### the mercury export ban set out in regulation no 1102 / 2008 of the european parliament and of the council39 should be complemented by restrictions on the import of mercury depending on the source , the intended use and the place of origin of mercury . the national authorities designated in accordance with regulation no 649 / 2012 of the european parliament and of the council40 should perform the administrative functions linked to the implementation of such restrictions . __________________ 39 regulation no 1102 / 2008 of the european parliament and of the council of 22 october 2008 on the banning of exports of metallic mercury and certain mercury compounds and mixtures and the safe storage of metallic mercury . 40 regulation no 649 / 2012 of the european parliament and of the council of 4 july 2012 concerning the export and import of hazardous chemicals . ### the mercury export ban set out in regulation no 1102 / 2008 of the european parliament and of the council39 should be complemented by a ban on the import of mercury for uses other than disposal as waste . the national authorities designated in accordance with regulation no 649 / 2012 of the european parliament and of the council40 should perform the administrative functions linked to the implementation of such measures . __________________ 39 regulation no 1102 / 2008 of the european parliament and of the council of 22 october 2008 on the banning of exports of metallic mercury and certain mercury compounds and mixtures and the safe storage of metallic mercury . 40 regulation no 649 / 2012 of the european parliament and of the council of 4 july 2012 concerning the export and import of hazardous chemicals .


### upon notification by the member state concerned , the commission shall verify in particular whether it has been demonstrated that the new mercury - added product or new manufacturing process would provide significant environmental and health benefits and that no technically and economically feasible mercury - free alternatives providing such benefits are available . ### upon notification by the member state concerned , the commission shall verify in particular whether it has been demonstrated that the new mercury - added product or new manufacturing process would provide significant health benefits and that no technically feasible mercury - free alternatives providing such benefits are available .


### the mercury export ban set out in regulation no 1102 / 2008 of the european parliament and of the council39 should be complemented by restrictions on the import of mercury depending on the source , the intended use and the place of origin of mercury . the national authorities designated in accordance with regulation no 649 / 2012 of the european parliament and of the council40 should perform the administrative functions linked to the implementation of such restrictions . __________________ 39 regulation no 1102 / 2008 of the european parliament and of the council of 22 october 2008 on the banning of exports of metallic mercury and certain mercury compounds and mixtures and the safe storage of metallic mercury . 40 regulation no 649 / 2012 of the european parliament and of the council of 4 july 2012 concerning the export and import of hazardous chemicals . ### the mercury export ban set out in regulation no1102 / 2008 of the european parliament and of the council39 should be implemented together with a full import ban . the national authorities designated in accordance with regulation no 649 / 2012 of the european parliament and of the council40 should perform the administrative functions linked to the implementation of such measures . __________________ 39 regulation no 1102 / 2008 of the european parliament and of the council of 22 october 2008 on the banning of exports of metallic mercury and certain mercury compounds and mixtures and the safe storage of metallic mercury . 40 regulation no 649 / 2012 of the european parliament and of the council of 4 july 2012 concerning the export and import of hazardous chemicals .


### the manufacture and placing on the market of mercury - added products not covered by any known use prior to 1 january 2018 shall be prohibited . ### the manufacture and placing on the market of mercury - added products not covered by any approved use prior to the entry into force of this regulation shall be prohibited .


### from 1 january 2019 onwards dental amalgam shall only be used in an encapsulated form . ### from 1 january 2018 and until 1 january 2020 , dentists shall offer alternatives to dental amalgam .


### it shall apply from 1st january 2018 . ### it shall apply from the date of its entry into force .


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


### - an assessment of its environmental and health risks , ### - an assessment of its environmental and health risks and benefits ,


### the term of office of the executive director shall be five years . by the end of that period , the commission shall undertake an assessment that takes into account an evaluation of the executive director’s performance and berec’s future tasks and challenges . ### the term of office of the executive director shall be six years . by the end of that period , the commission shall undertake an assessment that takes into account an evaluation of the executive director’s performance and berec’s future tasks and challenges .


### the executive director may be removed from office only upon a decision of the management board acting on a proposal from the commission . ### the executive director may be removed from office only upon a decision of the management board acting on a proposal from a member of the management board .


### the management board shall reach decisions on appointment , extension of the term of office or removal from office of the executive director on the basis of a two - thirds majority of its members with voting rights . ### the management board shall reach decisions on appointment or removal from office of the executive director on the basis of a two - thirds majority of its members with voting rights .


### trust is a prerequisite for the digital single market to function . cybersecurity technologies such as digital identities , cryptography or intrusion detection , and their application in areas such as finance , industry 4 . 0 , energy , transportation , healthcare , or e - government are essential to safeguard the security and trust of online activity and transactions by both citizens , public administrations , and companies . ### trust is a prerequisite for the digital single market to function . cybersecurity technologies such as digital identities , cryptography or intrusion detection , and their application in areas such as finance , industry 4 . 0 , energy , transportation , tourism , healthcare , or e - government are essential to safeguard the security and trust of online activity and transactions by both citizens , public administrations , and companies .


### support on - the - job trainings and traineeships for students , young entrepreneurs and graduates . ### support proper training for final year university students and doctoral research students ;


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


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


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


### at the request of the european parliament , the managing director shall participate in a hearing of the european parliament on the performance of the efsi . ### at the request of the european parliament , the president of the eib shall participate at a hearing of the european parliament if it concerns eib financing and investment operations under this regulation . the president of the eib shall , within four weeks of receipt , reply orally or in writing to questions addressed to the eib by the european parliament concerning eib financing and investment operations under this regulation .


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


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


### the commission and the eib , with support from the member states , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union . the pipeline is without prejudice to the final projects selected for support according to article 3 . ### the commission and the eib , with support from the member states , involving regional and local authorities and economic and social partners , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union . the pipeline is without prejudice to the final projects selected for support according to article 3 but should state the compliance of the proposed projects to the objectives and eligibility criteria laid down in article 5 .


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


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural and investment funds to contribute to the financing of eligible projects in which the eib is investing with the support of the eu guarantee . ### provided that all relevant eligibility criteria are fulfilled , member states may use any type of union financing , including european structural and investment funds to contribute to the financing of eligible projects in which the eib is investing with the support of the eu guarantee


### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market and by enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work . ### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market by establishing truly functional capital , digital and energy markets and by reducing red tape and enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work .


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


### the efsi should support strategic investments with high economic value added contributing to achieving union policy objectives . ### the efsi should support strategic investments with high social and economic value added , promoting research , education and training , and contributing to achieving union policy objectives .


### any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the european union of the year n + 1 , ### any surplus in the guarantee fund shall constitute internal assigned revenue in accordance with article 21 of regulation no 966 / 2012 for any lines which may have been used as a source of redeployment to the efsi guarantee fund ,


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


### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , including in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms . ### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality and complementarity over existing operations . an even higher risk profile should be accepted for research , development and innovation projects . the efsi should finance projects across the entire union , avoiding geographical concentration and facilitating investment in regions where capital markets are less developed , including in the countries most affected by the financial crisis and where investment in percentage of gdp has substantially declined . the efsi should only be used where financing is not available from other sources on reasonable terms .


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


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


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


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


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


### to partially finance the contribution from the union budget , the available envelopes of the horizon 2020 – the framework programme for research and innovation 2014 - 2020 , provided by regulation no 1291 / 2013 of the european parliament and of the council2 , and the connecting europe facility , provided by regulation no 1316 / 2013 of the european parliament and of the council3 , should be reduced . those programmes serve purposes that are not replicated by the efsi . however , the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes . the efsi should be able to leverage the eu guarantee to multiply the financial effect within those areas of research , development and innovation and transport , telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned horizon 2020 and connecting europe facility programmes . it is , therefore , appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of efsi . __________________ 2 regulation no 1291 / 2013 of the european parliament and of the council of 11 december 2013 establishing horizon 2020 - the framework programme for research and innovation and repealing decision no 1982 / 2006 / ec . 3 regulation no 1316 / 2013 of the european parliament and of the council of 11 december 2013 establishing the connecting europe facility , amending regulation no 913 / 2010 and repealing regulations no 680 / 2007 and no 67 / 2010 . ### the contribution from the union budget to the eu budget guarantee fund will be progressively authorised by the european parliament and the council in the framework of the annual budgetary procedures up to 2020 . for this purpose , the budgetary authority should make use , where appropriate , of all available mechanisms of flexibility and relevant provisions under the 2014 - 2020 mff regulation ensuring a maximum linearity and securing the functioning and viability of the funding according to the budget provided for in the mff of the multiannual commitments characterising some current eu programmes such as horizon 2020 and connecting europe facility . the financing of the guarantee fund , should be revised in the frame of the mid - term review of the multiannual financial framework due to be launched by the end of 2016 at the latest , as foreseen in article 2 of council regulation no 1311 / 2013 of 2 december 2013 laying down the multiannual financial framework for the years 2014 - 2020 . given the soaring need for policy action and spending programmes at union level to incentivise economic growth and job - creation in europe , the revision should increase the available margins and commitment appropriations under heading 1a .


### an eu guarantee fund shall be established from which the eib may be paid in the event of a call on the eu guarantee . 2 . the guarantee fund shall be endowed by : payments from the general budget of the union , returns on guarantee fund resources invested , amounts recovered from defaulting debtors in accordance with the recovery procedure laid down in the efsi agreement as provided for in article 2 , any other payments received by the union in accordance with the efsi agreement . 3 . endowments to the guarantee fund provided for in points and of paragraph 2 shall constitute internal assigned revenues in accordance with article 21 of regulation no 966 / 2012 . 4 . the resources of the guarantee fund provided to it under paragraph 2 shall be directly managed by the commission and invested in accordance with the principle of sound financial management and follow appropriate prudential rules . 5 . endowments to the guarantee fund referred to in paragraph 2 shall be used to reach an appropriate level to reflect the total eu guarantee obligations . the target amount shall be set at 50% of the union ' s total guarantee obligations . the target amount shall initially be met by the gradual payment of resources referred to in paragraph 2 . if there have been calls on the guarantee during the initial constitution of the guarantee fund , endowments to the guarantee fund provided for in points , and of paragraph 2 shall also contribute to meet the target amount up to an amount equal to the calls on the guarantee . 6 . by 31 december 2018 , and every year thereafter , the commission shall review the adequacy of the level of the guarantee fund taking into account any reduction of resources resulting from the activation of the guarantee and the eib ' s assessment submitted in accordance with article 10 . the commission shall be empowered to adopt delegated acts in accordance with article 17 adjusting the target amount provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the eu guarantee being called . 7 . following an adjustment in year n of the target amount or an assessment on the adequacy of the level of the guarantee fund in accordance with the review provided for in paragraph 6 : any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the european union of the year n + 1 , any replenishment of the guarantee fund shall be paid in annual tranches during a maximum period of three years starting on year n + 1 . 8 . from 1 january 2019 , if as a result of calls on the guarantee , the level of the guarantee fund falls below 50% of the target amount , the commission shall submit a report on exceptional measures that may be required to replenish it . 9 . subsequent to a call on the eu guarantee , endowments to the guarantee fund provided for in points , and of paragraph 2 over and above the target amount shall be used to restore the eu guarantee up to its initial amount . ### an eu guarantee fund shall be established which shall constitute a liquidity cushion from which the eib shall be paid in the event of a call on the eu guarantee . 2 . the guarantee fund shall be endowed by : contributions from the general budget of the union ; returns on guarantee fund resources invested ; amounts recovered from defaulting debtors in accordance with the recovery procedure laid down in the efsi agreement as provided for in point of article 2 ; revenues and any other payments received by the union in accordance with the efsi agreement . 3 . endowments to the guarantee fund provided for in points , and of paragraph 2 shall constitute internal assigned revenues in accordance with article 21 of regulation no 966 / 2012 . 4 . the resources of the guarantee fund provided to it under paragraph 2 shall be directly managed by the commission and invested in accordance with the principle of sound financial management and follow appropriate prudential rules . 5 . endowments to the guarantee fund referred to in paragraph 2 shall be used to reach an appropriate level to reflect the total eu guarantee obligations . the target amount shall be set at 50% of the union ' s total guarantee obligations . the target amount shall initially be met by 2022 at the latest through the gradual payment of resources referred to in point of paragraph 2 as well as endowments to the guarantee fund provided for in points , and of paragraph 2 . 5a . the necessary appropriations to meet the initial target amount shall be gradually authorised by the european parliament and the council in the framework of the annual budgetary procedure , taking due account of all means available under the council regulation no 1311 / 2013 of 2 december 2013 laying down the multiannual financial framework 2014 - 2020 , with particular recourse to the global margin for commitments and the flexibility instrument . the financing of the guarantee fund , both in respect of commitment and payment appropriations , shall be reviewed by the european parliament and the council in the context of the post - electoral review / revision of the multiannual financial framework 2014 - 2020 , to be launched by the end of 2016 at the latest , as foreseen in article 2 of council regulation no 1311 / 2013 . in the event that redeployments from eu programmes were agreed in the framework of the annual budgetary procedure as source of financing for the eu guarantee in the years preceding the mff review / revision , the european parliament and the council shall restore their initial budgets . 6 . by 31 december 2018 , and every year thereafter , the commission shall review the adequacy of the level of the guarantee fund taking into account any reduction of resources resulting from the activation of the guarantee and the eib ' s assessment submitted in accordance with article 10 . the commission shall be empowered to adopt delegated acts in accordance with article 17 adjusting downwards the target level provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the eu guarantee being called . 7 . following an adjustment in year n of the target level or an assessment on the adequacy of the resources available in the guarantee fund in accordance with the review provided for in paragraph 6 : any surplus in the guarantee fund shall constitute internal assigned revenue in accordance with article 21 of regulation no 966 / 2012 for any lines which may have been used as a source of redeployment to the efsi guarantee fund , any replenishment of the guarantee fund shall be paid in annual tranches during a maximum period of three years starting on year n + 1 . 8 . if as a result of calls on the guarantee , the resources of the guarantee fund fall below 50% of the liabilities that have been incurred at the given moment the commission shall submit a report on exceptional measures that may be required to replenish it . 9 . subsequent to a call on the eu guarantee , endowments to the guarantee fund provided for in points , and of paragraph 2 shall be used to restore the eu guarantee up to its target amount . any remaining remuneration shall constitute internal assigned revenue in accordance with article 21 of regulation no 966 / 2012 for any lines which may have been used as a source of redeployment to the efsi guarantee fund . 9a . in the event that additional surplus remains , after requirements under paragraphs 7 and 9 have been fully met , the commission shall present a proposal on an increase of the overall level of the eu guarantee , leading to a reinforcement of the investment plan .


### the commission shall be empowered to adopt delegated acts in accordance with article 17 adjusting the target amount provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the eu guarantee being called . ### the commission shall be empowered to adopt delegated acts in accordance with article 17 adjusting the target level provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the eu guarantee being called .


### since the objectives of this regulation , namely to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , cannot be sufficiently achieved by the member states by reason of the disparities in their fiscal capacity to act but can rather , by reason of its scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives , ### since the objectives of this regulation , namely to support investments in the union and to ensure increased access to financing for companies having up to 3 000 employees cannot be sufficiently achieved by the member states alone but can rather , by reason of its scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives ,


### the commission and the eib , with support from the member states , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union . the pipeline is without prejudice to the final projects selected for support according to article 3 . ### the commission and the eib , with support from the member states , shall promote the creation of a transparent pipeline of current and potential future investment projects in the union , which are environmentally and socially sustainable . the pipeline is without prejudice to the final projects selected for support according to article 3 but should indicate whether the proposed projects are eligible for the eu guarantee fund in accordance with the objectives and criteria laid down in article 5 .


### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . ### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development , preparation and aggregation across the union , by building on the expertise of the commission , the eib , national promotional banks , the managing authorities of the european structural and investment funds and best practices from projects such as elena , innovfin and the eeif . this should establish a single point of entry for questions related to technical assistance for investments within the union where possible providing technical assistance on a decentralised basis . the setting up of the eiah as a single entry point and the new services provided by it shall in no way alter the objective of existing technical assistance programmes or affect the quality or capacity of these in carrying out their dedicated tasks .


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


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


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


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


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


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


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


### the eu guarantee to the eib shall be of an amount equal to eur 16 000 000 000 , of which a maximum amount of eur 2&#160 ; 500 000 000 may be allocated for eib funding to the eif in accordance with paragraph 2 . without prejudice to article 8 , aggregate payments from the union under the guarantee to the eib shall not exceed the amount of the guarantee . 2 . the coverage of the guarantee over a particular type of instrument portfolio , referred to in article 6 , shall be determined by the risk of that portfolio . the eu guarantee shall be eligible to provide either first loss guarantees on a portfolio basis or a full guarantee . the eu guarantee may be granted on a pari passu basis with other contributors . where the eib provides funding to the eif in order to conduct eib financing and investment operations , the eu guarantee shall provide for a full guarantee on funding by the eib provided that an equal amount of funding is provided by the eib without eu guarantee . the amount covered by the eu guarantee shall not exceed eur 2 500 000 000 . 3 . where the eib calls the eu guarantee in accordance with the efsi agreement , the union shall pay on demand in accordance with the terms of that agreement . 4 . where the union makes any payment under the eu guarantee , the eib shall pursue the recovery of claims for the amounts paid and reimburse the union from the sums recovered . ### the eu guarantee to the eib shall be of an amount equal to eur 16 000 000 000 , of which at least eur 5 000 000 000 shall be allocated for eib funding to the eif in accordance with paragraph 2 , for the purposes set out in article 1 . without prejudice to article 8 , aggregate payments from the union under the guarantee to the eib shall not exceed the amount of the guarantee . an amount of at least eur 5 000 000 000 shall be allocated for eib funding to the dedicated energy efficiency fund in accordance with article 5 . . 1a . the eu guarantee shall be granted for support of alternative investment fund managers , which manage alternative investment funds authorised in accordance with directive 2011 / 61 / eu , managers of collective investment undertakings authorised in accordance with regulation 2013 / 345 / eu , and managers of collective investment undertakings in accordance with regulation 2013 / 346 / ec , based on an agreement with the eib or the eif in accordance with paragraph 2 and provided that these activities comply with the objectives and eligibility criteria set out in article 5 . 2 . 2 . the coverage of the guarantee over a particular type of instrument portfolio , referred to in article 6 , shall be determined by the risk of that portfolio . the eu guarantee shall be eligible to provide either first loss guarantees on a portfolio basis or a full guarantee . the eu guarantee may be granted on a pari passu basis with other contributors . where the eib provides funding to the eif in order to conduct eib financing and investment operations , the eu guarantee shall provide for a full guarantee on funding by the eib provided that an equal amount of funding is provided by the eib without eu guarantee . the amount covered by the eu guarantee shall be at least eur 5 000 000 000 . this funding shall be used to support smes , start - ups , spin - offs and small mid - caps . 3 . where the eib calls the eu guarantee in accordance with the efsi agreement , the union shall pay on demand in accordance with the terms of that agreement . 4 . where the union makes any payment under the eu guarantee , the eib shall pursue the recovery of claims for the amounts paid and reimburse the union from the sums recovered .


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , technological innovation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . while taking into full account the special situation of peripheral islands and regions , the requirement for consistency with state aid should contribute to such effective and strategic use , by avoiding one - size - fits - all approaches .


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


### the governance arrangements concerning the efsi , in accordance with article 3 , without prejudice to the statute of the european investment bank ; ### the modalities for the approval by the investment committee of the use of the eu guarantee for individual projects in line with this regulation and in particular with article 2a ;


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


### the efsi agreement shall provide that the efsi shall be governed by a steering board , which shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with the objectives under article 5 . the steering board shall elect one of its members to be chairperson . ### the efsi agreement shall provide that the efsi shall be governed by a steering board , which shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with the objectives under article 5 . when establishing the investment policy and risk policy for the efsi support , the steering board shall take into account the need to avoid an excessive concentration of projects within a given sector or geographical area . the steering board shall adopt guidelines for the use of the eu guarantee to be implemented by the investment committee . the investment guidelines shall be made publicly available . the council and the european parliament shall be informed about the content of the investment guidelines by the chairperson of the steering board .


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


### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , including in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms . ### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance sustainable projects across the union , particularly in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on favourable terms .


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


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . with the aim to better protect and reap commercial and economic benefits from eu co - funded initiatives , a set of rules as established in horizon 2020 concerning the exploitation and dissemination of project results , including their protection through intellectual property , should be respected by the participants of efsi projects .


### provisions governing the establishment of the efsi as a distinct , clearly identifiable and transparent guarantee facility and separate account managed by the eib ; ### arrangements concerning the establishment of the efsi as well as the amount and terms of the financial contribution to be provided by the eib , including the terms of the funding or guarantees which shall be provided by the eib through the efsi to the european investment fund which shall be at least eur 5&#160 ; 000 000 000 .


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high societal , sustainable , environmental and economic benefits . in particular , the efsi should target environmentally and socially sustainable projects that promote quality job creation , long - term growth and sustainability , resource and energy efficiency , innovation and new technologies in the health sector , the green economy and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such an effective and strategic use .


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


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


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