1977D0270 — EN — 21.03.1994 — 001.001 — 1
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►B COUNCILDECISION
of29March1977
empoweringtheCommissiontoissueEuratomloansforthepurposeofcontributingtothefinan-
cingofnuclearpowerstations
(77/270/Euratom)
(OJ L 88, 6.4.1977, p. 9)
Amended by:
Official Journal
No page date
►M1Council Decision of 21 March 1994 (94/179/Euratom) L 84 41 29.3.1994
▼B
COUNCILDECISION
of29March1977
empowering the Commission to issue Euratom loans for the
purposeofcontributingtothefinancingofnuclearpowerstations
(77/270/Euratom)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Atomic Energy
Community, and in particular Articles2, 172 and 203 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament(1),
Having regard to the opinion of the Economic and Social
Committee(2),
Whereas the use of nuclear energy can reduce the Community's exces-
sive dependence on external sources of energy and thus improve thetermson which energy isimported;
Whereas, under present technical and economic conditions, the use of
nuclear energy for the production of electricity iseconomically advan-
tageous and more satisfactory than the use of petroleum products;
Whereasthe additional inves tment required for nuclear plant by
comparison with conventional plant, combined with the costs arisingout of the increase in the price of petroleum products which affect theoperating costs of existing conventional power stations, means that
electricity producersare being forced to borrow more;
WhereasArticle 2 (c) of the Treaty givesthe Community the tas k of
facilitating investment and ensuring, particularly by encouragingventures on the part of undertakings, the establishment of the basicinstallations necessary for the development of nuclear energy in theCommunity; whereas, if a contribution is to be made to the financing
of nuclear power stations, arrangements must be made for borrowing
and lending; whereas such action appears to be necessary if the objec-tive set out in Article 2 (c) of the Treaty is to be attained, although theTreaty does not provide for the powers necessary for that purpose;
Whereasin view of the large amount of capital required the financing
potential should be increased; whereas it appears that the Community
can provide a substantial amount of aid in this field;
Whereasthe Community hasa duty to employ all the meansat its
disposal to facilitate the attainment of the aims adopted under the newcommon energy policy strategy,
HAS DECIDED AS FOLLOWS:
Article 1
The Commission is hereby empowered to contract, on behalf of the
European Atomic Energy Community (Euratom), and within the limits
fixed by the Council, borrowings, the proceeds of which will be allo-cated in the form of loansto finance, within the Community,investment projects relating to the industrial production of electricityin nuclear power stations and to industrial installations in the nuclear
fuel cycle.
The Commission shall also be empowered to contract, within the same
limits, borrowings, the proceeds of which will be allocated in the formof loans to finance projects to increase the safety and efficiency of the1977D0270 — EN — 21.03.1994 — 001.001 — 2
(1) OJ No C 157, 14. 7. 1975, p. 35.
(2) OJ No C 248, 29. 10. 1975, p. 8.▼M1
▼M1
nuclear power stations of the non-member countries listed in the
Annex.
For these projects to be eligible they must:— relate to nuclear power stations or installations in the nuclear fuel
cycle which are in service, or under construction, or to the disman-
tling of installations where modification cannot be justified intechnical or economic terms,
— have received all the necessary authorization at national level and
in particular the approval of the safety authorities,
— have received a favourable opinion from the Commission in tech-
nical and economic terms.
The Commission may borrow only within the limits of loans requested
of it.
The borrowing and corresponding lending operations shall be denomi-
nated in the same monetary unit and carried out under the sameconditions as regards repayment of the principal and interest payments.
Cost incurred by the Community in concluding and executing each
operation shall be borne by the recipient undertakings.
Article 2
The terms of loans to be issued shall be negotiated by the Commission
in the best interests of the Community having regard to the conditionson capital markets and in accordance with the constraints imposed bythe duration of the loansto be granted.
Article 3
The Commission shall decide on the grant of each loan. Its decisions
shall be based in particular on the principle that preference will be
given to the use of resources under the most profitable conditions in
installations of optimum size.
Loans shall be guaranteed in the manner customary in banking prac-
tice.
Article 4
The Commission shall inform the Council and the European Parliament
at regular intervals of the revenue and expenditure transactions arisingout of the contracting and servicing of Euratom loans issued andgranted. Each year it shall submit a review of its borrowing policy
together with the budget estimates.
Article 5
Financial control and auditing shall be carried out in accordance with
the Financial Regulation of 25 April 1973 applicable to the general
budget of the European Communities(
1).1977D0270 — EN — 21.03.1994 — 001.001 — 3
(1) OJ No L 116, 1. 5. 1973, p. 1.▼B
▼M1
ANNEX I
Listofeligible non-membercountries
— Republic of Bulgaria
— Republic of Hungary— Republic of Lithuania— Romania— Republic of Slovenia— Czech Republic— Slovak Republic— Russian Federation— Republic of Armenia
— Ukraine1977D0270 — EN — 21.03.1994 — 001.001 — 4