### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 . the operations concerned shall be consistent with union policies and support any of the following general objectives : development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; investment in education and training , health , research and development , information and communications technology and innovation ; expansion of renewable energy and energy and resource efficiency ; infrastructure projects in the environmental , natural resources , urban development and social fields ; providing financial support for the companies referred to in article 1 , including working capital risk financing . in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national promotional banks , via the eib , that invest in operations meeting the requirements of this regulation . in that case , the steering board shall specify policies regarding eligible investment platforms . ### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or for funding to the eif in accordance with article 7 in order to conduct eib financing and investment operations approved by that investment committee . the operations concerned shall be consistent with union policies and shall support one or more of the following general objectives : development of transport infrastructure , particularly in industrial centres ; development and modernisation of energy infrastructure in accordance with the energy union priorities and the 2020 , 2030 and 2050 climate and energy frameworks , in particular interconnections , smart grids at distribution level , energy storage and the synchronisation of markets ; expansion of renewable energy , resource efficiency , energy efficiency and energy savings , with a particular focus on reducing demand through demand - side management and the refurbishment of buildings ; development of information and communication technologies , of digital and telecom infrastructures and of broadband networks across the entire union ; investment in innovation , research and development , including research infrastructure , pilot and demonstration projects , collaborations between the academia and industry , and knowledge and technology transfer ; investment in education , training , entrepreneurial skills ; investment in innovative health solutions , such as ehealth and new effective medicines , and in the social sector ; investment in the cultural and creative industries ; investment in projects and infrastructure in the field of environmental protection and management ; strengthening of eco - system services and sustainable urban development ; financial support , including the provision of working capital risk financing , for smes , start - ups , spin - offs and small mid - cap companies through the eif , and for mid - cap companies , in order to ensure technology leadership in innovative and sustainable sectors ; financing of projects which are in line with the objectives of horizon 2020 and the connecting europe facility ; the efsi shall support only projects and operations that : are consistent with union policies and create smart , sustainable and inclusive growth ; that comply with the objectives of article 9 and that are in line with article 10 and annex i of regulation no 1303 / 2013 ; are economically and technically viable ; ensure additionality ; maximise the mobilisation of private sector capital ; have a net societal benefit , including the creation of sustainable jobs , taking into account the costs and benefits of the project throughout its expected lifetime ; in addition , the eu guarantee shall be granted , through the eib , for financing and investment operations conducted by dedicated investment platforms and national promotional banks , after approval by the investment committee referred to in article 3 . the operations concerned shall be consistent with union policies and shall comply with the eligibility criteria laid down in article 5 . the steering board shall specify policies regarding eligible investment platforms .


### 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 .


### in its financing and investment operations , the eib shall not support any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , or fraud affecting the financial interests of the union . in particular the eib shall not participate in any financing or investment operation through a vehicle located in a non - cooperative jurisdiction , in line with its policy towards weakly regulated or non - cooperative jurisdictions based on policies of the union , the organisation for economic cooperation and development or the financial action task force . ### in its financing and investment operations , the eib shall not support any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , or fraud affecting the financial interests of the union or of member states . in particular the eib shall not participate in any financing or investment operation through a vehicle located in a non - cooperative jurisdiction , in line with its policy towards weakly regulated or non - cooperative jurisdictions based on policies of the union , the organisation for economic cooperation and development or the financial action task force . in its financing and investment operations , the eib shall ensure that financed projects are in their performance complying with applicable obligations in the fields of environmental , social and labour law established by union law , national law , or by the international environmental , social and labour law provisions recognised in the eu


### following an adjustment in year n of the target amount or an assessment on the adequacy of the level of the guarantee fund in accordance with the review provided for in paragraph 6 : ### following an adjustment in year n of the target level or an assessment on the adequacy of the resources available in the guarantee fund in accordance with the review provided for in paragraph 6 :


### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 5 000 000 000 to be provided by the eib , that the efsi support should generate eur 60 800 000 000 additional investment by the eib and eif . this eur 60 800 000 000 supported by the efsi is expected to generate a total of eur 315 000 000 000 in investment in the union within the period 2015 to 2017 . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations . ### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 5 000 000 000 to be provided by the eib , that the efsi support should generate eur 60 800 000 000 additional investment by the eib and eif . this eur 60 800 000 000 supported by the efsi is expected to generate a total of eur 315 000 000 000 in additional investment in the union within the period 2015 to 2017 . additional member state contributions to the efsi ' s capital would increase this amount and thereby bring the fund ' s investment closer to actual needs . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations .


### requirements governing the use of the eu guarantee , including within specific time frames and key performance indicators ; ### requirements governing the use of the eu guarantee , such as the compliance with the objectives and criteria set out in article 5 . 2 , as well as specific time frames and key performance indicators , including job creation and sme participation .


### the efsi should target investments that are expected to be economically and technically viable , which may entail a degree of appropriate risk , whilst still meeting the particular requirements for efsi financing . ### the efsi should target investments that are expected to be economically and technically viable , and bankable under conditions offered by the efsi product portfolio , but which face barriers for market uptake . in addition , average project risk under efsi should be higher than under any other available investment portfolio in the eu and it should target close - to market innovations where further support is needed to bridge the ' valley - of - death ' .


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


### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the work of the efsi on providing finance to small and medium enterprises and small mid - cap companies should be channelled through the european investment fund to benefit from its experience in these activities . ### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the provision of efsi funding to small and medium enterprises and small mid - cap companies , start - ups and spin - offs should be channeled through the eif to benefit from its experience in these activities .


### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the work of the efsi on providing finance to small and medium enterprises and small mid - cap companies should be channelled through the european investment fund to benefit from its experience in these activities . ### does not affect english version .


### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the work of the efsi on providing finance to small and medium enterprises and small mid - cap companies should be channelled through the european investment fund to benefit from its experience in these activities . ### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the provision of efsi funding to small and medium enterprises and small mid - cap companies may be channelled through the european investment fund to benefit from its experience in these activities .


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


### the eib , in cooperation with the eif as appropriate , shall report semi - annually to the commission on eib financing and investment operations under this regulation . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and the key performance indicators established pursuant to article 2 . the report shall also include statistical , financial and accounting data on each eib financing and investment operation and on an aggregated basis . ### the eib , in cooperation with the eif as appropriate , shall report semi - annually to the european parliament , the council and the commission on eib financing and investment operations under this regulation . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and the key performance indicators established pursuant to article 2 . the report shall also include statistical , financial and accounting data on each eib financing and investment operation and on an aggregated basis .


### 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 .


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


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


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


### an assessment of the added value , the mobilisation of private sector resources , the estimated and actual outputs , outcomes and impact of eib financing and investment operations at an aggregated basis ; ### an assessment of the added value , the mobilisation of private sector resources , the estimated and actual outputs , outcomes and impact of eib financing and investment operations at an aggregated basis ; this assessment should be accompanied by an opinion of an independent external auditor ;


### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 . the operations concerned shall be consistent with union policies and support any of the following general objectives : development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; investment in education and training , health , research and development , information and communications technology and innovation ; expansion of renewable energy and energy and resource efficiency ; infrastructure projects in the environmental , natural resources , urban development and social fields ; providing financial support for the companies referred to in article 1 , including working capital risk financing . in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national promotional banks , via the eib , that invest in operations meeting the requirements of this regulation . in that case , the steering board shall specify policies regarding eligible investment platforms . ### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or for funding to the eif in accordance with article 7 in order to conduct eib financing and investment operations approved by that investment committee . the operations concerned shall be consistent with union policies and shall support one or more of the following general objectives : development of transport infrastructure , particularly in industrial centres ; development and modernisation of energy infrastructure in accordance with the energy union priorities and the 2020 , 2030 and 2050 climate and energy frameworks , in particular interconnections , smart grids at distribution level , energy storage and the synchronisation of markets ; expansion of renewable energy , resource efficiency , energy efficiency and energy savings , with a particular focus on reducing demand through demand - side management and the refurbishment of buildings ; development of information and communication technologies , of digital and telecom infrastructures and of broadband networks across the entire union ; investment in innovation , research and development , including research infrastructure , pilot and demonstration projects , collaborations between the academia and industry , and knowledge and technology transfer ; investment in education , training , entrepreneurial skills ; investment in innovative health solutions , such as ehealth and new effective medicines , and in the social sector ; investment in the cultural and creative industries ; investment in projects and infrastructure in the field of environmental protection and management ; strengthening of eco - system services and sustainable urban development ; financial support , including the provision of working capital risk financing , for smes , start - ups , spin - offs and small mid - cap companies through the eif , and for mid - cap companies , in order to ensure technology leadership in innovative and sustainable sectors ; financing of projects which are in line with the objectives of horizon 2020 and the connecting europe facility ; the efsi shall support only projects and operations that : are consistent with union policies and create smart , sustainable and inclusive growth ; that comply with the objectives of article 9 and that are in line with article 10 and annex i of regulation no 1303 / 2013 ; are economically and technically viable ; ensure additionality ; maximise the mobilisation of private sector capital ; have a net societal benefit , including the creation of sustainable jobs , taking into account the costs and benefits of the project throughout its expected lifetime ; in addition , the eu guarantee shall be granted , through the eib , for financing and investment operations conducted by dedicated investment platforms and national promotional banks , after approval by the investment committee referred to in article 3 . the operations concerned shall be consistent with union policies and shall comply with the eligibility criteria laid down in article 5 . the steering board shall specify policies regarding eligible investment platforms .


### from 1 january 2019 , if as a result of calls on the guarantee , the level of the guarantee fund falls below 50% of the target amount , the commission shall submit a report on exceptional measures that may be required to replenish it . ### from 1 january 2019 , if as a result of calls on the guarantee , the resources of the guarantee fund falls below 50% of the target amount , the commission shall submit a report on exceptional measures that may be required to replenish it . if the commission deems this to be necessary , the commission shall present recommendations on adjusting the level of the guarantee .


### the commission and the eib , with support from the member states , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union . the pipeline is without prejudice to the final projects selected for support according to article 3 . ### the commission and the eib , with support from the member states , shall promote the creation of a pipeline of current and potential future investment projects in the union , which shall be notified to the european parliament and the commission . the pipeline is without prejudice to the final projects selected for support according to article 3 .


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi . ### the efsi should complement and be additional to ongoing regional , national and eu programmes as well as traditional eib activities . provided that all relevant eligibility criteria are fulfilled , third parties may co - finance together with efsi on a project - by - project basis or in investment platforms related to geographic or thematic sectors and member states may use any type of union financing , including european structural investment funds , to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi and to involve social partners and public authorities .


### 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 .


### eib funding to the eif enabling it to undertake loans , guarantees , counter - guarantees , any other form of credit enhancement instrument , capital market instruments and equity or quasi - equity participations . these instruments shall be granted , acquired or issued for the benefit of operations carried out in the union , in compliance with this regulation and where eif financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled . ### eib funding to the eif enabling it to undertake loans , guarantees , counter - guarantees , any other form of credit enhancement instrument , capital market instruments and equity or quasi - equity participations , including through national promotional banks or institutions or investment platforms . these instruments shall be granted , acquired or issued for the benefit of operations carried out in the union , in compliance with this regulation and where eif financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled .


### comprehensive action is required to reverse the vicious circle created by a lack of investment . structural reforms and fiscal responsibility are necessary preconditions for stimulating investment . along with a renewed impetus towards investment financing , these preconditions can contribute to establishing a virtuous circle , where investment projects help support employment and demand and lead to a sustained increase in growth potential . ### comprehensive action is required to reverse the vicious circle created by a lack of investment . structural reforms and fiscal responsibility are necessary preconditions for stimulating investment , bearing in mind social and regional cohesion . along with a renewed impetus towards investment financing , these preconditions can contribute to establishing a virtuous circle , where investment projects help support employment and demand and lead to a sustained increase in growth potential , without which the restoration of public accounts will not be possible . european banks can provide liquidity , market making and loans to finance investments needed .


### 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


### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 5 000 000 000 to be provided by the eib , that the efsi support should generate eur 60 800 000 000 additional investment by the eib and eif . this eur 60 800 000 000 supported by the efsi is expected to generate a total of eur 315 000 000 000 in investment in the union within the period 2015 to 2017 . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations . ### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 10 000 000 000 to be provided by the eib , that the efsi support should generate eur 78 000 000 000 additional investment by the eib and eif . this eur 78 000 000 000 supported by the efsi is expected to generate a total of eur 390 000 000 000 in investment in the union within the period 2015 to 2017 . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations .


### article 12 evaluation and review at the latest [ po insert date : 18 months after the entry into force of this regulation ] the eib shall evaluate the functioning of the efsi . the eib shall submit its evaluation to the european parliament , the council and the commission ; at the latest [ po insert date : 18 months after the entry into force of this regulation ] the commission shall evaluate the use of the eu guarantee and the functioning of the guarantee fund , including the use of endowments according to article 8 . the commission shall submit its evaluation to the european parliament and the council . 2 . by 30 june 2018 and every three years thereafter : the eib shall publish a comprehensive report on the functioning of the efsi ; the commission shall publish a comprehensive report on the use of the eu guarantee and the functioning of the guarantee fund . 3 . the eib , in cooperation with the eif as appropriate , shall contribute to and provide the necessary information for the commission evaluation and report under paragraph 1 and 2 respectively . 4 . the eib and eif shall on a regular basis provide the european parliament , the council and the commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the eib and eif under this regulation . 5 . at the latest [ po insert date three years after the entry into force of this regulation ] , the commission shall submit a report to the european parliament and the council on the application of this regulation accompanied by any relevant proposal . ### article 12 evaluation at the latest [ po insert date : 12 months after the entry into force of this regulation ] the eib shall submit an evaluation on the functioning of the efsi to the european parliament , the council and the commission ; at the latest [ po insert date : 12 months after the entry into force of this regulation ] the commission shall evaluate the use of the eu guarantee and the functioning of the guarantee fund , including the use of endowments according to article 8 . the commission shall annually submit its evaluation to the european parliament and the council . 2 . annually , and 6 months after the date of termination of the agreement of efsi : the eib shall publish a comprehensive report on the functioning of the efsi ; the commission shall publish a comprehensive report on the use of the eu guarantee and the functioning of the guarantee fund . 3 . the eib , in cooperation with the eif as appropriate , shall contribute to and provide the necessary information for the commission evaluation and report under paragraph 1 and 2 respectively . 4 . the eib and eif shall on a regular basis provide the european parliament , the council and the commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the eib and eif under this regulation . 5 . at the latest [ po insert date three years after the entry into force of this regulation ] , the commission shall submit a report to the european parliament and the council on the application of this regulation and the evaluation of the eligibility criteria applied by the investment committee and defined in article 5 , accompanied by any relevant proposal .


### endowments to the guarantee fund referred to in paragraph 2 shall be used to reach an appropriate level to reflect the total eu guarantee obligations . the target amount shall be set at 50% of the union ' s total guarantee obligations . ### endowments to the guarantee fund referred to in paragraph 2 shall be used to reach an appropriate level to reflect the total eu guarantee obligations . the target amount shall be set at 40% of the union ' s total guarantee obligations .


### at the latest [ po insert date three years after the entry into force of this regulation ] , the commission shall submit a report to the european parliament and the council on the application of this regulation accompanied by any relevant proposal . ### at the latest [ po insert date three years after the entry into force of this regulation ] and every three years thereafter , the commission shall submit a report to the european parliament and the council on the application of this regulation accompanied by any relevant proposal . this report shall include an evaluation of the impact of the efsi on the investments in the union , employment creation and access to financing for companies having up to 3000 employees , in particular for small and medium sized enterprises . this report shall be accompanied , if appropriate , by relevant proposals for an extension of the efsi and modify this regulation accordingly .


### 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 . these two bodies also should , at their respective levels , support the development of investment platforms . 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 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 . ### in accordance with the treaty on the functioning of the european union and for the purposes of legal certainty , infrastructure and project investments supported under the efsi should be consistent with state aid rules , in particular where such investments are necessary for the performance of services of general economic interest under article 106 tfeu . 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 , in compliance with the state aid schemes applicable in the member state and the commission ' s exemption from notification decisions under decision 2012 / 21 / eu . 2 . it shall specify , in the case where a project fulfils the efsi criteria , whether that would result in an economic advantage constituting a state aid which would have to be taken into account by the member state in verifying the absence of overcompensation or compliance with the intensity threshold for aid complementing other state aids granted to that investment . 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 .


### the eib , in cooperation with the eif as appropriate , shall report semi - annually to the commission on eib financing and investment operations under this regulation . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and the key performance indicators established pursuant to article 2 . the report shall also include statistical , financial and accounting data on each eib financing and investment operation and on an aggregated basis . ### the eib , in cooperation with the eif as appropriate , shall report semi - annually&#160 ; to the european parliament , the council and the commission on eib financing and investment operations under this regulation . &#160 ; one of the two&#160 ; reports shall be completed in due time , so that the commission&#160 ; can incorporate the relevant information in the annual accounts and shall&#160 ; include an assessment of compliance with the requirements on the use of the eu guarantee and the key performance indicators established pursuant to article 2 . the report shall also include statistical , financial and accounting data on each eib financing and investment operation and on an aggregated basis .


### to ensure accountability to european citizens , the eib should regularly report to the european parliament and the council on the progress and impact of the efsi . ### to ensure accountability to european citizens , from the entry into force of this regulation , the commission should submit to the european parliament and to the council annual report containing an evaluation of the use of the eu guarantee and of the fulfilment of the general objectives and criteria laid down in this regulation , including the mobilisation of private capital , the additionality and the economic and societal added value . if appropriate , the report should be accompanied by a proposal to the european parliament and to the council to amend this regulation . the eib in cooperation with the eif , should report semi - annually to the european commission , to the european parliament and to the council on eib and eif financing and investment operations , including which projects have been financed , the financial instruments used and the state of implementation of funded projects and losses incurred under efsi . in case of failed projects , the report shall include a thorough analysis of the situation , highlighting possible repercussion on the guarantee fund .


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


### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 . the operations concerned shall be consistent with union policies and support any of the following general objectives : development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; investment in education and training , health , research and development , information and communications technology and innovation ; expansion of renewable energy and energy and resource efficiency ; infrastructure projects in the environmental , natural resources , urban development and social fields ; providing financial support for the companies referred to in article 1 , including working capital risk financing . in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national promotional banks , via the eib , that invest in operations meeting the requirements of this regulation . in that case , the steering board shall specify policies regarding eligible investment platforms . ### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or for funding to the eif in accordance with article 7 in order to conduct eib financing and investment operations approved by that investment committee . the operations concerned shall be consistent with union policies and shall support one or more of the following general objectives : development of transport infrastructure , particularly in industrial centres ; development and modernisation of energy infrastructure in accordance with the energy union priorities and the 2020 , 2030 and 2050 climate and energy frameworks , in particular interconnections , smart grids at distribution level , energy storage and the synchronisation of markets ; expansion of renewable energy , resource efficiency , energy efficiency and energy savings , with a particular focus on reducing demand through demand - side management and the refurbishment of buildings ; development of information and communication technologies , of digital and telecom infrastructures and of broadband networks across the entire union ; investment in innovation , research and development , including research infrastructure , pilot and demonstration projects , collaborations between the academia and industry , and knowledge and technology transfer ; investment in education , training , entrepreneurial skills ; investment in innovative health solutions , such as ehealth and new effective medicines , and in the social sector ; investment in the cultural and creative industries ; investment in projects and infrastructure in the field of environmental protection and management ; strengthening of eco - system services and sustainable urban development ; financial support , including the provision of working capital risk financing , for smes , start - ups , spin - offs and small mid - cap companies through the eif , and for mid - cap companies , in order to ensure technology leadership in innovative and sustainable sectors ; financing of projects which are in line with the objectives of horizon 2020 and the connecting europe facility ; the efsi shall support only projects and operations that : are consistent with union policies and create smart , sustainable and inclusive growth ; that comply with the objectives of article 9 and that are in line with article 10 and annex i of regulation no 1303 / 2013 ; are economically and technically viable ; ensure additionality ; maximise the mobilisation of private sector capital ; have a net societal benefit , including the creation of sustainable jobs , taking into account the costs and benefits of the project throughout its expected lifetime ; in addition , the eu guarantee shall be granted , through the eib , for financing and investment operations conducted by dedicated investment platforms and national promotional banks , after approval by the investment committee referred to in article 3 . the operations concerned shall be consistent with union policies and shall comply with the eligibility criteria laid down in article 5 . the steering board shall specify policies regarding eligible investment platforms .


### the purpose of the efsi should be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . it is intended that increased access to financing should be of particular benefit to small and medium enterprises . it is also appropriate to extend the benefit of such increased access to financing to mid - cap companies , which are companies having up to 3000 employees . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s economic , social and territorial cohesion . ### the purpose of the efsi should be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . it is intended that increased access to financing should be of particular benefit to small and medium enterprises . it is also appropriate to extend the benefit of such increased access to financing to mid - cap companies , which are companies having up to 3000 employees .


### in accordance with its own transparency policies on access to documents and information , the eib shall make publicly available on its website information relating to all eib financing and investment operations and how they contribute to the general objectives referred to in article 5 . ### in accordance with its own transparency policies on access to documents and information , the eib shall make publicly available on its website information relating to all eib financing and investment operations under this regulation and specify how they contribute to the general objectives and eligibility criteria referred to in article 5 , to ensure a transparent communication to the public .


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


### the efsi should target investments that are expected to be economically and technically viable , which may entail a degree of appropriate risk , whilst still meeting the particular requirements for efsi financing . ### the efsi should target investments that are expected to be economically and technically viable , and bankable under conditions offered by the efsi product portfolio , but which face barriers for market uptake . in addition , average project risk under efsi should be higher than under any other available investment portfolio in the eu and it should target close - to market innovations where further support is needed to bridge the ' valley - of - death ' .


### the efsi agreement shall provide that the efsi shall be governed by a steering board , which shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with the objectives under article 5 . the steering board shall elect one of its members to be chairperson . ### the esfsi agreement shall provide that the esfsi shall be governed by a steering board , which shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that esfsi can support and the risk profile of the esfsi , in conformity with the objectives under article 5 . the steering board shall elect one of its members to be chairperson .


### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib . the eiah shall have as its objective to build upon existing eib and commission advisory services in order to provide advisory support for investment project identification , preparation and development and act as a single technical advisory hub for project financing within the union . this shall include support on the use of technical assistance for project structuring , use of innovative financial instruments , use of public - private partnerships and advice , as appropriate , on relevant issues of eu legislation . ### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib . the eiah shall have as its objective to build upon and complement existing eib and commission advisory services where possible in a decentralised manner in order to provide advisory support to member states and their authorities , private investors and investment platforms at all levels for investment project identification , preparation and development and act as a single technical advisory hub for project financing within the union . this shall include support on the use of technical assistance for project structuring , use of innovative financial instruments , use of public - private partnerships and advice , as appropriate on relevant issues of eu legislation .


### eib loans , guarantees , counter - guarantees , capital market instruments , any other form of funding or credit enhancement instrument , equity or quasi - equity participations . these instruments shall be granted , acquired or issued for the benefit of operations carried out in the union , including cross - border operations between a member state and a third country , in compliance with this regulation and where eib financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled ; ### eib loans , guarantees , counter - guarantees , capital market instruments , microfinance and any other form of funding or credit enhancement instrument , equity or quasi - equity participations . these instruments shall be granted , acquired or issued for the benefit of operations carried out in the union , including cross - border operations between a member state and a third country , in compliance with this regulation and where eib financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled ;


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


### the eib shall provide to the commission upon request any additional information necessary to fulfil the commission ' s obligations in relation to this regulation . ### the eib , in agreement with the investment committee , shall provide to the commission upon request any additional information necessary to fulfil the commission ' s obligations in relation to this regulation .


### in order to allow for further increase in its resources , participation in the efsi should be open to third parties , including member states , national promotional banks or public agencies owned or controlled by member states , private sector entities and entities outside the union subject to the consent of existing contributors . third parties may contribute directly to the efsi and take part in the efsi governance structure . ### in order to allow for further increase in its resources , participation in the efsi should be open to third parties , including member states , national promotional banks , regional banks or public agencies owned or controlled by member states , private sector entities and entities outside the union subject to the consent of existing contributors . third parties may contribute directly to the efsi and take part in the efsi governance structure .


### on 15 july 2014 , the then president - elect of the european commission presented a set of political guidelines for the european commission to the european parliament . these political guidelines called for the mobilisation of ‘ up to eur 300 billion in additional public and private investment in the real economy over the next three years’ to stimulate investment for the purpose of job creation . ### on 15 july 2014 , the then president - elect of the european commission presented a set of political guidelines for the european commission to the european parliament . these political guidelines called for an energy union , a connected digital single market , and the mobilisation of ‘ up to eur 300 000 000 000 in additional public and private investment in the real economy over the next three years’ to stimulate investment for the purpose of job creation .


### the eib , in cooperation with the eif as appropriate , shall report semi - annually to the commission on eib financing and investment operations under this regulation . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and the key performance indicators established pursuant to article 2 . the report shall also include statistical , financial and accounting data on each eib financing and investment operation and on an aggregated basis . 2 . the eib , in cooperation with the eif as appropriate , shall report annually to the european parliament and to the council on eib financing and investment operations . the report shall be made public and include : an assessment of eib financing and investment operations at operation , sector , country and regional levels and their compliance with this regulation , together with an assessment of the allocation of eib financing and investment operations between the objectives in article 5 ; an assessment of the added value , the mobilisation of private sector resources , the estimated and actual outputs , outcomes and impact of eib financing and investment operations at an aggregated basis ; an assessment of the financial benefit transferred to beneficiaries of eib financing and investment operations on an aggregated basis ; an assessment of the quality of eib financing and investment operations ; detailed information on calls on the eu guarantee ; the financial statements of the efsi . 3 . for the purposes of the commission ' s accounting and reporting of the risks covered by the eu guarantee and management of the guarantee fund , the eib , in cooperation with the eif as appropriate , shall provide the commission every year : the eib ' s and eif ' s risk assessment and grading information concerning eib financing and investment operations ; the outstanding financial obligation for the eu concerning the guarantees provided towards eib financing and investment operations broken down by the individual operations ; the total profits or losses deriving from the eib financing and investment operations within the portfolios provided by the efsi agreement pursuant to article 2 . 4 . the eib shall provide to the commission upon request any additional information necessary to fulfil the commission ' s obligations in relation to this regulation . 5 . the eib , and eif as appropriate , shall provide the information referred to in paragraphs 1 to 4 at their own expense . 6 . the commission shall , by 30 june of each year , send to the european parliament , the council and the court of auditors an annual report on the situation of the guarantee fund and the management thereof in the previous calendar year . ### the eib , in cooperation with the eif as appropriate , shall report semi - annually to the commission on eib financing and investment operations under this regulation . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and the key performance indicators established pursuant to article 2 . the report shall also include statistical , financial and accounting data on each eib financing and investment operation and on an aggregated basis . the report shall be set up in a transparent , independent way and shall be made public . 2 . the eib , in cooperation with the eif as appropriate , shall report annually to the european parliament and to the council on eib financing and investment operations under this regulation . the report shall be made public and include : an assessment of eib financing and investment operations at operation , sector , country and regional levels , their level of additionality and their compliance with this regulation , together with an assessment of the allocation of eib financing and investment operations between the objectives in article 5 with a specific mentioning of guarantees granted to energy efficiency projects ; an assessment of the economic and societal added value , the territorial cohesion , the mobilisation of private sector resources , the estimated and actual outputs , outcomes and impact of eib financing and investment operations at an aggregated basis , and by project level , where disclosure of data is allowed ; this assessment should specify how and to what extent the objectives and criteria set out in article 5 have been achieved , such as the impact on the creation of future - oriented , sustainable and local jobs , with special attention to smes , the sustainable transition of the eu ' s economy , the further development of digital technologies , the preservation and increase of the viability of ecosystem services , the diminishing of eu ' s dependency on imported energy and on natural resources , the increase of the competiveness and the innovation potential of the union ' s economy and the eu ' s leadership in new technologies and markets ; an assessment of the financial benefit transferred to beneficiaries of eib financing and investment operations on an aggregated basis ; an assessment of the quality of eib financing and investment operations ; detailed information on calls on the eu guarantee ; the financial statements of the efsi . 3 . for the purposes of the commission ' s accounting and reporting of the risks covered by the eu guarantee and management of the guarantee fund , the eib , in cooperation with the eif as appropriate , shall provide the commission , the european parliament and the council semi - annually with : the eib ' s and eif ' s risk assessment and grading information concerning eib financing and investment operations under this regulation ; the outstanding financial obligation for the eu concerning the guarantees provided towards eib financing and investment operations under this regulation broken down by the individual operations ; the total profits or losses deriving from the eib financing and investment operations within the portfolios provided by the efsi agreement pursuant to article 2 . 4 . the eib shall provide to the commission upon request any additional information necessary to fulfil the commission ' s obligations in relation to this regulation . 5 . the eib , and eif as appropriate , shall provide the information referred to in paragraphs 1 to 4 at their own expense . 6 . the commission shall , by 30 june of each year , send to the european parliament , the council and the court of auditors an annual report on the situation of the guarantee fund and the management thereof in the previous calendar year .


### at the request of the european parliament , the managing director shall participate in a hearing of the european parliament on the performance of the efsi . ### on a quarterly basis or upon specific request of the european parliament , the managing director shall participate in a hearing of the european parliament on the performance of the efsi and the decisions taken by the investment committee .


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


### decisions of the investment committee shall be taken by simple majority . ### decisions of the investment committee shall be taken by simple majority . a representative of the investment committee shall have responsibility for social impact assessment of projects in keeping with the union ' s social objectives . experience in social project finance shall be one criterion for selecting the experts .


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


### 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 .


### 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 project structuring and project financing , and investment projects in the sectorial domains specified in this regulation as well as in geographic markets within the union . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . the decisions made by the investment committee should be free from any undue interference so as to ensure its full independence , which is the key to maintain the investor trust .


### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 5 000 000 000 to be provided by the eib , that the efsi support should generate eur 60 800 000 000 additional investment by the eib and eif . this eur 60 800 000 000 supported by the efsi is expected to generate a total of eur 315 000 000 000 in investment in the union within the period 2015 to 2017 . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations . ### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 10 000 000 000 to be provided by the eib , that the efsi support should generate eur 78 000 000 000 additional investment by the eib and eif . this eur 78 000 000 000 supported by the efsi is expected to generate a total of eur 390 000 000 000 in investment in the union within the period 2015 to 2017 . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations .


### 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 promote job creation , technological innovation , 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 . while taking into full account the special situation of peripheral islands and regions , the requirement for consistency with state aid should contribute to such effective and strategic use , by avoiding one - size - fits - all approaches .


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


### the union shall provide a guarantee to the eib for financing or investment operations carried out within the union covered by this regulation . the eu guarantee shall be granted as a guarantee on demand in respect of instruments referred to in article 6 . ### the union shall provide a guarantee to the eib for financing or investment operations carried out within the union covered by this regulation . without prejudice to this regulation , the eu guarantee shall be irrevocable and unconditional and granted as a guarantee on demand in respect of instruments referred to in article 6 . it shall aim at regulatory capital relief in case granted to a promotional bank or an investment platform .


### the efsi agreement shall provide that the efsi shall have an investment committee , which shall be responsible for examining potential operations in line with the efsi investment policies and approving the support of the eu guarantee for operations in line with article 5 , irrespective of their geographic location . ### the efsi agreement shall provide that the efsi shall have an investment committee , which shall be responsible for examining potential projects in line with the efsi investment policies and approving the support of the eu guarantee for projects in line with article 5 , irrespective of their geographic location . further , the investment committee shall be the competent body for approving the eligibility of investment platforms and national promotional banks and permitting them to use the designation of ' efsi ' or ' european fund for strategic investments ' .


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


### in accordance with its own transparency policies on access to documents and information , the eib shall make publicly available on its website information relating to all eib financing and investment operations and how they contribute to the general objectives referred to in article 5 . ### in accordance with its own transparency policies on access to documents and information , the eib shall make publicly available on its website information relating to all eib financing and investment operations under this regulation and specify how they contribute to the general objectives and eligibility criteria referred to in article 5 , to ensure a transparent communication to the public .


### subsequent to a call on the eu guarantee , endowments to the guarantee fund provided for in points , and of paragraph 2 over and above the target amount shall be used to restore the eu guarantee up to its initial amount . ### subsequent to a call on the eu guarantee , endowments to the guarantee fund provided for in points , and of paragraph 2 shall be used to restore the eu guarantee up to its target amount . any remaining remuneration shall constitute internal assigned revenue in accordance with article 21 of regulation no 966 / 2012 for any lines which may have been used as a source of redeployment to the efsi guarantee fund .


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi . ### the efsi should complement and be additional to ongoing regional , national and eu programmes as well as traditional eib activities . provided that all relevant eligibility criteria are fulfilled , third parties may co - finance together with efsi on a project - by - project basis or in investment platforms related to geographic or thematic sectors and member states may use any type of union financing , including european structural investment funds , to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi and to involve social partners and public authorities .