### the efsd + should aim at supporting investments as a means of contributing to the achievement of the sustainable development goals by fostering sustainable and inclusive economic and social development and promoting the socio - economic resilience in partner countries with a particular focus on the eradication of poverty , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific socioeconomic root causes of irregular migration , in accordance with the relevant indicative programming documents . special attention should be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries . ### the efsd + should aim at supporting investments as a means of contributing to the achievement of the sustainable development goals by fostering sustainable and inclusive economic and social development and promoting the socio - economic resilience in partner countries with a particular focus on the eradication of poverty , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific socioeconomic root causes of irregular migration , in accordance with the relevant indicative programming documents . the efsd + should encourage for - profit / non - profit partnerships as a means of guiding the potential of the private sector and investments towards sustainable development and poverty eradication . the strategic involvement of civil society organisations should be promoted at all stages of the project cycle , including implementation . union delegations at national level should act as a meeting place for businesses and civil society organisations , since cooperation between the two sectors may be crucial to finding tailor - made solutions for promoting the economic and social development of communities , job creation , decent work and new business opportunities for social enterprises , micro enterprises and smes . special attention should be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries .


### the efsd + should aim at supporting investments as a means of contributing to the achievement of the sustainable development goals by fostering sustainable and inclusive economic and social development and promoting the socio - economic resilience in partner countries with a particular focus on the eradication of poverty , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific socioeconomic root causes of irregular migration , in accordance with the relevant indicative programming documents . special attention should be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries . ### the efsd + should aim at supporting investments as a means of contributing to the achievement of the sustainable development goals by fostering sustainable and inclusive economic , cultural and social development and promoting the socio - economic resilience in partner countries with a particular focus on the eradication of poverty , promotion of inclusive and equitable quality education , strengthening of educational and cultural structures , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific socioeconomic root causes of irregular migration , in accordance with the relevant indicative programming documents . special attention should be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries .


### the efsd + should maximise additionality of funding , address market failures and sub - optimal investment situations , deliver innovative products and ‘ crowd - in’ private sector funds . involvement of the private sector in the union’s cooperation with partner countries through the efsd + should yield measurable and additional development impact without distorting the market and should be cost - effective based on mutual accountability and risk and cost sharing . the efsd + should operate as a ‘ one - stop - shop’ , receiving financing proposals from financial institutions and public or private investors and delivering a wide range of financial support to eligible investments . ### the efsd + should maximise additionality of funding , address market failures and sub - optimal investment situations , deliver innovative products and ‘ crowd - in’ private sector funds , with a particular consideration of local sustainable development which can support women ' s empowerment and encourage self - determination . involvement of the private sector in the union’s cooperation with partner countries through the efsd + should yield measurable and additional development impact without distorting the market and should be cost - effective based on mutual accountability and risk and cost sharing . the efsd + should operate as a ‘ one - stop - shop’ , receiving financing proposals from financial institutions and public or private investors and delivering a wide range of financial support to eligible investments .


### the efsd + should maximise additionality of funding , address market failures and sub - optimal investment situations , deliver innovative products and ‘ crowd - in’ private sector funds . involvement of the private sector in the union’s cooperation with partner countries through the efsd + should yield measurable and additional development impact without distorting the market and should be cost - effective based on mutual accountability and risk and cost sharing . the efsd + should operate as a ‘ one - stop - shop’ , receiving financing proposals from financial institutions and public or private investors and delivering a wide range of financial support to eligible investments . ### the efsd + should maximise additionality of funding , address market failures and sub - optimal investment situations , deliver innovative products and ‘ crowd - in’ private sector funds to optimise the contribution of private finance to sustainable development . involvement of the private sector in the union’s cooperation with partner countries through the efsd + should yield measurable and additional development impact without distorting the market and should be cost - effective based on mutual accountability and risk and cost sharing . the efsd + should operate as a ‘ one - stop - shop’ , receiving financing proposals from financial institutions and public or private investors and delivering a wide range of financial support to eligible investments . in order to maximise its contribution to the 2030 agenda , the efsd + should include a new human development investment window to be added to the five already provided for by its predecessor .


### an external action guarantee should be established building on the existing efsd guarantee and the guarantee fund for external actions . the external action guarantee should support the efsd + operations covered by budgetary guarantees , macro - financial assistance and loans to third countries on the basis of council decision 77 / 270 / euratom71 . these operations should be supported by appropriations under this regulation , together with those under regulation no … / … and regulation no … / … , which should also cover the provisioning and liabilities arising from macro - financial assistance loans and loans to third countries referred to in article 10 of regulation eins , respectively . when funding efsd + operations , priority should be given to those which have a high impact on job creation and whose cost - benefit ratio enhances the sustainability of investment . the operations supported with the external action guarantee should be accompanied by an in - depth ex ante assessment of environmental , financial and social aspects , as appropriate and in line with the better regulation requirements . the external action guarantee should not be used to provide essential public services , which remains a government responsibility . __________________ 71 council decision 77 / 270 / euratom of 29 march 1977 empowering the commission to issue euratom loans for the purpose of contributing to the financing of nuclear power stations . ### an external action guarantee should be established building on the existing efsd guarantee and the guarantee fund for external actions . the external action guarantee should support the efsd + operations covered by budgetary guarantees , macro - financial assistance and loans to third countries on the basis of council decision 77 / 270 / euratom71 . these operations should be supported by appropriations under this regulation , together with those under regulation no … / … and regulation no … / … , which should also cover the provisioning and liabilities arising from macro - financial assistance loans and loans to third countries referred to in article 10 of regulation eins , respectively . when funding efsd + operations , priority should be given to those which have a high impact on decent job creation , with a particular focus on jobs for vulnerable groups including women , lgbti people and those with disabilities . when funding efsd + operations , priority should be given to those which have a high impact on job creation and whose cost - benefit ratio enhances the sustainability of investment and which provide the highest guarantees of sustainability , long - term and gender - sensitive development impact . the operations supported with the external action guarantee should be accompanied by an in - depth ex ante and ex - post assessment of environmental , financial and social aspects , including the unique impact on women , and the impact on affected and isolated communities , as well as the identification of effective ways to address them in line with the better regulation requirements . the external action guarantee should not be used to provide essential public services , which remains a government responsibility . __________________ 71 council decision 77 / 270 / euratom of 29 march 1977 empowering the commission to issue euratom loans for the purpose of contributing to the financing of nuclear power stations .


### an external action guarantee should be established building on the existing efsd guarantee and the guarantee fund for external actions . the external action guarantee should support the efsd + operations covered by budgetary guarantees , macro - financial assistance and loans to third countries on the basis of council decision 77 / 270 / euratom71 . these operations should be supported by appropriations under this regulation , together with those under regulation no … / … and regulation no … / … , which should also cover the provisioning and liabilities arising from macro - financial assistance loans and loans to third countries referred to in article 10 of regulation eins , respectively . when funding efsd + operations , priority should be given to those which have a high impact on job creation and whose cost - benefit ratio enhances the sustainability of investment . the operations supported with the external action guarantee should be accompanied by an in - depth ex ante assessment of environmental , financial and social aspects , as appropriate and in line with the better regulation requirements . the external action guarantee should not be used to provide essential public services , which remains a government responsibility . __________________ 71 council decision 77 / 270 / euratom of 29 march 1977 empowering the commission to issue euratom loans for the purpose of contributing to the financing of nuclear power stations . ### an external action guarantee should be established building on the existing efsd guarantee , the external lending mandate and the guarantee fund for external actions . the external action guarantee should support the efsd + operations covered by budgetary guarantees , macro - financial assistance and loans to third countries on the basis of council decision 77 / 270 / euratom71 . these operations should be supported by appropriations under this regulation , together with those under regulation no … / … and regulation no … / … , which should also cover the provisioning and liabilities arising from macro - financial assistance loans and loans to third countries referred to in article 10 of regulation eins , respectively . when funding efsd + operations , priority should be given to those which have a high impact on job creation and whose cost - benefit ratio enhances the sustainability of investment . the operations supported with the external action guarantee should be accompanied by an in - depth ex ante assessment of environmental , financial and social aspects and in line with the better regulation requirements . the external action guarantee should not be used to provide essential public services , which remains a government responsibility . __________________ 71 council decision 77 / 270 / euratom of 29 march 1977 empowering the commission to issue euratom loans for the purpose of contributing to the financing of nuclear power stations .


### rapid response actions shall be complementary to geographic and thematic programmes . these actions shall be designed and implemented to enable , where relevant , their continuity under geographic or thematic programmes . ### rapid response actions shall be complementary to geographic and thematic programmes . these actions shall be complementary to those funded through the humanitarian aid regulation and be designed and applied to enable , where relevant , their continuity under geographic or thematic programmes .


### the association agreements , partnership and cooperation agreements , multilateral agreements , and other agreements that establish a legally binding relationship with partner countries , as well as , european council conclusions and council conclusions , summit declarations or conclusions of high - level meetings with partner countries , relevant european parliament resolutions , communications of the commission or joint communications of the commission and the high representative of the union for foreign affairs and security policy , shall constitute the overall policy framework for the implementation of this regulation . ### the agenda 2030 , the european consensus on development , the action plan for democracy and human rights , the association agreements , partnership and cooperation agreements , multilateral agreements , and other agreements that establish a legally binding relationship with partner countries , as well as , european council conclusions and council conclusions , summit declarations or conclusions of high - level meetings with partner countries , relevant european parliament resolutions , communications of the commission or joint communications of the commission and the high representative of the union for foreign affairs and security policy , shall constitute the overall policy framework for the implementation of this regulation .


### the union shall promote a multilateral and rules - based approach to global goods and challenges and shall cooperate with member states , partner countries , international organisations and other donors in that respect . ### the union shall promote a multilateral , rules - based and environmentally , socially and economically sustainable approach to global public goods and challenges and shall cooperate with member states , partner countries , international organisations , including international financial institutions and un agencies , funds and programmes , and other donors in that respect .


### programmes and actions under this regulation shall mainstream climate change , environmental protection and gender equality and shall address interlinkages between sustainable development goals , to promote integrated actions that can create co - benefits and meet multiple objectives in a coherent way . these programmes and actions shall be based on an analysis of risks and vulnerabilities , integrate a resilience approach and be conflict sensitive . they shall be guided by the principle of leaving no one behind . ### programmes and actions under this regulation shall mainstream climate change , environmental protection , education and culture , and gender equality and shall address interlinkages between sustainable development goals , to promote integrated actions that can create co - benefits and meet multiple objectives in a coherent way . these programmes and actions shall be based on an analysis of risks and vulnerabilities , including the understanding of different forms of discrimination , multiple discrimination , and their impacts on specific groups including women and youth , integrate a resilient preventive approach and be conflict sensitive . they shall be guided by the principle of leaving no one behind .


### in order to contribute to sustainable development , which requires the achievement of stable , peaceful and inclusive societies , union assistance under this regulation may be used in the context of a wider security sector reform or to build the capacity of military actors in partner countries , under the exceptional circumstances set out in paragraph 4 , to deliver development activities and security for development activities . ### in order to contribute to sustainable development , which requires the achievement of stable , culturally aware , peaceful and inclusive societies , union assistance under this regulation may be used in the context of a wider security sector reform or to build the capacity of military actors in partner countries , under the exceptional circumstances set out in paragraph 4 , to deliver development activities and security for development activities .


### the partners ' needs , established on the basis of specific criteria , taking into account the population , poverty , inequality , human development , economic and environmental vulnerability , and state and societal resilience ; ### the partners ' needs , established on the basis&#160 ; of specific criteria , and included in a registry which can be consulted , upon demand , by the european parliament taking into account the population , poverty , inequality , human development , the state of human rights and fundamental freedoms , economic and environmental vulnerability , and state and societal resilience ;


### the partners ' needs , established on the basis of specific criteria , taking into account the population , poverty , inequality , human development , economic and environmental vulnerability , and state and societal resilience ; ### the partners ' needs , established on the basis of specific criteria and in - depth analysis , taking into account the population , poverty , inequality , human development , economic and environmental vulnerability , human rights , democracy , civic space , gender equality , and state and societal resilience ;


### this regulation shall contribute to actions established under regulation no . … / … . a single programming document shall be drawn up from this regulation for seven years , including funds from regulation no … / … . regulation no . … / … shall apply to the use of these funds . ### this regulation shall financially contribute to actions established under regulation no . … / … and regulation no . . . / . . . . a single programming document shall be drawn up from these regulations for seven years , including funds from regulation no … / … . regulation no . … / … and regulation no . . . / . . . shall apply to the use of these funds , while ensuring conformity with this regulation and regulation no … / … .


### action plans and measures shall be adopted by means of implementing acts adopted in accordance with the examination procedure referred to in article 35 . ### the commission shall be empowered to adopt action plans and measures by means of delegated acts in accordance with article 34 .


### before the adoption or extension of exceptional assistance measures not exceeding eur 20 million , the commission shall inform the council of their nature and objectives and of the financial amounts envisaged . the commission shall inform the council before making significant substantive changes to exceptional assistance measures already adopted . the commission shall take account of the relevant policy approach of the council for the planning and subsequent implementation of such measures , in the interests of consistency of the union ' s external action . ### before the adoption or extension of exceptional assistance measures not exceeding eur 20 million , the commission shall inform the council and the european parliament of their nature and objectives and of the financial amounts envisaged . the commission shall inform the council and the european parliament before making significant substantive changes to exceptional assistance measures already adopted . the commission shall take account of the relevant policy approach of the council and the european parliament for the planning and subsequent implementation of such measures , in the interests of consistency of the union ' s external action .


### when working with stakeholders of partner countries , the commission shall take into account their specificities , including their needs and the relevant context , when defining the financing modalities , the type of contribution , the award modalities and the administrative provisions for the management of grants , with a view to reaching and best responding to the widest possible range of such stakeholders . specific modalities shall be encouraged in accordance with the financial regulation , such as partnership agreements , authorisations of financial support to third parties , direct award or eligibility - restricted calls for proposals , or lump sums , unit costs and flat - rate financing as well as financing not linked to costs as envisaged in article 125 of the financial regulation . ### when working with stakeholders of partner countries , the commission shall take into account their specificities , including their needs and the relevant context , when defining the financing modalities , the type of contribution , the award modalities and the administrative provisions for the management of grants , with a view to reaching and best responding to the widest possible range of such stakeholders . that assessment must allow for the possibility of participation by all relevant stakeholders , including civil society . cooperation between local and international ngos must be encouraged so that local civil society’s capacities are bolstered with a view to participating fully in development programmes .


### budget support as referred to in point of paragraph 1 , including through sector reform performance contracts , shall be based on country ownership , mutual accountability and shared commitments to universal values , democracy , human rights , the rule of law , and aims at strengthening partnerships between the union and partner countries . it shall include reinforced policy dialogue , capacity development , and improved governance , complementing partners ' efforts to collect more and spend better in order to support sustainable and inclusive economic growth and jobs and poverty eradication . ### budget support as referred to in point of paragraph 1 , including through sector reform performance contracts , shall be based on country ownership , mutual accountability and shared commitments to universal values , democracy , human rights , gender equality , social inclusion and human development , the rule of law , and aims at strengthening partnerships between the union and partner countries . it shall include reinforced policy dialogue , capacity development , and improved governance , complementing partners ' efforts to collect more and spend better in order to support sustainable and inclusive economic growth , decent jobs , the reduction of inequalities and poverty eradication in a way that does not infringe local economies or environmental and social rights . .


### when providing budget support in accordance with article 236 of the financial regulation , the commission shall clearly define and monitor criteria for budget support conditionality , including progress in reforms and transparency , and shall support the development of parliamentary control , national audit capacities and increased transparency and public access to information . ### when providing budget support in accordance with article 236 of the financial regulation , the commission shall clearly define and monitor criteria for budget support conditionality , including progress in reforms and transparency , and shall support the development of parliamentary control , national audit capacities , cso participation in monitoring and increased transparency and public access to information and development of strong public procurement systems that support local economic development and local businesses .


### when providing budget support in accordance with article 236 of the financial regulation , the commission shall clearly define and monitor criteria for budget support conditionality , including progress in reforms and transparency , and shall support the development of parliamentary control , national audit capacities and increased transparency and public access to information . ### when providing budget support in accordance with article 236 of the financial regulation , the commission shall clearly define and monitor criteria for budget support conditionality , including progress in reforms and transparency , and shall support the development of parliamentary control , national audit capacities , cso participation in monitoring , increased transparency and public access to information , and development of strong public procurement systems that support local economic development and local businesses .


### the commission shall inform the european parliament and the council of carried over commitment appropriations in line with article 12 of the financial regulation . ### the commission shall submit to the european parliament and to the council information on appropriations which were automatically carried over , including the amounts involved , in line with article 12 of the financial regulation .


### the financial envelope referred to in article shall finance the european fund for sustainable development plus and the external action guarantee . ### the european fund for sustainable development plus and the external action guarantee shall be financed through the financial envelopes for geographic programmes referred to in article 6 . this shall not go to the detriment of other actions financed under the geographic programmes .


### the purpose of the efsd + as an integrated financial package supplying financial capacity drawing on the methods of implementation set up in article 23 , , and , shall be to support investments and increase access to financing , in order to foster sustainable and inclusive economic and social development and promote the socio - economic resilience in partner countries with a particular focus on the , eradication of poverty , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific socioeconomic root causes of irregular migration , in accordance with the relevant indicative programming documents . special attention shall be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries . ### the purpose of the efsd + as an integrated financial package supplying financial capacity drawing on the methods of implementation set up in article 23 , , and , shall be to support investments and increase access to financing , while maximising development additionality , delivering innovative products and crowding in private sector in order to foster sustainable and inclusive economic , environmental and social development and promote the socio - economic resilience in partner countries with a particular focus on the , eradication of poverty , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific socioeconomic root causes of migration , in accordance with the relevant indicative programming documents . special attention and additional support for institutional capacity building , economic governance , and technical assistance shall be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries .


### the purpose of the efsd + as an integrated financial package supplying financial capacity drawing on the methods of implementation set up in article 23 , , and , shall be to support investments and increase access to financing , in order to foster sustainable and inclusive economic and social development and promote the socio - economic resilience in partner countries with a particular focus on the , eradication of poverty , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific socioeconomic root causes of irregular migration , in accordance with the relevant indicative programming documents . special attention shall be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries . ### the purpose of the efsd + as an integrated financial package supplying financial capacity in the form of grants , guarantees and other financial instruments as set out in article 23 shall be to support investments and increase access to financing , in order to foster sustainable and inclusive economic and social development and promote the socio - economic resilience of partner countries with a particular focus on the eradication of poverty , sustainable and inclusive growth , the creation of decent jobs , economic opportunities , skills and entrepreneurship , socioeconomic sectors , micro , small and medium - sized enterprises as well as addressing specific root causes of migration , as well as climate action and environmental protection and management , while maximising additionality , delivering innovative products and crowding in private sector funds . 30% of the financing shall be progressively allocated to investments that contribute to climate action , renewable energy and resource efficiency . a geographical balance shall be ensured , in line with eu external action and development priorities . special attention shall be given to countries identified as experiencing fragility or conflict , least developed countries and heavily indebted poor countries .


### the provisioning rates shall be reviewed every three years from the date of application of this regulation laid down in article 40 . the commission shall be empowered to adopt delegated acts in accordance with article 34 to supplement or amend these rates . ### the provisioning rates shall be reviewed every two years starting from the date of application of this regulation laid down in article 40 . the commission shall be empowered to adopt delegated acts in accordance with article 34 to supplement or amend these rates , and the financial amounts involved .


### the external action guarantee shall support financing and investment operations compliant with the conditions set out in points to of article 209 of the financial regulation and that : ### the external action guarantee shall support financing and investment operations which address market failures or sub - optimal investment situations . operations shall also be compliant with the conditions set out in points to of article 209 of the financial regulation and that :


### eligible counterparts shall comply with the rules and conditions provided for in article 62 of the financial regulation . in the case of bodies governed by the private law of a member state or a third country which have contributed to the external action guarantee in accordance with article 28 of this regulation , preference shall be given to those bodies that disclose information related to environment , social and corporate governance criteria . ### eligible counterparts shall comply with the rules and conditions provided for in article 62 of the financial regulation . in the case of bodies governed by the private law of a member state or a third country which have contributed to the external action guarantee in accordance with article 28 of this regulation , preference shall be given to those bodies that disclose information related to environment , social , tax and corporate governance criteria .


### the annual report prepared in 2021 shall contain consolidated information from annual reports concerning the period from 2014 to 2020 on all funding from the regulations referred to in article 40 , including external assigned revenues and contributions to trust funds , and offering a breakdown of spending by country , use of financial instruments , commitments and payments . the report shall reflect the main lessons learnt and the follow - up to the recommendations of the external evaluative exercises carried out in previous years . ### the commission shall also present to the european parliament an annual report on financing and investment operations covered by the external action guarantee . that report shall be made public . it shall include the following information : an assessment of the results contributing to the purpose and objectives of this regulation ; an assessment of the financing and investment operations in operation and covered by the external action guarantee at sector , country and regional levels and their compliance with this regulation , including the risk measures and their impact on the financial and economic stability of the partners ; an assessment of the additionality and added value , the mobilisation of private sector resources , the estimated and actual outputs and the outcomes and impact of the financing and investment operations covered by the external action guarantee on an aggregated basis , including the impact on decent job creation , the eradication of poverty and on the way in which the root causes of migration are addressed ; that assessment shall include a gender analysis of the operations covered based on evidence and data broken down by gender , where possible ; an assessment of the compliance with the requirements concerning the use of the external action guarantee and of the achievement of key performance indicators established for each proposal submitted ; an assessment of the leverage effect achieved by the operations covered by the efsd plus and the external action guarantee ; the financial amount transferred to beneficiaries and an assessment of financing and investment operations by each eligible counterpart on an aggregated basis ; an assessment of the additionality and added value of financing and investment operations of the eligible counterparts , and of the aggregate risk associated with those operations ; detailed information on calls on the external action guarantee , losses , returns , amounts recovered and any other payments received , as well as overall risk exposure ; the financial reports on financing and investment operations of the eligible counterparts covered by this regulation , audited by an independent external auditor ; an assessment of the synergies and complementarity between operations covered by the external action guarantee and the second and third pillars of the eip based on relevant existing reports , with particular regard to progress made on good governance , including in the fight against corruption and illicit financial flows , respect for human rights , the rule of law and gender - responsive policies , as well as the boosting of entrepreneurship , the local business environment and local financial markets ; an assessment of the compliance of efsd guarantee operations with the internationally agreed development effectiveness principles ; an assessment of the remuneration of the guarantees ; m ) an assessment of the implementation of provisions on excluded activities and non - cooperative jurisdictions . the report shall reflect the main lessons learnt and the follow - up to the recommendations of the independent external evaluative exercises carried out in previous years .


### an annual estimate of the overall spending related to climate action and biodiversity shall be made on the basis of the indicative programming documents adopted . the funding allocated under this regulation shall be subject to an annual tracking system based on the methodology of the organisation for economic cooperation and development , without excluding the use of more precise methodologies where these are available , integrated into the existing methodology for performance management of union programmes , to quantify the expenditure related to climate action and biodiversity at the level of the action plans and measures referred to in article 19 and recorded within evaluations and the annual report . ### an annual estimate of the overall spending related to climate action and biodiversity , conflict prevention and peace - building , and gender equality shall be made on the basis of the indicative programming documents adopted . the funding allocated under this regulation shall be subject to an annual tracking system based on the methodology of the organisation for economic cooperation and development , without excluding the use of more precise methodologies where these are available , integrated into the existing methodology for performance management of union programmes , to quantify the expenditure related to climate action and biodiversity , conflict prevention and peace - building , and gender equality at the level of the action plans and measures referred to in article 19 and recorded within evaluations and the annual report .


### evaluation ### mid - term review and evaluation


### where appropriate evaluations shall make use of the good practise principles of the development assistance committee of the organisation for economic cooperation and development , seeking to ascertain whether the objectives have been met and to formulate recommendations with a view to improving future actions . ### the mid - term review report referred to in the first subparagraph of paragraph 1 shall be submitted to the european parliament and to the council , and shall be accompanied , if appropriate , by legislative proposals introducing the necessary modifications to this regulation . the evaluations shall also make use of the good practise principles of the development assistance committee of the organisation for economic cooperation and development , seeking to ascertain whether the objectives have been met and to formulate recommendations with a view to improving future actions .


### in duly justified cases and where the action to be implemented is of a global , trans - regional or regional nature , the commission may decide , within the relevant multiannual indicative programmes or within the relevant action plans or measures to extend the scope of actions to countries and territories not covered by this regulation pursuant to article 4 in order to ensure the coherence and effectiveness of union financing or to foster regional or trans - regional cooperation . ### pursuant to article 4 , in duly justified cases and where the action to be implemented is of a global , trans - regional or regional nature , the commission may decide , within the relevant multiannual indicative programmes or within the relevant action plans or measures to extend the scope of actions to countries and territories not covered by this regulation in order to ensure the coherence and effectiveness of union financing or to foster regional or trans - regional cooperation .


### information , communication and publicity ### transparency , communication and public disclosure of information


### supporting a thriving civil society and its role in reform processes and democratic transformations , and promoting an enabling space for civil society and citizens ' engagement in political decision - making ; ### supporting gender equality , and a thriving civil society , strengthening its role in political transitions , reform processes and democratic transformations , and promoting an enabling space for civil society and citizens ' engagement , with an gender equal participation and representation in political life and in decision - making ;


### eradicating poverty in all its dimensions , tackling discrimination and inequalities and leaving no - one behind ; ### eradicating poverty in all its dimensions , including educational poverty , tackling discrimination and inequalities and leaving no one behind ;


### enhancing efforts for the adoption of policies and appropriate investment to promote women and young people’s rights , to facilitate their engagement in social , civic and economic life , and to ensure their full contribution to inclusive growth and sustainable development ; ### enhancing efforts for the adoption of policies and appropriate investment to promote , protect and fulfil women , young people and children’s rights , to facilitate their engagement and meaningful participation in social , civic and economic life , and to ensure their full contribution to inclusive sustainable development ;


### enhancing efforts for the adoption of policies and appropriate investment to promote women and young people’s rights , to facilitate their engagement in social , civic and economic life , and to ensure their full contribution to inclusive growth and sustainable development ; ### enhancing efforts for the adoption of policies and appropriate investment to promote children , women and young people’s rights , including their right to access to culture and education , to facilitate their engagement in social , civic and economic life , and to ensure their full contribution to inclusive growth and sustainable development ;


### promoting inclusive and equitable quality formal , informal and non - formal education for all , at all levels and including technical and vocational training , including in emergency and crisis situations , and including through the use of digital technologies to improve education teaching and learning ; ### promoting inclusive and equitable quality formal , informal and non - formal education for all , at all levels and including technical and vocational training , contributing to the target of spending 15 % of development aid on education by 2030 and at least 50% of this amount to free basic education , particularly in least developed countries , including in emergency and crisis situations , and including through the use of digital technologies to improve education teaching and learning ;


### supporting actions of capacity building , learning mobility to , from or between partner countries , as well as of cooperation and policy dialogue with institutions , organisations , local implementing bodies and authorities , from those countries ; ### supporting actions of learning mobility , capacity building and cultural cooperation to , from or between the union and third countries , as well as of cooperation and policy dialogue with institutions , organisations , local implementing bodies and authorities , from those countries ;


### promoting intercultural dialogue and cultural diversity in all its forms , and preserve and promote cultural heritage , and unlocking the potential of creative industries for sustainable , social and economic development ; ### promoting intercultural dialogue and cultural diversity in all its forms , and preserve and promote cultural heritage , and unlocking the potential of cultural and creative sectors for sustainable , social and economic development ;


### strengthening the involvement of local communities in climate change responses , conservation of ecosystems and the governance of natural resources . promoting sustainable urban development and resilience in urban areas ; ### strengthening the involvement of local communities and indigenous peoples in climate change responses , the fight against biodiversity loss and wildlife crime , conservation of ecosystems and the governance of natural resources , including through the improvement of land tenure and water resources management . promoting sustainable urban development and resilience in urban areas .


### strengthening the involvement of local communities in climate change responses , conservation of ecosystems and the governance of natural resources . promoting sustainable urban development and resilience in urban areas ; ### strengthening the involvement of local communities and indigenous people in climate change responses , the fight against biodiversity loss and wildlife crime , conservation of ecosystems and the governance of natural resources , including through the improvement of land use and water resources management . promoting sustainable urban development and resilience in urban areas


### promoting the conservation , sustainable management and use , and restoration of natural resources , healthy ecosystems and halting biodiversity loss , and protecting wildlife ; ### promoting the conservation , sustainable management and use , and restoration of natural resources , healthy ecosystems and halting biodiversity loss , and protecting wildlife , including combatting poaching , and wildlife trafficking ;


### supporting efforts to improve sustainable economic diversification , competitiveness and trade , private sector development with a particular focus on low - carbon climate - resilient green growth , microenterprises and smes and cooperatives , taking advantage of existing trade agreements with the eu . ### supporting efforts to improve sustainable economic diversification , competitiveness , value - sharing supply chains and fair trade , private sector development with a particular focus on low - carbon climate - resilient green growth , microenterprises , social enterprises and smes and cooperatives , taking advantage of existing trade agreements with the eu .


### improving the business and investment climate , creating an enabling regulatory environment for economic development and supporting companies , in particular msmes , in expanding their business and creating jobs ; ### improving the responsible business and investment climate , creating an enabling regulatory environment for economic development and supporting companies , in particular msmes , cooperatives and social enterprises , in expanding their business and creating decent jobs , supporting the development of a solidarity economy , and boosting private sector accountability ;


### strengthening social and environmental sustainability , corporate social responsibility and responsible business conduct throughout the entire value chains ; ### strengthening social and environmental sustainability , corporate social responsibility and responsible business conduct throughout the entire value chains ; ensuing value sharing , fair prices and fair trading conditions ;


### increasing effectiveness of public spending and promoting more strategic use of public finance , including through blending instruments to crowd in additional public and private investment ; ### increasing effectiveness and sustainability of public spending , including through promoting sustainable public procurement ; and promoting more strategic use of public finance , including through blending instruments to crowd in additional public and private investment ;


### promoting internal economic , social and territorial cohesion , forging stronger links between urban and rural areas and facilitating the development of the tourism sector as a leverage for sustainable development ; ### promoting internal economic , social and territorial cohesion , forging stronger links between urban and rural areas and facilitating the development of both creative industries and the cultural tourism sector as a leverage for sustainable development ;


### boosting and diversifying agricultural and food value chains , promoting economic diversification , value addition , regional integration competiveness and trade , and strengthening sustainable , low - carbon and climate - change - resilient innovations ; ### boosting and diversifying agricultural and inclusive food value chains , within social and planetary boundaries , promoting food security and economic diversification , value addition , regional integration competitiveness and fair trade , and strengthening sustainable , low - carbon and climate change - resilient innovations ;


### improving access to decent work and creating more inclusive and well - functioning labour markets and employment policies directed towards decent work for all , especially the youth ; ### improving access to decent work for all within a healthy environment , and creating more inclusive and well - functioning labour markets and employment policies directed towards decent work , respect for human rights and labour rights , including living wages for all , especially for women and youth .


### capacity building of military actors in support of development and security for development ### capacity building of security actors in support of development and security for development


### engaging more effectively with citizens in third countries , including by making full use of economic , cultural and public diplomacy ; ### engaging more effectively with citizens in third countries , including by making full use of economic , cultural , sport , public diplomacy and cultural relations ;


### promoting joint global efforts for inclusive and equitable quality education and training at all levels , including in emergency and crisis situations ; ### promoting joint global efforts to combat educational poverty and foster inclusive and equitable quality education and training at all levels for all ages , especially for girls and boys and promote life - long learning opportunities for all , including in emergency and crisis situations , scaling up as provided for in the programme for access to education and education services ;


### strengthening knowledge , skills and values through partnerships and alliances , for active citizenship and productive , inclusive and resilient societies ; ### strengthening knowledge , research and innovation , skills and values through partnerships and alliances , for active citizenship and educated , democratic , inclusive and resilient societies ;


### contributing to the global agenda on decent work , in particular in global value chains , and enhancing knowledge on effective employment policies that respond to labour market needs , including vet and life - long learning ; ### contributing to the global agenda on decent work for all within a healthy environment , on the basis of the basic ilo labour standards , including social dialogue , living wages and the fight against child and forced labour , in particular in global value chains , and enhancing knowledge on effective employment policies that respond to labour market needs , vet and life - long learning ;


### promoting initiatives for cultural diversity and intercultural dialogue for peaceful inter - community relations ; ### promoting initiatives for cultural diversity , intercultural and interreligious dialogue for peaceful inter - community relations ;


### supporting culture as an engine for sustainable social and economic development and reinforcing cooperation on cultural heritage . ### supporting culture and creative and artistic expression for their intrinsic value and as an engine for sustainable social , personal and economic development , and reinforcing cooperation on cultural heritage and contemporary arts and other cultural expressions ;


### integrating environment , climate change and disaster risk reduction objectives in policies , plans and investments including through improved knowledge and information ; ### integrating environment , climate change and disaster risk reduction objectives in policies , plans and investments including through improved knowledge and information , including in interregional cooperation programmes or measures between partner countries and regions on the one hand , and neighbouring outermost regions and overseas countries and territories covered by the oct decision ;


### reaffirming at global level the central role of sustainable agriculture and fisheries and aquaculture for increased food security , poverty eradication , job creation , mitigating and adapting to climate change , resilience and healthy ecosystems ; ### reaffirming at global level the central role of sustainable agriculture and fisheries and aquaculture , including smallholder agriculture and livestock - keeping for increased food security , poverty eradication , job creation , equitable and sustainable access to and management of resources , including land and land rights , water , credit , open source seeds and other agricultural inputs , mitigating and adapting to climate change , resilience and healthy ecosystems ;


### provide finance and support to private and cooperative sector development compliant with the conditions set out in article 209 of the [ financing regulation ] , with a particular focus on local companies and micro , small and medium - sized enterprises , on promoting decent job creation and encouraging the contribution of european companies to the efsd + purpose ; ### provide finance and support to private , social enterprise and cooperative sector development compliant with the conditions set out in article 209 of the [ financing regulation ] , to contribute to sustainable development in its economic , social and environmental dimensions , and to the implementation of the 2030 agenda , the paris agreement and , where appropriate , the european neighbourhood policy , the eradication of poverty , promoting skills and entrepreneurship , gender equality and the empowerment of women and young people and migrant workers , while pursuing and strengthening the rule of law , good governance and human rights , with a particular focus on local companies , social enterprises and micro , small and medium - sized enterprises , on promoting decent job creation , living wages , economic opportunities , and encouraging the contribution of european companies to the efsd + purpose ;


### contribute to climate action and environmental protection and management ; ### contribute to climate action and environmental protection and management ; allocating a significant share of efsd + to climate action , environment and biodiversity protection related objectives , to contribute to the 50 % target of the ndici ;


### the commission has carried out an evaluation of the functioning of directive 2009 / 103 / ec of the european parliament and of the council15 , including its efficiency effectiveness and coherence with other union policies . the conclusion of the evaluation was that directive 2009 / 103 / ec functions well on the whole , and does not need amendment in most aspects . however , four areas were identified where targeted amendments would be appropriate : compensation of victims of accidents in cases of insolvency of an insurance undertaking , minimum obligatory amounts of insurance cover , insurance checks of vehicles by member states , and the use of policyholders’ claims history statements by a new insurance undertaking . _________________ 15 directive 2009 / 103 / ec of the european parliament and of the council of 16 september 2009 relating to insurance against civil liability in respect of the use of motor vehicles , and the enforcement of the obligation to insure against such liability . ### the commission has carried out an evaluation of the functioning of directive 2009 / 103 / ec of the european parliament and of the council15 , including its efficiency effectiveness and coherence with other union policies . the conclusion of the evaluation was that directive 2009 / 103 / ec functions well on the whole , and does not need amendment in most aspects . however , four areas were identified where targeted amendments would be appropriate : compensation of victims of accidents in cases of insolvency of an insurance undertaking , minimum obligatory amounts of insurance cover , insurance checks of vehicles by member states , and the use of policyholders’ claims history statements by a new insurance undertaking . a compulsory ‘ bonus - malus’ system should also be introduced to be used in the calculation of insurance premiums based on claims history statements by insurance undertakings . such a system would be an incentive for safe driving and thus make road traffic safer . it would also lead to fairer insurance premiums for consumers . _________________ 15 directive 2009 / 103 / ec of the european parliament and of the council of 16 september 2009 relating to insurance against civil liability in respect of the use of motor vehicles , and the enforcement of the obligation to insure against such liability .


### member states currently should refrain from performing checks of insurance on vehicles normally based on the territory of another member state and in respect of vehicles normally based in the territory of a third country entering their territory from the territory of another member state . new technological developments allow for checking insurance of vehicles without stopping them and thus without interfering with the free movement of persons . it is therefore appropriate allow those checks of insurance on vehicles , only if they are non - discriminatory , necessary and proportionate , form part of a general system of checks on the national territory and do not require stopping of the vehicle . ### member states currently should refrain from performing checks of insurance on vehicles normally based on the territory of another member state and in respect of vehicles normally based in the territory of a third country entering their territory from the territory of another member state . new technological developments allow for checking insurance of vehicles without stopping them and thus without interfering with the free movement of persons . it is therefore appropriate allow those checks of insurance on vehicles , only if they are non - discriminatory , necessary and proportionate , form part of a general system of checks on the national territory , which are carried out also in respect of vehicles based in the territory of the member state , and do not require stopping of the vehicle .


### effective and efficient protection of victims of traffic accidents requires that those victims are always reimbursed for their personal injuries or for damage to their property , irrespective of whether the insurance undertaking of the party liable is solvent or not . member states should therefore set up or appoint a body that provides initial compensation for injured parties habitually residing within their territory , and which has the right to reclaim that compensation from the body set up or appointed for the same purpose in the member state of establishment of the insurance undertaking which issued the policy of the vehicle of the liable party . however , to avoid parallel claims being introduced , victims of traffic incidents should not be allowed to present a claim for compensation with that body if they have already presented their claim or have taken legal action with the insurance undertaking concerned and that claim is still under consideration and that action is still pending . ### effective and efficient protection of victims of traffic accidents requires that those victims are always reimbursed for their personal injuries or for damage to their property , irrespective of whether the insurance undertaking of the party liable is solvent or not . member states should therefore set up or appoint a body that provides initial compensation , at least up to the limits of the insurance obligation referred to in article 9 or the guarantee limits prescribed by the member state if higher , for injured parties habitually residing within their territory , and which has the right to reclaim that compensation from the body set up or appointed for the same purpose in the member state of establishment of the insurance undertaking which issued the policy of the vehicle of the liable party . however , to avoid parallel claims being introduced , victims of traffic incidents should not be allowed to present a claim for compensation with that body if they have already presented their claim or have taken legal action with the insurance undertaking concerned and that claim is still under consideration and that action is still pending .


### effective and efficient protection of victims of traffic accidents requires that those victims are always reimbursed for their personal injuries or for damage to their property , irrespective of whether the insurance undertaking of the party liable is solvent or not . member states should therefore set up or appoint a body that provides initial compensation for injured parties habitually residing within their territory , and which has the right to reclaim that compensation from the body set up or appointed for the same purpose in the member state of establishment of the insurance undertaking which issued the policy of the vehicle of the liable party . however , to avoid parallel claims being introduced , victims of traffic incidents should not be allowed to present a claim for compensation with that body if they have already presented their claim or have taken legal action with the insurance undertaking concerned and that claim is still under consideration and that action is still pending . ### effective and efficient protection of victims of traffic accidents requires that those victims are always reimbursed the amounts due for their personal injuries or for damage to their property , irrespective of whether the insurance undertaking of the party liable is solvent or not . member states should therefore set up or appoint a body that provides initial compensation for injured parties habitually residing within their territory , and which has the right to reclaim that compensation from the body set up or appointed for the same purpose in the member state of establishment of the insurance undertaking which issued the policy of the vehicle of the liable party . however , to avoid parallel claims being introduced , victims of traffic incidents should not be allowed to present a claim for compensation with that body if they have already presented their claim or have taken legal action with the insurance undertaking concerned and that claim is still under consideration and that action is still pending .


### to ensure that the minimum amounts stay in line with the evolving economic reality the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the adaptation of those minimum amounts of cover of motor third party liability insurance to reflect the evolving economic reality , as well as to define the procedural tasks and the procedural obligations of the bodies set up to provide compensation or entrusted the task of providing compensation pursuant to article 10a with regard to the reimbursement . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states ' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts . ### in order to ensure uniform conditions for the implementation of this directive , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in order to establish the standardised presentation of the information published by insurance undertakings regarding their bonus - malus systems , including the no claims bonus , and the content and the form of the claims history statement . to ensure that the minimum amounts stay in line with the evolving economic reality the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the adaptation of those minimum amounts of cover of motor third party liability insurance to reflect the evolving economic reality , as well as to define the procedural tasks and the procedural obligations of the bodies set up to provide compensation or entrusted the task of providing compensation pursuant to article 10a with regard to the reimbursement . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states ' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


### as part of the evaluation of the functioning of the directive , the european commission should monitor the application of the directive , taking into account the number of victims , the amount of outstanding claims due to delays in payments following cross - border insolvency cases , the level of minimum amounts of cover in member states , the amount of claims due to uninsured driving relating to cross - border traffic and the number of complaints regarding claims history statements ### as part of the evaluation of the functioning of the directive , the european commission should monitor the application of the directive , especially in the field of autonomous and semi - autonomous vehicles , as well as the scope of the directive in view of likely changes in the market , taking into account the number of victims , the amount of outstanding claims due to delays in payments following cross - border insolvency cases , the level of minimum amounts of cover in member states , the amount of claims due to uninsured driving relating to cross - border traffic and the number of complaints regarding claims history statements


### however , they may carry out such checks on insurance provided that those checks are non - discriminatory , necessary and proportionate to achieve the end pursued , and ### however , they may carry out such checks on insurance provided that those checks are non - discriminatory , necessary and proportionate , and


### they form part of a general system of checks on the national territory and do not require the vehicle to stop . ### they form part of a general system of checks on the national territory , which are carried out also in respect of vehicles based in the territory of the respective member state , and do not require the vehicle to stop .


### for personal injuries : eur 6 070 000 per accident , irrespective of the number of victims , or eur 1 220 000 per victim ; ### for personal injuries : eur 10 000 000 per accident , irrespective of the number of victims , or eur 2 000 000 per victim ;


### for damages to property , eur 1 220 000 per claim , irrespective of the number of victims . ### for damages to property , eur 2 000 000 per claim , irrespective of the number of victims .


### each member state shall set up or authorise a body with the task of providing compensation , at least up to the limits of the insurance obligation for damage to property or personal injuries caused by an unidentified vehicle or a vehicle for which the insurance obligation provided for in article 3 has not been satisfied . ### in article 10 , the first subparagraph of paragraph 1 is amended as follows : each member state shall set up or authorise a body with the task of providing compensation of at least up to the limits of the insurance obligation referred to in article 9 or the guarantee limits prescribed by the member state , if higher , for damage to property or personal injuries caused by an unidentified vehicle or a vehicle for which the insurance obligation provided for in article 3 has not been satisfied .


### member states shall ensure that insurance undertakings or the bodies as referred to in the second subparagraph , when taking account of claims history statements issued by other insurance undertakings or other bodies as referred to in the second subparagraph , do not treat policyholders in a discriminatory manner or surcharge their premiums because of their nationality or solely on the basis of their previous member state of residence . ### member states shall ensure that insurance undertakings or the bodies as referred to in the second subparagraph , when taking account of claims history statements issued by other insurance undertakings or other bodies as referred to in the second subparagraph , do not treat policyholders in a discriminatory manner either by withholding discounts commonly referred to as “no claims bonuses” or by applying surcharges to their premiums or any way whatsoever because of their nationality or solely on the basis of their previous member state of residence .


### member states shall ensure that insurance undertakings or the bodies as referred to in the second subparagraph , when taking account of claims history statements issued by other insurance undertakings or other bodies as referred to in the second subparagraph , do not treat policyholders in a discriminatory manner or surcharge their premiums because of their nationality or solely on the basis of their previous member state of residence . ### member states shall ensure that insurance undertakings and the bodies as referred to in the second subparagraph , when taking account of claims history statements issued by other insurance undertakings or other bodies as referred to in the second subparagraph , do not treat policyholders in a discriminatory manner or surcharge their premiums because of their nationality or solely on the basis of their previous member state of residence .


### member states shall ensure that insurance undertakings publish their policies in respect of their use of claims history statements when calculating premiums . ### member states shall ensure that insurance undertakings and the bodies as referred to in the second subparagraph publish , in a standardised form , their bonus - malus policies , including the way claims history statements are taken into account when calculating premiums .


### member states shall ensure that insurance undertakings publish their policies in respect of their use of claims history statements when calculating premiums . ### member states shall ensure that insurance undertakings publish their policies in respect of their use of claims history statements when calculating premiums , in particular also in relation to the ‘ bonus - malus’ system they use .


### the commission shall be empowered to adopt implementing acts in accordance with article 28a specifying the contents and form of the claims history statement referred to in the second subparagraph . that statement shall contain information about all of the following : ### the commission shall be empowered to adopt delegated acts in accordance with article 28a in order to define the contents and form of the claims history statement referred to in the second subparagraph . that statement shall contain information about all of the following :


### the power to adopt delegated acts referred to in articles 9 and 10a shall be conferred on the commission for an indeterminate period of time from the date referred to in article 30 . ### the power to adopt delegated acts referred to in article 9 shall be conferred on the commission for an indeterminate period of time from the date referred to in article 30 . the power to adopt delegated acts referred to in articles 10a and 16 shall be conferred on the commission for a period of five years from [ the date of entry into force of this directive ] .


### a delegated act adopted pursuant to articles 9 and 10a shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to articles 9 and 10a shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or the council .


### no later than seven years after the date of transposition of this directive , an evaluation of this directive shall be carried out . the commission shall communicate the conclusions of the evaluation accompanied by its observations to the european parliament , the council and the european economic and social committee . ### no later than five years after the date of transposition of this directive , the commission shall submit a report to the european parliament , to the council and to the european economic and social committee evaluating the implementation of this directive , in particular in respect of : the application of this directive with regard to technological developments , in particular with regard to autonomous and semi - autonomous vehicles ; an analysis of the adequacy of the scope of this directive , considering the accidents risks posed by different motor vehicles , in view of likely changes in the market . the report shall be accompanied by the observations of the commission and , where appropriate , by a legislative proposal .


### many of the requirements that stem from regulation no 575 / 2013 and directive 2013 / 36 / eu framework are designed to address common risks faced by credit institutions . accordingly , the existing requirements are largely calibrated to preserve the lending capacity of credit institutions through economic cycles and to protect depositors and taxpayers from possible failure , and are not designed to address the different risk - profiles of investment firms . investment firms do not have large portfolios of retail and corporate loans and do not take deposits . the likelihood that their failure can have detrimental impacts for overall financial stability is lower than in the case of credit institutions . the risks faced and posed by investment firms are thus substantially different to the risks faced and posed by credit institutions and such difference should be clearly reflected in the prudential framework of the union . ### many of the requirements that stem from regulation no 575 / 2013 and directive 2013 / 36 / eu framework are designed to address common risks faced by credit institutions . accordingly , the existing requirements are largely calibrated to preserve the lending capacity of credit institutions through economic cycles and to protect depositors and taxpayers from possible failure , and are not designed to address the different risk - profiles of investment firms . investment firms do not have large portfolios of retail and corporate loans and do not take deposits . the likelihood that their failure can have detrimental impacts for overall financial stability is lower than in the case of credit institutions , but they still pose a risk which has to be addressed through a robust framework . the risks faced and posed by investment firms are thus substantially different to the risks faced and posed by credit institutions and such difference should be clearly reflected in the prudential framework of the union .


### many of the requirements that stem from regulation no 575 / 2013 and directive 2013 / 36 / eu framework are designed to address common risks faced by credit institutions . accordingly , the existing requirements are largely calibrated to preserve the lending capacity of credit institutions through economic cycles and to protect depositors and taxpayers from possible failure , and are not designed to address the different risk - profiles of investment firms . investment firms do not have large portfolios of retail and corporate loans and do not take deposits . the likelihood that their failure can have detrimental impacts for overall financial stability is lower than in the case of credit institutions . the risks faced and posed by investment firms are thus substantially different to the risks faced and posed by credit institutions and such difference should be clearly reflected in the prudential framework of the union . ### many of the requirements that stem from regulation no 575 / 2013 and directive 2013 / 36 / eu of the european parliament and of the council framework are designed to address common risks faced by credit institutions . accordingly , the existing requirements are largely calibrated to preserve the lending capacity of credit institutions through economic cycles and to protect depositors and taxpayers from possible failure , and are not designed to address the different risk - profiles of investment firms . investment firms do not have large portfolios of retail and corporate loans and do not take deposits . the likelihood that their failure can have detrimental impacts for overall financial stability is lower than in the case of credit institutions . the risks faced and posed by investment firms are thus substantially different to the risks faced and posed by credit institutions and such difference should be clearly reflected in the prudential framework of the union .


### differences in the application of the existing framework in different member states threaten the level playing - field for investment firms within the union . those differences stem from the overall complexity of the application of the framework to different investment firms based on the services they provide , where some national authorities adjust or streamline such application in national law or practice . given that the existing prudential framework does not address all the risks faced and posed by some types of investment firms , large capital add - ons have been applied to certain investment firms in some member states . uniform provisions addressing those risks should be established in order to ensure harmonised prudential supervision of investment firms across the union . ### differences in the application of the existing framework in different member states threaten the level playing - field for investment firms within the union . those differences stem from the overall complexity of the application of the framework to different investment firms based on the services they provide , where some national authorities adjust or streamline such application in national law or practice . given that the existing prudential framework does not address all the risks faced and posed by some types of investment firms , large capital add - ons have been applied to certain investment firms in some member states . uniform provisions addressing those risks should be established in order to ensure clear harmonised prudential supervision of investment firms across the union .


### the required level of initial capital of an investment firm should be based on the services and activities which that investment firm is authorised to provide , and respectively perform , according to directive 2004 / 39 / ec . the possibility for member states to lower the required level of initial capital in specific situations , as provided for in directive 2013 / 36 / eu , on the one hand , and the situation of uneven implementation of that directive , on the other hand , have led to a situation where the required level of initial capital diverges across the union . to end that fragmentation , the required level of initial capital should be harmonised . ### the required level of initial capital of an investment firm should be based on the services and activities which that investment firm is authorised to provide , and respectively perform , according to directive 2004 / 39 / ec of the european parliament and of the council . the possibility for member states to lower the required level of initial capital in specific situations , as provided for in directive 2013 / 36 / eu of the european parliament and of the council , on the one hand , and the situation of uneven implementation of that directive , on the other hand , have led to a situation where the required level of initial capital diverges across the union . to end that fragmentation , the required level of initial capital should be harmonised accordingly for all investment firms in the european union .


### the proper functioning of the internal market requires that the responsibility for supervising the financial soundness of an investment firm , and in particular its solvency , lies with the competent authority of its home member state . to achieve an effective supervision of investment firms also in other member states where they provide services or have a branch , close cooperation with the competent authorities of these member states should be ensured . ### the proper functioning of the internal market requires that the responsibility for supervising the financial soundness of an investment firm , and in particular its solvency , lies with the competent authority of its home member state . to achieve an effective supervision of investment firms also in other member states where they provide services or have a branch , close cooperation and exchange of information with the competent authorities of these member states should be ensured .


### investment firms should have internal capital which is adequate in quantity , quality and distribution to cover the specific risks to which they are or may be exposed . competent authorities should ensure that investment firms have the adequate strategies and processes in place to asses and maintain the adequacy of their internal capital . ### investment firms should have internal capital available , which is adequate in quantity , quality and distribution to cover the specific risks to which they are or may be exposed . competent authorities should ensure that investment firms have the adequate strategies and processes in place to asses and maintain the adequacy of their internal capital .


### to align remuneration with the risk profile of investment firms and to guarantee a level - playing field , investment firms should be subject to clear principles on corporate governance arrangements and rules on remuneration that take into account the differences between credit institutions and investment firms . small and non - interconnected investment firms should however be exempted from those rules because the provisions on remuneration and corporate governance under directive 2014 / 65 / eu are sufficiently comprehensive for those types of firms . ### to align remuneration with the risk profile of investment firms and to guarantee a level - playing field , investment firms should be subject to clear principles on corporate governance arrangements and rules on remuneration that take into account the differences between credit institutions and investment firms . small and non - interconnected investment firms should however be exempted from those rules because the provisions on remuneration and corporate governance under directive 2014 / 65 / eu of the european parliament and of the council are sufficiently comprehensive for those types of firms .


### to align remuneration with the risk profile of investment firms and to guarantee a level - playing field , investment firms should be subject to clear principles on corporate governance arrangements and rules on remuneration that take into account the differences between credit institutions and investment firms . small and non - interconnected investment firms should however be exempted from those rules because the provisions on remuneration and corporate governance under directive 2014 / 65 / eu are sufficiently comprehensive for those types of firms . ### to align remuneration with the risk profile of investment firms and to guarantee a level - playing field , investment firms should be subject to clear principles on corporate governance arrangements and rules on remuneration that are gender neutral and that take into account the differences between credit institutions and investment firms . small and non - interconnected investment firms should however be exempted from those rules because the provisions on remuneration and corporate governance under directive 2014 / 65 / eu are sufficiently comprehensive for those types of firms .


### member states shall designate one or more competent authorities that carry out the functions and duties provided for in this directive . the member states shall inform the commission and eba of that designation , and where there is more than one competent authority , of the functions and duties of each competent authority . ### member states shall designate one or more competent authorities that carry out the functions and duties provided for in this directive . the member states shall inform the commission , eba and esma&#160 ; of that designation , and where there is more than one competent authority , of the functions and duties of each competent authority .


### competent authorities , as parties to the esfs , cooperate with trust and full mutual respect , in particular when ensuring the flow of appropriate and reliable information between them and other parties to the esfs ; ### competent authorities , as parties to the esfs , cooperate with trust and full mutual respect , in particular when ensuring the flow of appropriate , reliable and comprehensive information between them and other parties to the esfs ;


### competent authorities make every effort to comply with the guidelines and recommendations issued by eba pursuant to article 16 of regulation no 1093 / 2010 of the european parliament and of the council38 and to respond to the warnings and recommendations issued by the european systemic risk board pursuant to article 16 of regulation no 1092 / 2010 of the european parliament and of the council39 ; _________________ 38 regulation no 1093 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 78 / ec . 39 regulation no 1092 / 2010 of the european parliament and of the council of 24 november 2010 on european union macro - prudential oversight of the financial system and establishing a european systemic risk board . ### competent authorities have to comply with the guidelines and recommendations issued by eba pursuant to article 16 of regulation no 1093 / 2010 of the european parliament and of the council38 and to respond to the warnings and recommendations issued by the european systemic risk board pursuant to article 16 of regulation no 1092 / 2010 of the european parliament and of the council39 ; _________________ 38 regulation no 1093 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 78 / ec . 39 regulation no 1092 / 2010 of the european parliament and of the council of 24 november 2010 on european union macro - prudential oversight of the financial system and establishing a european systemic risk board .


### competent authorities of the home member state that disagree with the measures of the competent authorities of the host member state may refer the matter to eba , which shall act in accordance with the procedure laid down in article 19 of regulation no 1093 / 2010 . where eba acts in accordance with that article , it shall adopt its decision within one month . ### competent authorities of the home member state that disagree with the measures of the competent authorities of the host member state may refer the matter to eba , which shall act in accordance with the procedure laid down in article 19 of regulation no 1093 / 2010 . where eba acts in accordance with that article , it shall adopt its decision as early as possible and no later than one month .


### in case of a legal person , administrative pecuniary penalties of up to 10% of the total annual net turnover , including the gross income consisting of interest receivable and similar income , income from shares and other variable or fixed - yield securities , and commissions or fees of the undertaking in the preceding business year ; ### in case of a legal person , administrative pecuniary penalties of up to 15% of the total annual net turnover , including the gross income consisting of interest receivable and similar income , income from shares and other variable or fixed - yield securities , and commissions or fees of the undertaking in the preceding business year ;


### to interview any other person who consents to be interviewed for the purposes of collecting information on the subject matter of an investigation ; ### to interview any other relevant person for the purposes of collecting information on the subject matter of an investigation ;


### member states shall ensure that competent authorities publish on their official website any administrative penalties and measures imposed in accordance with article 16 and which has not been appealed or can no longer be appealed , without undue delay . that publication shall include information on the type and nature of the breach and the identity of the natural or legal person on whom the penalty is imposed or against whom the measure is taken . the information shall only be published after that person has been informed of those penalties or measures and to the extent the publication is necessary and proportionate . ### member states shall ensure that competent authorities publish on their official website any administrative penalties and measures imposed in accordance with article 16 and which has not been appealed or can no longer be appealed , without undue delay . that publication shall include information on the type and nature of the breach and the identity of the natural or legal person on whom the penalty is imposed or against whom the measure is taken . the information shall only be published after that person has been informed of those penalties or measures and to the extent the publication is necessary and proportionate . competent authorities shall ensure that the same information is published on the official website of the investment firm concerned .


### where member states permit the publication of administrative penalties or measures imposed in accordance with article 16 against which there has been an appeal , competent authorities shall also publish on their official website information on the appeal status and on the outcome of the appeal . ### where member states permit the publication of administrative penalties or measures imposed in accordance with article 16 against which there has been an appeal , competent authorities shall also publish on their official website information on the appeal status and on the outcome of the appeal . competent authorities shall ensure that the same information is published on the official website of the investment firm concerned .


### competent authorities shall inform eba of administrative penalties and measures imposed pursuant to article 16 , of any appeal against those penalties and measures and of the outcome thereof . eba shall maintain a central database of administrative penalties and measures communicated to it solely for the purpose of exchanging information between competent authorities . that database shall be accessible to competent authorities only and it shall be updated regularly . ### competent authorities shall inform eba of administrative penalties and measures imposed pursuant to article 16 , of any appeal against those penalties and measures and of the outcome thereof . eba shall maintain a central database of administrative penalties and measures communicated to it solely for the purpose of exchanging information between competent authorities . that database shall be accessible to competent authorities and esma , and it shall be updated regularly , at least on a quarterly basis .


### member states shall ensure that where an investment firm benefits from extraordinary public financial support as defined to in article 2 of directive 2014 / 59 / eu , the following requirements apply : ### member states shall ensure that where an investment firm benefits from extraordinary public financial support as defined to in article 2 of directive 2014 / 59 / eu , it does not pay any variable remuneration .


### where variable remuneration is performance related , the total amount of variable remuneration shall be based on a combination of the assessment of the performance of the individual , of the business unit concerned and of the overall results of the investment firm ; ### where variable remuneration is performance related , the total amount of variable remuneration shall be based on a combination of the assessment of the performance of the individual , - regardless the gender - , of the business unit concerned and of the overall results of the investment firm ;


### member states shall ensure that competent authorities have the necessary powers to guarantee that investment firms which are determined as significant in accordance with article 26 establish a remuneration committee . that remuneration committee shall exercise competent and independent judgment on remuneration policies and practices and the incentives created for managing risk , capital and liquidity . ### member states shall ensure that competent authorities have the necessary powers to guarantee that investment firms which do not comply with the criteria in article 30 establish a remuneration committee . that remuneration committee shall exercise competent and independent judgment on remuneration policies and practices and the incentives created for managing risk , capital and liquidity . within a group , the remuneration committee can also be a group - wide remuneration committee .


### member states shall ensure that competent authorities have the necessary powers to guarantee that the remuneration committee is responsible for the preparation of decisions regarding remuneration , including decisions which have implications for the risk and risk management of the investment firm concerned and which are to be taken by the management body . the chair and the members of the remuneration committee shall be members of the management body who do not perform any executive function in the investment firm concerned . where employee representation in the management body is provided for by national law , the remuneration committee shall include one or more employee representatives . ### member states shall ensure that competent authorities have the necessary powers to guarantee that the remuneration committee is responsible for the preparation of decisions regarding remuneration , including decisions which have implications for the risk and risk management of the investment firm concerned and which are to be taken by the management body . the chair and the members of the remuneration committee shall be members of the management body who do not perform any executive function in the investment firm concerned . where employee representation in the management body is provided for by national law , the remuneration committee shall include one or more employee representatives . investment firms shall aim at a gender balance in their remuneration committee .


### member states shall ensure that competent authorities collect the information disclosed in accordance with points , and of article 51 of [ regulation - - - / - - - - [ ifr ] and use that information to benchmark remuneration trends and practices . competent authorities shall provide that information to eba . ### member states shall ensure that competent authorities collect the information disclosed in accordance with points , , , , and of article 51 of [ regulation - - - / - - - - [ ifr ] and use that information to benchmark remuneration trends and practices . competent authorities shall provide that information to the eba and the esma ; the eba shall publish an annual report on these trends and practices .


### eba , in consultation with esma , shall issue guidelines on the application of sound remuneration policies . those guidelines shall take into account at least the requirements referred to in articles 28 to 31 and principles on sound remuneration policies set out in commission recommendation 2009 / 384 / ec43 . _________________ 43 commission recommendation 2009 / 384 / ec of 30 april 2009 on remuneration policies in the financial services sector . ### eba , in consultation with esma , shall issue guidelines on the application of sound and gender neutral remuneration policies . those guidelines shall take into account at least the requirements referred to in articles 28 to 31 and principles on sound remuneration policies set out in commission recommendation 2009 / 384 / ec43 . _________________ 43 commission recommendation 2009 / 384 / ec of 30 april 2009 on remuneration policies in the financial services sector .