .


### member states shall submit a request for assistance to the executive director describing the situation and the purpose of the request . the request shall be accompanied by a detailed assessment of needs . the executive director shall evaluate , approve and coordinate requests for assistance . each shall be subject to a thorough and reliable assessment enabling the agency to identify and propose a set of measures as referred to in paragraph 3 that can meet the needs of the member state concerned . ### member states shall submit a request for assistance to the executive director describing the situation and the purpose of the request . the request shall be accompanied by a detailed assessment of needs . the executive director shall evaluate , approve and coordinate requests for assistance . each shall be subject to a thorough and reliable assessment enabling the agency to identify and propose , within a reasonable time frame , a set of measures as referred to in paragraph 3 that can meet the needs of the member state concerned .


### the agency shall finance or co - finance the activities set out in paragraph 3 from its budget in accordance with the financial rules applicable to the agency . ### the agency shall finance or co - finance the activities set out in paragraph 3 from its budget in accordance with the financial rules applicable to the agency . the costs incurred by member states within those activities shall be regarded as incurred in the name and for the account of the agency .


### member states shall contribute to the asylum intervention pool through a national expert pool on the basis of the various defined profiles and by nominating experts corresponding to the required profiles . the duration of deployment shall be determined by the home member state but it shall not be less than 30 days . ### member states shall contribute to the asylum intervention pool through a national expert pool on the basis of the various defined profiles and by nominating experts corresponding to the required profiles . the duration of deployment shall be determined by the home member state , in accordance with the need for longer term nomination in order to ensure adequate presence on the ground , but it shall not be less than 60 days .


### regarding assistance with applications for international protection , including as regards the examination of such applications , specific information on the tasks that the asylum support teams or the experts from the asylum intervention pool may perform as well as reference to applicable national and union law ; ### regarding assistance with applications for international protection , including as regards the examination of such applications , specific information on the tasks that the asylum support teams or the experts and their required qualifications from the asylum intervention pool may perform as well as reference to applicable national and union law ;


### where in the event of disproportionate pressure on the asylum or reception systems a member state does not request the agency for operational and technical assistance or does not accept an offer by the agency for such assistance or does not take sufficient action to address that pressure , or where it does not comply with the commission ' s recommendations referred to in article 15 , thereby rendering the asylum or reception systems ineffective to the extent of jeopardising the functioning of the ceas , the commission may adopt a decision by means of an implementing act , identifying one or more of the measures set out in article 16 to be taken by the agency to support the member state concerned . that implementing act shall be adopted in accordance with the examination procedure referred to in article 64 . ### where in the event of disproportionate pressure on the asylum or reception systems a member state does not request the agency for operational and technical assistance or does not accept an offer by the agency for such assistance or does not take sufficient action to address that pressure , or where it does not comply with the council , on the basis of a proposal from the commission , may adopt without delay a decision by means of an implementing act , identifying measures as set out in article 16 to mitigate those risks to be implemented by the agency and requiring the member state concerned to cooperate with the agency in the implementation of those measures . the commission shall consult the agency before making its proposal .


### the member state concerned shall immediately cooperate with the agency and take the necessary action to facilitate the implementation of that decision and the practical execution of the measures set out in that decision and in the operational plan . ### the member state concerned shall comply with the commission decision referred to in paragraph 3 . for that purpose it shall immediately cooperate with the agency and take the necessary action to facilitate the implementation of that decision and the practical execution of the measures set out in that decision and in the operational plan agreed upon with the executive director .


### the agency shall cooperate with international organisations , in particular unhcr , in areas governed by this regulation , within the framework of working arrangements concluded with those bodies , in accordance with the treaty and the provisions on the competence of those bodies . the management board shall decide on the working arrangements which shall be subject to prior approval of the commission . ### the agency shall cooperate with un entities and international organisations , in particular the unhcr , the ohchr and the iom , in areas governed by this regulation , within the framework of working arrangements concluded with those bodies , in accordance with the treaty and the provisions on the competence of those bodies . the management board shall decide on the working arrangements which shall be subject to prior approval of the commission . the agency shall inform the european parliament of any such working arrangements .


### the agency shall cooperate with international organisations , in particular unhcr , in areas governed by this regulation , within the framework of working arrangements concluded with those bodies , in accordance with the treaty and the provisions on the competence of those bodies . the management board shall decide on the working arrangements which shall be subject to prior approval of the commission . ### the agency shall cooperate with international organisations , in particular unhcr , in areas governed by this regulation , within the framework of working arrangements concluded with those bodies , in accordance with the treaty and the provisions on the competence of those bodies . the agency can enter into emergency standby agreements with international organizations and non - governmental organizations to complement the agency operational and technical assistance to member states , in particular by setting up reception facilities , providing information to asylum seekers or providing for specific needs of vulnerable groups . the management board shall decide on the working arrangements which shall be subject to prior approval of the commission . the agency shall inform the european parliament of any such arrangements .


### no later than three years from the day of entry into force of this regulation , and every five years thereafter , the commission shall commission an evaluation to assess , in particular , the agency ' s performance in relation to its objectives , mandate and tasks . that evaluation shall cover the agency ' s impact on practical cooperation on asylum - related matters and on the ceas . the evaluation shall take due regard of progress made , within its mandate , including assessing whether additional measures are necessary to ensure effective solidarity and sharing of responsibilities with member states subject to particular pressure . ### no later than three years from the day of entry into force of this regulation , and every five years thereafter , the commission shall commission an an independent external evaluation to assess , in particular , the agency ' s performance in relation to its objectives , mandate and tasks . that evaluation shall cover the agency ' s impact on practical cooperation on asylum - related matters and on the ceas . the evaluation shall take due regard of progress made , within its mandate , including assessing whether additional measures are necessary to ensure effective solidarity and sharing of responsibilities with member states subject to particular pressure .


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


### the g20 , through the global infrastructure initiative , has recognised the importance of investment in boosting demand and lifting productivity and growth and has committed to creating a climate that facilitates higher levels of investment . ### the g20 , through the global infrastructure initiative , has recognised the importance of investment in boosting demand and lifting productivity and growth and has committed to creating a climate that facilitates higher levels of investment . the efsi should complement to an overall strategy to improve investments in europe , not replacing other investments and financial structures and not undermining the union ' s investments in science , research and development .


### 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 that provide an immediate boost to europe ' s economy 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 , small mid - cap companies , and mid - cap companies having up to 3000 employees , but should not be limited to these types of companies . overcoming europe ' s current investment difficulties should contribute to closing the innovation divide in europe , strengthening the union ' s innovation potential , competitiveness , economic growth and employment , as well as 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 . 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 . 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 and digital development .


### 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 create sustainable jobs and promote short - , medium - and long - term growth as well as competitiveness , including through innovation and the development and diffusion of technology . the efsi should support a wide range of financial products , including equity , quasi - equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for , or crowd - out , private market finance or products provided by regional and national promotional banks , but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use .


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


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . the decisions made by the investment committee should be free from any undue interference so as to ensure its full independence , which is the key to maintain the investor trust .


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


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


### 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 . ### the efsi should complement and be additional to ongoing regional , national and eu programmes as well as traditional eib activities . 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 .


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


### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual payment from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib . ### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual payment from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib . any remuneration that arises from efsi operations which surmounts the target amount / needs of the guarantee fund shall be transferred to the respective eu budget lines which were reduced in order to establish the efsi guarantee fund .


### since the objectives of this regulation , namely to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , cannot be sufficiently achieved by the member states by reason of the disparities in their fiscal capacity to act but can rather , by reason of its scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives , ### since the objectives of this regulation , namely to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , may - in a limited number of cases of market failure - not be sufficiently achieved by the member states alone but can rather , by reason of its scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives ,


### the efsi agreement shall be open to accession by member states . subject to the consent of existing contributors , the efsi agreement shall also be open to accession by other third parties , including national promotional banks or public agencies owned or controlled by member states , and private sector entities . ### the efsi agreement shall be open to accession by member states . subject to the consent of existing contributors , the efsi agreement shall also be open to accession by other third parties , including national promotional banks or public agencies owned or controlled by member states , and private sector entities . national contributions to the efsi shall follow the same rules as other public spending and investing , must be a priority of budget policy and shall not undermine the rules of the stability pact .


### provisions governing the establishment of the efsi as a distinct , clearly identifiable and transparent guarantee facility and separate account managed by the eib ; ### arrangements concerning the establishment of the efsi as well as the amount and terms of the financial contribution to be provided by the eib , including provisions governing the establishment of the efsi as a distinct , clearly identifiable and transparent guarantee facility and separate account managed by the eib , whose operations are clearly distinguished from other operations of the eib the amount and terms of the financial contribution which shall be provided by the eib through the efsi , which shall not be inferior to 5 . 000 000 000 euros in guarantees or cash ; the terms of the funding or guarantees which shall be provided by the eib through the efsi to the european investment fund which shall not be inferior to 5 . 500 000 000 euros ; provisions that the pricing of operations under the eu guarantee shall be in line with the eib ' s general pricing policy ;


### the terms of the funding which shall be provided by the eib through the efsi to the european investment fund ; ### the arrangements concerning the eu guarantee , that shall be an unconditional , irrevocable , first demand guarantee in favour of the eib , including : detailed rules on the provision of the eu guarantee , in accordance with article 7 , among which its modalities of coverage , its defined coverage of portfolios of specific types of instruments ; ii ) requirements that remuneration for risk - taking be allocated amongst contributors in proportion with their respective risk share in risk taking ; iii ) requirements that remuneration to the union and payments on the eu guarantee shall be made in timely manner and only occur once a year after remuneration and losses from operations have been netted ; iv ) requirements governing the use of the eu guarantee in accordance with article 5 of this regulation , among which payment conditions , such as specific time frames , interest on due amounts and the necessary liquidity arrangements ; v ) provisions and procedures relating to recovery of claims that shall be entrusted to the eib , in line with article 7 ;


### the governance arrangements concerning the efsi , in accordance with article 3 , without prejudice to the statute of the european investment bank ; ### the modalities for the approval by the investment committee of the use of the eu guarantee for individual projects in line with this regulation and in particular article 2a ;


### detailed rules on the provision of the eu guarantee , in accordance with article 7 , including its capped coverage of portfolios of specific types of instruments , calls on the eu guarantee , that – with the exception of possible losses on equity - shall only occur once a year after profits and losses from operations have been netted , and its remuneration and the requirement that remuneration for risk - taking be allocated amongst contributors in proportion with their respective risk share ; ### the procedures for the submission of investment proposals and approval of proposals for the use of the eu guarantee , including : the procedure for the transmission to the investment committee of projects ; ii ) the requirement that the procedure for submission and approval of proposals for the use of the eu guarantee is without prejudice to the eib decision making rules laid down under the statute of the european investment bank ; iii ) rules further detailing the transitional provisions under article 20 , and in particular the manner how operations signed by the eib during the period referred to in article 20 will be included under the eu guarantee coverage .


### provisions and procedures relating to recovery of claims ; ### the procedures for the submission of investment proposals and approval of proposals for the use of the eu guarantee , including : the procedure for the transmission to the investment committee of projects ; the requirement that the procedure for submission and approval of proposals for the use of the eu guarantee is without prejudice to the eib decision making rules laid down under the statute of the european investment bank ; rules further detailing the transitional provisions under article 20 , and in particular the manner how operations signed by the eib during the period referred to in article 20 will be included under the eu guarantee coverage .


### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib . the eiah shall have as its objective to build upon existing eib and commission advisory services in order to provide advisory support for investment project identification , preparation and development and act as a single technical advisory hub for project financing within the union . this shall include support on the use of technical assistance for project structuring , use of innovative financial instruments , use of public - private partnerships and advice , as appropriate , on relevant issues of eu legislation . ### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib . the eiah shall have as its objective to build upon and complement existing eib and commission advisory services where possible in a decentralised manner in order to provide advisory support for investment project identification , preparation and development and act as a single technical advisory hub for project financing in the framework of efsi . 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 and without prejudice to the competence of the commission to oversee the application of union law , on relevant issues of eu legislation .


### the efsi agreement shall provide that the efsi shall be governed by a steering board , which shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with the objectives under article 5 . the steering board shall elect one of its members to be chairperson . ### the efsi agreement shall provide that the efsi shall be governed by a steering board . 1a . the steering board shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with this regulation and shall set - up investment guidelines to this end for the use of the eu guarantee to be implemented by the investment committee .


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


### the efsi agreement shall provide that the efsi shall have an investment committee , which shall be responsible for examining potential operations in line with the efsi investment policies and approving the support of the eu guarantee for operations in line with article 5 , irrespective of their geographic location . ### the efsi agreement shall provide that the efsi shall have an investment committee , which shall be responsible for examining potential operations in line with the efsi investment policies and approving the support of the eu guarantee for operations in line with article 5 , irrespective of their geographic location . the opinion of the investment committee shall be non - binding as regards the approval of the selected operations .


### the investment committee shall be composed of six independent experts and the managing director . independent experts shall have a high level of relevant market experience in project finance and be appointed by the steering board for a renewable fixed term of three years . ### the investment committee shall be composed of twelve independent experts and the managing director , selected via an open and transparent selection procedure . independent experts shall have a high level of relevant market experience in project finance , extensive knowledge of the sectors and geographic markets of the union and be appointed by the steering board for a renewable fixed term of three years .