### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of policies which have depressed aggregate demand and market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment , in particular in those regions more effected by the crisis , slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness , potentially preventing a realization of the europe 2020 targets and objectives for smart , sustainable and inclusive growth .


### 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 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 .


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi . ### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee , and to invest in the capital of the investment platforms , provided that it is in accordance with regulation no 1303 / 2013 of the european parliament and of the council . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi .


### 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 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 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 economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states especially those most affected by the crisis . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness .


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects , and who should be approved by the european parliament following hearings . the investment committee should be accountable to the steering board of the efsi . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies .


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


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


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


### the commission shall publish a comprehensive report on the use of the eu guarantee and the functioning of the guarantee fund . ### the commission shall publish a comprehensive report on the use of the eu guarantee , the functioning of the guarantee fund and compliance with the union’s values and policy objectives and social and environmental rules .


### 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 .


### 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 aim at financing projects across the whole of the union by taking into account the criteria of additionality and high risk - profile in its investment policies . the efsi should only be used where financing is not available from other sources .


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


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


### in 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 . ### in addition , the investment committee may grant via the eib the eu guarantee for support of dedicated investment platforms and national promotional banks or institutions that invest in operations meeting the requirements of this regulation . in that case , the steering board shall specify policies regarding eligible investment platforms . in the case of financing platforms organised by the national promotional banks or institutions , the eib alone shall exercise the role of central agent for administrative and financial management and for reporting on the community budget guarantee and , in its capacity as an agent and on behalf of the commission , shall transfer this guarantee to the platforms in question without entering them in its own balance sheet .


### the eib should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability . ### the eib should be responsible for all the analytical and financial evaluation of the projects that are applying for the use of the eu guarantee . furthermore , the eib should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability .


### 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 , in a user - friendly form , information relating to all eib financing and investment operations and how they contribute to the general objectives referred to 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 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 . to ensure transparency and good management , efsi activities and governance must be separate and independent within the eib group .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of policies which have depressed aggregate demand and market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment , in particular in those regions more effected by the crisis , slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness , potentially preventing a realization of the europe 2020 targets and objectives for smart , sustainable and inclusive growth .


### 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 , paying particular attention to those countries where the highest investment gaps and financial market failures have emerged , &#160 ; &#160 ; &#160 ; 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 also approve the support of the eu guarantee for operations in line with article 5 for each project , &#160 ; following a&#160 ; proposal from the investment committee ; specify policies regarding eligible investment platforms and be the competent body for approving the eligibility of investment platforms and national promotional banks and permitting them to use the designation of ' efsi ' or ' european fund for strategic investments ' . the steering board shall determine the eu guarantee pricing policies having due regard to the need to address investment gaps and financial fragmentation in the eu .


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


### 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 .


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


### the 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 ' .


### 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 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 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 .


### 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 , the eib should regularly submit public reports for approval by the european parliament and the council on the progress and impact of the efsi . the decision of the european parliament and the council on the efsi reports must be fully respected .


### 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 .


### any other payments received by the union in accordance with the efsi agreement . ### any other contributions received by the union in accordance with the efsi agreement .


### an eu guarantee fund shall be established from which the eib may be paid in the event of a call on the eu guarantee . ### an eu guarantee fund shall be established which shall constitute a liquidity cushion from which the eib may be paid in the event of a call on the eu guarantee .


### 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


### 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 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 , by facilitating increased access to financing with the aim of stimulating sustainable economic growth . it is intended that increased access to financing should be prioritized to the benefit of small and medium enterprises and cooperative 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 through efsi shall should contribute to strengthening the union ' s economic , social and territorial cohesion and energy and resource efficiency by transitioning into a sustainable , digital and circular economy .


### 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 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 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 eight independent experts , and the managing director and a representative of the commission . independent experts shall have a high level of relevant market experience in project finance as well as in the investment areas concerned by the efsi as defined in article 5 , paragraph 2 , and be selected by the steering board for a renewable fixed term of three years not exceeding six years in total . their recruitment follows a transparent procedure and their declaration of financial interests is transmitted to the commission , the european parliament and the council . the representative of the commission shall have no voting power but shall confirm the consistency of potential operations with union policies . he / she shall co - operate closely with the respective directorates - general of the commission depending on the investment areas of the projects . in the transport sector , the investment committee shall take into account recommendations expressed by respective directorate - general of the commission . decisions of the investment committee shall be taken by simple majority and approved by the steering board .


### 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 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 .


### 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 ,


### 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 .


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


### in order to allow for further increase in its resources , participation in the efsi should be open to third parties , including member states , national promotional banks or public agencies owned or controlled by member states , private sector entities and entities outside the union subject to the consent of existing contributors . third parties may contribute directly to the efsi and take part in the efsi governance structure . ### in order to reach the target of eur 315 000 000 000 within the shortest possible time , national promotional banks or institutions and investment platforms and funds , with support of the efsi guarantee , should play a prominent role in identifying viable projects , developing and , where appropriate , bundling projects , and attracting potential investors . in that context , it should be possible to establish macro - regional platforms to promote cross - border projects or a group of projects across member states in a regional perspective .


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


### 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 .


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


### at the request of the european parliament , the managing director shall participate in a hearing of the european parliament on the performance of the efsi . ### 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 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 public 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 . in order to ensure the smooth implementation of the efsi , the eib’s existing local offices will be used to provide information and assistance , with additional staff to carry out the functions of the eiah .


### in its financing and investment operations , the eib shall not support any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , or fraud affecting the financial interests of the union . in particular the eib shall not participate in any financing or investment operation through a vehicle located in a non - cooperative jurisdiction , in line with its policy towards weakly regulated or non - cooperative jurisdictions based on policies of the union , the organisation for economic cooperation and development or the financial action task force . ### in its financing and investment operations , the eib shall not support any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , or fraud affecting the financial interests of the union . in particular the eib shall not participate in any financing or investment operation through a vehicle located in a non - cooperative jurisdiction , in line with its policy towards weakly regulated or non - cooperative jurisdictions based on policies of the union , the organisation for economic cooperation and development or the financial action task force . &#160 ; efsi shall not be used to support the privatisation of public services .


### 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 . ### 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 within the european union , including national promotional banks or public agencies owned or controlled by member states , and private sector entities .


### 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 , especially in countries with limited fiscal capacity , 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 .


### the financial statements of the efsi . ### the financial statements of the efsi accompanied by an opinion of an independent external auditor .


### the eib should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability . ### the eib and the investment committee should regularly evaluate and report on activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations and reporting should be made public and contribute to accountability and analysis of sustainability .


### 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 establish&#160 ; 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 purpose of the efsi should be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . it is intended that increased access to financing should be of particular benefit to small and medium enterprises . it is also appropriate to extend the benefit of such increased access to financing to mid - cap companies , which are companies having up to 3000 employees . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s economic , social and territorial cohesion . ### the purpose of the efsi should be twofold : to help resolve the difficulties in financing and implement long - term productive strategic and transformative investments in the union that provide an immediate boost to europe ' s economy , and to ensure increased access to financing for companies up to 3000 employees with particular focus on start - ups , spin - offs , micro - enterprises , small and medium enterprises and cooperatives . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s competitiveness , innovation potential , economic , social and territorial cohesion and energy and resource efficiency by transitioning into a sustainable and circular economy .


### in 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 . ### 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 . efsi shall support projects of a higher risk profile which address high investment needs and market failures and which could not have been carried out under existing eib and union instruments . projects supported by efsi should ensure additionality while contributing to the closing of investment gaps .


### 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 .


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


### to meet that objective , the eiah shall use the expertise of the eib , the commission , national promotional banks and the managing authorities of the european structural and investment funds . ### to meet that objective , the eiah shall use the expertise of the eib , the commission , national promotional banks and the managing authorities of the european structural and investment funds . the eiah shall especially build upon the good practices from existing technical assistance programmes .


### 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 : ### the eib , in cooperation with the eif as appropriate , shall report bi - annually to the european parliament and to the council on eib financing and investment operations . the report shall be made public and include :