### it is the union ' s objective to strengthen its scientific and technological bases and encourage its competitiveness , including in its industry , while promoting all research and innovation activities to deliver on the union ' s strategic priorities , which ultimately aim at promoting peace , the union ' s values and the well - being of its peoples . ### it is the union ' s objective to encourage social progress and the sustainability and resilience of its society , by strengthening its scientific and technological bases and encourage its competitiveness , including in its industry , while promoting all research and innovation activities deemed appropriate to support the implementation of other union policies and the honouring of the union ' s international commitments , in particular under the paris agreement , the addis ababa action agenda , the un ' s 2030 agenda and the the sustainable development goals targets 3b , 9 . 5 and 17 . 6 - 17 . 9 , to deliver on the union ' s political strategic priorities and commitments , which ultimately aim at promoting peace , tackling climate change , sustainable development as embodied by the sdgs , the union ' s values , and the well - being of its peoples .


### areas of intervention : democracy ; cultural heritage ; social and economic transformations ; disaster - resilient societies ; protection and security ; cybersecurity ### areas of intervention : democracy , e - democracy and fundamental rights ; culture and cultural heritage ; media literacy ; education ; social and economic transformations ; cultural and creative industries and sectors ; accessibility for persons with disabilities to all products and services


### the programme has the following specific objectives : ### the programme shall have exclusive focus on civilian research and application and has the following specific objectives :


### for activities making use of human embryonic stem cells , as appropriate , details of licensing and control measures that shall be taken by the competent authorities of the member states concerned as well as details of the ethics approvals that shall be obtained before the activities concerned start . ### for activities making use of human embryonic stem cells or animals , as appropriate , details of licensing and control measures that shall be taken by the competent authorities of the member states concerned as well as details of the ethics approvals that shall be obtained before the activities concerned start .


### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefit and global commitments to implement the un sdgs . international cooperation should aim to strengthen the union ' s research and innovation excellence , attractiveness and economic and industrial competitiveness , to tackle global challenges , as embodied in the un sdgs , and to support the union ' s external policies . an approach of general opening for international participation and targeted international cooperation actions should be followed , including through appropriate eligibility for funding of entities established in low to middle income countries . at the same time , association of third countries to the programme should be promoted . ### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefits and global commitments to implement the un sdgs and the paris agreement . international cooperation should aim to strengthen the union ' s research and innovation excellence , including eco - innovation , attractiveness and economic and industrial sustainability and competitiveness , to tackle societal challenges , as embodied in the un sdgs and the paris agreement , and to support the union ' s external policies . an approach of general opening for fair access and international participation and targeted international cooperation actions should be followed , including through appropriate eligibility for funding of entities established in low to middle income countries . at the same time , association of third countries to the programme should be promoted . where appropriate , synergies with other programmes implemented by the eu with third countries and international organisation should be established .


### the programme is expected to have societal impact by addressing eu policy priorities through r&i , delivering benefits and impact through r&i missions and strengthening the uptake of innovation in society . progress towards this impact will be monitored through proxy indicators set along the following four key impact pathways . ### the programme is expected to have societal impact by addressing global challenges and eu policy priorities and commitments through r&i , delivering benefits and impact through r&i missions and strengthening the uptake of innovation in society through cso and citizens involvement ultimately contributing to people ' s well - being . progress towards this impact will be monitored through proxy indicators set along the following four key impact pathways .


### the programme shall ensure the effective promotion of gender equality and the gender dimension in research and innovation content . particular attention shall be paid to ensuring gender balance , subject to the situation in the field of research and innovation concerned , in evaluation panels and in bodies such as expert groups . ### the programme shall ensure gender equality in research and innovation , by addressing in particular the underlying causes of gender imbalance , by exploiting the full potential of both female and male researchers , and by integrating the gender dimension into the research and innovation content particular attention shall be paid to ensuring gender balance , subject to the situation in the field of research and innovation concerned , in evaluation panels and in other relevant advisory and bodies such as expert groups


### affiliated entities are eligible for funding in an action if they are established in a member state , associated country , or in a third country identified in the work programme adopted by the commission . ### affiliated entities are eligible for funding in an action if they are established in a member state , associated country , or in a third country identified in the work programme except where conditions for the participation of legal entities from member states in the third country ' s research and innovation programmes are considered prejudicial to the union ' s interests .


### proposals shall be evaluated by the evaluation committee which may be : ### proposals shall be evaluated by the evaluation committee which shall be :


### the missions shall be implemented in accordance with article 5 of the specific programme . evaluation shall be carried out in accordance with article 26 . ### the content of the missions , their implementation method , estimated budget and synergies with other union funds and links with european partnerships shall be laid down in the strategic r&i plan , in accordance with article 6 of this regulation and article 5 of the specific programme , before being implemented through work programmes . in accordance with art 11 [ decision ] , their objectives , funding , targets and timeline shall be further specified in work programmes . the proportion that should be covered by the programme of the total estimated cost to achieve the missions may vary from mission to mission . missions requiring bigger sums of money from outside the programme will include a plan for how this money will be raised . evaluation shall be carried out in accordance with article 26 .


### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefit and global commitments to implement the un sdgs . international cooperation should aim to strengthen the union ' s research and innovation excellence , attractiveness and economic and industrial competitiveness , to tackle global challenges , as embodied in the un sdgs , and to support the union ' s external policies . an approach of general opening for international participation and targeted international cooperation actions should be followed , including through appropriate eligibility for funding of entities established in low to middle income countries . at the same time , association of third countries to the programme should be promoted . ### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on union’s interest , reciprocity and mutual benefits and global commitments to implement the un sdgs . international cooperation should aim to strengthen the union ' s excellence in research and innovation , attractiveness and economic and industrial competitiveness , to tackle global societal challenges , as embodied in the un sdgs , and to support the union ' s external policies . an approach of general opening for reciprocal international participation and targeted international cooperation actions should be followed , appropriate eligibility criteria , considering different levels of r&i capacities , for funding of entities established in low to middle income countries need to be applied . at the same time , association of third countries to the programme could be promoted where relevant and where reciprocity is guaranteed for the access of eu entities access to similar funding programmes of the third country .


### “background” means any data , know - how or information whatever its form or nature , tangible or intangible , including any rights such as intellectual property rights , that is : held by beneficiaries prior to their accession to the action ; identified by the beneficiaries in writing in any manner as needed for implementing the action or for exploiting its results ; ### “background” means any data , know - how or information whatever its form or nature , tangible or intangible , including any rights such as intellectual property rights , that is : held by beneficiaries prior to their accession to the action ; and identified by the beneficiaries in a written agreement as needed for implementing the action or for exploiting its results ;


### to strengthen the impact of research and innovation in developing , supporting and implementing union policies , and support the uptake of innovative solutions in industry and society to address global challenges ; ### to strengthen the eu added value of rdi funding , the impact of research and innovation achieving sustainable development and in developing , supporting and implementing union policies and commitments , in particular the un sdgs and the paris agreement , and support the equitable access to and uptake of innovative solutions in society and industry to improve people ' s well - being


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


### estonia , greece , croatia , latvia , malta , romania and slovakia may obtain five additional years for the attainment of the target referred to in paragraph 5 . the member state shall notify the commission of its intention to make use of this provision at the latest 24 months before the deadline laid down in paragraph 5 . in the event of an extension , the member state shall take the necessary measures to reduce by 2030 the amount of municipal waste landfilled to 20% of the total amount of municipal waste generated . ### member states where residual waste generated is below 150 kg / capita / year by 2025 and below 130 kg / capita / year by 2030 may obtain five additional years for the attainment of the target referred to in paragraph 5 . the member state shall notify the commission of its intention to make use of this provision at the latest 24 months before the deadline laid down in paragraph 5 .


### the commission shall adopt implementing acts laying down the format for reporting data in accordance with paragraph 1 . those implementing acts shall be adopted in accordance with the procedure referred to in article 17 of this directive . ### the commission shall adopt delegated acts laying down the methodology for collecting and processing the data , and the format for reporting data in accordance with paragraph 1 . those delegated acts shall be adopted in accordance with the procedure referred to in article 17a of this directive .


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


### 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 landfilling , starting with waste streams that are subject to separate collection . improvement in the technical , environmental or economical feasibility of recycling should be further supported with the aim of reducing as much as possible the amount of residual waste resulting from separately collected waste .


### member states shall take the necessary measures to ensure that by 2030 the amount of municipal waste landfilled is reduced to 10% of the total amount of municipal waste generated . ### member states shall take the necessary measures to ensure that by 2030 the amount of municipal waste landfilled is reduced to 5% of the total amount of municipal waste and of commercial and industrial waste generated , keeping the amount of residual waste below 130kg / capita / year .


### the efsi agreement shall be open to accession by member states . subject to the consent of existing contributors , the efsi agreement shall also be open to accession by other third parties , including national promotional banks or public agencies owned or controlled by member states , and private sector entities . ### the efsi agreement shall be open to accession by member states . subject to the consent of existing contributors , the efsi agreement shall also be open to accession by other third parties , including : national promotional banks ; public agencies owned or controlled by member states ; public interest bodies ; public - private partnerships ; and public research institutions .


### existence of pedestrian crossings . ### existence of pedestrian and cycling crossings .


### pedestrian crossing facility on entry arm of minor road joining network . ### pedestrian and cycling crossing facilities on entry arm of minor road joining network .


### a member state whose greenhouse gas emissions for a given year are below its annual emission allocation for that year , taking into account the use of flexibilities pursuant to this article and article 6 , may bank that excess part of its annual emission allocation to subsequent years until 2030 . ### a member state whose greenhouse gas emissions for a given year are below its annual emission allocation for that year , taking into account the use of flexibilities pursuant to this article , may bank 20% of that excess part of its annual emission allocation to subsequent years until 2030 .


### the commission shall report to the european parliament and to the council by 28 february 2024 and every five years thereafter on the operation of this regulation , its contribution to the eu ' s overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the paris agreement , and may make proposals if appropriate . ### within six months of the facilitative dialogue which is to be convened under the unfccc in 2018 to take stock of the collective efforts of parties in relation to progress towards the global long - term goal , and within six months of the global stocktake in 2023 and every five years thereafter , the commission shall submit a report to the european parliament and to the council on the operation of this regulation , its contribution to the eu ' s overall 2030 , 2040 and 2050 greenhouse gas emission reduction targets and assess its contribution to the long - term mitigation goals of the paris agreement and the need to update this regulation to enhance the union´s climate action . that report shall be accompanied , where appropriate , by legislative proposals .


### the commission shall report to the european parliament and to the council by 28 february 2024 and every five years thereafter on the operation of this regulation , its contribution to the eu ' s overall 2030 greenhouse gas emission reduction target and its contribution to the goals of the paris agreement , and may make proposals if appropriate . ### within six months of the facilitative dialogue to be convened under the unfccc in 2018 to take stock of the collective efforts of parties in relation to progress towards the global long - term goal , and within six months of the global stocktake in 2023 and subsequent global stocktakes thereafter , the commission shall report to the european parliament and to the council on the operation of this regulation . the report shall assess the contribution of this regulation to the eu ' s overall 2050 greenhouse gas emission reduction target and the adequacy of its contribution to the goals of the paris agreement , and shall be accompanied with proposals to enhance the union ' s climate action as appropriate .


### subject to the flexibilities provided for in articles 5 , 6 and 7 , to the adjustment pursuant to article 10 and taking into account any deduction resulting from the application of article 7 of decision no 406 / 2009 / ec , each member state shall ensure that its greenhouse gas emissions in each year between 2021 and 2029 do not exceed the level defined by a linear trajectory , starting in 2020 on the average of its greenhouse gas emissions during 2016 , 2017 and 2018 determined pursuant to paragraph 3 and ending in 2030 on the limit set for that member state in annex i to this regulation . ### subject to the flexibilities provided for in articles 5 , 6 and 7 , to the adjustment pursuant to article 10 and taking into account any deduction resulting from the application of article 7 of decision no 406 / 2009 / ec , each member state shall ensure that its greenhouse gas emissions in each year between 2021 and 2029 do not exceed the level defined by a linear trajectory , starting in 2017 on the average of its greenhouse gas emissions during 2016 , 2017 and 2018 determined pursuant to paragraph 3 and ending in 2030 on the limit set for that member state in annex i to this regulation .


### activities reinforcing the interactions between the members of the organisations referred to in article 3 and advocacy activities fostering the positions of those members at union level . ### activities reinforcing the interactions between the members of the organisations referred to in article 3 as well as advocacy and policy advice activities fostering the positions of those members at union level and promoting the public interest in financial regulation .


### member states and the commission shall ensure the protection of confidential information acquired in application of this regulation . ### member states , the european parliament and the commission shall ensure the full protection of confidential information , including commercially - sensitive information , acquired in application of this regulation .


### a mechanism which enables member states to cooperate and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states should be able to provide comments to a member state in which the investment is planned or has been completed , irrespective of whether the member states providing comments or the member states in which the investment is planned or has been completed maintain a screening mechanism or are screening the investment . the comments of member states should also be forwarded to the commission . the commission should also have the possibility , where appropriate , to issue an opinion to the member state in which the investment is planned or has been completed , irrespective of whether this member state maintains a screening mechanism or is screening the investment and irrespective of whether other member states have provided comments . ### a mechanism which enables member states and the commission to cooperate in a transparent manner and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states , whose security or public order may be affected by a foreign direct investment in another member state , should be able to provide comments to the commission . the commission should then forward all comments to the member state where the investment is planned as well as all other member states concerned . the commission should also have the possibility , where appropriate , to issue an opinion to the member state in which the investment is planned . based on the comments received , the commission may request the issue to be discussed in the framework of the investment screening coordination group .


### in order to facilitate the cooperation with other member states and the screening of foreign direct investment by the commission , member states should notify their screening mechanisms and any amendment thereto to the commission , and should report on the application of their screening mechanisms on a regular basis . for the same reason , member states that do not have a screening mechanism should also report on the foreign direct investments that took place in their territory , on the basis of the information available to them . ### in order to facilitate the cooperation with other member states and the screening of foreign direct investment by the commission , member states should notify their screening mechanisms and any amendment thereto to the commission , and should report on the application of their screening mechanisms on a regular basis . however , member states that do not have a screening mechanism should report annually on the foreign direct investments that took place in their territory where such investments pertain to projects and programmes of union interest . all reporting obligations should be applicable from . . . [ two years after entry into force of this regulation ] .


### in determining whether a foreign direct investment is likely to affect security or public order , member states and the commission may take into account whether the foreign investor is controlled by the government of a third country , including through significant funding . ### in determining whether a foreign direct investment is likely to affect security or public order , member states and the commission shall take into account whether the foreign investor is directly or indirectly controlled by the government of a third country , including through significant funding , and whether the third country effectively implements international human rights law , humanitarian law , is in compliance with relevant international arm control norms such as the arms trade treaty , or whether it abides by the santiago principles for sovereign wealth funds . the member states and the commission shall equally take into account whether the foreign direct investment could lead to a monopolistic structure .


### the commission shall address its opinion to the member state concerned within a reasonable period of time , and in any case no later than 25 working days following receipt of the information requested by the commission pursuant to paragraph 2 . where a member state has a screening mechanism in place as referred to in article 3 and the information on foreign direct investment undergoing screening has been received by the commission pursuant to article 8 , the opinion shall be delivered no later than 25 working days following receipt of such information . where additional information is needed to issue an opinion , the 25 - day period shall run from the date of receipt of the additional information . ### the commission shall issue its opinion to the member state concerned within a reasonable period of time , in order to not hamper due to unreasonable delays either the foreign direct investment or the national screening , and in any case no later than 25 working days following receipt of the information necessary to issue an opinion pursuant to paragraph 1 .


### member states shall inform the commission and the other member states of any foreign direct investments that are undergoing screening within the framework of their screening mechanisms , within 5 working days from the start of the screening . as part of the information , and when applicable , the screening member states shall endeavour to indicate whether it considers that the foreign direct investment undergoing screening is likely to fall within the scope of regulation no 139 / 2004 . ### a member state shall inform the commission and the other member states of any foreign direct investments that are subject to screening within the framework of its screening mechanism , within five working days from the start of the screening . as part of the information , and when applicable , the screening member state shall endeavour to indicate whether it considers that the foreign direct investment which is subject to the screening is likely to fall within the scope of regulation no 139 / 2004 .


### comments pursuant to paragraphs 2 or opinions pursuant to paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 . in cases where the opinion of the commission follows comments from other member states , the commission shall have 25 additional working days for issuing the opinion . ### comments pursuant to paragraphs 2 shall be addressed to the commission within a reasonable period of time , and in any case no later than 20 working days following receipt of the information referred to in paragraphs 1 or 4 . the commission has then 5 working days to share all comments received with the member state where the foreign direct investment is planned or has been completed . the commission has 25 working days to address the opinion referred to in paragraph 3 and in cases where the opinion of the commission follows comments from other member states , the commission shall have 25 additional working days for issuing the opinion .


### - critical infrastructure , including energy , transport , communications , data storage , space or financial infrastructure , as well as sensitive facilities ; ### - critical and strategic infrastructure , including energy , water , transport , communications and the media , data storage , space , health services , research or financial infrastructure , as well as sensitive facilities and any security and defence infrastructure ;


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


### where a member state considers that a foreign direct investment planned or completed in another member state is likely to affect its security or public order , it may provide comments to the member state where the foreign direct investment is planned or has been completed . the comments shall be forwarded to the commission in parallel . ### where a member state considers that a foreign direct investment , planned or completed , in another member state is likely to affect its security or public order , it may provide comments to the commission . the commission shall collect all comments received and transmit them to the member state where the foreign direct investment is planned or has been completed , as well as to all other member states .


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


### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies , and inputs which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . in that regard , member states and the commission should also be able to take into account whether a foreign investor is controlled directly or indirectly by the government of a third country . ### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , critical technologies , including key enabling technologies , and inputs or sensitive information which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . in that regard , member states and the commission should take into account whether a foreign investor is owned , operated or otherwise controlled directly or indirectly by the government or state bodies of a third country and / or pursuing state - led outward foreign direct investments policies for strategic industrial goals , corroborated through significant funding and subsidies , extended credit and lending by the government of a third country or a state - owned financial institution . when screening a foreign direct investment , the commission may also assess the effect on specific key know - how and technologies , which could be significant for the mid - and long - term economic security .


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


### member states that do not maintain screening mechanisms shall provide the commission with an annual report covering foreign directs investments that took place in their territory , on the basis of information available to them . ### by . . . [ two years after the entry into force of this regulation ] , and every year thereafter , member states that do not maintain screening mechanisms shall provide the commission with a report covering foreign directs investments that took place in their territory when such investments pertain to projects and programmes of union interest . .


### the communication and cooperation at member state and union level should be enhanced through the establishment of contact points for the screening of foreign direct investments in each member state . ### the communication and cooperation at member state and union level should be enhanced through the establishment of contact points for the screening of foreign direct investments in each member state , as well as through the establishment of an investment screening coordination group . the group should be formed of representatives of member states and chaired by a representative of the commission and may serve as a platform to exchange views and information , to improve cooperation and coordination , and to assist each other on foreign direct investment .


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


### the commission or a member state which duly considers that a foreign direct investment is likely to affect its security or public order may request from the member state where the foreign direct investment is planned or has been completed , any information necessary to provide comments referred to in paragraph 2 , or to issue the opinion referred to in paragraph 3 . ### a member state which duly considers that a foreign direct investment is likely to affect its security or public order may address a request to the commission to provide it with any information received from the member state where the foreign direct investment is planned or has been completed which is necessary to provide comments referred to in paragraph 2 . member states have five working days from the day of the notification of the activation of a screening mechanism under paragraph 1 to address a request for information to the commission . the commission shall collect all requests for information received and immediately transmit them to the member state where the foreign direct investment is planned or has been completed , as well as to the other member states . the commission may also on its own initiative request the member state where the foreign direct investment is planned or has been completed to provide it with any information necessary to issue the opinion referred to in paragraph 3


### the commission or a member state which duly considers that a foreign direct investment is likely to affect its security or public order may request from the member state where the foreign direct investment is planned or has been completed , any information necessary to provide comments referred to in paragraph 2 , or to issue the opinion referred to in paragraph 3 . ### a member state which duly considers that a foreign direct investment is likely to affect its security or public order may address a request to the commission to receive from the member state where the foreign direct investment is planned or has been completed , any information necessary to provide comments referred to in paragraph 2 . when the activation of a screening mechanism is notified under paragraph 1 , member states have 5 working days to address a request for information to the commission . the commission shall collect all requests for information received and immediately share them with the member state where the foreign direct investment is planned or has been completed , as well as with other member states . the commission may also request , on its own initiative , information necessary to issue the opinion referred to in paragraph 3 . additionally , the commission may request the matter to be discussed in the framework of the investment screening coordination group referred to in article 12a .


### a mechanism which enables member states to cooperate and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states should be able to provide comments to a member state in which the investment is planned or has been completed , irrespective of whether the member states providing comments or the member states in which the investment is planned or has been completed maintain a screening mechanism or are screening the investment . the comments of member states should also be forwarded to the commission . the commission should also have the possibility , where appropriate , to issue an opinion to the member state in which the investment is planned or has been completed , irrespective of whether this member state maintains a screening mechanism or is screening the investment and irrespective of whether other member states have provided comments . ### a mechanism which enables member states and the commission to cooperate in a transparent manner and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states , whose security or public order may be affected by a foreign direct investment in another member state , should be able to provide comments to the commission . the commission should then forward all comments to the member state where the investment is planned as well as all other member states concerned . the commission should also have the possibility , where appropriate , to issue an opinion to the member state in which the investment is planned . based on the comments received , the commission may request the issue to be discussed in the framework of the investment screening coordination group .


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


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


### the opinion of the commission shall be communicated to the other member states . ### the opinion of the commission shall be communicated to the other member states . where the commission has provided an opinion under this article , it shall inform the european parliament as part of a structured dialogue on foreign direct investment that affects security and public order . article 11 , paragraph 2 has to be taken into full account .


### the member states where the foreign direct investment is planned or has been completed shall give due consideration to the comments of the other member states referred to in paragraph 2 and to the opinion of the commission referred to in paragraph 3 . ### the member states where the foreign direct investment is planned or has been completed shall give due consideration to the comments of the other member states referred to in paragraph 2 and to the opinion of the commission referred to in paragraph 3 , as well as to comments expressed within the framework of the investment screening coordination group as referred to in article 12a .


### in determining whether a foreign direct investment is likely to affect security or public order , member states and the commission may take into account whether the foreign investor is controlled by the government of a third country , including through significant funding . ### in determining whether a foreign direct investment is likely to affect security or public order , member states and the commission shall take account of whether the foreign investor is directly or indirectly controlled by the government or state bodies of a third country and / or pursuing state - led outward foreign direct investments policies for strategic industrial goals , corroborated through significant funding or subsidies , extended credit and lending by the government of a third country or a state - owned financial institution . when screening a foreign direct investment , the commission may also assess the effect on specific key know - how and technologies , which could be significant for the mid - and long - term economic security .


### no later than three years after the entry into force of this regulation , the commission should present to the european parliament and the council a report on the application of this regulation . where the report proposes modifying the provisions of this regulation , it may be accompanied , where appropriate , by a legislative proposal . ### no later than three years after the entry into force of this regulation and every three years thereafter , the commission should present to the european parliament and the council a report on the application of this regulation . where the report proposes modifying the provisions of this regulation , it may be accompanied , where appropriate , by a legislative proposal . this regulation should enter into force on . . . [ six months after the day of publication on the official journal of the european union ] in order to allow member states to amend their national screening mechanisms where necessary and appropriate .


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


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


### comments pursuant to paragraphs 2 or opinions pursuant to paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 . in cases where the opinion of the commission follows comments from other member states , the commission shall have 25 additional working days for issuing the opinion . ### comments referred to in paragraph 2 shall be sent to the commission within a reasonable period of time , and in any case no later than 20 working days following the receipt of the information referred to in paragraphs 1 or 4 . the commission shall transmit the comments it received within five working days to the member state where the foreign direct investment is planned or has been completed . the commission shall issue the opinion referred to in paragraph 3 within 25 working days and in cases where the opinion of the commission follows the comments from other member states , the commission shall have 25 additional working days for issuing the opinion .


### the commission may request from the member state where the foreign direct investment is planned or has been completed any information necessary to issue the opinion referred to in paragraph 1 . ### the commission may request additional information as referred to in article 10 from the member state where the foreign direct investment is planned or has been completed . when requesting such information , the commission shall explain how security and public order may be affected by the foreign direct investment which is planned , is under consideration or which has been completed .


### where a member state considers that a foreign direct investment planned or completed in another member state is likely to affect its security or public order , it may provide comments to the member state where the foreign direct investment is planned or has been completed . the comments shall be forwarded to the commission in parallel . ### where a member state considers that a foreign direct investment , planned or completed , in another member state is likely to affect its security or public order , it may provide comments to the commission . the commission shall collect all comments received and transmit them to the member state where the foreign direct investment is planned or has been completed , as well as to all other member states .


### member states that maintain screening mechanisms shall provide the commission with an annual report on the application of their screening mechanisms . for each reporting period , the report shall include in particular information on : ### by . . . [ 2 years after the entry into force of this regulation ] , and every two years thereafter , member states that maintain screening mechanisms shall provide the commission with a report on the application of their screening mechanisms . for each reporting period , the report shall include in particular information on :


### each member state shall appoint a foreign direct investment screening contact point for the screening of foreign direct investment . the commission and other member states shall involve these fdi screening contact points on all issues related to implementation of this regulation . ### each member state , regardless of whether it maintains a screening mechanism , shall appoint a foreign direct investment screening contact point . the commission and other member states shall involve these fdi screening contact points and the investment screening coordination group on all issues related to implementation of this regulation .


### projects or programmes of union interest shall include in particular those projects and programmes which involve a substantial amount or a significant share of eu funding , or which are covered by union legislation regarding critical infrastructure , critical technologies or critical inputs . an indicative list of projects or programmes of union interest is included in annex 1 . ### projects or programmes of union interest shall include in particular those projects and programmes which involve a substantial amount or a significant share of eu funding under current and future multiannual financial frameworks , or which are covered by union legislation regarding critical infrastructure , critical technologies or critical inputs . the list of projects or programmes of union interest is included in annex i .


### it is important to provide legal certainty and to ensure eu wide coordination and cooperation by establishing a framework for the screening of foreign direct investment in the union on grounds of security or public order . this is without prejudice to the sole responsibility of the member states for the maintenance of national security . ### it is important to provide legal certainty and to aim at eu wide cooperation by establishing a framework for the screening of foreign direct investment in the union on grounds of security or public order where strategic interests are affected , including , among others , enabling key technologies , strategic assets , strategic and sensitive data etc . this is without prejudice to the sole responsibility of the member states for the maintenance of national security and public order .


### manufacturing processes involving the use of mercury and / or mercury compounds that did not exist prior to 1 january 2018 shall be prohibited . ### manufacturing processes involving the use of mercury and / or mercury compounds that did not exist prior to the entry into force of this regulation shall be prohibited .


### the import of mercury and of mixtures listed in annex i for uses other than disposal as waste shall be prohibited . ### the import of mercury , and of mercury compounds and mixtures listed in annex i , shall be prohibited . however , the import of mercury and of mixtures listed in annex i for disposal shall be prohibited as of 1 january 2028 .


### temporarily stored in above - ground facilities dedicated to and equipped for the temporary storage of mercury . ### permanently stored , in a solidified and stabilised form , in salt mines that are adapted for the disposal of mercury , or in deep underground hard rock formations providing a level of safety and confinement equivalent to that of those salt mines ;


### the manufacturing and placing on the market of new mercury - added products and the establishment of new mercury - based manufacturing processes would increase the use of mercury and of mercury compounds and mercury emissions within the union . such new activities should therefore be prohibited unless an assessment demonstrates that these uses would provide significant environmental and health benefits and that no technically and economically feasible mercury - free alternatives providing such benefits are available . ### the manufacturing and placing on the market of new mercury - added products and the establishment of new mercury - based manufacturing processes would increase the use of mercury and of mercury compounds and mercury emissions within the union . such new activities should therefore be prohibited unless an assessment demonstrates that these uses would provide significant health benefits and that no technically feasible mercury - free alternatives providing such benefits are available .


### - take steps to reduce , and where feasible eliminate , the use of mercury and mercury compounds in , and the emissions and releases to the environment of mercury from , such mining and processing ; ### - prohibit the use of mercury and mercury compounds in , and the emissions and releases to the environment of mercury from , such mining and processing ;


### the use of dental amalgam in an encapsulated form and the implementation of amalgam separators should be made mandatory to protect dental practitioners and patients from mercury exposure and to ensure that resulting mercury waste are not released into the environment , but are collected and subjected to sound waste management . given the size of the undertakings from the dentristy sector concerned by this change , it is appropriate to provide sufficient time to adapt to the new provision . ### pending the total elimination of the use of mercury in dentistry , the use of dental amalgam in an encapsulated form and the implementation of amalgam separators should be made mandatory to protect dental practitioners and patients from mercury exposure and to ensure that resulting mercury waste is not released into the environment , but is collected and subjected to sound waste management .


### the use of dental amalgam in an encapsulated form and the implementation of amalgam separators should be made mandatory to protect dental practitioners and patients from mercury exposure and to ensure that resulting mercury waste are not released into the environment , but are collected and subjected to sound waste management . given the size of the undertakings from the dentristy sector concerned by this change , it is appropriate to provide sufficient time to adapt to the new provision . ### the use of dental amalgam in an encapsulated form and the implementation of amalgam separators are already widespread in the european union . such measures in addition to the collection and sound management of dental amalgam and amalgam waste are considered to be sufficient in reducing mercury releases from this sector , but they fail to address the problem of perpetual demand of mercury in the union and the negative impact on the environment . to protect dental practitioners , patients and the environment from mercury exposure , the use of dental amalgam should be phased out , as is already the case in several union countries .


### the use of dental amalgam in an encapsulated form and the implementation of amalgam separators should be made mandatory to protect dental practitioners and patients from mercury exposure and to ensure that resulting mercury waste are not released into the environment , but are collected and subjected to sound waste management . given the size of the undertakings from the dentristy sector concerned by this change , it is appropriate to provide sufficient time to adapt to the new provision . ### the use of dental amalgam in an encapsulated form and the implementation of amalgam separators are already widespread in the european union . these measures in addition to the collection and sound management of dental amalgam and amalgam waste are considered as sufficient , but they fail to address the problem of perpetual demand of mercury in the union and the negative impact on the environment . to protect dental practitioners , patients and the environment from mercury exposure , the use of dental amalgam should be phased out , as it is already the case in several union countries .


### assist , advise and cooperate with the commission as well as nras , on request or on its own initiative , on any technical matter within its mandate , and assist and advise the european parliament and the council on request ; ### assist , advise and cooperate with the commission , the european parliament and the council as well as nras , on request or on its own initiative , on any technical matter within its mandate ;


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


### reflecting the importance of tackling climate change in line with the union’s commitments to implement the paris agreement and the united nations sustainable development goals , this programme will contribute to mainstream climate actions and lead to the achievement of an overall target of 25% of the eu budget expenditures supporting climate objectives74 . relevant actions will be identified during the programme ' s preparation and implementation , and reassessed in the context of the relevant evaluations and review processes . _________________ 74 com 321 final , page 1 ### reflecting the importance of tackling climate change in line with the union’s commitments to implement the paris agreement and the united nations sustainable development goals , this programme will contribute to mainstream climate actions and lead to the achievement of an overall target of at least 30% of the eu budget expenditures supporting climate objectives74 . relevant actions will be identified during the programme ' s preparation and implementation , and reassessed in the context of the relevant evaluations and review processes . as the transport sector currently accounts for almost a quarter of the union´s ghg emissions , digitisation and digitalisation in particular in the logistics sector , mobility management , c - its and new transport technologies can contribute significantly to achieving the said targets . _________________ 74 com 321 final , page 1


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


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support investments in the union that lead to sustainable growth and quality job creation in sectors with long term viability and significant societal and environmental returns and consistent with union objectives as well as to ensure increased access to financing for companies , with a particular focus on small and medium enterprises and small mid - cap companies , through the supply of risk bearing capacity to the eib .


### 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 economically and technically viable , 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 , relevant economic and social criteria and conditions for efsi support .


### to partially finance the contribution from the union budget , the available envelopes of the horizon 2020 – the framework programme for research and innovation 2014 - 2020 , provided by regulation no 1291 / 2013 of the european parliament and of the council2 , and the connecting europe facility , provided by regulation no 1316 / 2013 of the european parliament and of the council3 , should be reduced . those programmes serve purposes that are not replicated by the efsi . however , the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes . the efsi should be able to leverage the eu guarantee to multiply the financial effect within those areas of research , development and innovation and transport , telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned horizon 2020 and connecting europe facility programmes . it is , therefore , appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of efsi . __________________ 2 regulation no 1291 / 2013 of the european parliament and of the council of 11 december 2013 establishing horizon 2020 - the framework programme for research and innovation and repealing decision no 1982 / 2006 / ec . 3 regulation no 1316 / 2013 of the european parliament and of the council of 11 december 2013 establishing the connecting europe facility , amending regulation no 913 / 2010 and repealing regulations no 680 / 2007 and no 67 / 2010 . ### the contribution from the union budget will be progressively authorised by the european parliament and the council in the framework of the annual budgetary procedures up to 2020 . for this purpose , the budgetary authority should make use , where appropriate , of all available flexibility mechanisms and other relevant provisions under council regulation no 1311 / 2013 .


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


### in order to allow for further increase in its resources , participation in the efsi should be open to third parties , including member states , national promotional banks or public agencies owned or controlled by member states , private sector entities and entities outside the union subject to the consent of existing contributors . third parties may contribute directly to the efsi and take part in the efsi governance structure . ### in order to reach the target of eur 315 000 000 000 within the shortest possible time , national promotional banks or institutions and investment platforms and funds , with support of the efsi guarantee , should play a prominent role in identifying viable projects , developing and , where appropriate , bundling projects , and attracting potential investors . in that context , it should be possible to establish macro - regional platforms to promote cross - border projects or a group of projects across member states in a regional perspective .


### comprehensive action is required to reverse the vicious circle created by a lack of investment . structural reforms and fiscal responsibility are necessary preconditions for stimulating investment . along with a renewed impetus towards investment financing , these preconditions can contribute to establishing a virtuous circle , where investment projects help support employment and demand and lead to a sustained increase in growth potential . ### comprehensive action is required to reverse the vicious circle created by a lack of investment . along with a renewed impetus towards investment financing , socially fair and environmentally responsible reforms and fiscal responsibility can contribute to encouraging investment , however they must be accompanied by clear and strong political commitment at union and member state level to long term objectives for developing sustainable economic activity , in order to establish a virtuous circle , where investment projects help support employment and demand and lead to a sustained reduction of the output gap as well as to an increase in growth potential .


### 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 . 2 . for as long as the only contributors to the efsi are the union and the eib , the number of members and votes within the steering board shall be allocated based on the respective size of contributions in the form of cash or guarantees . the steering board shall take decisions by consensus . 3 . when other parties accede to the efsi agreement in accordance with article 1 , the number of members and votes within the steering board shall be allocated based on the respective size of contributions from contributors in the form of cash or guarantees . the number of members and votes of the commission and the eib , according to paragraph 2 , shall be recalculated accordingly . the steering board shall strive to make decisions by consensus . if the steering board is not able to decide by consensus within a deadline set by the chairperson , the steering board shall take a decision by simple majority . no decision of the steering board shall be adopted if the commission or the eib votes against it . 4 the efsi agreement shall provide that the efsi shall have a managing director , who shall be responsible for the day - to - day management of the efsi and the preparation and chairing of meetings of the investment committee referred to in paragraph 5 . the managing director shall be assisted by a deputy managing director . . the managing director shall report every quarter on the activities of the efsi to the steering board . the managing director and the deputy managing director shall be appointed by the steering board on a joint proposal of the commission and the eib for a renewable fixed term of three years . 5 . 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 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 . decisions of the investment committee shall be taken by simple majority . ### the efsi agreement shall provide that the efsi shall be governed by a steering board . the steering board shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with this regulation and set up investment guidelines in addition to but not in conflict with those of article 5 for the use of the eu guarantee to be implemented by the investment committee . the commission shall be empowered to adopt delegated acts in accordance with article 17 concerning the investment guidelines . 2 . for as long as the only contributors to the efsi are the union and the eib , the number of members and votes within the steering board shall be allocated based on the respective size of contributions in the form of cash or guarantees . the steering board shall take decisions by consensus . 3 . when other parties accede to the efsi agreement in accordance with article 1 , the number of members and votes within the steering board shall be allocated based on the respective size of contributions from contributors in the form of cash or guarantees . the number of members and votes of the commission and the eib , according to paragraph 2 , shall be recalculated accordingly . the steering board shall strive to make decisions by consensus . if the steering board is not able to decide by consensus within a deadline set by the chairperson , the steering board shall take a decision by simple majority . no decision of the steering board shall be adopted if the commission or the eib votes against it . 4 the efsi agreement shall provide that the efsi shall have a managing director , who shall be responsible for the day - to - day management of the efsi and the preparation and chairing of meetings of the investment committee referred to in paragraph 5 . the managing director shall be assisted by a deputy managing director . the managing director shall report every quarter on the activities of the efsi to the steering board . the managing director and the deputy managing director shall be appointed by the steering board on a joint proposal of the commission and the eib for a renewable fixed term of three years . 5 . the efsi agreement shall provide that the efsi shall have an investment committee , which shall be responsible for examining potential operations that are fully in line with objectives and criteria established in article 5 of this regulation and irrespective of their geographic location . the investment committee shall be composed of at least six independent experts and the managing director . in appointing the experts to the investment committee , the steering board shall ensure that the composition of the investment committee is diversified and that these experts have a high level of relevant market experience in project structuring and project financing in the areas of investment projects as listed in article 5 . 2 . the investment committee shall be appointed by the steering board for a renewable fixed term of up to three years the experts shall be appointed in an open and transparent selection procedure . decisions of the investment committee shall be taken by simple majority .


### 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 ;


### 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 , in conformity with the assessment set out in article 2a , 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 in any of the following general areas :


### the managing director and the deputy managing director shall be appointed by the steering board on a joint proposal of the commission and the eib for a renewable fixed term of three years . ### on the basis of an open selection process conducted in line with eib procedures , the commission shall provide with the consent of the eib a shortlist of candidates to the european parliament for the appointment of the managing director and deputy managing director . the european parliament shall select from that list a candidate for each position within 4 weeks . the president of the eib shall appoint the two candidates selected for a renewable fixed term of three years .


### the efsi agreement shall provide that there is a clear distinction between operations carried out with the efsi support and other operations of the eib . ### the efsi agreement shall provide that there is a clear distinction between operations carried out with the efsi support and other operations of the eib . however , the investment guidelines and criteria adopted by the eib on 23 july 2013 shall apply .


### the efsi should support strategic investments with high economic value added contributing to achieving union policy objectives . ### the efsi should support strategic investments with high economic , social and environmental value added contributing to achieving union policy objectives , and to the union ' s social and territorial cohesion . these investments should be in line with the objectives and criteria set out in this regulation in the sectors of transport , telecommunications and energy , to develop and modernize the energy infrastructure , increase competitiveness and enhance the security of the union ' s energy system , by promoting energy interconnections and synchronisation of power systems with the rest of the union , expanding renewable energy and energy and resource efficiency , contributing to sustainable development ; by developing broadband and digital service networks ; as well as sustainable transport networks and by exploiting potential synergies between those sectors ; and which strengthen the european scientific and technological base , support scientific collaboration between academia and industry , improve exploitation and market - uptake of research results , facilitate patenting and technology transfer , and foster benefits for society as well as better exploitation of the economic and industrial potential of policies of innovation , research and technological development , including research infrastructure , pilot and demonstration facilities . the efsi should improve access to finance and the competitiveness of enterprises and other entities , with special emphasis on smes . the efsi should contribute to the transformation to a sustainable , circular and resource efficient economy , boosting innovation , skills and sustainable local job creation .


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high social , environmental and economic added value . the efsi should support projects that comply to the criteria and objectives set out in this regulation , that promote sustainable high quality job creation , long - term sustainable growth and competitiveness and which help to achieve the eu’s research and development , innovation , climate and energy and digital goals . the efsi should support a wide range of financial products , including equity , quasi - equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for , or crowd - out , private market finance or products provided by regional and national promotional banks , but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use .


### an assessment of the added value , the mobilisation of private sector resources , the estimated and actual outputs , outcomes and impact of eib financing and investment operations at an aggregated basis ; ### an assessment , taking into account the criteria referred to in article 2a , of the added value , the mobilisation of private sector resources , the ex - ante estimated and realised outputs , outcomes and impact of eib financing and investment operations on an aggregated and project by project basis ;


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high societal , environmental and economic value . in particular , the efsi should target projects that promote the achievement of the union ' s objectives on climate and energy , quality job creation , environmentally sustainable 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 economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of fiscal constraints on member states and sluggish growth , thereby resulting in market uncertainty regarding the economic future . this lack of investment , which has been particularly severe in member states most affected by the crisis , slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness .


### 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 the managing director and a number of independent experts sufficient to cover the range of potential projects eligible for investment under this regulation . independent experts shall have a high level of relevant market experience in project . they shall ensure a multi - disciplinary approach and in particular include at least one expert in investment related to environmental objectives and one expert in investments in the social and solidarity economy and shall be fully independent of private sector interests . they shall be appointed by the steering board for a renewable fixed term of three years .


### any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the european union of the year n + 1 , ### any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the european union of the year n + 1 , and shall be reallocated to programmes which envelopes might have been reduced to finance the guarantee fund , as referred to in paragraph 5a , in order to compensate these losses ;


### 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 , which shall deliver advisory support for investment projects in line with the objectives and criteria set out in article 5 of this regulation . the eiah shall build upon existing eib and commission advisory services , where possible in a decentralised way , and shall : act as a technical advisory hub and&#160 ; provide support for investment project identification , &#160 ; preparation&#160 ; and development ; as well as&#160 ; provide support on the use of technical assistance for project structuring , innovative financial instruments , public - private partnerships and advice , as appropriate , on relevant issues of eu legislation , taking into account differences of member states , especially for those with less developed capital markets ; give special support to investment platforms that focus on sectors with high economic and societal added value or that aggregate smaller projects , notably driven by regions , cities and smes , into larger bankable projects ; award particular focus to information and support of innovative entrepreneurs ; create a specific facility for technical assistance for the establishment of investment platforms for aggregated energy efficiency projects at decentralized level ; provide technical and financial support on the use of efsi to decentralized institutions that implement similar technical assistance schemes at local level ; leverage local knowledge to facilitate efsi support in the whole union ; act as a single point of contact for authorities and project promoters or redirect them to the institutions mentioned in point 4 ; provide for a structural exchange of information and best practices between all the stakeholders involved in the efsi , namely on project development . provide decentralised technical assistance platforms for supporting development of smes , including start - ups and spin - offs , and their collaboration with universities and research organisations .


### 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 , including national promotional banks or public agencies owned or controlled by member states . subject to the consent of existing contributors , the efsi agreement shall also be open to accession by other third parties , however , by way of derogation to the provisions in article 3 , they shall not be entitled to membership of the steering board .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of targeted quality investment as a consequence of market uncertainty regarding the economic future , the fiscal constraints on member states and / or regions , unsustainable debt and structural problems . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects , competitiveness and welfare systems .


### to meet that objective , the eiah shall use the expertise of the eib , the commission , national promotional banks and the managing authorities of the european structural and investment funds . ### to meet that objective , the eiah shall use the expertise of the eib , the commission , national promotional banks and the managing authorities and monitoring committees of the european structural and investment funds and involve partners according to article 5 of regulation no 1303 / 2013 .


### in accordance with its own transparency policies on access to documents and information , the eib shall make publicly available on its website information relating to all eib financing and investment operations and how they contribute to the general objectives referred to in article 5 . ### the eib shall make publicly available on its website detailed information relating to all eib financing and investment operations and the projects it finances directly or indirectly , and how they contribute to the general objectives referred to in article 5 .


### in order to allow for further increase in its resources , participation in the efsi should be open to third parties , including member states , national promotional banks or public agencies owned or controlled by member states , private sector entities and entities outside the union subject to the consent of existing contributors . third parties may contribute directly to the efsi and take part in the efsi governance structure . ### in order to reach the target of eur 315 000 000 000 within the shortest possible time , national promotional banks or institutions and investment platforms and funds , with support of the efsi guarantee , should play a prominent role in identifying viable projects , developing and , where appropriate , bundling projects , and attracting potential investors . in that context , it should be possible to establish macro - regional platforms to promote cross - border projects or a group of projects across member states in a regional perspective .


### in accordance with its own transparency policies on access to documents and information , the eib shall make publicly available on its website information relating to all eib financing and investment operations and how they contribute to the general objectives referred to in article 5 . ### in accordance with its own transparency policies on access to documents and information and relevant eu legislation1 a , the eib shall make publicly available on its website information relating to all eib financing and investment operations , including those through financial intermediaries , and how they contribute to the general objectives referred to in article 5 in conformity with the assessment in article 2a . __________________ 1 a regulation 1049 / 2001 and regulation 1367 / 2006