CELEX: 52015PC0010
Language: en
Date: 2015-01-13
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013

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		52015PC0010
		
			Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 /* COM/2015/010 final - 2015/0009 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
As a
consequence of the economic and financial crisis, the level of investment in
the EU has dropped by about 15% since its peak in 2007. The current level is
well below what historical trends would imply, and – in the absence of action –
projections point towards an only partial rebound over the coming years.
Economic recovery, job creation, long-term growth and competitiveness are being
hampered as a result. This investment gap poses risks to reaching the targets
set by the Europe 2020 Strategy. The President of the European Commission in
his Political Guidelines for the Commission 2014-2019 therefore identified this
issue as a key policy challenge, as did the European Council on 18 December
2014 (EUCO 237/14) as well as the Group of Twenty Leaders' Summit on 15-16
November 2014. 
General
uncertainty about the economic situation, high levels of public and private
debt in parts of the EU economy and their impact on credit risk limit the room
for manoeuvre. However, significant levels of savings and high levels of
financial liquidity exist. Moreover, recent enquiries conducted jointly by the
European Commission, the European Investment Bank and EU Member States have
confirmed that a significant number of viable investment projects remains
unfunded. 
Against this
backdrop, in its Communication "An Investment Plan for Europe",
published on the 26 November 2014, the Commission proposed an EU-level
initiative to address this issue. The Plan is based on three mutually
reinforcing strands. First, the mobilisation of at least EUR 315 billion in
additional investment over the next three years, maximising the impact of
public resources and unlocking private investment. Second, targeted initiatives
to make sure that this extra investment meets the needs of the real economy.
And third, measures to provide greater regulatory predictability and to remove
barriers to investment, making Europe more attractive and thereby multiplying
the impact of the Plan.
This proposal
creates the necessary legal framework and provides the budgetary allocations
for the first two strands of the Plan in the framework of the EU's legal order.
Upon adoption of the proposed regulation, it will be implemented jointly by the
Commission and the European Investment Bank (EIB), as strategic partners, with
the clear aim of rallying stakeholders at all levels. For the third strand of
the Investment Plan concerning the regulatory environment and the removal of
barriers to investment, the Commission has set out a first set of actions in
its Work Programme, adopted on 16 December 2014 (COM(2014)
910). The Commission will also work together with the
other EU Institutions and the Member States in the context of the European
Semester as far as these matters are concerned.
Given the key
role which small and medium enterprises (SMEs) play in the EU economy,
especially in terms of employment creation, they will be a key beneficiary of
the support provided for under this proposal. 
In this area as
well, the design and features of those mechanisms are based on existing
experience with innovative financing instruments employed jointly between the
EU and the EIB Group.
2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
President Juncker presented the Investment
Plan to the European Parliament on 26 November. Moreover, the Investment Plan
was endorsed by the European Council on 18 December 2014. The European Council
also invited the Union legislators to agree on the necessary legal text by June,
so that the new investments could be activated as early as mid-2015. 
The legal, economic and financial concepts
underpinning this proposal have been extensively discussed with the European
Investment Bank Group and informally discussed with public and private sector
representatives. Stakeholders from the private sector have particularly
emphasised the importance of robust quality criteria and an independent
selection of projects that could be supported by the Plan. More specifically,
it was recommended that the projects should be (1) economically viable with the
support of the initiative, (2) sufficiently mature to be appraised on a global
or local basis, (3) of European added value and consistent with EU policy
priorities (such as, for example, the 2030 climate and energy package, Europe
2020 Strategy and other long-term EU strategic priorities). Moreover, projects
should not be limited to cross-border projects (such as the case with TEN-T and
TEN-E projects).
The Commission additionally gained
important insights from its involvement in the Special Task Force on Investment
in the EU. The overall objective of the Task Force was to provide an overview
of the main investment trends and needs; analyse the main barriers and
bottlenecks to investment; propose practical solutions to overcome those
barriers and bottlenecks; identify strategic investments with EU added value
that could be undertaken in the short run; and make recommendations for
developing a credible and transparent pipeline for the medium to long term.
This work has been taken into account for the current proposal.
The final task force report is available on the following web site: 
http://ec.europa.eu/priorities/jobs-growth-investment/plan/docs/special-task-force-report-on-investment-in-the-eu_en.pdf
3.           LEGAL ELEMENTS OF THE
PROPOSAL
The legal bases for this proposal are
Articles 172, 173, Article 175(3) and Article 182(1) of the Treaty on the
Functioning of the European Union. This proposal sets out the legal framework necessary
to implement the first two strands of the "Investment Plan for
Europe". 
In accordance with the principles of
subsidiarity and proportionality set out in Article 5 of the Treaty on European
Union, the objectives of the proposed action cannot be sufficiently achieved by
the Member States and can therefore be better achieved by the EU. By reason of
the disparities in Member States' fiscal capacity to act, action at Union level
can better achieve the objectives pursued, by reason of its scale and effects.
More specifically, the EU level will provide for economies of scale in the use
of innovative financial instruments by catalysing private investment in the
whole EU and making best use of the European Institutions and their expertise
and knowledge for that purpose. The multiplying effect and the impact on the
ground will thus be much higher than what could be achieved by an investment
offensive in a single Member State or a Group of Member States. The Union's Single
Market, together with the fact that there will be no country-specific or
sectorial project allocation, will provide for greater attractiveness for
investors and lower aggregated risks. The proposal does not go beyond what is necessary
to achieve the objectives pursued. 
3.1.      Creating a European Fund for
Strategic Investments and Establishing a European Investment Advisory Hub (Articles
1-3)
Article 1 of the proposal empowers the
Commission to conclude with the EIB an agreement on the establishment of the
"European Fund for Strategic Investments" (EFSI) 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.
Article 2 of the proposal establishes that this EU guarantee is to be allocated
to specific EIB financing investment operations through the EFSI. 
The use of the EU guarantee to the EFSI is
to be subject to the governance structures determined therein. Notably, the
EFSI shall have a Steering Board (Article 3) which determines 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. An Investment Committee, consisting of independent
professionals, shall be responsible for examining potential operations and
approving the support for operations irrespective of the geographic location of
the project concerned. 
Members of the Steering Board are appointed
by the contributors of risk bearing capacity with voting power proportional to
the size of contributions. 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 and all decisions shall be taken by consensus.  
When other parties accede to the EFSI
Agreement, 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 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.
Members of the Investment Committee shall
consist of six independent market experts and a Managing Director. The Managing
Director shall be assisted by a Deputy Managing Director. The Managing Director
will prepare and chair the meetings of the Investment Committee. Decisions in
both bodies are to be taken by simple majority, but in the Steering Board,
consensus shall be sought. The projects will be selected on their own merits,
without any sectorial or geographic pre-established allocation so as to
maximize the value added of the Fund. The EFSI will also have the possibility
to finance together with Member States and private investors investment
platforms at national, regional or sectorial level.
Other than specific provisions governing
the creation, the activities and the governance of the EFSI, the EFSI Agreement
shall also establish the European Investment Advisory Hub (EIAH, Article 2(2)).
Building on existing EIB and Commission advisory services, the EIAH shall provide
advisory support for investment project identification, preparation and
development and act as a single technical advisory hub (including on legal
issues) for project financing within the EU. This shall include support on the
use of technical assistance for project structuring, use of innovative
financial instruments, and use of public-private partnerships.
3.2.      Granting of an EU Guarantee
and Establishment of an EU Guarantee Fund (Articles 4-8) 
Article 4 of the proposal creates an initial
EU guarantee of EUR 16bn for EIB financing and investment operations. In
accordance with Article 5, those operations need to support development of
infrastructure; or investment in education, health, research, development,
information and communications technology and innovation; or expansion of
renewable energy and energy efficiency; or infrastructure projects in the
environmental, natural resources, urban development and social fields; or SMEs
and mid cap companies including by providing working capital risk financing.
The support can be provided directly from the EIB or through the European
Investment Fund. Those institutions will provide financing with a high degree
of financial risk absorption (equity, quasi-equity, etc.) allowing private
sector investors to invest alongside.
In order to ensure orderly execution of the
EU budget even if the guarantee is called, Article 8 establishes a guarantee
fund (the Fund). Experience on the nature of investments to be supported by the
EFSI indicates that a ratio of 50% between the payments from the Union budget
and from the Union's total guarantee obligations would be adequate. In the
steady state, this 50% target will be met from the EU budget, the amounts due
to the Union from the investments, amounts received from any defaulting
creditors and the returns on the guarantee fund resources invested. However,
for an initial period, EUR 8bn will be provided only via payments from the budget.
From 2016 onwards, these payments from the budget will gradually build up the
endowment of the Fund and should reach an accumulated sum of EUR 8bn by 2020. Nonetheless,
should there be calls on the EU guarantee, it is appropriate that the
alternative sources of the guarantee fund are also considered in the
calculation of the target level in order to limit the potential impact on the
EU budget. This consideration in the calculation will be limited to the amount
of the EU guarantee that has been called.
In order to provide for maximum
cost-efficiency, the Commission shall be charged with investing those
resources. Moreover, the Commission shall be empowered, via delegated act, to
change the Fund's target amount by 10% after 2018. This should allow the Commission
to build on the practical experience acquired and prevent unnecessary drains on
the budget, while ensuring its continued protection.
Except for possible losses on equity, where
the EIB may decide to do an immediate guarantee call, guarantee calls should
only occur once a year after all profits and losses resulting from outstanding
operations have been netted.
Should the guarantee be called, the volume
of guarantee would be reduced below the original EUR 16bn. However, future
revenues due to the Union from the EFSI activities should be allowed to
reinstate the EU guarantee up to this original amount.
3.3.      Establishing a European
Investment Project Pipeline (Article 9)
As often pointed out by stakeholders, a
stumbling block to greater investment levels within the EU is a lack of
knowledge of ongoing and future investment projects within the Union. Alongside
the work of the EFSI, the proposal also provides for the creation of a European
investment project pipeline as a means to ensure that information on potential
projects is transparent and available to investors.
3.4.      Reporting, Accountability,
Evaluation and Review of EFSI Operations (Articles 10-12)
Given the use of the EU guarantee by the
EIB, it is appropriate for the EIB to report on a regular basis to the
Commission, European Parliament and to the Council on operations conducted that
are covered by the EU guarantee.
Article 12 sets out a number of regular
evaluations by the EIB and the Commission to ensure that EFSI, the EU guarantee
and the functioning of the guarantee fund are being utilised as intended. The
accountability to the European Parliament is particularly important in this
context.
3.5.      General Provisions (Articles
13-17)
It is appropriate for a number of general
rules to be applicable within the context of the use by the EIB of the EU
guarantee. Article 13 establishes that information be made publically available
related to activities governed by the EU guarantee. Article 14 and Article 15 are
provided in relation to the competences of the Court of Auditors and OLAF
respectively, and Article 16 excludes certain types of activities. Finally,
Article 17 empowers the Commission to adopt delegated acts in line with the
relevant procedure. 
3.6.      Amendments (Articles 18-19)
Articles 18 and 19 provide for the
reallocation of operational appropriations from the Horizon2020 Programme
(Regulation (EU) No 1291/2013) and the Connecting Europe Facility (Regulation
(EU) No 1316/2013).
4.           BUDGETARY IMPLICATION
The EU guarantee provided for the EFSI amounts
to EUR 16bn and is fully available from the entry into force of the Regulation.
In order to ensure orderly execution of the budget despite potential calls on
the guarantee, a guarantee fund is created and provisioned for 50% of total EU
guarantee obligations by 2020. Payments into the guarantee fund will amount to
EUR 500m    in 2016, EUR 1bn in 2017, EUR 2bn in 2018. Payments in 2019 and
2020 of EUR 2.25bn each will depend on the target amount of the guarantee fund
being kept unchanged at 50% after 2018. Commitment appropriations will amount
to EUR 1.35bn in 2015, EUR 2.03bn in 2016, EUR 2.641bn in 2017 and EUR 1.979bn
in 2018. The progressive financing of the guarantee fund should not create
risks for the EU Budget during the first years, since possible guarantee calls
relating to losses incurred will only materialise over time. 
As is the case with the EIB's current
activities, beneficiaries will be charged the costs of the EIB operations under
EFSI. The use of the guarantee by the EIB and the investment of the guarantee
fund's resources should yield a net positive income. EFSI proceeds will be
shared pro-rata among the contributors of risk bearing capacity. Excess
endowment of the guarantee fund may be used to restore the EU guarantee to its
initial amount.
However, two actions will create costs for
the EIB for which the beneficiaries cannot be charged: 
1.           The European Investment Advisory
Hub, created in accordance with Article 2(2) of this proposal, will primarily
be funded from existing envelopes for EIB technical assistance under existing
EU programmes (Connecting Europe Facility, Horizon 2020…).  However, additional
funding of up to a maximum of EUR 20m per year (EUR 10m in 2015) may be
necessary and will be budgeted in accordance with the Financial Statement
attached to this proposal. Any potential costs for the project pipeline will
also be covered.
2.           The EIB will incur administrative
expenses for increasing its financing via the EIF to small and medium
enterprises. Based on current assumptions about the sort of instruments and the
speed of signatures for new operations, this will require the payment of fees
in the order of an accumulated total of EUR 105m, around EUR 48m of which until
2020. Given the possibility of a postponed payment – until income received can
be used for this purpose – these payments are not yet budgeted but only
described in the annex to the Financial Statement.
Costs for the EIB which have neither been
recovered from the beneficiaries nor deduced from the remuneration of the guarantee
granted by the EU may be covered by the EU guarantee, within a cumulative limit
corresponding to 1% of its outstanding amounts. 
Operational appropriations required by this
proposal are to be fully financed within the Multiannual Financial Framework
2014-2020. EUR 6bn are to be reallocated within heading 1A, EUR 2.11bn will be
funded by making use of the Unallocated Margin including the Global Margin for
Commitments. While grant financing from the Connecting Europe Facility and
Horizon 2020 will be reduced, the multiplier effect generated by the EFSI will
allow for a significant overall increase of investment in the policy areas
covered by those two existing programmes.
5.           ADDITIONAL INFORMATION
The financial envelope of this proposal
does not explicitly include contributions from Member States or other third
parties to any of the structures it creates. However, Article 1(2) explicitly
allows for those parties interested to join the EFSI agreement by means of
capital contributions to the Fund.
If Member States decide to make
contributions to the EFSI, the Commission has indicated that it will take a
favourable position towards such contributions in the context of its assessment
of public finances according to Article 126 of the Treaty on the Functioning of
the European Union and Regulation (EC) No 1467/1997. The Commission
Communication ("Making the best use of the flexibility within the existing
rules of the Stability and Growth Pact") of 13 January 2015 sets out the
specific considerations applicable in this scenario.
2015/0009 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on the European Fund for Strategic
Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 172, 173, and
Article 175(3) and Article 182(1) thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national parliaments,
Having regard to the opinions of the
European Economic and Social Committee and the Committee of the Regions,
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       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. 
(2)       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.
(3)       The G20, through the
Global Infrastructure Initiative, has recognised the importance of investment
in boosting demand and lifting productivity and growth and has committed to
creating a climate that facilitates higher levels of investment.
(4)       Throughout the economic
and financial crisis, the Union has made efforts to promote growth, in
particular through initiatives set out in the Europe 2020 strategy that put in
place an approach for smart, sustainable and inclusive growth. The European
Investment Bank ('EIB') has also strengthened its role in instigating and
promoting investment within the Union, partly by way of an increase in capital
in January 2013. Further action is required to ensure that the investment needs
of the Union are addressed and that the liquidity available on the market is
used efficiently and channelled towards the funding of viable investment projects.
(5)       On 15 July 2014, the then
President-elect of the European Commission presented a set of Political
Guidelines for the European Commission to the European Parliament. These
Political Guidelines called for the mobilisation of "up to EUR 300 billion
in additional public and private investment in the real economy over the next
three years" to stimulate investment for the purpose of job creation.
(6)       On 26 November 2014, the
Commission presented a communication entitled "An Investment Plan for
Europe"[1]
that envisaged the creation of a European Fund for Strategic Investments
('EFSI'), a transparent pipeline of investment projects at European level, the
creation of an advisory hub (European Investment Advisory Hub – 'EIAH') and an
ambitious agenda to remove obstacles to investment and complete the Single
Market.
(7)       The European Council on 18
December 2014 concluded that "fostering investment and addressing market
failure in Europe is a key policy challenge" and that "The new focus
on investment, coupled with Member States' commitment to intensifying
structural reforms and to pursuing growth-friendly fiscal consolidation, will
provide the foundation for growth and jobs in Europe and calls for setting up a
European Fund for Strategic Investments (EFSI) in the EIB Group with the
aim to mobilise 315 billion euro in new investments between 2015 and
2017". 
(8)       The EFSI is part of a
comprehensive approach to address uncertainty surrounding public and private
investments. The strategy has three pillars: mobilising finance for investment,
making investment reach the real economy and improving the investment
environment in the Union.
(9)       The investment environment
within the Union should be improved by removing barriers to investment,
reinforcing the Single Market and by enhancing regulatory predictability. The
work of the EFSI, and investments across Europe generally, should benefit from
this accompanying work.
(10)     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.
(11)     The EFSI should support
strategic investments with high economic value added contributing to achieving
Union policy objectives.
(12)     Many small and medium
enterprises, as well as mid-cap companies, across the Union require assistance
to attract market financing, especially as regards investments that carry a
greater degree of risk. The EFSI should help these businesses to overcome
capital shortages by allowing the EIB and the European Investment Fund ('EIF')
to provide direct and indirect equity injections, as well as to provide
guarantees for high-quality securitisation of loans, and other products that
are granted in pursuit of the aims of the EFSI. 
(13)     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 ('EIF') to benefit from its experience in these
activities.
(14)     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.  
(15)     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.
(16)     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.
(17)     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.
(18)     In order to enable the EFSI
to support investments, the Union should grant a guarantee of an amount equal
to EUR 16 000 000 000. When provided on a portfolio basis, the guarantee
coverage should be capped depending upon the type of instrument, such as debt,
equity or guarantees, as a percentage of the volume of the portfolio of
outstanding commitments. It is expected that when the guarantee is combined
with EUR 5 000 000 000 to be provided by the EIB, that the EFSI support should
generate EUR 60 800 000 000 additional investment by the EIB and EIF. This EUR
60 800 000 000 supported by the EFSI is expected to generate a total of EUR 315
000 000 000 in investment in the Union within the period 2015 to 2017.
Guarantees that are attached to projects which are completed without a call on
a guarantee are available for supporting new operations. 
(19)     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. 
(20)     At the level of projects,
third parties may co-finance together with EFSI on a project-by-project basis
or in investment platforms related to specific geographic or thematic sectors. 
(21)     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.
(22)     In accordance with the
Treaty on the Functioning of the European Union, Infrastructure and project
investments supported under EFSI should be consistent with State aid rules. To
that end, the Commission has announced that it will formulate a set of core
principles, for the purpose of State aid assessments, which a project will have
to meet to be eligible for support under the EFSI. If a project meets these
criteria and receives support from the EFSI, the Commission has announced that
any national complementary support, will be assessed under a simplified and
accelerated State aid assessment whereby the only additional issue to be
verified by the Commission will be the proportionality of public support
(absence of overcompensation). The Commission has also announced that it will
provide further guidance on the set of core principles with a view to ensuring
an efficient use of public funds.
(23)     Given the need for urgent
action within the Union, the EIB and the EIF may have financed additional
projects, outside of their usual profile, in the course of 2015 before the
entry into force of this Regulation. In order to maximise the benefit of the
measures provided for in this Regulation, it should be possible for such
additional projects to be included within the EU guarantee coverage in the
event that they fulfil the substantive criteria set out in this Regulation.
(24)     EIB financing and
investment operations supported by the EFSI should be managed in accordance
with the EIB’s own rules and procedures, including appropriate control measures
and measures taken to avoid tax evasion, as well as with the relevant rules and
procedures concerning the European Anti-Fraud Office (OLAF) and the Court of
Auditors, including the Tripartite agreement between the European Commission,
the European Court of Auditors and the European Investment Bank.
(25)     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.
(26)     Alongside the financing
operations that will be conducted through the EFSI, a European Investment
Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened
support for project development and preparation across the Union, by building
on the expertise of the Commission, the EIB, national promotional banks and the
managing authorities of the European Structural and Investment Funds. This
should establish a single point of entry for questions related to technical
assistance for investments within the Union.
(27)     In order to cover the risks
related to the EU guarantee to the EIB, a guarantee fund should be established.
The guarantee fund should be constituted by a gradual payment from the Union
budget. The guarantee fund should subsequently also receive revenues and
repayments from projects that benefit from EFSI support and amounts recovered
from defaulting debtors where the guarantee fund has already honoured the
guarantee to the EIB.
(28)     The guarantee fund is
intended to provide a liquidity cushion for the Union budget against losses
incurred by the EFSI in pursuit of its objectives. Experience on the nature of
investments to be supported by the EFSI indicates that a ratio of 50% between
the payments from the Union budget and from the Union's total guarantee
obligations would be adequate.
(29)     To partially finance the
contribution from the Union budget, the available envelopes of the Horizon 2020
– the Framework Programme for Research and Innovation 2014-2020, provided by
Regulation (EU) No 1291/2013 of the European Parliament
and of the Council[2], and the Connecting Europe Facility, provided by Regulation (EU) No
1316/2013 of the European Parliament and of the Council[3], should be reduced.
Those programmes serve purposes that are not replicated by the EFSI. However,
the reduction of both programmes to finance the guarantee fund is expected to
ensure a greater investment in certain areas of their respective mandates than
is possible through the existing programmes. The EFSI should be able to
leverage the EU guarantee to multiply the financial effect within those areas
of research, development and innovation and transport, telecommunications and
energy infrastructure compared to if the resources had been spent via grants
within the planned Horizon 2020 and Connecting Europe Facility programmes. It
is, therefore, appropriate to redirect part of the funding presently envisaged
for those programmes to the benefit of EFSI.
(30)     Given the nature of their
constitution, neither the EU guarantee to the EIB nor the guarantee fund are
'financial instruments' within the meaning of Regulation (EU) No 966/2012 of
the European Parliament and of the Council[4].

(31)     Within the Union, there are
a significant number of potentially viable projects that are not being financed
due to a lack of certainty and transparency with respect to such projects.
Often, this is because private investors are not aware of the projects or have
insufficient information to make an assessment of the investment risks. The
Commission and the EIB, with support from the Member States, should promote the
creation of a transparent pipeline of current and future investment projects in
the Union suitable for investment. This 'project pipeline' should ensure that
information is made publicly available regarding investment projects on a
regular and structured basis to ensure that investors have reliable information
on which to base their investment decisions.
(32)     Member States have also
begun work at national level on establishing and promoting project pipelines
for projects of national significance. The information prepared by the
Commission and the EIB should provide links to the accompanying national
project pipelines.
(33)     Although the projects
identified under the project pipeline may be used by the EIB in the
identification and selection of EFSI supported projects, the project pipeline
should have a broader scope of identifying projects across the Union. This
scope may include projects that are capable of being fully financed by the
private sector or with the assistance of other instruments provided at European
or national level. The EFSI should be able to support financing and investment
to projects identified by the project pipeline, but there should be no
automaticity between inclusion on the list and access to EFSI support and the
EFSI be conferred with discretion to select and support projects that are not
included on the list.
(34)     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.
(35)     In order to ensure an
appropriate coverage of the EU guarantee obligations and to ensure the
continued availability of the EU guarantee, the power to adopt acts in
accordance with Article 290 of the Treaty on the Functioning of the European
Union should be delegated to the Commission with respect to the adjustment of
the amounts to be paid in from the general budget of the Union and to amend
Annex I accordingly. It is of particular importance that the Commission carry
out appropriate consultations during its preparatory work, including at expert
level. The Commission, when preparing and drawing up delegated acts, should
ensure a simultaneous, timely and appropriate transmission of relevant
documents to the European Parliament and to the Council.
(36)     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,
HAVE ADOPTED THIS REGULATION:
CHAPTER I -European Fund for Strategic
Investments 
Article 1
European Fund for Strategic Investments
1.           The Commission shall
conclude an agreement with the European Investment Bank (EIB) on the
establishment of a European Fund for Strategic Investments ('EFSI'). 
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
('EFSI Agreement'). 
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.
Article 2
Terms of the EFSI Agreement
1.           The EFSI Agreement shall
contain, in particular, the following:
(a)         
provisions governing the establishment of the
EFSI as a distinct, clearly identifiable and transparent guarantee facility and
separate account managed by the EIB; 
(b)         
the amount and terms of the financial
contribution which shall be provided by the EIB through the EFSI;
(c)         
the terms of the funding which shall be provided
by the EIB through the EFSI to the European Investment Fund ('EIF'); 
(d)        
the governance arrangements concerning the EFSI,
in accordance with Article 3, without prejudice to the Statute of the European
Investment Bank; 
(e)         
detailed rules on the provision of the EU
guarantee, in accordance with Article 7, including its capped coverage of
portfolios of specific types of instruments, calls on the EU
guarantee, that – with the exception of possible losses on equity -  shall
only occur once a year after profits and losses from operations have been
netted, and its remuneration and the requirement that remuneration for
risk-taking be allocated amongst contributors in proportion with their
respective risk share;
(f)          
provisions and procedures relating to recovery
of claims;
(g)         
requirements governing the use of the EU
guarantee, including within specific time frames and key performance
indicators;
(h)         
provisions on the financing necessary for the
EIAH in accordance with the third subparagraph of paragraph 2;
(i)           
provisions governing the manner in which third
parties may co-invest with EIB financing and investment operations supported by
the EFSI;
(j)           
the modalities of the EU guarantee coverage. 
The EFSI Agreement shall provide that there is
a clear distinction between operations carried out with the EFSI support and
other operations of the EIB.
The EFSI Agreement shall provide that EFSI
activities conducted by the EIF are to be governed by the EIF governing bodies.

The EFSI Agreement shall provide that
remuneration attributable to the Union from EFSI supported operations shall be
provided following the deduction of payments due to calls on the EU guarantee
and, subsequently, costs in accordance with the third subparagraph of paragraph
2 and with Article 5(3). 
2.           The EFSI Agreement shall
provide for the creation of a European Investment Advisory Hub ('EIAH') 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. 
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 be partially financed by the
Union up to a maximum amount of EUR 20 000 000 per year during the period
ending on 31 December 2020 for the additional services provided for by the EIAH
over existing EIB technical assistance.  For the years after 2020 the financial
contribution from the Union shall be directly linked to the provisions included
in the future multi-annual financial frameworks.
3.           Member States that become
parties to the EFSI Agreement shall be able to provide their contribution, in
particular, in the form of cash or a guarantee acceptable to the EIB. Other
third parties shall be able to provide their contribution only in cash.
Article 3
Governance of the EFSI
1.           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(2). 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(2), 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. 
CHAPTER II -EU Guarantee and EU
Guarantee Fund
Article 4
EU Guarantee
The Union shall provide a guarantee to the
EIB for financing or investment operations carried out within the Union covered
by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a
guarantee on demand in respect of instruments referred to in Article 6.
Article 5
Requirements for use of the EU guarantee
1.           The granting of the EU
guarantee shall be subject to the entry into force of the EFSI Agreement.
2.           The EU guarantee shall be
granted for EIB financing and investment operations approved by the Investment
Committee referred to in Article 3(5) or funding to the EIF in order to conduct
EIB financing and investment operations in accordance with Article 7(2). The
operations concerned shall be consistent with Union policies and support any of
the following general objectives:
(a)         
development of infrastructure, including in the
areas of transport, particularly in industrial centres; energy, in particular
energy interconnections; and digital infrastructure; 
(b)         
investment in education and training, health,
research and development, information and communications technology and
innovation; 
(c)         
expansion of renewable energy and energy and
resource efficiency;
(d)        
infrastructure projects in the environmental,
natural resources, urban development and social fields;
(e)         
providing financial support for the companies
referred to in Article 1(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.
3.           In accordance with Article
17 of the Statute of the European Investment Bank, the EIB shall charge the
beneficiaries of the financing operations to cover its expenses related to the
EFSI. Without prejudice to sub-paragraph 2 and 3, no administrative
expenditure or any other fees of the EIB for financing and investment
activities conducted by the EIB under this Regulation shall be covered from the
Union budget.
             The EIB may call the EU
guarantee, in accordance with Article 2(1)(e), within a cumulated maximum limit
corresponding to 1% of the total outstanding EU guarantee obligations to
cover expenses that whilst charged to beneficiaries of the financing
operations, have not been recovered. 
             Fees of the EIB
should the EIB provide funding to the EIF on behalf of the EFSI which is backed
by the EU guarantee in accordance with Article 7(2) may be covered from
the Union budget.
4.           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.
Article 6
Eligible Instruments
For the purposes of Article 5(2), the EIB
shall use the EU Guarantee towards risk coverage for instruments as a rule on a
portfolio basis. 
Individual instruments eligible for
coverage or portfolios may be composed of the following Instruments:
(a)                   
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; 
(b)                   
EIB funding to the EIF enabling it to undertake
loans, guarantees, counter-guarantees, any other form of credit enhancement
instrument, capital market instruments and equity or quasi-equity
participations. These Instruments shall be granted, acquired or issued for the
benefit of operations carried out in the Union, in compliance with this
Regulation and where EIF financing has been granted in accordance with a signed
agreement which has neither expired nor been cancelled.
Article 7
Coverage and terms of the EU guarantee
1.           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 2 500 000 000 may be allocated for EIB funding to the EIF in
accordance with paragraph 2.  Without prejudice to Article 8(9), 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.
Article 8
EU guarantee fund
1.           An EU guarantee fund
('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:
(a)         
payments from the general budget of the Union,
(b)         
returns on guarantee fund resources invested,
(c)         
amounts recovered from defaulting debtors in
accordance with the recovery procedure laid down in the EFSI Agreement as
provided for in Article 2(1)(f),
(d)        
any other payments received by the Union in
accordance with the EFSI Agreement.
3.           Endowments to the
guarantee fund provided for in points (c) and (d) of paragraph 2 shall
constitute internal assigned revenues in accordance with Article 21(4) of
Regulation (EU) 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 ('target amount'). 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(a). 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 (b), (c) and  (d) 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(3). 
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:
(a)         
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,
(b)         
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 (b), (c) and  (d) of paragraph 2 over and above the target amount shall
be used to restore the EU guarantee up to its initial amount.
CHAPTER III- European investment
project pipeline
Article 9
European investment project pipeline
1.           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(5).
2.           The Commission and the EIB
shall develop, update and disseminate, on a regular and structured basis,
information on current and future investments which significantly contribute to
achieving EU policy objectives. 
3.           Member States shall
develop, update and disseminate, on a regular and structured basis, information
on current and future investment projects in their territory. 
CHAPTER IV- Reporting, accountability
and evaluation
Article 10
Reporting and accounting
1.           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(1)(g). 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: 
(a)         
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(2); 
(b)         
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;
(c)         
an assessment of the financial benefit
transferred to beneficiaries of EIB financing and investment operations on an
aggregated basis; 
(d)        
an assessment of the quality of EIB financing
and investment operations;
(e)         
detailed information on calls on the EU
guarantee; 
(f)          
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:
(a)         
 the EIB's and EIF's risk assessment and grading
information concerning EIB financing and investment operations; 
(b)         
the outstanding financial obligation for the EU
concerning the guarantees provided towards EIB financing and investment
operations broken down by the individual operations;
(c)         
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(1)(e).
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.
Article 11
Accountability
1.           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. 
2.           The Managing Director
shall reply orally or in writing to questions addressed to the EFSI by the
European Parliament, in any event within five weeks of receipt of a question. 
3.           At the request of the
European Parliament, the Commission shall report to the European Parliament on
the application of this Regulation.
Article 12
Evaluation and Review
1.           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(9). The Commission shall
submit its evaluation to the European Parliament and the Council.
2.           By 30 June 2018 and every
three years thereafter:
(a)         
the EIB shall publish a comprehensive report on
the functioning of the EFSI;
(b)         
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.
CHAPTER V-General provisions
Article 13
Transparency and public disclosure of information
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(2). 
Article 14
Auditing by the Court of Auditors
The EU guarantee and the payments and
recoveries under it that are attributable to the general budget of the Union
shall be audited by the Court of Auditors.
Article 15
Anti-fraud measures
1.           The EIB shall notify OLAF
promptly and provide it with the necessary information when, at any stage of
the preparation, implementation or closure of operations subject to the EU
guarantee, it has grounds to suspect that there is a potential case of fraud,
corruption, money laundering or other illegal activity that may affect the
financial interests of the Union.
2.           OLAF may carry out
investigations, including on-the-spot checks and inspections, in accordance
with the provisions and procedures laid down in Regulation (EU, Euratom) No
883/2013 of the European Parliament and of the Council([5]), Council Regulation
(Euratom, EC) No 2185/96([6])
and Council Regulation (EC, Euratom) No 2988/95 ([7]) in order to protect
the financial interests of the Union, with a view to establishing whether there
has been fraud, corruption, money laundering or any other illegal activity
affecting the financial interests of the Union in connection with any
operations supported by the EU guarantee. OLAF may transmit to the competent
authorities of the Member States concerned information obtained in the course
of investigations. 
Where such illegal activities are proven, the
EIB shall undertake recovery efforts with respect to its operations supported
by the EU guarantee.
3.           Financing agreements
signed in relation to operations supported under this Regulation shall include
clauses allowing exclusion from EIB financing and investment operations and, if
necessary, appropriate recovery measures in cases of fraud, corruption or other
illegal activity in accordance with the EFSI Agreement, EIB policies and
applicable regulatory requirements. The decision whether to apply an exclusion
from the EIB financing and investment operation shall be taken in accordance
with the relevant financing or investment agreement.. 
Article 16
Excluded activities and non-cooperative jurisdictions
1.           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.
2.           In its financing and
investment operations, the EIB shall apply the principles and standards set out
in Union law on the prevention of the use of the financial system for the
purpose of money laundering and terrorist financing, including a requirement to
take reasonable measures to identify the beneficial owners where applicable.
Article 17
Exercise of the delegation
1.           The power to adopt
delegated acts is conferred on the Commission subject to the conditions laid
down in this Article. 
2.            The power to adopt
delegated acts referred to in Article 8(6) shall be conferred on the Commission
for a period of three years from the entry into force of this Regulation. The
Commission shall draw up a report in respect of the delegation of power not
later than nine months before the end of the three-year period. The delegation
of power shall be tacitly extended for periods of an identical duration, unless
the European Parliament or the Council opposes such extension not later than
three months before the end of each period. 
3.           The delegation of power
referred to in Article 8(6) may be revoked at any time by the European
Parliament or by the Council. A decision to revoke shall put an end to the
delegation of the power specified in that decision. It shall take effect the
day following the publication of the decision in the Official Journal of the
European Union or at a later date specified therein. It shall not affect the
validity of any delegated acts already in force. 
4.           As soon as it adopts a
delegated act, the Commission shall notify it simultaneously to the European
Parliament and to the Council. 
5.           A delegated act adopted
pursuant to Article 8(6) shall enter into force only if no objection has been
expressed either by the European Parliament or by the Council within a period
of two months of notification of that act to the European Parliament and the
Council or if, before the expiry of that period, the European Parliament and
the Council have both informed the Commission that they will not object. That
period shall be extended by two months at the initiative of the European
Parliament or of the Council. 
CHAPTER VI- Amendments
Article 18
Amendments to Regulation (EU) No 1291/2013
Regulation (EU) No 1291/2013 is hereby
amended as follows:
(1)        In Article 6, paragraphs 1, 2
and 3 are replaced by the following:
'1.        The financial envelope for the
implementation of Horizon 2020 is set at EUR 74 328,3 million in current
prices, of which a maximum of EUR 71 966,9 million shall be allocated to
activities under Title XIX TFEU. 
The annual appropriations shall be
authorised by the European Parliament and by the Council within the limits of
the multiannual financial framework.
2.         The amount for activities under
Title XIX TFEU shall be distributed among the priorities set out in Article
5(2) of this Regulation as follows: 
(a) Excellent science, EUR 23 897,0 million
in current prices; 
(b) Industrial leadership, EUR 16 430,5 million
in current prices; 
(c) Societal challenges, EUR 28 560,7 
million in current prices. 
The maximum overall amount for the Union
financial contribution from Horizon 2020 to the specific objectives set out in
Article 5(3) and to the non-nuclear direct actions of the JRC shall be as
follows: 
(i) Spreading excellence and widening
participation, EUR 782,3 million in current prices; 
(ii) Science with and for society, EUR
443,8 million in current prices; 
(iii) Non-nuclear direct actions of the
JRC, EUR 1 852,6 million in current prices. 
The indicative breakdown for the priorities
and specific objectives set out in Article 5(2) and (3) is set out in Annex II.

3.         The EIT shall be financed
through a maximum contribution from Horizon 2020 of EUR 2 361,4 million in
current prices as set out in Annex II.'
(2)        Annex II is replaced by the text
set out in Annex I to this Regulation.
Article 19
Amendment to Regulation (EU) No 1316/2013
In Article 5 of Regulation (EU) No
1316/2013, paragraph 1 is replaced by the following:
'1.        The financial envelope for the
implementation of the CEF for the period 2014 to 2020 is set at EUR 29 942 259
000 (*) in current prices. That amount shall be distributed as follows: 
(a) transport sector: EUR 23 550 582 000,
of which EUR 11 305 500 000 shall be transferred from the Cohesion Fund to be
spent in line with this Regulation exclusively in Member States eligible for
funding from the Cohesion Fund; 
(b) telecommunications sector: EUR 1 041
602 000; 
(c) energy sector: EUR 5 350 075 000. 
These
amounts are without prejudice to the application of the flexibility mechanism
provided for under Council Regulation (EU, Euratom) No 1311/2013(*). 
(*) Council Regulation (EU, Euratom) No
1311/2013 of 2 December 2013 laying down the multiannual financial framework
for the years 2014-20 (OJ L 347, 20.12.2013, p. 884).'
CHAPTER VII-Transitional and final
provisions
Article 20
Transitional provision
Financing and investment operations signed
by the EIB or EIF, during the period from 1 January 2015 to the conclusion of
the EFSI Agreement, may be submitted by the EIB or the EIF to the Commission
for coverage under the EU guarantee. 
The Commission shall assess those
operations and, where they comply with the substantive requirements set out in
Article 5 and in the EFSI Agreement, decide that the EU guarantee coverage
extends to them.
Article 21
Entry into force 
This Regulation shall enter into force on
the third day following that of its publication in the Official Journal of
the European Union.
This Regulation shall be binding
in its entirety and directly applicable in all Member States.
Done at Strasbourg,
For the European Parliament                        For
the Council
The President                                                 The
President
LEGISLATIVE FINANCIAL STATEMENT
1. FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
              1.1.    Title of the proposal/initiative 
              1.2.    Policy
area(s) concerned in the ABM/ABB structure
              1.3.    Nature
of the proposal/initiative 
              1.4.    Objective(s)

              1.5.    Grounds
for the proposal/initiative 
              1.6.    Duration
and financial impact 
              1.7.    Management
mode(s) planned 
2.           MANAGEMENT MEASURES 
              2.1.    Monitoring
and reporting rules 
              2.2.    Management
and control system 
              2.3.    Measures
to prevent fraud and irregularities 
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
              3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected 
              3.2.    Estimated
impact on expenditure 
              3.2.1. Summary of
estimated impact on expenditure 
              3.2.2. Estimated impact
on operational appropriations 
              3.2.3. Estimated impact
on appropriations of an administrative nature
              3.2.4. Compatibility
with the current multiannual financial framework
              3.2.5. Third-party
contributions 
              3.3.    Estimated impact on revenue
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
1.1.        Title of the proposal/initiative

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL on the European Fund for Strategic Investments and amending Regulations
(EU) No 1291/2013 and (EU) No 1316/2013
1.2.        Policy area(s) concerned
in the ABM/ABB structure[8]

Policy area: Economic and Financial Affairs
ABB Activity: Financial operations and instruments
For a detailed account of the ABB Activities, refer to Section 3.2
Policy area: Mobility and Transport
Policy area: Communications networks, content and technology
Policy area: Energy
1.3.        Nature of the
proposal/initiative 
X The proposal/initiative relates to a new action 
¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[9] 
¨ The
proposal/initiative relates to the extension of an existing action 
X The proposal/initiative relates to an action redirected towards a
new action 
1.4.        Objective(s)
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative 
Supporting growth-enhancing investments in line
with Union budgetary priorities, especially in the areas of: 
1)       Strategic infrastructure (Digital and
energy investments in line with the EU policies)
2)       Transport infrastructure in industrial
centres, education, research and innovation
3)       Investments boosting employment, in
particular through SME funding and measures for youth employment
1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned 
Specific objective No 1
Increasing the number and volume of European Investment Bank (EIB)
financing and investment operations in priority areas
Specific objective No 2
Increasing the volume of European Investment Fund (EIF) financing
for small and medium enterprises
Specific objective No 3
Creating a European Investment Advisory Hub
ABM/ABB activity(ies) concerned:
ECFIN: Financial operations and instruments
1.4.3.     Expected result(s) and
impact
Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.
The initiative should allow the European Investment Bank and the
European Investment Fund to carry out financing and investment operations in
the areas mentioned under 1.4.1 with larger financing volume and, in the case
of the EIB, with riskier but still “economically viable projects.
A multiplier effect should be generated by means of the provision of
an EU guarantee to the EIB, so that EUR 1 of the EU guarantee under this
initiative could generate EUR 15 invested in projects.
Thereby the initiative should help mobilise funding for projects of
at least €315bn until 2020. This should help raise overall investments in the
Union and thereby potential and actual growth and employment.
1.4.4.     Indicators of results and
impact 
Specify the
indicators for monitoring implementation of the proposal/initiative.
The objective is to increase investments in strategic areas as
listed under 1.4.1. 
In that context, the following indicators will be applied:
- The number of projects/SMEs having received EIB/EIF financing
under the initiative.
- The achieved average multiplier effect. The expected multiplier
effect is around 15 in terms of the use of the EU guarantee compared to the
total investment raised for the projects supported under the initiative and the
terms of the transactions.
- The cumulative volume of funding raised for supported projects
The monitoring of the results will be based on the reporting by the
EIB and market research.
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Added value of EU
involvement
The initiative will provide for economies of scale in the use of
innovative financial instruments by catalysing private investment in the whole
Union and making best use of European Institutions and their expertise and
knowledge for that purpose. The absence of geographical limits within the Union
will provide for greater attractiveness and lower risk in the aggregate of
supported projects than it would be possible in single Member States.
1.5.2.     Lessons learned from
similar experiences in the past
The Commission has gained valuable experience with innovative
financing instruments, notably with the Pilot Phase of the Project Bond
Initiative and the use of existing EU-EIB financial instruments such as those
developed under COSME, Horizon 2020 or the Project Bond Initiative.
1.5.3.     Compatibility and possible
synergy with other appropriate instruments
The initiative is fully compatible with existing programmes under
Heading 1a, notably the Connecting Europe Facility, Horizon 2020 and COSME. 
Synergies will be exploited by making use of existing Commission
expertise in the management of financial resources and the experience acquired
under existing EU-EIB financing instruments.
1.6.        Duration and financial
impact 
¨ Proposal/initiative of limited
duration 
–     
¨  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
–     
¨  Financial impact from YYYY to YYYY 
X Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
followed by full-scale operation.
1.7.        Management mode(s) planned[10] 
X Direct management by the
Commission
–     
X by its departments, including by its staff in
the Union delegations; 
–     
¨  by the executive agencies 
¨ Shared management with the Member States 
¨ Indirect management by entrusting budget implementation tasks to:
–     
¨ third countries or the bodies they have designated;
–     
¨ international organisations and their agencies (to be specified);
–     
¨the EIB and the European Investment Fund;
–     
¨ bodies referred to in Articles 208 and 209 of the Financial
Regulation;
–     
¨ public law bodies;
–     
¨ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;
–     
¨ bodies governed by the private law of a Member State that are
entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;
–     
¨ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.
–       If more than one management mode is
indicated, please provide details in the ‘Comments’ section.
Comments 
The
Guarantee Fund will be under direct management by the Commission.
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
Specify frequency
and conditions.
In accordance with Article 10 of the proposal, the EIB, in
cooperation with the EIF as appropriate, shall report semi-annually to the
Commission on EIB financing and investment operations. In addition, 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.  By
30 June of each year, the Commission is required to 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 year.
In accordance with Article 12 of the proposal, the EIB shall
evaluate the functioning of the European Fund for Strategic Investments (EFSI)
and provide its evaluation to the European Parliament, the Council and the
Commission. Moreover, the Commission shall evaluate the use of the EU guarantee
and the functioning of the Guarantee Fund and provide into the European
Parliament and the Council. A comprehensive report on the functioning of the
EFSI is required by 30 June 2018 and every three years thereafter, as well as a
comprehensive report on the use of the EU guarantee and the functioning of the
Guarantee Fund.
2.1.1.     Management and control
system
Article 14 of the proposal establishes that the EU guarantee and the
payments and recoveries under it attributable to the general budget of the
Union shall be audited by the Court of Auditors.
EIB financing and investment operations will be managed by the EIB
in accordance with its own rules and procedures, including appropriate audit,
control and monitoring measures. As foreseen in the EIB Statute, the Audit
Committee of the EIB, which is supported by external auditors, is responsible
for verifying the regularity of the EIB operations and accounts. The EIB
accounts are approved annually by its Board of Governors.
Furthermore, the EIB Board of Directors, where the Commission is
represented by a Director and an alternate Director, approves each EIB
financing and investment operation and monitors that the EIB is managed in
accordance with its Statute and with the general directives laid down by the
Board of Governors.
The existing tripartite agreement between the Commission, the Court
of Auditors and the EIB of October 2003 details the rules under which the Court
of Auditors is to carry out its audits on the EIB Financing Operations under EU
guarantee.
2.1.2.     Risk(s) identified 
The EIB financing and investment operations covered by the Union
guarantee carry a non-negligible financial risk. The probability of a call upon
the guarantee is tangible. However, it is estimated that the Guarantee Fund
provides the protection required for the Union budget. Projects themselves may
be subject to implementation delays and cost overruns.
Even if based on conservative assumptions, the cost-efficiency of
the initiative could suffer from insufficient market-uptake of the instruments
and changing market conditions over time reducing the assumed multiplier
effect.
In accordance with Article 8(4) of the proposal, the resources of
the Guarantee Fund are to be invested. Those investments will bear an
investment risk (e.g. market and credit risk) and some operational risk.
2.1.3.     Information concerning the
internal control system set up
The EFSI will 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. 
Decisions on the use of the EFSI support for infrastructure and
larger mid-cap projects are to 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 will be
accountable to the Steering Board, who supervises the fulfilment of the EFSI's
objectives. 
There will also be a Managing Director responsible for the
day-to-day management of the EFSI and preparation of the meeting of the
Investment Committee. The Managing Director shall be directly accountable to
the Steering Board and shall report every quarter on the activities of the EFSI
to the Steering Board. The Managing Director will be appointed by the Steering
Board on a joint proposal of the EIB for a renewable fixed term of three years.
The Commission will manage the assets of the Guarantee Fund in
accordance with the Regulation and under its internal rules and procedures in
force. 
2.2.        Measures to prevent fraud
and irregularities 
Specify existing or
envisaged prevention and protection measures.
Article 15 of the proposal clarifies the competence of the European
Anti-Fraud Office (OLAF) to carry out investigations on operations supported
under this initiative. In accordance with the EIB Board of Governors' Decision
of 27 July 2004 concerning the EIB’s cooperation with OLAF, the Bank has
established specific rules for cooperation with OLAF in connection with
possible cases of fraud, corruption or any other illegal activity detrimental
to the financial interests of the Communities.
Beyond that, the EIB's rules and procedures are applicable. Notably
those include the EIB internal Investigation Procedures approved by  the EIB  Management
Committee in March 2013. Furthermore, in September 2013, the EIB adopted its
"Policy on preventing and deterring Prohibited Conduct in European Investment
Bank activities" (EIB Anti-Fraud Policy).
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
·      For existing budget lines, refer to Section 3.2
·      New budget lines requested 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
   || Diff./Non-diff.[11] || from EFTA countries[12]   || from candidate countries[13]   || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
 1a || 01.0404 – Guarantee for the EFSI || Diff. || NO || NO || NO || NO 
 1a || 01.0405 – Provisioning of the EFSI Guarantee Fund || Diff. || NO || NO || NO || NO 
 1a || 01.0406 – European Investiment Advisory Hub || Diff. || NO || NO || NO || NO 
3.2.        Estimated impact on
expenditure 
EUR million (to three decimal places)
 Sources of financing for the European Fund for Strategic Investments || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total 
 CONNECTING EUROPE FACILITY, of which || 790 || 770 || 770 || 970 ||   ||   || 3300 
 06.020101 – Removing bottlenecks, enhancing rail interoperability, bridging missing links and improving cross-border sections 06.020102 – Ensuring sustainable and efficient transport systems 06.020103 – Optimising the integration and interconnection of transport modes and enhancing interoperability || 560.3 34.9   104.8 || 520.3 32.4   97.3 || 480.3 29.9   89.8 || 600.3 37.4   112.3 ||   ||   || 2161.2 134.6   404.2 
 09.0303 – Promoting interoperability, sustainable deployment, operation and upgrading of trans-European digital service infrastructures, as well as coordination at European level ||   ||   || 50 || 50 ||   ||   || 100 
 32.020101 – Further integration of the internal energy market and the interoperability of electricity and gas networks across borders 32.020102 - Enhancing Union security of energy supply 32.020103 - Contributing to sustainable development and protection of the environment     || 30 30 30 || 40 40 40 || 40 40 40 || 56.7 56.6 56.7 ||   ||   || 166.7 166.6 166.7 
 HORIZON 2020, of which || 70 || 860 || 871 || 479 || 150 || 270 || 2700 
 02.040201 – Leadership in space 02.040203 – Increasing innovation in small and medium-sized enterprises (SMEs) 02.040301 – Achieving a resource-efficient and climate change resilient economy and a sustainable supply of raw materials 02.040302 – Fostering secure European societies || 11 1.8 3.7 7.5 || 29.9 2.1 7.0 25 || 27.9 6.1 7 25 || 11.6 6.5 17.5 10.4 ||   ||   || 80.4 16.5 35.2 67.9 
 05.090301 – Securing sufficient supplies of safe and high quality food and other bio-based products ||   || 30 || 37 || 33 ||   ||   || 100 
 06.030301 – Achieving a resource-efficient, environmentally-friendly, safe and seamless European transport system ||   || 37 || 37 || 26 ||   ||   || 100 
 08.020101 – Strengthening frontier research in the European Research Council 08.020103 – Strengthening European research infrastructures, including e-infrastructures 08.020201 - Leadership in nanotechnologies, advanced materials, laser technology, biotechnology and advanced manufacturing and processing 08.020203 – Increasing innovation in small and medium-sized enterprises (SMEs) 08.020301 – Improving lifelong health and wellbeing 08.020302 - Securing sufficient supplies of safe, healthy and high quality food and other bio-based products 08.020303 - Making the transition to a reliable, sustainable and competitive energy system 08.020304 - Achieving a European transport system that is resource-efficient, environmentally friendly, safe and seamless 08.020305 - Achieving a resource-efficient and climate change resilient economy and a sustainable supply of raw materials 08.020306 – Fostering inclusive, innovative and reflective European societies 08.0204 – Spreading excellence and widening participation 08.0206 – Science with and for society || || 91.3 17.7 38.3 3.4 51.3 8.5 30.9 12.5 28.1 10.7 9.3 5.1 || 91.0 17.6 38.5 3.4 43.3 10.7 31.2 17.6 27.9 10.6 10.1 5.1 || 14.2 3.9 10.0 0.8 11.9 3.3 6.5 4.2 5.8 2.3 2.0 1.1 || 0.5 8.8 32.6 1.7 26.8 12.6 14.7 26.9 13.0 5.3 4.6 2.6 || 24.2 15.4 49.6 3.0 47.6 18.2 25.9 41.4 22.8 9.3 8.1 4.5 || 221.2 63.3 169.1 12.3 180.9 53.2 109.1 102.4 97.7 38.3 34.2 18.4 
 09.040101 – Strengthening research in future and emerging technologies 09.040102 – Strengthening European research infrastructure, including e-infrastructure 09.040201 – Leadership in information and communications technology 09.040301 – Improving lifelong health and well-being 09.040302 - Fostering inclusive, innovative and reflective European societies 09.040303 – Fostering secure European societies ||   || 35 15.9 120.3 19.2 6.1 7.4 || 45.4 15.3 114.8 15.5 5.8 7.1 || 37.4 10.4 71.7 13.6 3.9 4.9 ||   ||   || 117.9 41.6 306.8 48.3 15.9 19.5 
 10.0201 - Horizon 2020 — Customer-driven scientific and technical support to Union policies || 11 || 12 || 13 || 14 ||   ||   || 50 
 15.030101 - Marie Skłodowska-Curie actions — generating, developing and transferring new skills, knowledge and innovation 15.0305 - European Institute of Innovation and Technology – integrating the knowledge triangle of higher education, research and innovation || 25 || 30 136 || 60 107 || 70 22 || -30 30 || -30 30 || 100 350 
 32.040301 – Making the transition to a reliable, sustainable and competitive energy system || 10 || 40 || 40 || 60 ||   ||   || 150 
 REPROGRAMMING OF ITER OVER 2015 – 2020 08.040102 –Construction, operation and exploitation of the ITER facilities – European Joint Undertaking for ITER – Fusion for Energy (F4E) || 490 ||   ||   || -70 || -150 || -270 || - 
 Unallocated Margin (including the Global Margin for Commitments) ||   || 400 || 1000 || 600 ||   ||   || 2000 
 Total financing sources for the provisioning of the EFSI Guarantee Fund || 1350 || 2030 || 2641 || 1979 ||   ||   || 8000 
 Financing of the European Investment Advisory Hub – 08.040102 –Construction, operation and exploitation of the ITER facilities – European Joint Undertaking for ITER – Fusion for Energy (F4E) || 10 ||   ||   || -10 ||   ||   || - 
 Financing of the European Investment Advisory Hub – Unallocated margin ||   || 20 || 20 || 30 || 20 || 20 || 110 
 TOTAL CONTRIBUTION TO THE EFSI || 1360 || 2050 || 2661 || 1 999 || 20 || 20 || 8110 
3.2.1.     Summary of estimated impact
on expenditure 
EUR million (to three decimal places)
 Heading of multiannual financial framework || 1A || Competitiveness for growth and jobs 
 DG: ECFIN ||   ||   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
  Operational appropriations ||   ||   ||   ||   ||   ||   ||   
 01.0405 || Commitments || (1) || 1350 || 2030 || 2641 || 1979 || 0 || 0 || 8000 
 Payments || (2) || 0 || 500 || 1000 || 2000 || 2250 || 2250 || 8000 
 01.0406 || Commitments || (1a) || 10 || 20 || 20 || 20 || 20 || 20 || 110 
 Payments || (2a) || 10 || 20 || 20 || 20 || 20 || 20 || 110 
 Appropriations of an administrative nature financed from the envelope of specific programmes[14]   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line ||   || (3) ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for DG ECFIN || Commitments || =1+1a +3 || 1360 || 2050 || 2661 || 1999 || 20 || 20 || 8110 
 Payments || =2+2a +3 || 10 || 520 || 1020 || 2020 || 2270 || 2270 || 8110 
  TOTAL operational appropriations || Commitments || (4) || 1360 || 2050 || 2661 || 1999 || 20 || 20 || 8110 
 Payments || (5) || 10 || 520 || 1020 || 2020 || 2270 || 2270 || 8110 
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADING 1A of the multiannual financial framework || Commitments || =4+ 6 || 1360 || 2050 || 2661 || 1999 || 20 || 20 || 8110* 
 Payments || =5+ 6 || 10 || 520 || 1020 || 2020 || 2270 || 2270 || 8110* 
*NB: Additional appropriations may be
required as specified in the annex to this Financial Statement.
If more
than one heading is affected by the proposal / initiative:
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 ||   ||   ||   ||   ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   ||   ||   ||   ||   
 Heading of multiannual financial framework || 5 || ‘Administrative expenditure’ 
EUR million (to three decimal places)
   ||   ||   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 DG: ECFIN || 
  Human resources || 0.264 || 0.528 || 0.792 || 0.924 || 0.924 || 1.056 || 4.488 
  Other administrative expenditure || 0.36 || 0.725 || 0.495 || 0.615 || 0.4 || 0.42 || 3.015 
 TOTAL DG ECFIN ||   || 0.624 || 1.253 || 1.287 || 1.539 || 1.324 || 1.476 || 7.503 
 TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.624 || 1.253 || 1.287 || 1.539 || 1.324 || 1.476 || 7.503 
EUR million (to three decimal places)
   ||   ||   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 1360.624 || 2051.253 || 2662.287 || 2000.539 || 21.324 || 21.476 || 8117.503 
 Payments || 10.624 || 521.253 || 1021.287 || 2021.539 || 2271.324 || 2271.476 || 8117.503 
3.2.2.     Estimated impact on
operational appropriations 
–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
X The proposal/initiative requires the use of
operational appropriations, as explained below:
Commitment appropriations in EUR million (to three
decimal places)
 Indicate objectives and outputs   ò ||   ||   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL || 
 ||
 Type[15]   || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || Total No || Total cost ||
 Specific ObjectiveS no 1:  Increasing the number and volume of EIB financing and investment operations in priority areas and 2: Increasing the volume of EIF financing for small and medium enterprises || 
   ||   ||   ||   || 1350 ||   || 2030 ||   || 2641 ||   || 1979 ||   ||   ||   ||   ||   || 8000 ||
 No 3: creating a european investment advisory hub ||
   ||   ||   ||   || 10 ||   || 20 ||   || 20 ||   || 20 ||   || 20 ||   || 20 ||   || 110 ||
 TOTAL COST ||   || 1360 ||   || 2050 ||   || 2661 ||   || 1999 ||   || 20 ||   || 20 ||   || 8110 || 
3.2.3.     Estimated impact on
appropriations of an administrative nature
3.2.3.1.  Summary 
–     
¨  The proposal/initiative does not require the use of appropriations
of an administrative nature 
–     
X  The proposal/initiative requires the use of
appropriations of an administrative nature, as explained below:
EUR million (to
three decimal places)
   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   
 Human resources || 0.264 || 0.528 || 0.792 || 0.924 || 0.924 || 1.056 || 4.488 
 Other administrative expenditure || 0.36 || 0.725 || 0.495 || 0.615 || 0.4 || 0.42 || 3.015 
 Subtotal HEADING 5 of the multiannual financial framework || 0.624 || 1.253 || 1.287 || 1.539 || 1.324 || 1.476 || 7.503 
 Outside HEADING 5[16] of the multiannual financial framework   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   
 Other expenditure of an administrative nature ||   ||   ||   ||   ||   ||   ||   
 Subtotal outside HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   
 TOTAL || 0.624 || 1.253 || 1.287 || 1.539 || 1.324 || 1.476 || 7.503 
The appropriations
required for human resources and other expenditure of an administrative nature
will be met by appropriations from the DG that are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.
3.2.3.2.  Estimated requirements of
human resources
–     
¨  The proposal/initiative does not require the use of human
resources. 
–     
X  The proposal/initiative requires the use of
human resources, as explained below:
Estimate to be expressed in full time
equivalent units
 ||   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 
 ||  Establishment plan posts (officials and temporary staff) ||   ||   ||   
 || XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 2 || 4 || 6 || 7 || 7 || 8 
 || XX 01 01 02 (Delegations) ||   ||   ||   ||   ||   ||   
 || XX 01 05 01 (Indirect research) ||   ||   ||   ||   ||   ||   
 || 10 01 05 01 (Direct research) ||   ||   ||   ||   ||   ||   
  External staff (in Full Time Equivalent unit: FTE)[17]   || 
 || XX 01 02 01 (AC, END, INT from the ‘global envelope’) ||   ||   ||   ||   ||   ||   
 || XX 01 02 02 (AC, AL, END, INT and JED in the delegations) ||   ||   ||   ||   ||   ||   
 || XX 01 04 yy [18]   || - at Headquarters   ||   ||   ||   ||   ||   ||   
 || - in Delegations ||   ||   ||   ||   ||   ||   
 || XX 01 05 02 (AC, END, INT - Indirect research) ||   ||   ||   ||   ||   ||   
 || 10 01 05 02 (AC, END, INT - Direct research) ||   ||   ||   ||   ||   ||   
 || Other budget lines (specify) ||   ||   ||   ||   ||   ||   
 || TOTAL || 2 || 4 || 6 || 7 || 7 || 8 
XX is the policy area or budget title
concerned.
The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.
Description of
tasks to be carried out:
 Officials and temporary staff || ·           Asset management: portfolio management, quantitative analysis, also supporting analytical work for risk; ·           Support function related to direct management, notably risk management and middle-office payment functions; ·           Management, reporting and follow-up of the guarantees (project pipeline);  ·           Financial reporting/accounting and reporting activities; 
 External staff ||   
3.2.4.     Compatibility with the
current multiannual financial framework 
–     
X  The proposal/initiative is compatible the
current multiannual financial framework.
–     
¨  The proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.
Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.
[…]
–     
¨  The proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework.
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.
[…]
3.2.5.     Third-party contributions 
–     
X  The proposal/initiative does not provide for
co-financing by third parties. 
–     
¨ The proposal/initiative provides for the co-financing estimated
below:
Appropriations in EUR million (to three decimal
places)
   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || Total 
 Specify the co-financing body ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations co-financed ||   ||   ||   ||   ||   ||   ||   ||   
3.3.        Estimated impact on
revenue 
–     
X  The proposal/initiative has no financial
impact on revenue.
–     
¨  The proposal/initiative has the following financial impact:
–                   
¨         on own resources 
–                   
¨         on miscellaneous revenue 
EUR
million (to three decimal places)
 Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative[19] 
 Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) 
 Article …………. ||   ||   ||   ||   ||   ||   ||   ||   
For miscellaneous
‘assigned’ revenue, specify the budget expenditure line(s) affected.
[…]
Specify the method for
calculating the impact on revenue.
[…]
Annex
to the
Legislative
financial statement
to
the
Proposal
for a
REGULATION
OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on
the European Fund for Strategic Investments
In accordance wth Article 8(2) of the proposal,
revenues from the resources in the Guarantee Fund and the European Fund for
Strategic investments shall be allocated to the Guarantee Fund. 
The following payment obligations shall be
met by using said revenues. However, in the case that those resources are not
sufficient to meet those obligations, they shall be met by the Union's budget.
Therefore, they may add to the payment and commitment appropriations as
indicated in this Financial Statement.
EUR million
   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total 
 Increased Assistance by the European Investment Fund (EIF) 
   || 11.5 || 3.6 || 5.7 || 6.8 || 9.0 || 11.7 || 48.3* 
*NB:
Administrative fees to be paid to the EIF by the EIB acting under the EU
guarantee. Beyond 2020, further expenses of approximately €57m are expected.
Figures are based on assumptions on the EIF's product mix and assumptions at
the time of writing but may be subject to major modifications at later stage.
[1]               Communication to the European Parliament, the
Council, the European Central Bank, the European Economic and Social Committee,
the Committee of the Regions and European Investment Bank entitled "An
Investment Plan for Europe". COM(2014) 903 final
[2]               Regulation (EU) No 1291/2013 of the European
Parliament and of the Council of 11 December 2013 establishing Horizon 2020 -
the Framework Programme for Research and Innovation (2014-2020) and repealing
Decision No 1982/2006/EC  (OJ L 347, 20.12.2013, p. 104).
[3]               Regulation (EU) No 1316/2013 of the European
Parliament and of the Council of 11 December 2013 establishing the Connecting
Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations
(EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).
[4]               Regulation (EU, Euratom) No 966/2012 of the European
Parliament and of the Council of 25 October 2012 on the financial rules
applicable to the general budget of the Union and repealing Council Regulation
(EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).
[5]               Regulation (EU, Euratom) No 883/2013 of the European
Parliament and of the Council of 11 September 2013 concerning investigations
conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation
(EC) No 1073/1999 of the European Parliament and of the Council and Council
Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
[6]               Council Regulation (Euratom, EC) No 2185/96 of 11
November 1996 concerning on-the-spot checks and inspections carried out by the
Commission in order to protect the European Communities' financial interests
against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
[7]               Council Regulation (EC, Euratom) No 2988/95 of 18
December 1995 on the protection of the European Communities financial interests
(OJ L 312, 23.12.1995, p. 1).
[8]               ABM: activity-based management; ABB: activity-based
budgeting.
[9]               As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.
[10]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[11]             Diff. = Differentiated appropriations / Non-diff. =
Non-differentiated appropriations.
[12]             EFTA: European Free Trade Association. 
[13]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[14]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former ‘BA’ lines), indirect research, direct research.
[15]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).
[16]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or
actions (former ‘BA’ lines), indirect research, direct research.
[17]             AC= Contract Staff; AL = Local Staff; END= Seconded
National Expert; INT = agency staff; JED= Junior Experts in Delegations. 
[18]             Sub-ceiling for external staff covered by operational
appropriations (former ‘BA’ lines).
[19]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25 % for collection costs.
Annex
I
Annex
II
Breakdown of the
budget
The indicative
breakdown for Horizon 2020 is as follows:
   || EUR million in current prices 
 I Excellent science, of which: || 23 897,0 
    1. European Research Council (ERC) || 12 873,6 
    2. Future and Emerging Technologies (FET) || 2 578,1 
    3. Marie Skłodowska-Curie actions || 6 062,3 
    4. Research infrastructures || 2 383,1 
 II Industrial leadership, of which: || 16 430,5 
    1. Leadership in enabling and industrial technologies (*), (****) || 13 000,7 
    2. Access to risk finance (**) || 2 842,3 
    3. Innovation in SMEs (***) || 587,4 
 III Societal challenges, of which (****) || 28 560,7 
    1. Health, demographic change and well-being || 7 242,6 
    2. Food security, sustainable agriculture and forestry, marine, maritime and inland water research, and the bioeconomy || 3 698,2 
    3. Secure, clean and efficient energy || 5 672,1 
    4. Smart, green and integrated transport || 6 137,0 
    5. Climate action, environment, resource efficiency and raw materials || 2 948,3 
    6. Europe in a changing world – Inclusive, innovative and reflective societies || 1 255,2 
    7. Secure societies – Protecting freedom and security of Europe and its citizens || 1 607,3 
 IV Spreading excellence and widening participation || 782,3 
 V Science with and for society || 443,8 
 VI Non-nuclear direct actions of the Joint Research Centre (JRC) || 1 852,6 
 VII The European Institute of Innovation and Technology (EIT) || 2 361,4 
 TOTAL || 74 328,3 
(*) Including
EUR 7 404 million for Information and Communication Technologies (ICT) of which
EUR 1 539 million for photonics and micro-and nanoelectronics, EUR 3 716
million for nanotechnologies, advanced materials and advanced manufacturing and
processing, EUR 498 million for biotechnology and EUR 1 399 million for space.
As a result, EUR 5 753 million will be available to support Key Enabling
Technologies. 
(**) Around EUR
959 million of this amount may go towards the implementation of Strategic
Energy Technology Plan (SET Plan) projects. Around one third of this may go to
SMEs. 
(***) Within the
target of allocating a minimum of 20 % of the total combined budgets for the
specific objective 'Leadership in enabling and industrial technologies' and the
priority 'Societal challenges' for SMEs, a minimum of 5 % of those combined
budgets will be initially allocated to the dedicated SME instrument. A minimum
of 7 % of the total budgets of the specific objective 'Leadership in enabling
and industrial technologies' and the priority 'Societal challenges' will be
allocated to the dedicated SME instrument averaged over the duration of Horizon
2020. 
(****) The Fast
Track to Innovation (FTI) pilot actions will be funded from the specific
objective 'Leadership in enabling and industrial technologies' and from the
relevant specific objectives of the priority 'Societal challenges'. A
sufficient number of projects will be launched in order to allow a full
evaluation of the FTI pilot. '