### the union contributes to ensuring a high level of consumer protection and to placing consumers at the heart of the single market by supporting and complementing member states ' policies in seeking to ensure that citizens can fully reap the benefits of the internal market and that , in so doing , their legal and economic interests are properly addressed and defended . a well - functioning and trustworthy financial services sector is a key component of the single market . it requires a solid framework for regulation and supervision , which simultaneously ensures financial stability and focuses on supporting a sustainable economy . at the same time , it should provide a high level of protection to consumers and other financial services end - users , including retail investors , savers , insurance holders , pension fund participants , individual shareholders , borrowers or smes . ### the union contributes to ensuring a high level of consumer protection and to placing consumers at the heart of the single market by supporting and complementing member states ' policies in seeking to ensure that citizens can fully reap the benefits of the internal market and that , in so doing , their legal and economic interests are properly addressed and defended . a well - functioning and trustworthy financial services sector is a key component of the single market , including the cross - border purchasing capability of the said services . it requires a solid framework for regulation and supervision , which simultaneously ensures financial stability and focuses on supporting a sustainable economy . at the same time , it should provide a high level of protection to consumers and other financial services end - users , including retail investors , savers , insurance holders , pension fund participants , individual shareholders , borrowers or smes .


### since 2007 , the confidence of consumers in particular and of other financial services ' end - users has been shaken by the financial and economic crisis . to restore citizens ' confidence in the soundness of the financial sector , it is therefore important to increase the involvement of consumers and other end - users , as well as of stakeholders representing their interests , in the union decision - making process in the financial sector . ### since 2007 , the confidence of consumers in particular and of other financial services ' end - users has been shaken by the financial and economic crisis . to restore citizens ' confidence in the soundness , efficiency and best practices of the financial sector , it is therefore important to increase the involvement of consumers and other end - users , as well as of stakeholders representing their interests , in the union decision - making process in the financial sector .


### to achieve this objective , the commission initiated at the end of 2011 a pilot project aimed at providing grants to support the development of a financial expertise centre to the benefit of consumers , other end - users and stakeholders representing their interests and to enhance their capacity to participate in union policy making in the field of financial services . the main policy objectives were to ensure that union policy - makers , when initiating new legislation , would be provided with views other than those expressed by the financial sector professionals , that the wider public is better informed about issues at stake in financial regulation and that the participation of consumers , is enhanced in union policy - making in the area of financial services , resulting in well - balanced legislation . ### to achieve this objective , the commission initiated at the end of 2011 a pilot project aimed at providing grants to support the development of a financial expertise centre to the benefit of consumers , other end - users and stakeholders representing their interests and to enhance their capacity to participate in union policy making in the field of financial services and prevent bank abuses . the main policy objectives were to ensure that union policy - makers , when initiating new legislation , would be provided with views other than those expressed by the financial sector professionals , that the wider public is better informed about issues at stake in financial regulation and that the participation of consumers , is enhanced in union policy - making in the area of financial services , resulting in well - balanced legislation .


### the evaluation of the pilot project and the subsequent preparatory action carried out in 2015 concluded that the policy objectives have been generally achieved . finance watch and better finance have been working on complementary policy areas and targeted different audiences . together they have covered , through their activities , most of the union financial political agenda since 2012 . ### the evaluation of the pilot project and the subsequent preparatory action carried out in 2015 concluded that the policy objectives have been generally achieved . finance watch and better finance have been working on complementary policy areas and targeted different audiences . together they have covered , through their activities , most of the union financial political agenda since 2012 . both organizations have successfully worked , as much as their resources have allowed , to expand their activity in order to have wide geographical coverage within the eu .


### both organisations provided added value both to the sum of activities of their national members and to union consumers in a way that national consumer advocacy groups were unable to deliver . national organisations dealing with all kinds of consumers ' issues lack technical expertise in policy areas related to financial services . in addition , no other similar organisations have been identified at union level so far . the evaluation also showed that no other applicant responded to the successive yearly calls for proposal since 2012 , which tends to show that no other organisation is currently able to carry out similar union - wide activities . ### both organisations provided added value both to the sum of activities of their national members and to union consumers in a way that national consumer advocacy groups were unable to deliver . national organisations dealing with all kinds of consumers ' issues lack technical expertise in policy areas related to financial services and the related european policy - making process . in addition , no other similar organisations have been identified at union level so far . the evaluation also showed that no other applicant responded to the successive yearly calls for proposal since 2012 , which shows that no other organisation is currently able to carry out similar union - wide activities .


### however , despite regular efforts , both organisations did not manage to attract stable and significant funding from other donors , independent from the financial industry , and , therefore , remain heavily dependent on union funding . co - funding from the union is therefore necessary to ensure the resources needed to achieve the desired policy objectives in the coming years , providing financial stability to those organisations who have so far managed to start - up their relevant activities in a short period of time . it is therefore necessary to establish a union programme for the period 2017 - 2020 to support the activities of finance watch and better finance . ### however , despite regular efforts , both organisations did not manage to attract stable and significant funding from other donors , independent from the financial industry , and , therefore , remain heavily dependent on union funding . co - funding from the union is therefore necessary to ensure the resources needed to achieve the desired policy objectives in the coming years , providing financial stability to those organisations and their experts and administrative staff who have so far managed to start - up their relevant activities in a short period of time . it is therefore necessary to establish a union programme for the period 2017 - 2020 to support the activities of finance watch and better finance . financial stability is of key importance to preserve the expertise , as well as for project planning for both organizations .


### awareness and dissemination activities , including to a wide audience of non - experts ; ### awareness , research and dissemination activities ,


### to contribute to the information of consumers and other financial services end - users , as well as stakeholders representing their interests , about issues at stake in the regulation of the financial sector . ### to contribute to the information of consumers and other financial services end - users , as well as stakeholders representing their interests , about issues at stake in the regulation of the financial sector , and on harmful corporate practices for consumers , including those of cross - border nature ;


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


### in order to benefit from the programme , the beneficiaries shall submit every year before 31 december to the commission a proposal describing the activities referred to in article 1 planned for the following year . ### in order to benefit from the programme , the beneficiaries shall submit every year before 31 december to the commission a proposal describing and reasoning the activities referred to in article 1 planned for the following year .


### in order to implement the programme , the commission shall adopt annual work programmes . those annual work programmes shall set out the objectives to be pursued , the expected results of the actions performed by the beneficiaries , the method of implementation of those actions and the total amount required to perform those actions . they shall also contain a description of the actions to be financed , an indication of the amount allocated to each action and an indicative implementation timetable . for the action grants , the annual work programmes shall set out priorities and essential award criteria . the maximum rate of co - financing shall be 60% of eligible costs . ### in order to implement the programme , the commission shall adopt annual work programmes . those annual work programmes shall set out the objectives to be pursued , the expected results of the actions performed by the beneficiaries , the method of implementation of those actions and the total amount required to perform those actions . they shall also contain a description and a motivation of the actions to be financed , an indication of the amount allocated to each action , an assessment of the possible impact and an indicative implementation timetable . for the action grants , the annual work programmes shall set out priorities and essential award criteria . the maximum rate of co - financing shall be 60% of eligible costs .


### foreign direct investment contributes to the union ' s growth , by enhancing its competitiveness , creating jobs and economies of scale , bringing in capital , technologies , innovation , expertise , and by opening new markets for the union ' s exports . it supports the objectives of the commission ' s investment plan for europe and contributes to other union projects and programmes . ### foreign direct investment may contribute to the union ' s growth by enhancing its competitiveness , since such investment creates jobs , generates economies of scale , brings in capital , technologies , innovation , expertise and by opening new markets for the union ' s exports and enables reciprocity . it may support the objectives of the commission ' s investment plan for europe and contributes to other union projects and programmes set out in the non - exhaustive list included in the annex to this regulation , and is therefore in the strategic interests of the union as its impact extends beyond borders and value chains .


### the union and the member states have an open investment environment , which is enshrined in the treaty on the functioning of the european union and embedded in the international commitments undertaken by the union and its member states with respect to foreign direct investment . ### the union and the member states , as market economies , have an open investment environment , which is enshrined in the treaty on the functioning of the european union and embedded in the international commitments undertaken by the union and its member states with respect to foreign direct investment . this openness to foreign investment must be maintained , provided it does not undermine the strategic autonomy of the union and the security of the union and its member states , while taking into account the increasing number of constraints and difficulties that businesses of the union are encountering in respect of investing in third countries , as a result of a lack of reciprocity .


### several member states have put in place measures according to which they may restrict the movement of capital between member states and between member states and third countries on grounds of public policy or public security . those measures reflect member states ' objectives and concerns with respect to foreign direct investment , and result in a number of different measures in terms of scope and procedure . other member states do not have such mechanisms . ### several member states have put in place measures according to which they may restrict the movement of capital between member states and between member states and third countries on grounds of public policy or public security . those measures reflect the objectives and concerns of member states , economic operators , the social partners and citizens with respect to foreign direct investment , and result in a number of measures that are not coordinated or harmonised at union level in terms of their scope and procedures . other member states do not have such mechanisms and must be encouraged to create them , building on the functioning , experience and best practices of national mechanisms already in place that have not given rise to a reduction in foreign investment even where the rules governing those mechanisms have been tightened up .


### the framework for the screening of foreign direct investment should provide the member states and the commission with the means to address risks to security or public order in a comprehensive manner , and to adapt to changing circumstances , whilst maintaining the necessary flexibility for member states to screen foreign direct investments on grounds of security and public order taking into account their individual situations and national circumstances . ### the framework for the screening of foreign direct investment should provide the member states and the commission with the means to address risks to security , public order and the union’s strategic autonomy in a comprehensive manner , and to adapt to changing circumstances , to the context and to the conditions even when the investment has already been made , whilst maintaining the necessary flexibility for member states to screen foreign direct investments on grounds of security and public order taking into account their individual situations and national circumstances .


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


### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies , and inputs which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . in that regard , member states and the commission should also be able to take into account whether a foreign investor is controlled directly or indirectly by the government of a third country . ### in determining whether a foreign direct investment may affect security or public order or the union’s strategic autonomy , member states and the commission shall be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling critical technologies , and inputs which are essential for security or the maintenance of public order , and the union’s strategic autonomy and the disruption , including supply disruption , failure , loss or destruction of which would have an impact in a member state or in the union . in that regard , due diligence by the member states and the commission must also take careful account of whether a foreign investor of foreign end - investor , is controlled directly or indirectly by a foreign power , army or security forces , by a state or by the government of a third country . in addition , in order to build up an accurate picture of the investment , other information is helpful in decision - making , such as the investment conditions , the level of openness in the investor’s country of origin , the degree of reciprocity , the source of the funds , or the question of whether the foreign investment could bolster or lead to a monopolistic structure or to the control of a value chain to the loss of control of european critical infrastructures or supply chains .


### it is appropriate to lay down the essential elements of the procedural framework for the screening of foreign direct investment by member states to allow investors , the commission and other member states to understand how such investments are likely to be screened and to ensure that these investments are screened in a transparent manner and that they are non - discriminatory between third countries . those elements should at least include the establishment of timeframes for the screening and the possibility for foreign investors to seek judicial redress of screening decisions . ### it is appropriate to lay down the essential elements of the procedural framework for the screening of foreign direct investment by member states to allow investors , the commission and other member states to understand how such investments are likely to be screened and to ensure that these investments are screened in a transparent manner and that there is no procedural discrimination between third countries . those elements should at least include the establishment of reasonable timeframes for the screening and the possibility for foreign investors to seek judicial redress before national authorities or jurisdictions with regard to screening decisions .


### a mechanism which enables member states to cooperate and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states should be able to provide comments to a member state in which the investment is planned or has been completed , irrespective of whether the member states providing comments or the member states in which the investment is planned or has been completed maintain a screening mechanism or are screening the investment . the comments of member states should also be forwarded to the commission . the commission should also have the possibility , where appropriate , to issue an opinion to the member state in which the investment is planned or has been completed , irrespective of whether this member state maintains a screening mechanism or is screening the investment and irrespective of whether other member states have provided comments . ### as part of the union’s arrangements for the screening of foreign direct investment , a mechanism should be set up which enables member states to maintain their screening mechanism , to cooperate , to exchange information , to build on best practice and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states or the strategic autonomy and the interests of the union . member states must be able to provide an opinion to a member state in which the investment is planned or has been completed , irrespective of whether the member states providing opinions or the member states in which the investment is planned or has been completed maintain a screening mechanism or are screening the investment . the opinions drawn up by member states must also be simultaneously forwarded to the commission . the commission must also issue an opinion to the member state in which the investment is planned or has been completed , irrespective of whether this member state maintains a screening mechanism or is screening the investment and irrespective of whether other member states have provided opinions .


### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex . ### furthermore , the commission must screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include , in particular , projects and programmes involving eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative and non - exhaustive list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission is listed in the annex . in order to update that list , 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 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law - making1a . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states’ experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


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


### in order to facilitate the cooperation with other member states and the screening of foreign direct investment by the commission , member states should notify their screening mechanisms and any amendment thereto to the commission , and should report on the application of their screening mechanisms on a regular basis . for the same reason , member states that do not have a screening mechanism should also report on the foreign direct investments that took place in their territory , on the basis of the information available to them . ### in order to facilitate the cooperation with other member states and the screening of foreign direct investment by the commission , member states must notify their screening mechanisms and any amendment thereto to the commission , and must report on the application of their screening mechanisms on a regular basis . for the same reason , member states that do not have a screening mechanism must also report on the foreign direct investments that took place in their territory , including ports , airports , energy power suppliers and distributors , defence or dual use industries , territorial waters , the continental shelf and exclusive economic zones , on the basis of the information available to them and the efforts made to obtain that information .


### ' foreign direct investment ' means investments of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and the entrepreneur to whom or the undertaking to which the capital is made available in order to carry on an economic activity in a member state , including investments which enable effective participation in the management or control of a company carrying out an economic activity ; ### ' foreign direct investment ' means investments of any kind , irrespective of their volume or participation thresholds , by a direct foreign investor , who may or may not be the ultimate investor , aiming to establish or to maintain lasting , direct or indirect links between the direct foreign investor and the entrepreneur to whom or the undertaking to which the capital is made available in order to carry on an economic activity in a member state , including investments which enable effective participation in the management or director indirect control of a company carrying out an economic activity ; - these ' foreign direct investments ' can materialise in the form of securities purchases , loans , direct acquisition of real estate , or even patents and licenses from abroad , or indirectly from a already existing implantation .


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


### ' foreign investor ' means a natural person of a third country or an undertaking of a third country intending to make or having made a foreign direct investment ; ### ' foreign investor ' means a natural or legal person of a third country or an undertaking of a third country or a national , state institution intending to make or having already made a foreign direct investment , whether they are the end - investor or an intermediary ;


### member states may maintain , amend or adopt mechanisms to screen foreign direct investments on the grounds of security or public order , under the conditions and in accordance with the terms set out in this regulation . ### member states shall maintain , amend , tighten up or adopt mechanisms to screen foreign direct investments on the grounds of security , public order , or the defense of the eu ' s strategic autonomy under the conditions and in accordance with the terms set out in this regulation .


### member states may maintain , amend or adopt mechanisms to screen foreign direct investments on the grounds of security or public order , under the conditions and in accordance with the terms set out in this regulation . ### member states may maintain , amend or adopt mechanisms to screen foreign direct investments on the grounds of security or public order , under the conditions and in accordance with the terms set out in this regulation , without prejudice to the other rules applicable .


### the commission may screen foreign direct investments that are likely to affect projects or programmes of union interest on the grounds of security or public order . ### on the basis of the screening and information reported by the member state , the commission may issue opinions concerning foreign direct investments that are likely to affect projects or programmes of union interest on the grounds of security or public order .


### in screening a foreign direct investment on the grounds of security or public order , member states and the commission may consider the potential effects on , inter alia : ### in screening a foreign direct investment on the grounds of security or public order , member states may consider the potential effects on :


### - critical technologies , including artificial intelligence , robotics , semiconductors , technologies with potential dual use applications , cybersecurity , space or nuclear technology ; ### - critical technologies , including artificial intelligence , quantum technology , nanotechnologies , information and communication technologies , robotics , electronic chips , semiconductors , electrical batteries , technologies and goods with potential dual use applications , defence , cybersecurity and cybertechnologies , aerospace , the automotive sector and space , rail or nuclear technology ;


### member states shall establish timeframes for issuing screening decisions . such timeframes shall allow them to take into account the comments of member states referred to in article 8 and the opinion of the commission referred to in articles 8 and 9 . ### member states shall establish timeframes for obtaining from the foreign investor or investors proof that their investment poses no risk or threat to their strategic interests and for making screening decisions .


### member states shall inform the commission and the other member states of any foreign direct investments that are undergoing screening within the framework of their screening mechanisms , within 5 working days from the start of the screening . as part of the information , and when applicable , the screening member states shall endeavour to indicate whether it considers that the foreign direct investment undergoing screening is likely to fall within the scope of regulation no 139 / 2004 . ### all member states shall inform the commission and the member state concerned of any foreign direct investments that may affect the security or the public order of at least another member state as soon as such risk is assessed . as part of the information , and when applicable , member states shall endeavour to indicate whether it considers that the foreign direct investment undergoing screening is likely to fall within the scope of regulation no 139 / 2004 .


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission may issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed . ### where the commission considers that a foreign direct investment is likely to affect projects or programmes of the union interest or of its strategic interests , on grounds of security or public order relevant for preserving the democratic control and the union legal order , the commission shall issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed . the opinion of the commission shall simultaneously be communicated to the other member states and this advice should lead to a reconsideration of the referred investment , in order to ensure its control or termination .


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission may issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed . ### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest or its fundamental interests , on grounds of the internal or external security or public order relating in particular to the preservation of the community legal order , it shall issue an opinion addressed to the member state where the foreign direct investment is planned or has been completed .


### the ownership structure of the foreign investor and of the undertaking in which the foreign direct investment is planned or has been completed , including information on the ultimate controlling shareholder or shareholders ; ### the full ownership structure of the foreign investor and of the undertaking in which the foreign direct&#160 ; investment is planned or has been completed , including information on the ultimate beneficial owners ;


### each member state shall appoint a foreign direct investment screening contact point for the screening of foreign direct investment . the commission and other member states shall involve these fdi screening contact points on all issues related to implementation of this regulation . ### each member state shall appoint an institutional foreign direct investment screening contact point for the screening of foreign direct investment . the commission and other member states shall involve these fdi screening contact points on all issues related to implementation of this regulation . the commission and the member states shall meet regularly to discuss best practices in investment screening and coordinate on factors that are taken into consideration within the meaning of article 4 with a view to harmonising those factors .


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


### this regulation establishes measures and conditions concerning the trade , manufacture , use and interim storage of mercury , mercury compounds , mixtures , mercury - added products and the management of mercury waste . ### this regulation establishes measures and conditions concerning the trade , manufacture , use and storage of mercury , mercury compounds , mixtures , mercury - added products and the management of mercury waste .


### without prejudice to stricter requirements set out in other applicable union legislation , the export , import and the manufacturing in the union of the mercury - added products as set out in annex ii shall be prohibited from 1 january 2021 . ### without prejudice to stricter requirements set out in other applicable union legislation , the export , import and the manufacturing in the union of mercury - added products shall be prohibited from 1 january 2021 .


### - a detailed explanation of the manner in which such product or process must be manufactured , used and operated to ensure a high level of protection of the environment and of human health . ### - a detailed explanation of the manner in which such product or process must be manufactured , used , operated , and , in the case of products , disposed of to ensure a high level of protection of the environment and of human health .


### by way of derogation from point of article 5 of directive 1999 / 31 / ec , mercury waste may be stored in one of the following ways : ### by way of derogation from paragraph - 1 and from point of article 5 of directive 1999 / 31 / ec , mercury waste may be temporarily stored in liquid form for up to five years subject to the specific requirements for the temporary storage of mercury waste , as laid down in annexes i , ii and iii to that directive , in above - ground facilities dedicated to and equipped for the temporary storage of mercury .


### the production of sodium or potassium methylate or ethylate shall be carried out in accordance with the following requirements : ### the production of sodium or potassium methylate or ethylate shall be phased out as quickly as possible and in any event within 10 years of the entry into force of the convention . before that date , the aforementioned production shall be carried out in accordance with the following requirements :


### the need for the regulatory framework for electronic communications to be consistently applied in all member states is essential for the successful development of an internal market for electronic communications throughout the union and the promotion of access to , and take - up of , very high capacity data connectivity , of competition in the provision of electronic communications networks , services and associated facilities and of the interests of the citizens of the union . in view of market and technological developments , which often entails an increased cross - border dimension , and to the experience so far in ensuring a consistent implementation in the electronic communications field , it is necessary to build on the work of berec and the berec office and further develop them into a fully - fledged agency . ### the need for the regulatory framework for electronic communications to be consistently applied in a balanced and non - discriminatory manner in all member states is essential for the successful development of an internal market for electronic communications throughout the union and the promotion of access to , and take - up of , very high capacity data connectivity , of competition in the provision of electronic communications networks , services and associated facilities and of the interests of the citizens of the union . in view of market and technological developments , which often entails an increased cross - border dimension , and to the experience so far in ensuring a consistent implementation in the electronic communications field , it is necessary to build on the work of berec and the berec office and further develop them into a fully - fledged agency .


### the role of the executive director , who would be the legal representative of berec , is crucial for the adequate functioning of the new agency and the implementation of the tasks assigned to it . the management board should appoint him / her on the basis of a list drawn up by the commission following an open and transparent selection procedure in order to guarantee a rigourous evaluation of the candidates and a high level of independence . moreover , in the past the term of office of the administrative manager of the berec office was three years . it is necessary that the executive director has a sufficiently long mandate in order to ensure stability and delivery of a long - term strategy for the agency . ### the role of the executive director , who would be the legal representative of berec , is crucial for the adequate functioning of the new agency and the implementation of the tasks assigned to it . the management board should appoint him / her on the basis of a list drawn up by the chairperson following an open and transparent selection procedure in order to guarantee a rigourous evaluation of the candidates and a high level of independence . the candidate should obtain the consent of the european parliament to take office . moreover , in the past the term of office of the administrative manager of the berec office was three years . it is necessary that the executive director has a sufficiently long mandate in order to ensure stability and delivery of a long - term strategy for the agency .


### the management board shall : ### the management board shall fulfil the tasks of berec set out in article 2 , take all decisions relating to the performance of its functions and provide guidance to the director . in doing so , it may rely on the work carried out by the working groups . the management board shall :


### the general objective of the programme should be to support the digital transformation of industry and to foster better exploitation of the industrial potential of policies of innovation , research and technological development , for the benefit of businesses and citizens all over the union . the programme should be structured into five specific objectives reflecting key policy areas , namely : high - performance computing , cybersecurity , artificial intelligence , advanced digital skills , and deployment , best use of digital capacities and interoperability . for all these areas , the programme should also aim at better aligning union , member states and regional policies , and pooling of private and industrial resources in order to increase investment and develop stronger synergies . ### the general objective of the programme should be to support the digital transformation of industry and to foster better exploitation of the industrial potential of policies of innovation , research and technological development , for the benefit of businesses , especially smes , and citizens all over the union . the programme should be structured into five specific objectives reflecting key policy areas , namely : high - performance computing , cybersecurity , artificial intelligence , advanced digital skills , and deployment , best use of digital capacities and interoperability . for all these areas , the programme should also aim at better aligning union , member states and regional policies , and pooling of private and industrial resources in order to increase investment and develop stronger synergies .


### the programme should be implemented through projects reinforcing essential digital capacities and their wide use . this should involve co - investments with member states and , when needed , the private sector . this should notably require reaching a critical mass in procurement to obtain better value for money and guarantee that suppliers in europe stay at the forefront of technology advancements . ### the programme should be implemented through projects reinforcing essential digital capacities and their wide use . this should involve co - investments with member states and the private sector . this should notably require reaching a critical mass in procurement to obtain better value for money and guarantee that suppliers in europe stay at the forefront of technology advancements .


### developing capacity related to artificial intelligence is a crucial driver for the digital transformation of industry and also of the public sector . ever more autonomous robots are used in factories , deep sea application , homes , cities and hospitals . commercial artificial intelligence platforms have moved from testing to real applications in health and environment ; all major car manufacturers are developing self - driving cars , and machine learning techniques are at the heart of all main web platforms and big data applications . ### developing capacity related to artificial intelligence is a crucial driver for the digital transformation of industry and also of the public sector . ever more autonomous robots are used in factories , deep sea application , homes , cities and hospitals . commercial artificial intelligence platforms have moved from testing to real applications in health and environment ; all major car manufacturers and industries in the automotive sector are developing self - driving cars , and machine learning techniques are at the heart of all main web platforms and big data applications .


### the availability of large - scale data sets and testing and experimentation facilities are of major importance for the development of artificial intelligence . ### the availability of large - scale data sets and testing and experimentation facilities to secure the internal market where artificial intelligence is used are of major importance for the development of artificial intelligence .


### cybersecurity is a challenge for the whole union that cannot continue to be addressed only with fragmented national initiatives . europe ' s cybersecurity capacity should be reinforced to endow europe with the necessary capacities to protect its citizens and businesses from cyber threats . in addition consumers should be protected when using connected products that can be hacked and compromise their safety . this should be achieved together with member states and private sector by developing , and ensuring coordination between , projects reinforcing europe ' s capacities in cybersecurity and ensuring the wide deployment of latest cybersecurity solutions across the economy , as well as by aggregating the competences in this field to ensure critical mass and excellence . ### cybersecurity is a challenge for the whole union that cannot continue to be addressed only with fragmented national initiatives . europe ' s cybersecurity capacity should be reinforced to endow europe with the necessary capacities to protect its citizens and businesses from cyber threats . in addition consumers should be protected when using connected products that can be hacked and compromise their safety and that of their data . this should be achieved together with member states and private sector by developing , and ensuring coordination between , projects reinforcing europe ' s capacities in cybersecurity and ensuring the wide deployment of latest cybersecurity solutions across the economy , as well as by aggregating the competences in this field to ensure critical mass and excellence .


### cybersecurity is a challenge for the whole union that cannot continue to be addressed only with fragmented national initiatives . europe ' s cybersecurity capacity should be reinforced to endow europe with the necessary capacities to protect its citizens and businesses from cyber threats . in addition consumers should be protected when using connected products that can be hacked and compromise their safety . this should be achieved together with member states and private sector by developing , and ensuring coordination between , projects reinforcing europe ' s capacities in cybersecurity and ensuring the wide deployment of latest cybersecurity solutions across the economy , as well as by aggregating the competences in this field to ensure critical mass and excellence . ### cybersecurity is a challenge for the whole union that cannot continue to be addressed only with fragmented national initiatives . europe ' s cybersecurity capacity should be reinforced to endow europe with the necessary capacities to protect its citizens and businesses from cyber threats and any cyber - attacks . in addition consumers should be protected when using connected products that can be hacked and compromise their safety . this should be achieved together with member states and private sector by developing , and ensuring coordination between , projects reinforcing europe ' s capacities in cybersecurity and ensuring the wide deployment of latest cybersecurity solutions across the economy , as well as by aggregating the competences in this field to ensure critical mass and excellence .


### the advanced digital technologies supported by this programme , such as high performance computing , cybersecurity and artificial intelligence are now sufficiently mature to move beyond the research arena and be deployed , implemented and scaled - up at union level . just as the deployment of these technologies require a union response so does the skills dimension . training opportunities in advanced digital skills need to be scaled up , increased and made accessible throughout the eu . failing this could impede the smooth deployment of advanced digital technologies and hamper the overall competitiveness of union ' s economy . the actions supported by this programme are complementary to those supported by the esf , erdf and horizon europe programmes . ### the advanced digital technologies supported by this programme , such as high performance computing , cybersecurity and artificial intelligence are now sufficiently mature to move beyond the research arena and be deployed , implemented and scaled - up at union level . just as the deployment of these technologies requires a union response so does the skills dimension . bearing in mind the impact new technologies may have on the job market , training opportunities in advanced digital skills need to be scaled up , increased and made accessible throughout the eu . failing this could impede the smooth deployment of advanced digital technologies and hamper the overall competitiveness of the union ' s economy . the actions supported by this programme are complementary to those supported by the esf , erdf and horizon europe programmes .


### modernising public administrations and services through digital means is crucial to reducing administrative burden on industry and on citizens in general by making their interactions with public authorities faster , more convenient and less costly , as well as by increasing the efficiency and the quality of the services provided to citizens and businesses . since a number of services of public interest already have a union dimension , the support to their implementation and deployment at union level should ensure that citizens and businesses will benefit from the access to high quality digital services across europe . ### modernising public administrations and services through digital means is crucial to reducing administrative burden on industry and on citizens in general by making their interactions with public authorities faster , more convenient and less costly , as well as by increasing the efficiency and the quality of the services provided to citizens and businesses . since a number of services of public interest already have a union dimension , the support to their implementation and deployment at union level should ensure that citizens and businesses will benefit from the access to high quality digital services across europe . it is also important that such services be available to persons with disabilities .


### the digital transformation of the areas of public interest such as healthcare68 , mobility , justice , earth / environmental monitoring , education and culture requires the continuation and expansion of digital service infrastructures , which make secure cross - border exchange of data possible and foster national development . their coordination under this regulation best achieves the potential for exploiting synergies . _________________ 68 http : / / ec . europa . eu / newsroom / dae / document . cfm ? doc_id=51628 ### the digital transformation of the areas of public interest such as healthcare68 , mobility , justice , earth / environmental monitoring , education and culture requires the continuation , upgrading and expansion of digital service infrastructures , which make secure cross - border exchange of data possible and foster national development . their coordination under this regulation best achieves the potential for exploiting synergies . _________________ 68 http : / / ec . europa . eu / newsroom / dae / document . cfm ? doc_id=51628


### the programme has the following general objective : to support the digital transformation of the european economy and society and bring its benefits to european citizens and businesses . the programme will : ### the programme has the following general objective : to support the digital transformation of the european economy and society and bring its benefits to european citizens and businesses , especially smes . the programme will :


### widen their diffusion and uptake in areas of public interest and the private sector . ### widen their diffusion and uptake in areas of public interest and the private sector , including the digital transformation of services of public interest and the digitisation of industry .


### support , together with member states , the procurement of advanced cybersecurity equipment , tools and data infrastructures in full compliance with data protection legislation ; ### support , together with member states , the procurement of advanced cybersecurity equipment , tools and data infrastructures in full compliance with personal data protection legislation ;


### support the best use of european knowledge , capacity and skills related to cybersecurity ; ### support the best use of european , capacity and skills related to cybersecurity , while respecting personal data protection ;


### the financial intervention by the union under specific objective 4 . advanced digital skills shall support the development of advanced digital skills in areas supported by this programme , thus contributing to increase europe ' s talent pool , fostering greater professionalism , especially with regard to high performance computing , big data analytics , cybersecurity , distributed ledger technologies , robotics and artificial intelligence . the financial intervention shall pursue the following operational objectives : ### the financial intervention by the union under specific objective 4 . advanced digital skills shall support the development of advanced digital skills in areas supported by this programme , contributing to an increase in appropriate professional skills at eu level , especially with regard to high performance computing , big data analytics , cybersecurity , distributed ledger technologies , robotics and artificial intelligence . the financial intervention shall pursue the following operational objectives :


### support the design and delivery of long - term trainings and courses for students , it professionals and the workforce ; ### support the delivery of courses and training and research for students , it professionals and the workforce ;


### support the design and delivery of short - term trainings and courses for entrepreneurs , small business leaders and the workforce ; ### support short - term and long - term training and research for entrepreneurs and leaders of small and medium - sized businesses ;


### ensure that the public sector and areas of public interests , such as health and care , education , judiciary , transport , energy , environment , cultural and creative sectors , can deploy and access state - of - the - art digital technologies , in particular high performance computing , artificial intelligence and cybersecurity ; ### ensure that the public sector and areas of public interests , such as health and care , education , judiciary , transport , energy , environment , cultural and creative sectors , can deploy and access state - of - the - art digital technologies , in particular high performance computing , artificial intelligence and cybersecurity , without breaching the provisions of the general data protection regulation ;


### support the design , testing , implementation and deployment of interoperable digital solutions for eu level public services delivered through a data - driven reusable solutions platform , fostering innovation and establishing common frameworks in order to unleash the full potential of the public administrations’ services for european citizens and businesses ; ### support the design , testing , implementation and deployment of interoperable digital solutions for eu level public services delivered through a data - driven reusable solutions platform , fostering innovation and research and establishing common frameworks in order to unleash the full potential of the public administrations’ services for european citizens and businesses ;


### build up and strengthen the network of digital innovation hubs . ### build up , strengthen and promote the network of digital innovation hubs .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . according to the commission , investment has fallen by approximately 15% since its peak in 2007 , and the decline has been especially dramatic in greece , ireland , spain , portugal , and italy . the union suffers in particular from a lack of investment as a consequence of fiscal constraints on member states and sluggish growth , thereby resulting in market uncertainty regarding the economic future . this lack of investment , which has been particularly severe in member states most affected by the crisis , slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### since the start of the economic and financial crisis , the level of investments within the union has fallen strongly . investment has fallen by approximately 15% since its peak in 2007 , particularly in regions that are already in difficulty and those that are less developed , thereby aggravating disparities in regional development . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness .


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


### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market and by enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work . ### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market and by enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work . in order to achieve the objective of economic , social and territorial convergence , the efsi should pursue a strategy which complements the priorities of the europe 2020 strategy .


### the purpose of the efsi should be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . it is intended that increased access to financing should be of particular benefit to small and medium enterprises . it is also appropriate to extend the benefit of such increased access to financing to mid - cap companies , which are companies having up to 3000 employees . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s economic , social and territorial cohesion . ### the purpose of the efsi should be twofold : to help resolve the difficulties in financing and implement long - term productive strategic and transformative investments in the union that provide an immediate boost to europe ' s economy , and to ensure increased access to financing for companies up to 3000 employees with particular focus on start - ups , spin - offs , micro - enterprises , small and medium enterprises and cooperatives . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s competitiveness , innovation potential , economic , social and territorial cohesion and energy and resource efficiency by transitioning into a sustainable and circular economy .


### the efsi should support strategic investments with high economic value added contributing to achieving union policy objectives . ### in compliance with article 3 tfeu and article 9 teu , the efsi should support strategic investments with strong potential for creating sustainable , high - quality jobs contributing to achieving union policy objectives , particularly on the environment , energy and the digital economy .


### many small and medium enterprises , as well as mid - cap companies , across the union require assistance to attract market financing , especially as regards investments that carry a greater degree of risk . the efsi should help these businesses to overcome capital shortages by allowing the eib and the european investment fund to provide direct and indirect equity injections , as well as to provide guarantees for high - quality securitisation of loans , and other products that are granted in pursuit of the aims of the efsi . ### many small and medium enterprises , as well as mid - cap companies , across the union require assistance to attract market financing , especially as regards investments that carry a greater degree of risk . the efsi should help these businesses to overcome capital shortages by allowing the eib , the european investment fund and national development institutions or banks to provide direct and indirect equity injections , as well as to provide guarantees for high - quality securitisation of loans , and other products that are granted in pursuit of the aims of the efsi .


### many small and medium enterprises , as well as mid - cap companies , across the union require assistance to attract market financing , especially as regards investments that carry a greater degree of risk . the efsi should help these businesses to overcome capital shortages by allowing the eib and the european investment fund to provide direct and indirect equity injections , as well as to provide guarantees for high - quality securitisation of loans , and other products that are granted in pursuit of the aims of the efsi . ### many small and medium enterprises , as well as small mid - cap companies , including start - ups and spin - offs , across the entire union require assistance to attract market financing , especially as regards investments that carry a greater degree of risk . the efsi should help these businesses to overcome capital shortages and market failures by allowing the eib and the eif , where relevant , to provide direct and indirect equity injections , as well as to provide guarantees for high - quality securitisation of loans , and other products that are granted in pursuit of the aims of the efsi


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high societal and economic value and helping to strengthen economic , social and territorial cohesion between and within eu member states . in particular , the efsi should target projects that promote sustainable job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most strategic use of public money . the efsi should also not be a substitute for national financing in the services of general interest sector . the requirement for consistency with state aid principles should contribute to such effective and strategic use : a special commission communication on this issue accompanies this regulation .


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects whose selection should be done on the basis of transparent criteria delivering high societal and economic value , with an equitable distribution of projects across the union . in particular , the efsi should target projects that promote job creation , long - term sustainable growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money and as a means of further enhancing cohesion across the union . the requirement for consistency with state aid principles should contribute to such effective and strategic use .


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high economic , societal and environmental performance , thereby contributing to achieving the union’s political objectives in accordance with article 3 tfeu and article 9 teu . in particular , the efsi should target projects that promote high - quality job creation , long - term growth , energy transition and skills enhancement . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use .


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


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


### the efsi should target investments that are expected to be economically and technically viable , which may entail a degree of appropriate risk , whilst still meeting the particular requirements for efsi financing . ### the efsi should target investments that are potentially viable , which means that are expected to be economically and technically viable but cannot find private capital financing without the support of efsi guarantee . such investment should entail a degree of appropriate risk , whilst still meeting the particular requirements for efsi financing . the efsi should not aim at simply reducing the cost of capital for investments that would find private financing also in absence of eu guarantee .


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects , strategic planning and public management , and who should be approved by the european parliament following hearings . the investment committee should be accountable to the steering board of the efsi . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . [ 1 ] justification : these skills are to ensure that projects selected can deliver high socio - economic results at the regional level , while also taking into consideration the principle of subsidiarity .


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### an investment committee should be set up in order to take decisions on the use of the eu guarantee when not channelled through the eif . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies .


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . in this work , the eif should have a broad perspective which i a includes the promotion of social entrepreneurship and innovation .


### at the level of projects , third parties may co - finance together with efsi on a project - by - project basis or in investment platforms related to specific geographic or thematic sectors . ### at the level of projects , third parties may co - finance together with efsi on a project - by - project basis or in investment platforms related to specific geographic or thematic sectors . special attention should be given to investment platforms that focus on transformative sectors with high economic and societal added value , and investment platforms that aggregate small scale sustainable and innovative projects , notably driven by regions , cities and smes ; for example energy efficiency projects such as the refurbishment of building stock , smart grids projects and new citizen services based on digital innovative tools .


### in accordance with the treaty on the functioning of the european union , infrastructure and project investments supported under efsi should be consistent with state aid rules . to that end , the commission has announced that it will formulate a set of core principles , for the purpose of state aid assessments , which a project will have to meet to be eligible for support under the efsi . if a project meets these criteria and receives support from the efsi , the commission has announced that any national complementary support , will be assessed under a simplified and accelerated state aid assessment whereby the only additional issue to be verified by the commission will be the proportionality of public support . the commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds . ### infrastructure and project investments supported under efsi , when cofinanced by member states , should be consistent with state aid rules in accordance with the treaty on the functioning of the european union . to that end , the commission has announced that within a reasonable time it will formulate a set of core principles , for the purpose of state aid assessments , which a project will have to meet to be eligible for support under the efsi . if a project , regardless of its economic sector , meets these criteria and receives support from the efsi , the commission has announced that any national complementary support , will be assessed under a simplified and accelerated state aid assessment whereby the only additional issue to be verified by the commission will be the proportionality of public support . the commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds and the full respect of the principle of legitimate expectation .


### the eib should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability . ### the eib should regularly evaluate activities supported by the efsi and their overall contribution to the achievement of the efsi objectives with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability .


### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . ### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support to member states and their authorities , private investors and investment platforms at all levels for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union where possible in a decentralised manner and without altering the objective of existing technical assistance programmes or affect the quality or capacity of these in carrying out their dedicated tasks . in order to ensure sectorial diversification of beneficiaries of financial instruments as well as to encourage geographical diversification across the member states , the steering board through the eiah should provide support to member states and project promoter in developing an appropriate pipeline of projects that could be considered for project financing . in the transport sector , the eiah should closely work with the commission with the support of the innovation and networks executive agency , in particular as regards compliance with the eu policy on transport infrastructure . in this perspective , the eiah should have sectorial knowledge .


### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . ### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . the eiah should enable member states and regions across the union to benefit from free expertise so as to ensure fair access to efsi financing .


### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . ### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . the eiah should cooperate with the existing advisory entities involving the eib , the commission and the member states , such as the ' european ppp expertise centre ' and the ' financial instruments - technical advisory platform for efsi ' . the eiah should enable member states and regions across the union to benefit from free expertise so as to ensure fair access to efsi financing .


### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . ### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . the eiah should also support the development of geographic and thematic investment platforms .


### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual payment from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib . ### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual payment from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support , returns on guarantee fund resources invested and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib .


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


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support investments that are strategic for the union and to ensure increased and fair access to financing for companies having up to 3000 employees , with a particular focus on small and medium - sized enterprises as well as innovative start - ups , through the supply of risk bearing capacity to the eib .


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


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the esfsi shall be to support counter - cyclical and development investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib and direct financing . the investments will prioritise member states , regions , and municipalities that suffer high unemployment levels or sudden increases in the unemployment rate .


### the efsi agreement shall provide that the efsi shall have a managing director , who shall be responsible for the day - to - day management of the efsi and the preparation and chairing of meetings of the investment committee referred to in paragraph 5 . the managing director shall be assisted by a deputy managing director . ### the esfsi agreement shall provide that the esfsi shall have a managing director , who shall be responsible for the day - to - day management of the esfsi and the preparation and chairing of meetings of the investment committee referred to in paragraph 5 . the managing director shall be assisted by a deputy managing director .