### the commission shall adopt implementing measures specifying the criteria for assessing the equivalence of the prudential regulation , supervision and standards of third countries as referred to in paragraph 1 . those measures , designed to amend non - essential elements of this directive by supplementing it , shall be adopted in accordance with the regulatory procedure with scrutiny referred to in article 49 . ### the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts specifying the criteria for assessing the equivalence of the prudential regulation , supervision and standards of third countries as referred to in paragraph 1


### committee the commission shall be assisted by the european securities committee established by commission decision 2001 / 528 / ec of 6 june 2001 establishing the european securities committee . 2 . where reference is made to this paragraph , articles 5 and 7 of council decision 1999 / 468 / ec of 28 june 1999 laying down the procedures for the exercise of implementing powers conferred on the commission shall apply , having regard to the provisions of article 8 thereof . the period laid down in article 5 of decision 1999 / 468 / ec shall be set at three months . 3 . where reference is made to this paragraph , article 5a to and article 7 of decision 1999 / 468 / ec shall apply , having regard to the provisions of article 8 thereof . ### delegated acts the powers to adopt delegated acts referred to in articles 2 , 9 , 10 , 11 , 12 , 13 , 16 , 18 , 19 , 20 , 21 , 24 , 25 , 28 , 29 , 31 , 33 , 37 , 37 , 38 , 38 , 39 , 39 , 45 , 46 , 47 and 53 are conferred on the commission subject to the conditions laid down in paragraphs 2 and 3 of this article . 2 . the delegation of powers shall last for three years from the date of entry into force of this directive and shall be extended for periods of three years on a request from the commission made at the latest one month before the expiry of the delegation , unless the european parliament or the council objects within three months of the request . the european parliament or the council may revoke the delegation of power at any time . 3 . a delegated act adopted pursuant to this article shall enter into force only if no objection has been expressed by the european parliament or the council within a period of three months .


### on the basis of the criteria referred to in paragraph 3 , the commission shall , in accordance with the procedure referred to in article 49 , adopt implementing measures , stating that prudential regulation , supervision and standards of a third country are equivalent to this directive . ### on the basis of the criteria referred to in paragraph 3 , the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts stating that prudential regulation , supervision and standards of a third country are equivalent to this directive .


### where those payments have been attributed to a specific project the amount per type of payment , including payments in kind , made for each such project within a financial year , and the total amount of payments for each such project . ### for undertakings active in the extractive industry and the logging of primary forests and subject to the materiality threshold defined in paragraph 1a , where those payments have been attributed to a specific project , the amount per type of payment , including payments in kind , made for each such project within a financial year , and the total amount of payments for each such project ;


### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of updating the lists of undertakings contained in annexes i and ii . the use of delegated acts is also necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure a relevant and appropriate level of disclosure of payments to governments by the extractive industry and loggers of primary forests and to ensure uniform application of this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of the specification of the concept of materiality of payments . ### the use of delegated acts is necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . the commission should therefore be empowered to adopt delegated acts in accordance with article 290 of the treaty in order to adjust the undertaking size criteria to the extent necessary to offset the effects of inflation . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure that payments to governments by the extractive industry and loggers of primary forests need not be reported if equivalent reporting requirements are observed , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of establishing which voluntary or mandatory reporting requirements should be considered equivalent to the reporting requirements laid down in this directive . such voluntary reporting should include eiti reporting .


### a member state shall require any large undertaking or any public interest entity active in the extractive industry or the logging of primary forests and governed by its national law to draw up a consolidated report on payments to governments in accordance with articles 37 and 38 if that parent undertaking is under the obligation to prepare consolidated financial statements as laid down in article 23 to 23 of this directive . ### a member state shall require any large undertaking or any public interest entity governed by its national law to draw up a consolidated report on payments to governments in accordance with articles 37 and 38 if that parent undertaking is under the obligation to prepare consolidated financial statements as laid down in article 23 to 23 of this directive .


### where payments in kind are made to a government , they shall be reported in value or in volume . where they are reported in terms of value , supporting notes shall be provided to explain how their value has been determined . ### where payments in kind are made to a government , they shall be reported in value and in volume . where they are reported in terms of value , supporting notes shall be provided to explain how their value has been determined .


### ' undertaking active in the extractive industry ' means an undertaking with any activity involving the exploration , discovery , development , and extraction of minerals , oil and natural gas deposits , as referred to in section b - divisions 05 to 08 of annex i to regulation no 1893 / 2006 of the european parliament and of the council . ### ' undertaking ' means the highest level parent company publishing accounts within the european union where the group of companies for which that parent company prepares consolidated financial statements includes subsidiary companies , branches , permanent establishments , joint ventures and associate undertakings .


### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forestsshould disclose in a separate report on an annual basis material payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulationwhich require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . ### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forests should disclose in a separate report on an annual basis payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market .


### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings active in the extractive industry or loggers of primary forests operating within their jurisdiction . the report should incorporate disclosures on a country and project basis , where a project is considered as the lowest level of operational reporting unit at which the undertaking prepares regular internal management reports , such as a concession , geographical basin , etc and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , the materiality of payments to be reported should be assessed in relation to the recipient government . various criteria on materiality could be envisaged such as payments of an absolute amount , or a percentage threshold and these can be defined through a delegated act . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information such as effective tax rates and recipient details , such as bank account information . ### the reports should serve to facilitate governments ' accountability to their citizens for payments they receive from undertakings operating within their jurisdiction . the report should incorporate disclosures on a country basis and in the case of undertakings active in the extractive industries or the logging of primary forests , the report should also specify the specific project or projects to which those payments have been attributed , a project being considered equivalent to the contract , licence , lease , concession or other legal agreement which gives rise to a company ' s tax and revenue liabilities in each country where it operates . where any payment liabilities are incurred on a different basis , reporting should be on that basis . in the light of the overall objective of promoting good governance in these countries , payments should be considered material if any one payment or set of payments of the same type amounts to more than eur 15 000 . the reporting regime should be subject to a review and a report by the commission within four years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments , progress towards global standards in this area and report on the impacts of this legislation on third countries , in particular in achieving the objectives of enhanced transparency of payments to governments . the review should also take into account issues of competitiveness and energy security as well as the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information .


### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings active in the extractive industry or loggers of primary forests operating within their jurisdiction . the report should incorporate disclosures on a country and project basis , where a project is considered as the lowest level of operational reporting unit at which the undertaking prepares regular internal management reports , such as a concession , geographical basin , etc and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , the materiality of payments to be reported should be assessed in relation to the recipient government . various criteria on materiality could be envisaged such as payments of an absolute amount , or a percentage threshold and these can be defined through a delegated act . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information such as effective tax rates and recipient details , such as bank account information . ### the reports should serve to facilitate governments ' accountability to their citizens for payments they receive from undertakings operating within their jurisdiction . the report should incorporate disclosures on a country by country basis . for undertakings active in the extractive industry or loggers of natural forest disclosure should also be on a project basis , where a project is considered as equivalent to activities governed by a license , lease , concession or similar legal agreement . where any payment liabilities are incurred on a different basis , reporting should be on that basis . in the light of the overall objective of promoting good governance all types of payment should be reported where they are deemed to have a significant impact on a country ' s economy or society on a local , regional or national level and any threshold should capture such impacts . rules should be put in place to ensure that any thresholds cannot be circumvented . the reporting regime should be subject to a review and a report by the commission within two years of the entry into force of the directive . the review should take into account international developments , progress towards global standards in this area and report on the impacts of this legislation on third countries , in particular in achieving the objectives of enhanced transparency of payments to governments .


### ‘ project’ is equivalent to a specific operational reporting unit at the lowest level within the undertaking at which regular internal management reports are prepared to monitor its business . ### for undertakings active in the extractive industry or loggers of primary forests ‘ project’ is equivalent to activities governed by a license , lease , concession or similar legal agreement . where any payment liabilities are incurred on a different basis , reporting shall be on that basis .


### ' undertaking active in the extractive industry ' means an undertaking with any activity involving the exploration , discovery , development , and extraction of minerals , oil and natural gas deposits , as referred to in section b - divisions 05 to 08 of annex i to regulation no 1893 / 2006 of the european parliament and of the council . ### ' undertaking ' means the highest level parent company publishing accounts within the european union where the group of companies for which that parent company prepares consolidated financial statements , includes subsidiary companies , branches , permanent establishments , joint ventures and associates .


### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings active in the extractive industry or loggers of primary forests operating within their jurisdiction . the report should incorporate disclosures on a country and project basis , where a project is considered as the lowest level of operational reporting unit at which the undertaking prepares regular internal management reports , such as a concession , geographical basin , etc and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , the materiality of payments to be reported should be assessed in relation to the recipient government . various criteria on materiality could be envisaged such as payments of an absolute amount , or a percentage threshold and these can be defined through a delegated act . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information such as effective tax rates and recipient details , such as bank account information . ### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings operating within their jurisdiction . in the case of undertakings active in the extractive industry or loggers of primary forests the report should incorporate disclosures on a country and project basis , where a project is considered as contract , licence , lease or other legal agreement under which an undertaking operates , and from which its specific liabilities to government arise and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , payments to each government should be reported where the total amount of payments , including payments in kind , made within a financial year , exceeds eur 30 000 . the reporting regime should be subject to a review and a report by the commission within three years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the information and consider whether it would be appropriate to include additional information such as recipient details of payment recipients , such as bank account information .


### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments made to governments on an annual basis . ### member states shall require large undertakings , including joint - venture undertakings , and all public interest entities to prepare and make public a report on payments , including payments in kind , made to governments on an annual basis as part of the annual report of financial statements . in this report , the undertaking shall also publish additional financial information regarding their activities in third countries . in particular , the report shall include activities of subsidiaries , associates , joint ventures , permanent establishments and other trading arrangements to the extent that they are consolidated in the annual financial statements of the undertaking or entity in question . the report shall be part of the notes to the financial statements .


### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of updating the lists of undertakings contained in annexes i and ii . the use of delegated acts is also necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure a relevant and appropriate level of disclosure of payments to governments by the extractive industry and loggers of primary forests and to ensure uniform application of this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of the specification of the concept of materiality of payments . ### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of adapting the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level .


### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forestsshould disclose in a separate report on an annual basis material payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . ### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forests should disclose in their annual financial statements any payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments building on those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market .


### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments and consider the effects on competitiveness and security of energy supply . it should be completed at the latest five years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate . ### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments , progress towards global standards in this area and report on the impact of this legislation on third countries , in particular in achieving the objectives of enhanced transparency of payments to governments . it should be completed at the latest two years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate .


### in order to adjust for the effects of inflation , the commission shall examine periodically and , where necessary , amend , by means of delegated acts in accordance with article 42 , the definitions referred to in paragraphs 1 to 5 of this article , taking into account measures of inflation as published in the official journal of the european union ### in order to adjust for the effects of inflation , the commission shall examine periodically and , where necessary , amend the definitions referred to in paragraphs 1 to 5 of this article , taking into account measures of inflation as published in the official journal of the european union .


### the report shall specify the following when material to the recipient government : ### the report referred to in article 37 shall specify the following :


### ' project ' is equivalent to a specific operational reporting unit at the lowest level within the undertaking at which regular internal management reports are prepared to monitor its business . ### ' project ' is equivalent to a specific operational reporting unit at the lowest level within the undertaking at which regular internal management reports are prepared to monitor its business . it includes any contract , licence , lease or other legal agreement under which a company operates and from which its fiscal liabilities arise .


### in order to take account of future changes to the laws of the member states and in the legislation of the union concerning company types , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of updating the lists of undertakings contained in annexes i and ii . the use of delegated acts is also necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure a relevant and appropriate level of disclosure of payments to governments by the extractive industry and loggers of primary forests and to ensure uniform application of this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of the specification of the concept of materiality of payments . ### the use of delegated acts is necessary to adapt the undertaking size criteria , as with the passage of time inflation will erode their real value . the commission should therefore be empowered to adopt delegated acts in accordance with article 290 of the treaty in order to adjust the undertaking size criteria to the extent necessary to offset the effects of inflation . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . in order to ensure that payments to governments by the extractive industry and loggers of primary forests need not be reported if equivalent reporting requirements are observed , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect of establishing which voluntary or mandatory reporting requirements should be considered equivalent to the reporting requirements laid down in this directive . such voluntary reporting should include eiti reporting .


### ‘ government’ means any national , regional or local authority of a member state or of a third country . it includes a department , agency or undertaking controlled by that authority as laid down in article 23 to of this directive . ### ‘ government’ means any national , regional or local authority of a third country or an eu member state . it includes a department , agency or undertaking controlled by that authority as laid down in article 23 to of this directive .


### the eib financing operations in support of union external policies should continue to be conducted in accordance with the principles of sound banking practice . they should continue to be managed in accordance with the eib’s own rules and procedures , including appropriate control measures and compliance with the eib ' s statement on social and environmental standards , as well as with the relevant rules and procedures concerning the court of auditors and the european anti - fraud office . in its financing operations the eib should adequately implement its policies towards weakly regulated or non - cooperative jurisdictions in order to contribute to the international fight against tax fraud , tax evasion and money - laundering . ### the eib financing operations in support of union external policies should continue to be conducted in accordance with the principles of sound banking practice . they should continue to be managed in accordance with the eib’s own rules and procedures , including appropriate control measures and compliance with the eib ' s statement on social and environmental standards , as well as with the relevant rules and procedures concerning the court of auditors and the european anti - fraud office . in its financing operations the eib should avoid any kind of direct or indirect cooperation with weakly regulated or non - cooperative jurisdictions in order to contribute to the international fight against tax fraud , tax evasion and money - laundering and should follow the european commission’s most recent criteria to identify jurisdictions which do not meet minimum standards of good governance in tax matters .


### while the eib’s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un’s 2015 millennium development goals in all regions where it is active . ### while the eib ' s strength remains its distinctive model as a publicly owned international financial institution whose remit is that of providing long - term lending so as to meet the policy goals set by its shareholders , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . furthermore , eib actions should be in accordance with article 3 of the eu treaty , which , as confirmed by the ecj on 21 december 2011 in its ataa judgement , requires the union to contribute to the strict observance of international law , and in particular the principles of the un charter . in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , the reduction of poverty and food insecurity , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support the achievement of the un ' s 2015 millennium development goals in all regions where it is active .


### the eib ' s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights and conflict prevention , to ensure that only investment projects that are economically , financially , environmentally and socially sustainable are supported under this decision . ### the eib ' s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights , fundamental freedoms and conflict prevention in line with the principles of the union and its relevant legislation , to ensure that predominantly investment projects that are economically , financially , environmentally and socially sustainable are supported under this decision .


### by 31 december 2017 , the commission shall submit to the european parliament and the council a mid - term report evaluating the implementation of this decision in the first years accompanied , where appropriate , by a proposal for its amendment . the report shall draw upon an external evaluation and contribution from the eib . ### by 31 december 2017 , the commission shall submit to the european parliament and the council a mid - term report evaluating the implementation of this decision in the first years accompanied , where appropriate , by a proposal for its amendment . the report shall draw upon an independent external evaluation and contribution from the eib as well as an assessment of the application of the method referred to in article 8 ;


### in order to cater for the potential evolution of the actual provisioning needs of the guarantee fund in accordance with council regulation no 480 / 2009 of 25 may 2009 establishing a guarantee fund for external actions5 , the maximum ceiling of the eu guarantee should be broken down into a fixed ceiling of a maximum amount of eur 25 bn and an optional additional amount of eur 3 bn . __________________ 5 oj l 145 , 10 . 6 . 2009 , p . 10 . ### in order to cater for the potential evolution of the actual provisioning needs of the guarantee fund in accordance with council regulation no 480 / 2009 , the maximum ceiling of the eu guarantee should be broken down into a fixed ceiling of a maximum amount of eur 27 bn and an optional additional amount of eur 3 bn .


### at all levels , from upstream strategic planning to downstream investment project development , it should be ensured that eib financing operations comply with and support union external policies and the general objectives set out in this decision . with a view to increasing the coherence of union external action , dialogue on policy and strategy should be further strengthened between the commission and the eib , including the european external action service . the memorandum of understanding to be revised in 2013 to enhance cooperation and early mutual exchange of information between the commission and the eib at operational level should continue to be applied . it is of particular importance to have an early exchange of views between the commission and the eib , including the eeas , as appropriate , in the process of preparing programming documents in order to maximise synergies between their activities . the cooperation in relation to the respect of human rights and conflict prevention issues should also be reinforced . ### at all levels , from upstream strategic planning to downstream investment project development , it should be ensured that eib financing operations comply with and support union external policies and the general objectives set out in this decision . with a view to increasing the coherence of union external action , dialogue on policy and strategy should be further strengthened between the commission and the eib , including the european external action service , while keeping the european parliament duly informed . eib offices outside the union should whenever possible be located within union delegations in order to foster such cooperation while sharing operating costs . the memorandum of understanding to be revised in 2013 to enhance cooperation and early mutual exchange of information between the commission , the eeas and the eib at operational level should continue to be applied . it is of particular importance to have an early exchange of views between the commission and the eib , including the eeas , as appropriate , in the process of preparing programming documents in order to maximise synergies between their activities . the cooperation in relation to the respect of human rights and conflict prevention issues should also be reinforced .


### the eib ' s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights and conflict prevention , to ensure that only investment projects that are economically , financially , environmentally and socially sustainable are supported under this decision . ### the eib ' s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights , fundamental freedoms , labour , social and environmental rights and conflict prevention in line with the principles of the union and its relevant legislation , to ensure that only investment projects that are economically , financially , environmentally and socially sustainable are supported under this decision .


### by 31 december 2017 , the commission shall submit to the european parliament and the council a mid - term report evaluating the implementation of this decision in the first years accompanied , where appropriate , by a proposal for its amendment . the report shall draw upon an external evaluation and contribution from the eib . ### by 31 december 2016 , the commission shall submit to the european parliament and the council a mid - term report evaluating the implementation of this decision in the first years accompanied , where appropriate , by a proposal for its amendment . the report shall draw upon an external evaluation and contribution from the eib .


### in its financing operations outside the union that fall within the scope of this decision , the eib should endeavour further to enhance coordination and cooperation with european financial institutions and international financial institutions , notably those participating in the eu platform for blending in external cooperation . this cooperation includes , where appropriate , cooperation on sector conditionality and mutual reliance on procedures , use of joint co - financing and participation in global initiatives , such as those promoting aid coordination and effectiveness . such coordination and cooperation should strive to minimise possible duplication of costs and unnecessary overlap . the tripartite memorandum of understanding between the commission , the eib group and the european bank for reconstruction and development in respect of cooperation outside the union , which allows the eib group and the ebrd to act in a complementary way by relying on their respective comparative advantages , was updated in 2012 to cover the extension of ebrd ' s geographical scope to the mediterranean region and should continue to be applied . the principles set out in this decision should also be applied when eib financing is implemented through cooperation agreements with other european financial institutions and international financial institutions . ### in its financing operations outside the union that fall within the scope of this decision , the eib should endeavour further to enhance coordination and cooperation with european financial institutions and international financial institutions , notably those participating in the eu platform for blending in external cooperation . this cooperation includes , where appropriate , cooperation on sector conditionality and mutual reliance on procedures , use of joint co - financing and participation in global initiatives , such as those promoting aid coordination and effectiveness . such coordination and cooperation should strive to minimise possible duplication of costs and unnecessary overlap . these efforts should be based on reciprocity . the tripartite memorandum of understanding between the commission , the eib group and the european bank for reconstruction and development in respect of cooperation outside the union , which allows the eib group and the ebrd to act in a complementary way by relying on their respective comparative advantages , was updated in 2012 to cover the extension of ebrd ' s geographical scope to the mediterranean region and should continue to be applied . the principles set out in this decision should also be applied when eib financing is implemented through cooperation agreements with other european financial institutions and international financial institutions .


### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be reviewed and further updated following the review of this decision in order to adapt to the developments in the union external policies and priorities . ### the practical measures for linking the general objectives of the eu guarantee and their implementation are to be set out in regional technical operational guidelines . such guidelines should be consistent with the wider union regional policy framework . the regional technical operational guidelines should be updated to align them to the union priorities across regions , as well as with political developments in eligible countries . the regional technical guidelines should also be reviewed following consultation with relevant stakeholders and further updated following the mid - term review of this decision in order to adapt to the developments in the union external policies and priorities .


### the commission and the eib shall set out in the agreement referred to in article 13 a method allowing the eib to identify , within its external activity , the operations to be financed under this decision and the operations to be financed at the own risk of the eib . the method shall be based on the creditworthiness of eib financing operations as assessed by the eib , the regions and ceilings as defined in annex i , the nature of the counterparty , eib risk absorption capacity and other relevant criteria , including added value of the eu guarantee . ### the commission and the eib shall set out in the agreement referred to in article 13 a clear and transparent method allowing the eib to identify , within its external activity , the operations to be financed under this decision and the operations to be financed at the own risk of the eib . the method shall be based on the creditworthiness of eib financing operations as assessed by the eib , the regions and ceilings as defined in annex i , the nature of the counterparty , eib risk absorption capacity and other relevant criteria , including added value of the eu guarantee . the allocation policy shall be made available to the european parliament . the eib website shall , after the project approval stage , list all operations financed by the eib outside of the union which do benefit from the eu guarantee .


### at all levels , from upstream strategic planning to downstream investment project development , it should be ensured that eib financing operations comply with and support union external policies and the general objectives set out in this decision . with a view to increasing the coherence of union external action , dialogue on policy and strategy should be further strengthened between the commission and the eib , including the european external action service . the memorandum of understanding to be revised in 2013 to enhance cooperation and early mutual exchange of information between the commission and the eib at operational level should continue to be applied . it is of particular importance to have an early exchange of views between the commission and the eib , including the eeas , as appropriate , in the process of preparing programming documents in order to maximise synergies between their activities . the cooperation in relation to the respect of human rights and conflict prevention issues should also be reinforced . ### at all levels , from upstream strategic planning to downstream investment project development , it should be ensured that eib financing operations comply with and support union external policies and the general objectives set out in this decision . with a view to increasing the coherence of union external action , dialogue on policy and strategy should be further strengthened between the commission and the eib , including the european external action service , while keeping the european parliament duly informed . eib offices outside the union should where appropriate be located within union delegations in order to foster such cooperation while sharing operating costs . the memorandum of understanding to be revised in 2013 to enhance cooperation and early mutual exchange of information between the commission , the eeas and the eib at operational level should continue to be applied . it is of particular importance to have an early exchange of views between the commission and the eib , including the eeas , as appropriate , in the process of preparing programming documents in order to maximise synergies between their activities . the cooperation in relation to the respect of human rights and conflict prevention issues should also be reinforced .


### the eib should continue to finance investment projects in the areas of social , environmental and economic infrastructure , and should consider increasing its activity in support of health and education infrastructure when there is clear added value in doing so . ### the eib should continue to finance investment projects in the areas of social , environmental and economic infrastructure , and should progressively increase its activity in support of health and education infrastructure in line with the objectives of the union’s development policy and the millennium development goals .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , energy security and energy infrastructure , including for gas production and transportation to eu energy market , environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , energy security and energy infrastructure , including electricity transmission infrastructure , in particular interconnections that facilitate the integration of electricity from renewable sources , environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education . priority consideration should be given to electricity infrastructure projects connecting the union and third countries which provide mutual economic , development , social and environmental benefits .


### in order to cater for the potential evolution of the actual provisioning needs of the guarantee fund in accordance with council regulation no 480 / 2009 of 25 may 2009 establishing a guarantee fund for external actions , the maximum ceiling of the eu guarantee should be broken down into a fixed ceiling of a maximum amount of eur 25 bn and an optional additional amount of eur 3 bn . ### in order to cater for the potential evolution of the actual provisioning needs of the guarantee fund in accordance with council regulation no 480 / 2009 , the maximum ceiling of the eu guarantee should be broken down into a fixed ceiling of a maximum amount of eur 26 bn and an optional additional amount of eur 4 bn .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . over the period covered by the decision , the volume of these operations shall represent at least 25% of total eib financing operations . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . over the period covered by the decision , the volume of these operations shall represent at least 40% of total eib financing operations .


### in its financing operations , the eib shall not tolerate any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the eu . in particular the eib shall not participate in any financing operation implemented in an eligible country through a foreign non - cooperative jurisdiction identified as such by the oecd , the financial action task force or other relevant international organisations . ### in its financing operations , the eib shall not tolerate any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the eu . in particular the eib shall not participate in any financing operation implemented in an eligible country through a foreign non cooperative jurisdiction identified as such by the eu , the united nations , the oecd or the financial action task force .


### in its financing operations , the eib shall not tolerate any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the eu . in particular the eib shall not participate in any financing operation implemented in an eligible country through a foreign non - cooperative jurisdiction identified as such by the oecd , the financial action task force or other relevant international organisations . ### in its financing operations , the eib shall not tolerate any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the eu . in particular the eib shall not participate in any financing operation implemented in an eligible country through a foreign non cooperative jurisdiction identified as such using the european commission’s criteria on identifying non - cooperative jurisdictions , as well as by the oecd , the financial action task force or other relevant international organisations .


### the eib shall carry out thorough due diligence and , where appropriate and in line with union social and environmental principles , require appropriate local public consultation , on development - related aspects of investment projects covered by the eu guarantee . ### the eib shall carry out thorough due diligence and where appropriate , in line with union social and environmental principles and standards , as well as appropriate local public consultation on social , human rights , environmental , economic and development - related aspects of investment projects covered by the eu guarantee .


### the eib should also continue to finance investment projects in support of climate change mitigation and adaptation , to further the promotion of the union ' s climate goals on a global scale . ### the eib should also continue to finance investment projects in support of climate change mitigation and adaptation , to further the promotion of the union ' s climate goals on a global scale . the eib could contribute its expertise and resources , in close cooperation with the commission , to support public authorities as well as the private sector in order to address the challenge of climate change and to make the best possible use of available financing . for mitigation and adaptation projects , the resources of the eib should , where possible and appropriate , be complemented with concessional funds available under the union budget through the efficient and consistent blending of grants and loans for climate change financing in the context of union external assistance . in this regard , it is appropriate that the commission ' s annual report to the european parliament and the council should contain a detailed report on the financial instruments used for financing these projects , identifying the amounts of eib financing under the external mandate and the corresponding amounts of grants .


### the eib should also continue to finance investment projects in support of climate change mitigation and adaptation , to further the promotion of the union ' s climate goals on a global scale . ### the eib should also increase its financing of investment projects in support of climate change mitigation and adaptation , to further the promotion of the union ' s climate goals on a global scale .


### the eib shall establish a comprehensive tracking system of monitoring relative and absolute greenhouse gas emissions reduction throughout significant eib financing operations where emissions are significant and data is available . ### the eib shall establish a comprehensive tracking system of monitoring relative and absolute greenhouse gas emissions reduction throughout eib financing operations where emissions are significant and data is available .


### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals in all regions where it is active . ### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other relevant international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 tfeu , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals , and after 2015 by possible new development targets which might modify or replace the mdgs , in all regions where it is active .


### in order to cater for the potential evolution of the actual provisioning needs of the guarantee fund in accordance with council regulation no 480 / 2009 of 25 may 2009 establishing a guarantee fund for external actions5 , the maximum ceiling of the eu guarantee should be broken down into a fixed ceiling of a maximum amount of eur 25 bn and an optional additional amount of eur 3 bn . __________________ 5 oj l 145 , 10 . 6 . 2009 , p . 10 . ### in order to cater for the potential evolution of the actual provisioning needs of the guarantee fund in accordance with council regulation no 480 / 2009 , the maximum ceiling of the eu guarantee should be broken down into a fixed ceiling of a maximum amount of eur 26 bn and an optional additional amount of eur 4 bn ; the provisioning of the guarantee fund for external actions in the budget is made ex - post on the basis of the outturn figures for outstanding guaranteed external lending at the end of year n - 2 ; ' reflows ' deriving from mediterranean risk capital and loan investments under past meda mandates using eu budget funds should be returned to the eu budget as assigned revenue , in accordance with regulation no 966 / 20125a . 5a regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 .


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on vulnerable countries , sectors and communities . over the period covered by the decision , the volume of these operations shall represent at least 25% of total eib financing operations . ### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in climate change mitigation and adaptation which contribute to the overall objective of the united nations framework convention on climate change , in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy , energy efficiency and sustainable transport , or by increasing resilience to the adverse impacts of climate change on highly fragile natural environments , vulnerable countries , sectors and communities - especially in the russia - eu high north border region . over the period covered by the decision , the volume of these operations shall represent at least 30% of total eib financing operations .


### the eib activity under this decision should support the agenda for change proposed by the commission and be coherent with the relevant principles of the european consensus on development and the principles of aid effectiveness outlined in the paris declaration of 2005 , the accra agenda for action of 2008 and the busan partnership agreement of 2011 . furthermore , it should be coherent with the eu strategic framework and action plan on human rights and democracy adopted by the council on 25 june 2012 and international environmental agreements including biodiversity commitments . it should be implemented through a number of concrete measures , in particular by reinforcing the eib ' s capacity to appraise environmental , social and development aspects of investment projects , including human rights and conflict - related risks , and by promoting local consultation with public authorities and civil society . in this context , the eib should implement and further develop its results measurement framework which provides a detailed set of performance indicators measuring the economic , environmental , social , and development impact of its financing operations throughout the lifecycle of the underlying investment . the implementation of the rem should be evaluated as part of the mid - term review of this decision . when carrying out due diligence in respect of an investment project , the eib should , where appropriate and in line with the union ' s social and environmental principles , require the investment project promoter to carry out local consultations and disclose their results to the public . eib financing agreements involving public counterparts should explicitly include the possibility to suspend disbursements in case of revocation of eligibility under this decision of the country in which the investment project takes place . ### the eib activity under this decision should support the agenda for change proposed by the commission and be coherent with the relevant principles of the european consensus on development and the principles of aid effectiveness outlined in the paris declaration of 2005 , the accra agenda for action of 2008 and the busan partnership agreement of 2011 . furthermore , it should be coherent with the eu strategic framework and action plan on human rights and democracy adopted by the council on 25 june 2012 and international environmental agreements including biodiversity commitments . it should be implemented through a number of concrete measures , in particular by reinforcing the eib ' s capacity to appraise environmental , social and development aspects of investment projects , including human rights and conflict - related risks , and by promoting local consultation with public authorities and civil society . in this context , the eib should implement and further develop its results measurement framework which provides a detailed set of performance indicators measuring the economic , environmental , social , and development impact of its financing operations throughout the lifecycle of the underlying investment . the implementation of the rem should be evaluated as part of the mid - term review of this decision . where possible , the eib should publish the evaluation of the projects under the rem . when carrying out due diligence in respect of an investment project , the eib should , where appropriate and in line with the union ' s social and environmental principles and legislation , as well as with the legislation and the social and environmental standards of the beneficiary country , require the investment project promoter to carry out local consultations and disclose their results to the public . eib financing agreements involving public counterparts should explicitly refer to the relevant eu decisions and conclusions regarding an assessment of the human rights situation of the countries where it operates and the commission , by means of a delegated act , should decide upon countries’ eligibility for new eib financing operations under the eu guarantee .


### the biennal report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments . ### the biennial report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess , with a view to achieving the objectives of each instrument , the complementarity and synergies between the instruments financed under heading 4 of the union ' s budget , and shall assess the results of the union ' s financial assistance on the basis of pre - defined , clear , transparent and measurable indicators .


### contributions to trust funds set up by the commission ; ### contributions to trust funds set up by the commission , provided that contributions from a specific instrument will only be used for the achievement of the objectives of that instrument ;


### exceptionally , in particular where an action programme has not yet been adopted , the commission may , on the basis of the indicative programming documents , adopt individual measures under the same rules and procedures as for action programmes . ### exceptionally , where an action programme has not yet been adopted , the commission may , on the basis of and in line with the strategic programming documents defined in article 2 , adopt individual measures under the same rules and procedures as for action programmes .


### the funding allocated in the context of the instruments shall be subject to an annual tracking system based on the oecd methodology , integrated into the existing methodology for performance management of eu programmes , to quantify the expenditure related to climate action and biodiversity at the level of the action programmes , individual and special measures referred to in article 2 , and recorded within evaluations and biennal reports . an annual estimate of the overall spending related to climate action and biodiversity shall be made on the basis of the adopted indicative programming documents . ### the funding allocated in the context of the instruments shall be subject to an annual tracking system based on the oecd methodology , integrated into the existing methodology for performance management of eu programmes , to quantify the expenditure related to climate action and biodiversity at the level of the action programmes , individual and special measures referred to in article 2 , and recorded within evaluations and biennial reports . an annual estimate of the overall spending related to climate action and biodiversity , as well as a separate calculation of the funds provided and to be provided to developing countries for climate change mitigation and adaption in accordance with the union’s international commitments , shall be made on the basis of the adopted strategic programming documents .


### taking into account the policy programming or financial execution nature of those implementing acts , in particular their budgetary implications , the examination procedure should in general be used for their adoption , except for measures of a small financial scale . however , the commission should adopt immediately applicable implementing acts where , in duly justified cases relating to the need for a swift response from the union , imperative grounds of urgency so requires . ### taking into account the financial execution nature of those implementing acts , in particular their budgetary implications , the examination procedure should in general be used for their adoption , except for individual measures , special measures and support measures of a financial scale below eur 10 million .


### in the event of unforeseen and duly justified needs , circumstances or commitments , the commission may adopt special measures not provided for in the indicative programming documents . special measures may also be used to ease the transition from emergency aid to long - term development operations , including measures to better prepare people to deal with recurring crises . ### in special unforeseen and duly justified circumstances , the commission may adopt special measures not provided for in the strategic programming documents . special measures may also be used to ease the transition from emergency to long - term operations .


### the biennal report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments . ### the biennial report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of all relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess , with a view of achieving the objectives of each instrument , the complementarity and synergies between the instruments financed under the eu budget , and assess the results of the union ' s financial assistance , on the basis of pre - defined , clear , transparent and measurable indicators . for the dci and for all actions related to climate change , the report shall also clearly demonstrate the leverage effect of funds leveraged through the private sector , as well as their contribution to poverty eradication and their alignment to aid effectiveness principles , or , in the case of climate finance , their conformity to unfccc priority areas and commitments .


### no later than 31 december 2017 , a report shall be established by the commission on the achievement of the objectives of each of the instruments by means of result and impact indicators measuring the efficiency of the use of resources and the european added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , the continued relevance of all objectives , as well as the contribution of the measures to the union priorities for smart , sustainable and inclusive growth . it shall take into account any findings and conclusions on the long - term impact of the instruments . ### no later than 31 march 2017 , a report shall be established by the commission on the implementation of each of the instruments and of this regulation in the first three years , and on the achievement of the objectives by means of result and impact indicators measuring the efficiency of the use of resources and the added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , the continued relevance of all objectives , as well as , where relevant , the contribution of the measures to the union priorities for smart , sustainable and inclusive growth . it shall take into account any findings and conclusions on the long - term impact of the instruments .


### it shall apply from 1 january 2014 . ### it shall apply from 1 january 2014 to 31 december 2020


### the commission shall associate to an appropriate extent all relevant stakeholders in the evaluation phase of the union assistance provided under this regulation . ### the commission shall associate all relevant stakeholders , including non - state actors and local authorities , in the evaluation phase of the union assistance provided under this regulation .


### the commission shall send its evaluation reports to the european parliament and to the council for information . member states may request to discuss specific evaluations in the committees referred to in article 15 . the results shall feed back into programme design and resource allocation . ### the commission shall send its evaluation reports to the european parliament and to the council . the european parliament and member states may request to discuss specific evaluations in the committees referred to in article 15 . the results shall feed back into programme design and resource allocation .


### the commission shall adopt annual or multi - annual action programmes , where required based on the indicative programming documents referred to in the applicable instrument . ### the commission shall adopt annual action programmes which are based on and in line with the strategic programming documents referred to in article 2 .


### that procedure shall not be required for action programmes and measures below the above - mentioned thresholds , and for non substantial amendments thereto . non - substantial amendments are technical adjustments such as extending the implementation period , reassigning funds within the forecast budget , or increasing or reducing the size of the budget by less than 20 % of the initial budget , provided these amendments do not substantially affect the objectives of the initial action programme or measure . in such case , action programmes and measures and non - substantial amendments thereto shall be communicated to the european parliament and to the council within one month of their adoption . ### that procedure shall not be required for non - substantial amendments to action programmes and to measures below the above - mentioned threshold . non - substantial amendments are technical adjustments such as extending the implementation period , reassigning funds within the forecast budget , or increasing or reducing the size of the budget by less than 20 % of the initial budget , provided these amendments do not substantially affect the objectives of the initial action programme or measure . in such case , action programmes and measures and non - substantial amendments thereto shall be communicated to the european parliament and to the council within two weeks of their adoption .


### appropriate environmental screening , including for climate change and biodiversity impacts , shall be undertaken at project level including where applicable environmental impact assessment for environmentally sensitive projects , in particular for major new infrastructure . where relevant , strategic environmental assessments shall be used in the implementation of sectoral programmes . the involvement of interested stakeholders in environmental assessments and public access to the results shall be ensured . ### appropriate environmental screening , including for climate change and biodiversity impacts , shall be undertaken at project level including where applicable environmental impact assessment for environmentally sensitive projects , in particular for new infrastructure . where relevant , strategic environmental assessments shall be used in the implementation of sectoral programmes . the involvement of interested stakeholders in environmental assessments and public access to the results shall be ensured . development impact assessments shall also be undertaken at project level to ensure that policy coherence for development and aid effectiveness principles are effectively incorporated into project design and selection .


### action programmes and individual measures provided for in paragraph 1 for which the union ' s financial assistance exceeds eur 10 million and special measures for which the union ' s financial assistance exceeds eur 30 million shall be adopted in accordance with the examination procedure referred to in article 15 . ### action programmes , individual measures , special measures and support measures provided for in paragraph 1 of this article and in article 3 , for which the union ' s financial assistance exceeds eur 10 million shall be adopted in accordance with the examination procedure referred to in article 15 .


### adoption of action programmes , individual measures and special measures ### adoption of strategic programming documents , implementation documents , individual measures and special measures


### the commission shall adopt annual or multi - annual action programmes , where required based on the indicative programming documents referred to in the applicable instrument . ### the commission shall adopt annual or biennial action programmes which shall be based on and in line with the strategic programming documents defined in article 2 .


### taking into account the policy programming or financial execution nature of those implementing acts , in particular their budgetary implications , the examination procedure should in general be used for their adoption , except for measures of a small financial scale . however , the commission should adopt immediately applicable implementing acts where , in duly justified cases relating to the need for a swift response from the union , imperative grounds of urgency so requires . ### taking into account the financial execution nature of those annual or multiannual action programmes , in particular their budgetary implications , the examination procedure should in general be used for their adoption , except for measures of a small financial scale . however , the commission should adopt immediately applicable implementing acts where , in duly justified cases relating to the need for a swift response from the union , imperative grounds of urgency so require .


### the commission shall regularly monitor and review its actions , and evaluate the results of the implementation of sectoral policies and actions , and the effectiveness of programming , where appropriate by means of independent external evaluations , in order to ascertain whether the objectives have been met and to enable it to formulate recommendations with a view to improving future operations . ### the commission shall regularly monitor and review its actions , and evaluate the results of the implementation of sectoral policies and actions , and the effectiveness of programming , where appropriate by means of independent external evaluations , in order to ascertain whether the objectives have been met and to enable it to formulate recommendations with a view to improving future operations . these evaluations shall be carried out on the basis of pre - defined , clear , transparent and measurable indicators . proposals by the european parliament or the council for independent external evaluations will be taken into due account .


### the union ' s financial assistance may be provided , inter alia , through the following types of financing envisaged by the financial regulation : ### the union ' s financial assistance may be provided through the following types of financing envisaged by the financial regulation :


### no later than 31 december 2017 , a report shall be established by the commission on the achievement of the objectives of each of the instruments by means of result and impact indicators measuring the efficiency of the use of resources and the european added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , the continued relevance of all objectives , as well as the contribution of the measures to the union priorities for smart , sustainable and inclusive growth . it shall take into account any findings and conclusions on the long - term impact of the instruments . ### no later than 31 march 2017 , the commission shall submit to the european parliament and the council a report evaluating the implementation of each instrument and of this regulation in the first three years , and on the achievement of the objectives by means of result and impact indicators measuring the efficiency of the use of resources and the added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , including policy coherence for development , as well as the continued relevance of all objectives . it shall take into account any findings and conclusions on the long - term impact of the instruments .


### exceptionally , in particular where an action programme has not yet been adopted , the commission may , on the basis of the indicative programming documents , adopt individual measures under the same rules and procedures as for action programmes . ### exceptionally , where an action programme has not yet been adopted , the commission may , on the basis of the indicative programming documents , adopt individual measures under the same rules and procedures as for action programmes .


### the union ' s financial assistance may also be provided , in accordance with the financial regulation , through contributions to international , regional or national funds , such as those established or managed by the european investment bank , international organisations , member states or by partner countries and regions , for attracting joint financing from a number of donors , or to funds set up by one or more donors for the purpose of the joint implementation of projects . ### the union ' s financial assistance may also be provided , in accordance with the financial regulation , through contributions to international , regional or national funds , such as those established or managed by the european investment bank , international organisations , member states or by partner countries and regions , for attracting joint financing from a number of donors , or to funds set up by one or more donors for the purpose of the joint implementation of projects . the participation of non - eu international financial institutions to eu financial investment instruments , such as blending mechanisms , shall be conditional on their acceptance of eu standards and policies , and on the opening up of access for eu financial institutions to the shareholders ' funds of these institutions .


### measures on the fixing of the aid amounts shall be taken by the council in accordance with article 43 of the treaty . ### the aid amounts referred to in paragraph 1 shall be fixed by the commission by means of implementing acts adopted in accordance with article 323 , taking into account the reference price for skimmed milk powder fixed in point of article 8 , and the development of the market situation as regards skimmed milk and skimmed milk powder .


### shall be opened for beef and veal by the commission , by means of implementing acts without the assistance of the committee referred to in article 323 , if the average market price for beef and veal over a representative period in a member state or in a region of a member state recorded on the basis of the union scale for the classification of carcasses as referred to in article 34 is below eur 1560 / tonne . ### shall be opened for beef and veal by the commission , by means of implementing acts adopted without the application of article 323 , if the average market price for beef and veal over a representative period in a member state or in a region of a member state recorded on the basis of the union scale for the classification of carcasses as referred to in article 34 is below eur 1560 / tonne .


### measures on the fixing of the aid amounts shall be taken by the council in accordance with article 43 of the treaty . ### the aid amounts referred to in paragraph 1 shall be fixed by the commission by means of implementing acts adopted in accordance with article 321 , taking into account the reference price for skimmed milk powder fixed in point of article 8 , and the development of the market situation as regards skimmed milk and skimmed milk powder . account shall be taken of measures to support agricultural products from the outermost regions , which shall give consideration to the changes proposed by this regulation .


### the commission should have the power to adopt delegated acts in accordance with article 290 of the treaty in order to supplement or amend certain non - essential elements of this regulation . the elements for which that power may be exercised should be defined , as well as the conditions to which that delegation is to be subject . ### in order to ensure the proper functioning of this regulation , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of supplementing or amending certain non - essential elements of this regulation . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council .


### the commission should have the power to adopt delegated acts in accordance with article 290 of the treaty in order to supplement or amend certain non - essential elements of this regulation . the elements for which that power may be exercised should be defined , as well as the conditions to which that delegation is to be subject . ### in order to ensure the proper functioning of this regulation , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of supplementing or amending certain non - essential elements of this regulation . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and not forgetting regional and local authorities , island , sparsely populated and mountainous regions and the outermost regions , so as not to aggravate the constraints that such regions already face in the present crisis . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council .


### powers are delegated to the commission in accordance with article 26 and subject to the conditions of articles 27 and 28 , to define uniform credit registration criteria and data processing conditions to be applied to the databases referred to in paragraph 1 of this article . ### in order to ensure consistent harmonisation of paragraph 1 , the commission shall be empowered to adopt delegated acts in accordance with article 26 , to define basic credit registration criteria and data processing conditions to be applied to the databases referred to in paragraph 1 .


### the financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable , with defaults and forced sales rising . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence . ### as the g20 has acknowledged , poor quality lending related to residential immovable property and the associated financial instruments were at the heart of the financial crisis . the crisis has shown how irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable , with defaults and forced sales rising . in response to this , the g20 has committed to improving underwriting standards of loans related to residential immovable property and has commissioned expert advice from the financial stability board which in turn has recommended a number of principles and specific areas for improvement . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market that ensures financial stability and consumer protection , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence .


### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure that consumers have a statutory right to early repayment ; nevertheless , the exercise of such a right should be subject to conditions depending on the nature and funding of the credit agreement . in order to ensure market efficiency , member states could also provide that , to preserve its indemnity , the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit while avoiding penalising the consumer . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer .


### member states shall ensure that when an offer binding on the creditor is provided to the consumer , it shall be accompanied by an esis . in such circumstances , member states shall ensure that the credit agreement cannot be concluded until the consumer has had sufficient time to compare the offers , assess their implications and take an informed decision on whether to accept an offer , regardless of the means of conclusion of the contract . ### member states shall ensure that the credit agreement cannot be concluded until the consumer has been provided in a durable medium with an offer binding on the creditor and has a sufficient period to compare it with other offers , obtain third party advice if necessary and assess its implications and take an informed decision on whether to accept the offer , regardless of the means of conclusion of the contract . the period of reflection after the offer shall be no less than 14 working days and includes the time during which a right of withdrawal is granted where member states allow the contract to be concluded before expiry of the reflection period .


### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer’s ability to repay over the lifetime of the loan including , but not limited to , the consumer’s income , regular expenditures , credit score , past credit history , ability to handle interest rate adjustments , and other existing credit commitments . additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment . member states may issue guidance on the method and criteria to assess a consumer’s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios . ### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer’s ability to repay over the lifetime of the loan including , but not limited to , the consumer’s income , regular expenditures , ability to handle interest rate adjustments , and other existing credit commitments . to that end , they should be allowed to use information provided by the consumer not only during the preparation of the credit agreement in question , but also during a long - standing commercial relationship . member states may issue additional guidance on the method and criteria to assess a consumer’s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios in addition to the reference levels for such ratios which should be established to identify when stricter prudential or other supervisory measures are warranted .


### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , credit score , past credit history , ability to handle interest rate adjustments , and other existing credit commitments . additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment . member states may issue guidance on the method and criteria to assess a consumer ' s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios . ### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , ability to handle interest rate adjustments , and other existing credit commitments . member states may issue additional guidance on the method and criteria to assess a consumer ' s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios in addition to the reference levels for such ratios which should be established to identify when stricter prudential or other supervisory measures are warranted .