### a modern internal market promotes competition and benefits consumers , businesses and employees . making better use of the ever evolving internal market in services should help european businesses create jobs and grow across borders , offer wider choice of services at better prices , and maintain high standards for consumers and workers . to achieve this , the programme should contribute to the removal of remaining barriers , and to ensure a regulatory framework that can accommodate new innovative business models . ### a modern internal market promotes promote highly qualitative services for the benefit of consumers and society as a whole , preserves employment and working conditions of employees , and ensures a better functioning of high - quality services of general economic interest . . making better use of the ever evolving internal market in services should help european businesses create jobs and grow across borders , offer wider choice of services at better prices , and maintain high standards for consumers and workers . to achieve this , the programme should contribute to the removal of remaining barriers , and to ensure a regulatory framework that can accommodate new innovative business models whilst ensuring a high level of social protection .


### new regulatory and enforcement challenges relate to a rapidly changing environment of the digital revolution , concerning issues such as cybersecurity , internet of things or artificial intelligence . should damage occur , stringent rules on product safety and liability are essential to ensure a policy response that allows european citizens , including consumers and businesses , to benefit from such rules . the programme should therefore contribute to the rapid adaptation and enforcement of a union product liability regime which fosters innovation . ### new regulatory and enforcement challenges relate to a rapidly changing environment of the digital revolution , concerning issues such as cybersecurity , internet of things or artificial intelligence and related ethical standards . should damage occur , stringent rules on product safety and liability are essential to ensure a policy response that allows european citizens , including consumers and businesses , to access and to benefit from such rules . the programme should therefore contribute to the rapid adaptation and enforcement of a union product liability regime which fosters innovation .


### public procurement is used by public authorities to ensure value for public money spent and to contribute to a more innovative , sustainable , inclusive and competitive internal market . directive 2014 / 23 / eu of the european parliament and of the council49 , directive 2014 / 24 / eu of the european parliament and of the council50 and directive 2014 / 25 / eu of the european parliament and of the council51 provide the legal framework for the integration and effective functioning of the public procurement markets representing 14% of union’s gross domestic product , to the benefit of public authorities , businesses as well as citizens , including consumers . the programme should therefore support measures to ensure a wider uptake of strategic public procurement , the professionalisation of public buyers , improved access to procurement markets for smes , increase of transparency , integrity and better data , boosting the digital transformation of procurement and promotion of joint procurement , through strengthening a partnership approach with the member states , improving data gathering and data analysis including through development of dedicated it tools , supporting exchange of experiences and good practices , providing guidance , pursuing beneficial trade agreements , strengthening cooperation among national authorities and launching pilot projects . __________________ 49 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 50 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 51 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . ### public procurement is used by public authorities to ensure value for public money spent and to contribute to a more innovative , sustainable , inclusive and competitive internal market . directive 2014 / 23 / eu of the european parliament and of the council49 , directive 2014 / 24 / eu of the european parliament and of the council50 and directive 2014 / 25 / eu of the european parliament and of the council51 provide the legal framework for the integration and effective functioning of the public procurement markets representing 14% of union’s gross domestic product , to the benefit of public authorities , businesses as well as citizens , including consumers . public authorities , through their procurement policy , can establish and support markets for innovative goods and services . the programme should therefore support measures to ensure a wider uptake of strategic public procurement , a more systematic use of environmental , social and fair trade criteria in awarding contracts , the professionalisation of public buyers , improved access to procurement markets for smes , particularly to further tap into the potential of green markets , increase of transparency , integrity and better data , boosting the digital transformation of procurement and promotion of joint procurement , through strengthening a partnership approach with the member states , improving data gathering and data analysis including through development of dedicated it tools , supporting exchange of experiences and good practices , strengthening cooperation among national authorities and launching pilot projects . __________________ 49 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 50 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 51 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec .


### the programme should support the development of the union regulatory framework in the area of company law and corporate governance , as well as contract law , with a view to make business more efficient and competitive while providing protection for stakeholders affected by company operations , and to react to emerging policy challenges . it should also ensure appropriate evaluation , implementation and enforcement of the relevant acquis , inform and assist stakeholders and promote information exchange in the area . the programme should further support the commission’s initiatives in favour of a clear and adapted legal framework for the data economy and innovation . those initiatives are necessary to enhance legal certainty with regard to contractual and extra contractual law , in particular with regard to liability and ethics in the context of emerging technologies , such as internet of things , artificial intelligence , robotics , 3d printing . the programme should aim at stimulating the development of data - driven business , as it will be decisive for the position of the union economy in a global competition . ### the programme should support the development of the union regulatory framework in the area of company law and corporate governance , as well as contract law , with a view to make business more efficient and competitive while providing protection for stakeholders affected by company operations , and to react to emerging policy challenges . it should also ensure appropriate evaluation , implementation and enforcement of the relevant acquis , inform and assist stakeholders and promote information exchange in the area . the programme should further support the commission’s initiatives in favour of a clear and adapted legal framework for the data economy and innovation . those initiatives are necessary to enhance legal certainty with regard to contractual and extra contractual law , in particular with regard to liability and ethics in the context of emerging technologies , such as internet of things , artificial intelligence , robotics , 3d printing . the programme should aim at stimulating the development of data - driven business whilst ensuring a high level of privacy protection , as it will be decisive for the position of the union economy in a global competition .


### strengthening the competitiveness of european enterprises while reassuring an effective level playing field and an open and competitive internal market is of outmost importance . smes are the engine of the european economy making up 99% of all businesses in europe , providing two thirds of jobs , and contributing substantially to the creation of new jobs with a regional and local dimension . ### strengthening the competitiveness and sustainability of european enterprises while reassuring an effective level playing field and an open and competitive internal market is of outmost importance . european enterprises need to distinguish themselves on the global market by providing high quality products and services that are smarter , customised and adhere to highest environmental and sustainability standards creating less waste and pollution . improved productivity , in particular through increased resource efficiency , energy savings and the implementation of the ‘ energy efficiency first’ principle are the primary source of sustainable income and competitiveness . smes are the engine of the european economy making up 99% of all businesses in europe , providing two thirds of jobs , and contributing substantially to the creation of new jobs with a regional and local dimension , and hence social cohesion . smes are key drivers in the context of the energy transition , the fight against climate change , the eu’s competitiveness on green tech and a major source of innovation in the eu . bearing this in mind , specific actions under this programme should include promoting the development of sustainable products , services , technologies , non - technical solutions and processes , as well as enhanced resource - and energy - efficiency and corporate social responsibility .


### many of the union’s competitiveness problems involve smes’ difficulties in obtaining access to finance because they struggle to demonstrate their credit - worthiness and have insufficient collateral . additional financing challenges arise from smes’ need to stay competitive by engaging e . g . in digitization , internationalization and innovation activities and skilling up their workforce . limited access to finance has a negative effect on businesses creation , growth and survival rates , as well as on the readiness of new entrepreneurs to take over viable companies in the context of a business succession . ### many of the union’s competitiveness problems involve smes’ difficulties in obtaining access to finance because they lack information , struggle to demonstrate their credit - worthiness , have insufficient collateral or simply due to low awareness of existing mechanisms to support their activities at eu , national or local level . additional financing challenges arise from smes’ need to stay competitive by engaging e . g . in digitization , internationalization and innovation activities and skilling up their workforce . limited access to finance has a negative effect on businesses creation , growth and survival rates , as well as on the readiness of new entrepreneurs to take over viable companies in the context of a business succession .


### to overcome these market failures and to ensure that smes continue to play their role as the foundation for the union economy´s competitiveness , small and medium sized enterprises need extra support through debt and equity instruments to be established under the sme window of the investeu fund established by regulation [ … ] of the european parliament and of the council52 . the loan guarantee facility put in place under regulation no 1287 / 2013 of the european parliament and of the council53 has a proven added value and is expected to bring a positive contribution to at least 500 000 smes ; a successor will be established under the sme window of the investeu fund . __________________ 52 com 439 final 53 regulation no 1287 / 2013 of the european parliament and of the council of 11 december 2013 establishing a programme for the competitiveness of enterprises and small and medium - sized enterprises and repealing decision no 1639 / 2006 / ec . ### to overcome these market failures and to ensure that smes continue to play their role as the foundation for the union economy´s competitiveness , and driver for a sustainable economy , small and medium sized enterprises need extra support through debt and equity instruments to be established under the sme window of the investeu fund established by regulation [ … ] of the european parliament and of the council52 . the loan guarantee facility put in place under regulation no 1287 / 2013 of the european parliament and of the council53 has a proven added value and is expected to bring a positive contribution to at least 500 000 smes ; a successor will be established under the sme window of the investeu fund . __________________ 52 com 439 final 53 regulation no 1287 / 2013 of the european parliament and of the council of 11 december 2013 establishing a programme for the competitiveness of enterprises and small and medium - sized enterprises and repealing decision no 1639 / 2006 / ec .


### the programme should provide effective support for smes throughout their life - cycle . it should build on the unique knowledge and expertise developed with regard to smes and industrial sectors and on a long experience in working with european , national and regional stakeholders . this support should build on the successful experience of the enterprise europe network as a one - stop - shop to improve smes competitiveness and develop their business in the single market and beyond . the network plans to continue delivering services on behalf of other union programmes , notably for the horizon2020 programme , using the financial resources of these programmes . also the mentoring scheme for new entrepreneurs should remain the tool to enable new or aspiring entrepreneurs to gain business experience by matching with an experienced entrepreneur from another country and thus allow strengthening entrepreneurial talents . the programme should further strive to grow and extend its geographical coverage and thus offer wider range of matching possibilities to entrepreneurs in complementarity with other union initiatives where relevant . ### the programme should provide effective support for smes throughout their life - cycle . it should build on the unique knowledge and expertise developed with regard to smes and industrial sectors and on a long experience in working with european , national and regional stakeholders . this support should build on the successful experience of the enterprise europe network as a one - stop - shop to improve smes competitiveness and develop their business in the single market and beyond . the network plans to continue delivering services on behalf of other union programmes , notably for the horizon2020 programme , using the financial resources of these programmes . it shall also support enhanced participation of smes representatives organisations in development of single market policy initiatives , such as public procurement , standardisation processes and intellectual property regimes . also the mentoring scheme for new entrepreneurs should remain the tool to enable new or aspiring entrepreneurs to gain business experience by matching with an experienced entrepreneur from another country and thus allow strengthening entrepreneurial talents . the programme should further strive to grow and extend its geographical coverage ensuring a balanced geographical distribution while enhancing its effectiveness in particular as regards the uptake of smes of the services provided and thus offer wider range of matching possibilities to entrepreneurs in complementarity with other union initiatives where relevant .


### clusters are a strategic tool for supporting the competitiveness and scaling - up of smes as they offer favourable business environments . joint cluster initiatives should achieve critical mass to accelerate the growth of smes . by connecting specialised eco - systems , clusters create new business opportunities for smes and integrate them better in european and global strategic value chains . support should be provided for the development of transnational partnership strategies and the implementation of joint activities , supported by the european cluster collaboration platform . sustainable partnering should be encouraged with continuation funding if performance and participation milestones are reached . direct support to smes should be channelled through cluster organisations for the following : uptake of advanced technologies , new business models , low - carbon and resource - efficient solutions , creativity and design , skills upgrading , talent attraction , entrepreneurship acceleration , and internationalisation . other specialised sme support actors should be associated to facilitate industrial transformation and implementations of smart specialisation strategies . the programme should thus contribute to growth and build linkages with the union’s innovation hubs and investments made under cohesion policy and horizon europe . synergies with the erasmus programme can also be explored . ### clusters are a strategic tool for supporting the competitiveness and scaling - up of smes as they offer favourable business environments . joint cluster initiatives should achieve critical mass to accelerate the growth of smes . by connecting specialised eco - systems , clusters create new business opportunities for smes and integrate them better in european and global strategic value chains . support should be provided for the development of transnational partnership strategies and the implementation of joint activities , supported by the european cluster collaboration platform . sustainable partnering should be encouraged with continuation funding if performance and participation milestones are reached . direct support to smes should be channelled through cluster organisations for the following : uptake of advanced technologies , new business models , including non - technical solutions and social innovation , zero - carbon and resource - and energy - efficient solutions , creativity and design , skills upgrading , talent attraction , entrepreneurship acceleration , and internationalisation . other specialised sme support actors should be associated to facilitate industrial transformation and implementations of smart specialisation strategies . the programme should thus contribute to sustainable economic development and build linkages with the union’s innovation hubs and investments made under cohesion policy and horizon europe . synergies with the erasmus programme can also be explored .


### creativity and innovation are crucial for the competitiveness of the union’s industrial value chains . they represent catalysts for industrial modernisation and contribute to smart , inclusive sustainable growth . however , uptake by smes is still lagging behind . the programme should therefore support targeted actions , networks and partnerships for creativity - driven innovation throughout the industrial value chain . ### besides creativity and innovation , enhanced sustainability in terms of production processes , in particular enhanced resource and energy efficiency , are crucial for the competitiveness of the union’s industrial value chains . they represent catalysts for industrial modernisation and contribute to smart , inclusive sustainable economy . however , uptake by smes is still lagging behind . the programme should therefore support targeted actions , networks and partnerships for creativity and sustainability driven innovation throughout the industrial value chain .


### european standards play an important role in the internal market . they are of vital interest for the competitiveness of undertakings , and especially smes . they are also a crucial tool to support union legislation and policies in a number of key areas such as energy , climate change , information and communication technology , sustainable use of resources , innovation , product safety , consumer protection , worker’s safety and working conditions and ageing population , thus positively contributing to the society as a whole . ### european standards play an important role in the internal market . they are of vital interest for the competitiveness of undertakings , and especially smes . they are also a crucial tool to support union legislation and policy goals in a number of key areas such as accelerating the energy transition , tackling climate change , environmental protection , improved air quality , information and communication technology , sustainable use and recycling of resources , innovation , product safety , consumer protection , worker’s safety and working conditions and ageing population , thus positively contributing to the society as a whole .


### this regulation establishes the programme for improving the functioning of the internal market and the competitiveness of enterprises , including micro , small and medium - sized enterprises and the framework for financing of development , production and dissemination of european statistics within the meaning of article 13 of regulation no 223 / 2009 . ### this regulation establishes the programme for improving the functioning of the internal market and the competitiveness and sustainability of enterprises , paying particular attention to the needs of micro , small and medium - sized enterprises and the framework for financing of development , production and dissemination of european statistics within the meaning of article 13 of regulation no 223 / 2009 .


### to improve the functioning of the internal market , and especially to protect and empower citizens , consumers and businesses , in particular micro , small and medium - sized enterprises , by enforcement of union law , facilitation of market access , standard setting , and by promoting human , animal and plant health and animal welfare ; as well as to enhance cooperation between the competent authorities of member states and between the competent authorities of member states and the commission and the decentralised union agencies ; ### to improve the functioning of the internal market through a reinforcement of its legal social and environmental framework in line with eu ' s long - term climate objectives and a net - zero carbon economy , and especially to protect and empower citizens , consumers and businesses , in particular micro , small and medium - sized enterprises , by enforcement of union law , facilitation of market access and improved access to finance , standard setting , and by promoting human , animal and plant health and animal welfare ; as well as to enhance cooperation between the competent authorities of member states and between the competent authorities of member states and the commission and the decentralised union agencies ;


### making the internal market more effective , facilitating the prevention and removal of obstacles , supporting the development , implementation and enforcement of the union law in the areas of the internal market for goods and services , public procurement , market surveillance as well as in the areas of company law and contract and extra - contractual law , anti - money laundering , free movement of capital , financial services and competition , including the development of governance tools ; ### making the internal market more effective , promoting local economic development and local sustainable value chains , facilitating the prevention and removal of obstacles , supporting the development , implementation and enforcement of the union law , including social and environmental standards , in the areas of the internal market for goods and services , public procurement , market surveillance as well as in the areas of company law and contract and extra - contractual law , anti - money laundering , free movement of capital , financial services and competition , including the development of governance tools ;


### improving the competitiveness of enterprises with special emphasis on smes and achieving additionality through the provision of measures that provide various forms of support to smes , access to markets including the internationalisation of smes , favourable business environment for smes , the competitiveness of sectors , the modernisation of industry and the promotion of entrepreneurship ; ### strengthening both the competitiveness and sustainability of enterprises with special emphasis on smes , paying particular attention to their specific needs , promoting their creation , and achieving additionality through the provision of measures that provide various forms of support to smes , reduced administrative burden , improved access to finance for smes in their start - up and growth phase , access to markets including the internationalisation of smes , favourable business environment for smes and , improved framework conditions for enhancing the competitiveness and sustainability of sectors , the accelerating the modernisation of industry and enterprises , in order to be compatible with a net - zero carbon , climate - resilient , energy and resource efficient economy and the promotion of entrepreneurship ;


### grants under the programme shall be awarded and managed in accordance with title viii of the financial regulation . ### grants under the programme shall be awarded and managed in accordance with title viii of the financial regulation . the commission shall publish work programmes adopted for each of the specific objectives referred to in article 2 specifying the amount of grants to be allocated .


### creation of the right conditions to empower all actors of the internal market , including businesses , citizens and consumers , civil society and public authorities through transparent information and awareness raising campaigns , best practice exchange , promotion of good practices , exchange and dissemination of expertise and knowledge and organization of trainings ; ### creation of the right conditions to empower all actors of the internal market , including businesses , and in particular smes , citizens and consumers , civil society and public authorities through transparent information and awareness raising campaigns , best practice exchange , promotion of good practices , exchange and dissemination of expertise and knowledge and organization of trainings ;


### facilitating smes’ access to markets , supporting them in addressing global and societal challenges and business internationalisation , and strengthening union industrial leadership in global value chains , including the enterprise europe network ; ### facilitating smes’ access to finance and markets , providing information and raising awareness in relation to , among others , union programmes , law and standards , supporting them in addressing global and societal challenges , in particular as embodied by the sdgs and the paris agreement , and business internationalisation , support service in terms of data protection and intellectual property rights in third countries , and strengthening union industrial leadership and sustainability in global value chains , including the enterprise europe network ;


### addressing market barriers , administrative burden and creating a favourable business environment to empower smes to benefit from the internal market ; ### addressing market barriers , reducing administrative burden and creating a favourable business environment to empower smes to benefit from access to finance and the internal market ; providing appropriate guidance , mentoring and coaching schemes delivery of knowledge - based business services , that may be crucial for ensuring access to funds and up scaling ;


### facilitating the growth of businesses , including skills development , and industrial transformation across manufacturing and service sectors ; ### facilitating the development and growth of sustainable businesses , raising smes’ awareness of environmental and energy - related issues and to assist them implementing legislation , assessing their environmental and energy performance , including upgrading their skills and qualifications development , and to develop new sustainable business models and resource - efficient value - chains fostering sustainable industrial transformation across manufacturing and service sectors ;


### supporting the competiveness of enterprises and whole sectors of economy , and supporting smes’ uptake of innovation and value chain collaboration through strategically connecting ecosystems and clusters , including the joint cluster initiative ; ### strengthening the competiveness and sustainability of enterprises and whole sectors of economy , and supporting smes’ uptake of innovation , creating champions in eco - innovation and energy and resource efficient production and manufacturing processes as well as non - technical solutions and services , enhancing corporate social responsibility and value chain collaboration through strategically connecting ecosystems and clusters , including the joint cluster initiative ;


### fostering an entrepreneurial business environment and entrepreneurial culture , including the mentoring scheme for new entrepreneurs and supporting start - ups , business sustainability and scale - ups . ### fostering an entrepreneurial business environment and entrepreneurial culture , enlarging the mentoring scheme for new entrepreneurs and supporting start - ups , business sustainability and scale - ups with particular attention to young entrepreneurs , new and potential entrepreneurs and female entrepreneurs , as well as specific target groups , such as migrants , socially disadvantaged or vulnerable groups such as people with disabilities .


### may receive support from the european regional development fund , the cohesion fund , the european social fund plus or the european agricultural fund for rural development , in accordance with paragraph 5 of article [ 67 ] of regulation xx [ common provisions regulation ] and article [ 8 ] or regulation xx [ financing , management and monitoring of the common agricultural policy ] , provided that such actions are consistent with the objectives of the programme concerned . the rules of the fund providing support shall apply . ### may receive on a voluntary basis , support from the european regional development fund , the cohesion fund , the european social fund plus or the european agricultural fund for rural development , in accordance with paragraph 5 of article [ 67 ] of regulation xx [ common provisions regulation ] and article [ 8 ] or regulation xx [ financing , management and monitoring of the common agricultural policy ] , provided that such actions are consistent and in line with the cohesion policy objectives . the rules of the fund providing support shall apply .


### 1 - number of smes receiving support 2 - number of companies supported having concluded business partnerships . ### 1 - number of smes receiving support 2 - number of companies supported having concluded business partnerships . marked reduction in number of days to set - up a new sme 2 . marked reduction in the average start - up costs in the union compared to baseline 3 . marked increase in the number of member states where the time needed to get licences and permits to take up and perform the specific activity of an enterprise is one month 4 . marked increase in the number of member states with a one - stop shop for business start - ups 5 . number of smes receiving support services 6 . increase of sme output and employees compared to baseline 7 . increase in the proportion of smes exporting and increase in the proportion of smes exporting outside the union compared to baseline 8 . increase in the proportion of smes exporting and increase in the proportion of smes exporting outside the union compared to baseline . 9 . increase in the proportion of union citizens that would like to be self - employed compared to baseline 10 . marked increase in number of member states implementing entrepreneurship solutions targeting potential , young , new and female entrepreneurs , as well as other specific target groups compared to baseline 11 . performance of smes as regards sustainability to be measured by the increase in the proportion of union sme producing green , i . e . environmentally friendly , products compared to baseline , for example by means of eurobarometer survey 12 . increase in the proportion of union smes that are taking at least one action to be more resource efficient compared to baseline , for example by means of eurobarometer survey 13 . increase in the proportion of union smes that are planning to implement additional resource efficiency actions every two years compared to baseline , for example by means of eurobarometer survey


### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 2% from 2021 onwards , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable . ### a well - functioning , reformed and more ambitious eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 8% from 2021 onwards , as long as no comparable efforts are undertaken in third countries or subnational regions , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable .


### a modernisation fund should be established from 2% of the total eu ets allowances , and auctioned in accordance with the rules and modalities for auctions taking place on the common auction platform set out in regulation 1031 / 2010 . member states who in 2013 had a gdp per capita at market exchange rates of below 60% below the union average should be eligible for funding from the modernisation fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector while avoiding distortions of the internal energy market . the rules for governing the modernisation fund should provide a coherent , comprehensive and transparent framework to ensure the most efficient implementation possible , taking into account the need for easy access by all participants . the function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds . that governance structure should be composed of an investment board and a management committee and due account should be taken of the expertise of the eib in the decision - making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the modernisation fund . investments financed from the fund should be proposed by the member states . to ensure that the investment needs in low income member states are adequately addressed , the distribution of funds will take into account in equal shares verified emissions and gdp criteria . the financial assistance from the modernisation fund could be provided through different forms . ### the temporary derogation from the principle of full auctioning for electricity generation by using the option of free allocation in order to promote investments modernising their energy sectors , should end by 2020 , as planned . however , a modernisation fund should be established from 4% of the total eu ets allowances , deducting half of the quantity of allowances from the auctioning share and another half from the free allowances share , to support energy sector modernisation projects in member states who in 2013 had a gdp per capita at market exchange rates of below 60% below the union average . the rules for governing the modernisation fund should provide a coherent , comprehensive and transparent framework to ensure the most efficient implementation possible , taking into account the need for easy access by all participants . the function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds . that governance structure should be composed of an investment board , which should be composed of representatives from all the member states , the commission and the eib , and a management committee and due account should be taken of the expertise of the eib in the decision - making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the modernisation fund . investments financed from the fund should be proposed by the member states . to ensure that the investment needs in low income member states are adequately addressed , the distribution of funds will take into account in equal shares verified emissions and gdp criteria . the financial assistance from the modernisation fund could be provided through different forms .


### 2% of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain member states as set out in article 10d of this directive . ### 4% of the total quantity of allowances , deducting half of the quantity of allowances from the auctioning share and half from the free allowances share , between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain member states as set out in article 10d of this directive .


### allowances from the maximum amount referred to article 10a of this directive which were not allocated for free up to 2020 shall be set aside for new entrants and significant production increases , together with 250 million allowances placed in the market stability reserve pursuant to article 1 of decision 2015 / … of the european parliament and of the council . ### 4% of the community - wide quantity of allowances determined in accordance with articles 9 and 9a during the period 2021 to 2030 shall be set aside for new entrants and significant production increases .


### from 2021 , allowances not allocated to installations because of the application of paragraphs 19 and 20 shall be added to the reserve . ### from 2021 , allowances not allocated to installations because of the application of paragraphs 19 and 20 shall be added to the reserve . allowances which are in the reserve at the end of 2030 shall be cancelled .


### the objectives of the cfp are , amongst others , to ensure that fishing and aquaculture are environmentally sustainable in the long - term , to apply the precautionary approach to fisheries management , and to implement the ecosystem - based approach to fisheries management . ### the objectives of the cfp are , amongst others , to ensure that fishing and aquaculture are environmentally sustainable in the long - term , to apply the precautionary approach to fisheries management to ensure that stocks of harvested species are restored and maintained at levels above those that can produce msy , and to implement the ecosystem - based approach to fisheries management .


### periodic measurements of so2 , nox and particulate matter shall be required at least every three years for medium combustion plants the rated thermal input of which is greater than 1 mw and less than 20 mw , and at least annually for medium combustion plants the rated thermal input of which is equal to or greater than 20 mw but less than 50 mw . ### continuous measurements of so2 , nox , particulate matter , carbon monoxide , total organic carbon and ammonia shall be required for medium combustion plants .


### enabling the fully online registration of companies and branches and the fully online filing of documents and information would allow companies to use digital tools in their contacts with competent authorities of member states . in order to enhance trust , member states should ensure that secure electronic identification and the use of trust services is possible for national as well as cross - border users in accordance with regulation no 910 / 2014 of the european parliament and of the council34 . furthermore , in order to enable cross - border electronic identification , member states should set up electronic identification schemes which provide for authorised electronic identification means . such national schemes would be used as a basis for the recognition of electronic identification means issued in another member state . in order to ensure the high level of trust in cross - border situations , only electronic identification means which comply with article 6 of regulation no 910 / 2014 should be recognised . however , member states may also recognise other identification means such as a scanned copy of a passport . in any event , this directive should only oblige member states to enable online registration of companies and their branches and online filing by union citizens through the recognition of their electronic identification means . _________________ 34 regulation no 910 / 2014 of the european parliament and of the council of 23 july 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing directive 1999 / 93 / ec . ### supporting the digital registration of companies and branches and the filing of documents and information would allow companies to use digital tools in their contacts with competent authorities of member states . in order to enhance trust , member states should ensure that secure electronic identification and the use of trust services is possible for national as well as cross - border users in accordance with the highest assurance level defined in regulation no 910 / 2014 of the european parliament and of the council . furthermore , in order to enable cross - border electronic identification , member states should set up electronic identification schemes which provide for authorised electronic identification means in conjunction with means necessary to verify the identity of key persons in the company and validity of documents , such as video conferencing and validation procedures for original documents . a procedure should also be defined by the commission for certifying the achievement of these schemes of the highest assurance level . such national schemes would be used as a basis for the recognition of electronic identification means issued in another member state . in order to ensure the high level of trust in cross - border situations , only electronic identification means which comply with article 6 of regulation no 910 / 2014 and which achieve the highest assurance level as defined by article 8 should be recognised . in any event , this directive should only oblige member states to enable online registration of companies and their branches and online filing by union citizens through the recognition of their electronic identification means if certified schemes are available which achieve the highest assurance level for the identity of key persons in the company and validity of documents .


### member states may make further information and documents available free of charge . ### member states may make further information and documents available free of charge when extracted by electronic means . furthermore , member states shall ensure that searches may be performed in registries free of charge on specific persons , companies , sectors or places of registration .


### member states shall encourage the use of the standards and / or specifications referred to in paragraph 1 , for the provision of services , technical interfaces and / or network functions , to the extent strictly necessary to ensure interoperability of services and to improve freedom of choice for users . ### member states shall encourage the use of the standards and / or specifications referred to in paragraph 1 , for the provision of services , technical interfaces and / or network functions , to the extent strictly necessary to ensure interoperability and interconnectivity of services in order to improve freedom of choice for users and facilitate switching .


### member states shall ensure that undertakings providing public communications networks or publicly available electronic communications services take appropriate technical and organisational measures to appropriately manage the risks posed to security of networks and services . having regard to the state of the art , these measures shall ensure a level of security appropriate to the risk presented . in particular , measures shall be taken to prevent and minimise the impact of security incidents on users and on other networks and services . ### member states shall ensure that undertakings providing public communications networks or publicly available electronic communications services take appropriate technical and organisational measures to appropriately manage the risks posed to security of networks and services . having regard to the state of the art , these measures shall ensure a level of security appropriate to the risk presented . in particular , measures shall be taken to ensure that electronic communications content is , wherever technically feasible , encrypted from end - to - end by default , in order to prevent and minimise the impact of security incidents on users and on other networks and services .


### member states shall ensure that undertakings providing public communications networks or publicly available electronic communications services notify without undue delay the competent authority of a breach of security that has had a significant impact on the operation of networks or services . ### member states shall ensure that undertakings providing public communications networks or publicly available electronic communications services notify without undue delay the competent authority of a security incident or loss of integrity that has had a significant impact on the operation of networks or services .


### the number of users affected by the breach ; ### the number of users affected by the incident ;


### the duration of the breach ; ### the duration of the incident ;


### the geographical spread of the area affected by the breach ; ### the geographical spread of the area affected by the incident ;


### the extent to which the functioning of the service is disrupted ; ### the extent to which the functioning of the network or service is affected ;


### where appropriate , the competent authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the undertakings to do so , where it determines that disclosure of the breach is in the public interest . ### where appropriate , the competent authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the providers to do so , where it determines that disclosure of the incident is in the public interest .


### member states shall ensure that in order to implement article 40 , the competent authorities have the power to issue binding instructions , including those regarding the measures required to remedy a breach and time - limits for implementation , to undertakings providing public communications networks or publicly available electronic communications services . ### member states shall ensure that in order to implement article 40 , the competent authorities have the power to issue binding instructions , including those regarding the measures required to prevent or remedy an incident&#160 ; and time - limits for implementation , to undertakings providing public communications networks or publicly available electronic communications services .


### all contractual arrangements for providing the portability service shall be notified by the pepp provider to the respective national authority exercising prudential supervision over it . ### all contractual arrangements for providing the portability service as well as any partnerships falling under the scope of article 2 , point 28b shall be notified by the pepp provider to eiopa .


### to ensure the reliability and consistency of testing across the union in the market surveillance framework , the commission should designate union testing facilities . furthermore , a more comprehensive information system should be developed for sharing test results within the union in order to avoid unnecessary duplication and to ensure greater consistency at union level . ### to ensure the reliability and consistency of testing across the union in the market surveillance framework , the commission should designate union testing facilities . furthermore , a more comprehensive information system should be developed for sharing test results within the union in order to avoid unnecessary duplication and to ensure greater consistency at union level . union testing facilities competence centres should act as knowledge centres in respect of known and emerging risks and also assist the union and member states to develop joint state of the art testing methodologies related to chemicals in consumer products .


### the application of this regulation shall not prevent market surveillance authorities from taking more specific measures as provided for in directive 2001 / 95 / ec . ### the application of this regulation shall not prevent market surveillance authorities from taking more specific measures as provided for in directive 2001 / 95 / ec . those authorities are to always act on the basis of the precautionary principle , in particular when it comes to health and the environment .


### market surveillance authorities shall perform controls as part of their activities set out in paragraph 1 , on a risk - based approach , taking into account , as a minimum , the following factors : ### market surveillance authorities shall perform controls as part of their activities set out in paragraph 1 , on a risk - based approach and in accordance with the precautionary principle , taking into account , as a minimum , the following factors :


### the product is liable to compromise the health or safety of end - users ; ### the product is liable , or is suspected of being able , to compromise the health , security or safety of end - users ;


### where the products are withdrawn , recalled , prohibited or restricted , the market surveillance authority shall ensure that the commission through the network established under article 31 , the other member states and end - users are informed accordingly . ### where the products are withdrawn , recalled , prohibited or restricted , the market surveillance authority shall ensure that the commission through the network established under article 31 , the union testing facilities , other member states and end - users are informed accordingly .


### road charges can mobilise resources that contribute to the financing of the maintenance and development of high quality transport infrastructure . it is therefore appropriate to incentivise member states to use revenues from road charges accordingly and , to this end , to require that they adequately report on the use of such revenues . that should in particular help identifying possible financing gaps , and raising the public acceptance of road charging . ### road charges can mobilise resources that contribute to the financing of the maintenance and development of high quality intermodal transport infrastructure , public transport and non - motorised mobility . it is therefore appropriate to incentivise the eu and member states to use revenues from road charges accordingly and , to this end , to require that they adequately report on the use of such revenues . that should in particular help identifying possible financing gaps , and raising the public acceptance of road charging .


### ‘ vehicle’ means a motor vehicle , with four wheels or more , or articulated vehicle combination intended or used for the carriage by road of passengers or goods ; ### ‘ motorised road vehicle’ means a motor vehicle , with two wheels or more , powered by an engine of a capacity of more than 25 kwh or articulated vehicle combination ;


### member states may maintain or introduce an external - cost charge , related to the cost of traffic - based air or noise pollution or both . ### member states may maintain or introduce an external - cost charge , related to the cost of road accidents not covered by insurances , of traffic - based climate change , air or noise pollution or all of them .


### within one year after official co2 emission data are published by the commission pursuant to regulation … / …***** , the commission shall adopt a delegated act , in accordance with article 9e , to define the reference values of co2 emissions , together with an appropriate categorisation of the heavy duty vehicles concerned . ### within one year after publication of this directive and on the basis of existing co2 emission data the commission shall propose a corresponding update of this directive , with the purpose of fully internalising externalities related to co2 emissions , based on damage caused by climate change as well as investments made for preventing and / or reducing damage from climate change .


### given the importance of fair competition in the market , infringements of union rules relevant to this issue should be taken into account in the assessment of the good repute of transport managers and transport undertakings . the empowerment of the commission to define the degree of seriousness of relevant infringements should be clarified accordingly . ### given the importance of fair competition in the market , infringements of union rules relevant to this issue and to the workers concerned should be taken into account in the assessment of the good repute of transport managers and transport undertakings . the empowerment of the commission to define the degree of seriousness of relevant infringements should be clarified accordingly .


### national road haulage services carried out in the host member state by a non - resident haulier shall only be deemed to comply with this regulation if the haulier can produce clear evidence of the preceding international carriage . ### national road haulage services carried out in the host member state by a non - resident haulier shall be deemed to comply with this regulation only if the haulier can produce clear evidence of the preceding international carriage to or from his or her member state of establishment and if the value of the transport contract for the preceding international carriage is not obviously lower than the combined value of the transport contracts for the cabotage operations .


### waste management in the union should be improved , with a view to protecting , preserving and improving the quality of the environment , protecting human health , ensuring prudent and rational utilisation of natural resources and promoting a more circular economy . ### waste management in the union should be improved , with a view to protecting , preserving and improving the quality of the environment , protecting human health , ensuring prudent and efficient use of natural resources and promoting the principles of the circular economy .


### clear environmental , economic and social benefits would be derived from further restricting landfilling , starting with waste streams that are subject to separate collection . technical , environmental or economical feasibility of recycling or other recovery of residual waste resulting from separately collected waste should be taken into account in the implementation of these landfill restrictions . ### clear environmental , economic and social benefits would be derived from further restricting or banning landfilling , starting with waste streams that are subject to separate collection . technical , environmental or economic conditions of recycling or other recovery of residual waste resulting from separately collected waste should be taken into account in the implementation of these landfill restrictions .


### member states shall set up a national strategy for the implementation of the reduction of biodegradable waste going to landfills , not later than two years after the date laid down in article 18 and notify the commission of this strategy . this strategy should include measures to achieve the targets set out in paragraph 2 by means of in particular , recycling , composting , biogas production or materials / energy recovery . within 30 months of the date laid down in article 18 the commission shall provide the european parliament and the council with a report drawing together the national strategies . ### in article 5 paragraph 1 is replaced by the following : member states shall set up a national strategy for phasing out bio - waste going to landfills , not later than two years after the date laid down in article 18 and notify the commission of this strategy . this strategy shall include measures to achieve the targets set out in paragraph 2 by means of in particular , recycling , composting , small biogas digesters or materials / energy recovery and shall progressively ban bio - waste going to landfills by 2025 . within 30 months of the date laid down in article 18 the commission shall provide the european parliament and the council with a report drawing together the national strategies .


### ' only waste that has been subject to treatment is landfilled . this provision may not apply to inert waste for which treatment is not technically feasible , nor to any other waste for which such treatment does not contribute to the objectives of this directive , as set out in article 1 , by reducing the quantity of the waste or the hazards to human health or the environment ; ' ### in article 6 , the first subparagraph is amended as follows : ' only residual waste that has been subject to treatment , that is not separately collected , nor biodegradable , compostable reusable or recyclable , is landfilled when no other environmentally sustainable alternative exists . this provision may not apply to inert waste for which treatment is not technically feasible , nor to any other waste for which such treatment does not contribute to the objectives of this directive , as set out in article 1 , by reducing the quantity of the waste or the hazards to human health or the environment ; ”


### in article 6 , the following sentence is added : ‘ member states shall ensure that measures taken in accordance with this point do not compromise the achievement of the objectives of directive 2008 / 98 / ec , notably on the increase of preparing for re - use and recycling as set out in article 11 of that directive . ’ ### in article 6 , the following subparagraph is added : ‘ member states shall ensure that measures taken in accordance with this point do not compromise the achievement of the objectives of directive 2008 / 98 / ec , particularly on the increase of preparing for re - use and recycling as set out in article 11 of that directive . ’


### “member states shall ensure that measures taken in accordance with this point do not compromise the achievement of the objectives of directive 2008 / 98 / ec , notably on the increase of preparing for re - use and recycling as set out in article 11 of that directive . ” ### “member states shall ensure that measures taken in accordance with this point do not compromise the achievement of the objectives of directive 2008 / 98 / ec , notably on the increase of preparing for re - use and recycling as set out in article 11 of that directive . member states shall take the necessary measures to ensure that by 2030 the amount of municipal waste incinerated or sent to low - grade mechanical - biological treatment is limited to a maximum of 25% of the total amount of municipal waste generated . ”


### member states shall report the data concerning the implementation of article 5 and for each calendar year to the commission . they shall report this data electronically within 18 months of the end of the reporting year for which the data are collected . the data shall be reported in the format established by the commission in accordance with paragraph 5 . the first reporting shall cover the data for the period from 1 january [ enter year of transposition of this directive + 1 year ] to 31 december [ enter year of transposition of this directive + 1 year ] . ### member states shall report the data concerning the implementation of article 5 and for each calendar year to the commission . they shall report this data electronically within 12 months of the end of the reporting year for which the data are collected . the data shall be reported in the format established by the commission in accordance with paragraph 5 . the first reporting shall cover the data for the period from 1 january [ enter year of transposition of this directive + 1 year ] to 31 december [ enter year of transposition of this directive + 1 year ] .


### 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 and the mistakes in the economic governance have 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 targeted quality 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 efsi should support strategic investments with high economic value added contributing to achieving union policy objectives . ### the efsi should support strategic investments targeted to regions with high unemployment and poverty and with high economic and social value added contributing to achieving union policy objectives especially regarding the employment , education and poverty reduction targets of the europe 2020 strategy . no project may be funded which damages the eu2020 targets or negatively impacts on job creation or the environment .


### 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 european added value . in particular , the efsi should target projects that promote quality job creation , long - term inclusive growth and competitiveness and social inclusion . 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 investments that are expected to be economically and technically viable , which may entail a degree of appropriate risk , whilst still meeting the particular requirements for efsi financing . ### the efsi should target investments that are expected to be socially , economically and technically viable and create an added value , which may entail a degree of appropriate risk , whilst still meeting the particular requirements for efsi financing . it is therefore necessary to lay down clear principles , criteria and conditions for efsi support .


### 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 . ### all decisions on the use of the efsi support 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 with a proven experience in one of the 5 headline targets of the eu2020 . the investment committee should organise a partnership with competent national , regional and local authorities , economic and social partners and relevant bodies representing civil society . the purpose of such a partnership is to ensure respect for the principle of subsidiarity and proportionality and to ensure the ownership of planned operations by stakeholders . 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 commission shall conclude an agreement with the european investment bank on the establishment of a european fund for strategic investments . ### based on a mandate by the european council and the european parliament the commission may conclude an agreement with the european investment bank on the establishment of a european fund for strategic investments . the agreement shall be transmitted to the european parliament and the council and shall be made public .


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support quality investments in the union targeting regions with high unemployment and poverty rates and to ensure increased access to financing for companies having up to 1500 employees , with a particular focus on small , micro and medium enterprises as well as social and solidarity economy enterprises , through the supply of risk bearing capacity to the eib . such investments are meant to kickstart economic activity in the long - term general interest of the eu with the aim of supporting the eus 2020 targets , especially as regards employment , environment and social affairs . no investment which is detrimental to the aims as outlined in part 1 of the tfeu or the achievement of the eu2020 targets may be funded by efsi . the overall objective of the efsi shall be to promote and guarantee sustainable , inclusive and long - term growth and quality job creation as well as social inclusion in the union .


### 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 , controlled by member states .


### 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 provide advisory support for investment project identification , targeting of regions with high unemployment and identify investments with high job creation potential , preparation and development . this shall include support on the use of technical assistance for project structuring , governance on responsible investment , use of innovative financial instruments .


### to meet that objective , the eiah shall use the expertise of the eib , the commission , national promotional banks and the managing authorities of the european structural and investment funds . ### to meet that objective , the eiah shall regularly consult with stakeholders concerned by the investment as well as where appropriate use the expertise of the eib , the commission , national promotional banks and the managing authorities of the european structural and investment funds .


### member states that become parties to the efsi agreement shall be able to provide their contribution , in particular , in the form of cash or a guarantee acceptable to the eib . other third parties shall be able to provide their contribution only in cash . ### member states that become parties to the efsi agreement shall be able to provide their contribution , in particular , in the form of cash or a guarantee acceptable to the eib . other third parties shall be able to provide their contribution only in cash . financial contributions by member states , including possible contributions to investment platforms , shall not be taken into account by the commission when defining the fiscal adjustment under the preventive and corrective arm of the stability and growth pact . in the event of an excess over the deficit reference value the commission shall not launch an edp . similarly , no procedure shall be launched when assessing an excess over the debt reference value in the event that this is due solely to contributions to the efsi .


### 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 . ### within the specifications of the mandate by the european parliament and the council , the efsi agreement shall provide that the efsi shall be governed by a steering board , which shall in accordance with article 2a determine the strategic orientation , the investment criteria , the targeting , 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 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


### 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 six independent experts and the managing director . independent experts shall have to prove expertise relating to at least one of the five eu 2020 targets and have a high level of relevant experience in project finance . 2 experts shall be appointed by the steering board 2 experts shall be appointed by the civil society platform for better investment , 1 expert each by the european parliament and the council for a renewable fixed term of three years . the individual of the investment committee shall be approved by the european parliament and the council .


### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 . the operations concerned shall be consistent with union policies and support any of the following general objectives : ### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 . any operation concerned shall be consistent with union policies and support at least one of the following general objectives and one of the eu2020 objectives :


### investment in education and training , health , research and development , information and communications technology and innovation ; ### investment in social policies including social protection , social services , social and solidarity economy education from an early age and training , health , research and development , information and communications technology and innovation ;


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


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural and investment funds to contribute to the financing of eligible projects in which the eib is investing with the support of the eu guarantee . ### provided that all relevant eligibility criteria are fulfilled , member states may use european structural and investment funds to contribute to the financing of eligible projects in which the eib is investing with the support of the eu guarantee . an operation may receive support from the eu guarantee and from other union instruments , provided that an expenditure item does not receive support from more than one source .


### the commission and the eib , with support from the member states , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union . the pipeline is without prejudice to the final projects selected for support according to article 3 . ### based on the mandate by the european parliament and the council , the steering committee shall promote the creation of a fully transparent pipeline of current and potential future investment projects in the union . projects and operations for the pipeline can be suggested by any member of the steering committee as well as by the accompanying civil society platform for better investments . the pipeline is without prejudice to the final projects selected for support according to article 3 .


### the commission and the eib shall develop , update and disseminate , on a regular and structured basis , information on current and future investments which significantly contribute to achieving eu policy objectives . ### the commission and the eib shall develop , update and disseminate , on a regular and structured basis , all information available on current and future investments which significantly contribute to achieving eu policy objectives .


### an assessment of the quality of eib financing and investment operations ; ### an assessment of the quality of eib financing and investment operations and results achieved ;


### where there is doubt on the authenticity of the travel document or on the identity of its holder , the checks shall include the verification of the biometric identifiers integrated in the passports and travel documents issued in accordance with council regulation no 2252 / 2004* . ### where there is doubt on the authenticity of the travel document or on the identity of its holder , the checks shall include the verification of one of the biometric identifiers integrated in the passports and travel documents issued in accordance with council regulation no 2252 / 2004* .


### where , at external land and sea borders , the checks referred to in points a ) and b ) of the first subparagraph would have a disproportionate impact on the flow of traffic , member states may carry out those checks on a targeted basis based on an assessment of the risks related to internal security , public policy , international relations of any of the member states or a threat to public health . ### where the checks referred to in points a ) and b ) of the first subparagraph would be disproportionate , member states may decide to carry out those checks on a non - systematic targeted basis at specified border crossing points based on an assessment of the risks related to internal security , public policy , international relations of any of the member states or a threat to public health .


### each member state shall transmit its risk assessment to the agency for the management of operational cooperation at the external borders of the member states of the european union established by regulation no 2007 / 2004 and report every three months to the commission and to that agency on the application of the checks carried out on a targeted basis . ### each member state shall transmit its risk assessment to the agency for the management of operational cooperation at the external borders of the member states of the european union established by regulation no 2007 / 2004 and report every three months to the european parliament , to the commission and to that agency on the application of the checks carried out on a targeted basis .


### masters of fishing vessels shall promptly release unharmed and alive sea turtles incidentally taken in fishing gears back to the sea . ### masters of fishing vessels shall promptly release sea turtles incidentally taken in fishing gears back to the sea , if they are unharmed and alive .


### masters of fishing vessels shall not bring ashore sea turtles , unless as part of a specific rescue programme and provided that the competent national authorities concerned have been duly and officially informed prior to returning to port . ### masters of fishing vessels shall not bring ashore sea turtles , unless they have been injured or are in clear difficulty , provided that there is a specific rescue programme and that the competent national authorities concerned have been duly and officially informed prior to returning to port .


### fishing vessels that have incidentally caught sharks and rays species included in annex ii to the protocol concerning specially protected areas and biological diversity in the mediterranean shall promptly release them unharmed and alive . ### fishing vessels that have incidentally caught sharks and rays species included in annex ii to the protocol concerning specially protected areas and biological diversity in the mediterranean shall promptly release them if they are alive .


### any event of incidental catch and release of cetaceans , indicating at least the fisheries concerned , characteristics of gear type , times , locations and affected cetaceans species ; ### any event of incidental catch and release of cetaceans , indicating at least the fisheries concerned , characteristics of gear type , times , locations and indicating at least whether it is a dolphin or another cetacean ;


### the regulation shall respect the obligations set in the united nations convention on the rights of persons with disabilities ratified by all member states and the union37 . therefore , the integration of additional features that render identity cards more accessible and user - friendly to people with disabilities , such as visually impaired persons , should be encouraged . _________________ 37 oj l 23 , 26 . 11 . 2009 ### when implementing this regulation , member states should respect the obligations set in the united nations convention on the rights of persons with disabilities ratified by all member states and the union37 and in article 26 of the charter of fundamental rights of the eu . therefore , the integration of additional features that render identity cards more accessible and user - friendly to people with disabilities , such as visually impaired persons , should be encouraged . _________________ 37 oj l 23 , 26 . 11 . 2009


### with regard to the personal data to be processed in the context of the application of this regulation , regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec 40 applies . it is necessary to further specify safeguards applicable to the processed personal data . data subjects should be made well aware of the existence in their documents of the storage medium containing their biometric data including its contactless accessibility as well as of all instances where the data contained in their identity cards and residence documents are used . in any case , data subjects should have access to personal data processed in their identity cards and residence documents and have them rectified . _________________ 40 oj l 119 , 4 . 5 . 2016 , p . 1 . ### with regard to the personal data to be processed in the context of the application of this regulation , regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec 40 applies . it is necessary to further specify safeguards applicable to the processed personal data , and in particular to sensitive data such as biometric identifiers . data subjects should be made well aware of the existence in their documents of the storage medium containing their biometric data including its contactless accessibility as well as of all instances where the data contained in their identity cards and residence documents are used . in any case , data subjects should have access to personal data processed in their identity cards and residence documents and have them rectified . the storage medium should be highly secure and protect personal data stored on it from hacking . _________________ 40 oj l 119 , 4 . 5 . 2016 , p . 1 .


### it is necessary to specify in this regulation the basis for the collection and storage of data on the storage medium of identity cards and residence documents . in accordance with their national legislation or union law , member states may store other data on a storage medium for electronic services or other purposes relating to the identity card or residence document . the processing of such data including their collection and the purposes for which they can be used should be authorised by national or union law . all national data should be physically or logically separated from biometric data referred to in this regulation . ### it is necessary to specify in this regulation the basis for the collection and storage of data on the storage medium of identity cards and residence documents . in accordance with their national legislation or union law and respecting the necessity and proportionality principles , member states should store only data essential to the identification on a storage medium for electronic services or other purposes relating to the identity card or residence document . the processing of such data including their collection and the purposes for which they can be used should be authorised by national or union law . all national data should be physically or logically separated from biometric data referred to in this regulation .


### this regulation respects the fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union including the respect for private and family life , the right to the protection of personal data , the right to free movement and the right to an effective remedy . ### when implementing this regulation member states shall respect the fundamental rights and observe the principles recognised in particular by the charter of fundamental rights of the european union including human dignity , the right to the integrity of the person , the prohibition of inhuman or degrading treatment , the right to equality before the law and non - discrimination , the rights of children , the rights of the elderly , the respect for private and family life , the right to the protection of personal data , the right to free movement and the right to an effective remedy .


### member states may enter details and observations for national use as required in the light of their national provisions . ### when necessary and proportionate to the aim to be achieved , member states may enter details and observations for national use as required in the light of their national provisions .


### four years after its date of application , the commission shall report to the european parliament , the council and the european economic and social committee on the implementation of this regulation . ### four years after its date of application , the commission shall report to the european parliament , the council and the european economic and social committee on the implementation of this regulation . the report shall in particular examine whether the implementation is compliant with the data collection purposes listed in article 10 .


### no sooner than six years after the date of application of this regulation , the commission shall carry out an evaluation of this regulation and present a report on the main findings to the european parliament , the council and the european economic and social committee . the evaluation shall be conducted according to the commission ' s better regulation guidelines . ### no sooner than six years after the date of application of this regulation , the commission shall carry out an evaluation of this regulation and present a report on the main findings to the european parliament , the council and the european economic and social committee . the evaluation shall assess the fundamental rights impacts of this regulation . the evaluation shall be conducted according to the commission ' s better regulation guidelines .


### member states shall notify to the office any rules of national law relevant for the purposes of the third subparagraph . ### member states shall notify to the office any rules of national law relevant for the purposes of the third subparagraph . member states shall notify to the office in case it rejects admissibility to the evidence collected by the office . the notification shall include a detailed explanation on the legal basis and the justification of the rejection . if the office deems the evidence admissible despite the justification of the member state concerned , it shall notify the member states of its reasons and initiate a consultation procedure on the specific issue between the office and the member state . in case the consultation procedure is not successful the office shall initiate a consultation about the admissibility of evidence in order to improve the situation . the office shall in its annual reports evaluate the admissibility of evidence in the member states .


### the report shall contain , as a minimum , a description of the facts , including an assessment of the damage caused or likely to be caused the possible legal qualification and any available information about potential victims , suspects and any other involved persons . ### the report shall contain , all the facts and information known by the office , including an assessment of the damage caused or likely to be caused the possible legal qualification and any available information about potential victims , suspects and any other involved persons .


### in order to give substance to the objectives of the cap as established by article 39 of the treaty on the functioning of the european union , as well as to ensure that the union adequately addresses its most recent challenges , it is appropriate to provide for a set of general objectives reflecting the orientations given in the communication on ‘ the future of food and farming’ . a set of specific objectives should be further defined at union level and applied by the member states in their cap strategic plans . while striking a balance across the dimensions of sustainable development , in line with the impact assessment , these specific objectives should translate the general objectives of the cap into more concrete priorities and take into account relevant union legislation , particularly with regard to climate , energy and environment . ### in order to give substance to the objectives of the cap as established by article 39 of the treaty on the functioning of the european union , as well as to ensure that the union adequately addresses its most recent challenges and international commitments , it is appropriate to provide for a set of general objectives reflecting the orientations given in the communication on ‘ the future of food and farming’ . a set of specific objectives should be further defined at union level and applied by the member states in their cap strategic plans . in order to strike a balance across the dimensions of sustainable development , member states should be required to take action to achieve all specific objectives simultaneously . these specific objectives should translate the general objectives of the cap into more concrete priorities and take into account relevant union legislation , particularly with regard to climate , both wild and agro - biodiversity , water protection , public health , employment , renewable energy , animal welfare and environment .


### bolstering environmental care and climate action and contributing to the achievement of union environmental - and climate - related objectives is a very high priority in the future of union agriculture and forestry . the architecture of the cap should therefore reflect greater ambition with respect to these objectives . by virtue of the delivery model , action taken to tackle environmental degradation and climate change should be result - driven and article 11 tfeu should , for this purpose , be considered as an obligation of result . ### bolstering environmental care , preservation of biodiversity and genetic diversity in the agricultural system as well as climate action and contributing to the achievement of union environmental - and climate - related objectives is a very high priority in the future of union agriculture , forestry and rural development . the architecture of the cap should therefore reflect high ambition with respect to these objectives . by virtue of the delivery model , action taken to avoid further environmental degradation and climate change caused by unsustainable farming systems should be result - driven and article 11 tfeu should , for this purpose , be considered as an obligation of result .


### member states should set farm advisory services for the purpose of improving the sustainable management and overall performance of agricultural holdings and rural businesses , covering economic , environmental and social dimensions , and to identify the necessary improvements as regards all measures at farm level provided for in the cap strategic plans . these farm advisory services should help farmers and other beneficiaries of cap support to become more aware of the relationship between farm management and land management on the one hand , and certain standards , requirements and information , including environmental and climate ones , on the other hand . the list of the latter includes standards applying to or necessary for farmers and other cap beneficiaries and set in the cap strategic plan , as well as those stemming from the legislation on water , on the sustainable use of pesticides , as well as the initiatives to combat antimicrobial resistance and the management of risks . in order to enhance the quality and effectiveness of the advice , member states should integrate advisors within the agricultural knowledge and innovation systems , in order to be able to deliver up - to - date technological and scientific information developed by research and innovation . ### member states should set farm advisory services for the purpose of improving the sustainable management and overall performance of agricultural holdings and rural businesses , covering economic , environmental and social dimensions , and to identify the necessary improvements as regards all measures at farm level provided for in the cap strategic plans . these farm advisory services should help farmers and other beneficiaries of cap support to become more aware of the relationship between farm management and land management on the one hand , and certain standards , requirements and information , including animal welfare , environmental and climate ones , on the other hand . the list of the latter includes standards applying to or necessary for farmers and other cap beneficiaries and set in the cap strategic plan , as well as those stemming from the legislation on water , on the sustainable use of pesticides , as well as the initiatives to combat antimicrobial resistance and the management of risks . in order to enhance the quality and effectiveness of the advice , member states should integrate advisors within the agricultural knowledge and innovation systems , in order to be able to deliver up - to - date technological and scientific information developed by research and innovation .


### eafrd should not provide support to investments that would harm the environment . hence it is necessary to provide in this regulation a number of exclusion rules , as well as the possibility to further develop these guarantees in delegated acts . notably , the eafrd should not finance investments in irrigation which do not contribute towards the achievement , or the preservation , of good status of the associated water body or bodies and investments in afforestation which are not consistent with climate and environmental objectives in line with sustainable forest management principles . ### eafrd should not provide support to investments that would harm the environment . hence it is necessary to provide in this regulation a double rule that all infrastructure investments on agricultural holdings must simultaneously demonstrate positive effects on the environment , climate and biodiversity , on the one hand , and on the business situation of the agricultural holding , on the other . in addition , a number of more specific exclusion rules , as well as the possibility to further develop both types of these guarantees in delegated acts . notably , the eafrd should not finance investments in irrigation which do not contribute towards the achievement , or the preservation , of good status of the associated water body or bodies and investments in afforestation which are not consistent with climate and environmental objectives in line with sustainable forest management principles .