COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 04.12.1998 
COM(1998) 723 final 
98/0101 (SYN) 
Amended proposal for a 
COUNCIL REGULATION (EC) 
amending Council Regulation (EC) No. 2236/95 laying down general rules for the 
granting of Community financial aid in the field of trans-European networks 
(Com (98) 172 final-98/0101 (SYN)) 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 04.12.1998 
COM(1998) 723 final 
98/0101 (SYN) 
Amended proposal for a 
COUNCIL REGULATION (EC) 
amending Council Regulation (EC) No. 2236/95 laying down general rules for the 
granting of Community financial aid in the field of trans-European networks 
(Com (98) 172 final-98/0101 (SYN)) 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 04.12.1998 
COM(1998) 723 final 
98/0101 (SYN) 
Amended proposal for a 
COUNCIL REGULATION (EC) 
amending Council Regulation (EC) No. 2236/95 laying down general rules for the 
granting of Community financial aid in the field of trans-European networks 
(Com (98) 172 final-98/0101 (SYN)) 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

Explanatory memorandum 
I 
(1) The Commission put forward to the Council and the Parliament on 18 March 
1998 a proposal for amending the (EC) Council Regulation n°2236/95 laying 
down general rules for granting of Community financial aid in the field of trans-
European networks (COM (98) 172 final). 
(2) The European Parliament delivered its opinion on the proposal at its first reading 
in the plenary session in Strasbourg on 19 November 1998. It has adopted 27 
amendments. 
(3) The Commission can accept 18 amendments out of the 27 adopted by the 
Parliament. 10 amendments can be accepted in full and included as such in the 
Commission proposal (n°2, 3, 9, 10, 12, 15, 16, 18, 19, 22). They will improve 
the initial text and make it more precise. 8 amendments are acceptable in principle 
(n°l, 4, 6, 7, 8, 14, 17, 20) and have been introduced either with slight drafting 
changes or in a provision different from the one proposed by the EP. The 
remaining 9 amendments proposed by the European Parliament are not acceptable 
to the Commission. 
On the following pages are the changes described in detail. First are the changes 
which the Commission can accept in full or in principle, followed by those that 
the Commission can not accept. 
(4) The opinion of the Economic and Social committee delivered on 9 September has 
also been taken into consideration, at least partially, via the EP amendments. 
II 
The following amendments have been accepted by the Commission : 
Amendment 1 (recital 2a) 
Amendment 1 stresses the importance of granting increased aid to applicant 
countries as well as the need for co-ordination with PHARE and I SPA 
instruments. This amendment deals with the same issue as amendment 2 and its 
principle has been introduced in recital 3. The coordination issue is already 
covered in the original recitals. . 
Amendment 2 (recital 3) 
The addition of "or to* links with third counlries",highlights the importance of 
granting a higher level of support to the projects which are connecting the 
infrastructure in the current European Union to the infrastructure networks in the 
applicant counties. 
Amendment 3 (recital 4a new) 
Amendment 3 requires the application for support to include a detailed 
breakdown of the financial sources of finance. 
Amendment 4 (recital 4b new) 
This amendment aims to take into consideration the effects at regional, national 
and European level of a project eligible for Community support. However, this is 
not an additional criterion but rather further information required for assessment 
of applications. 
Amendment 6 (recital 8a new) 
Amendment 6 reinforces and details the scope for the Community to use part of 
the TEN-budget for risk-capital participation. This new way of using part of the 
TEN-funds is a very important element in attracting private investment into 
projects and to motivate the private sector to engage in public-private 
partnerships. It has been partially introduced in the existing recital 2 to complete 
the existing text. 
Amendment 7 (recital 10) 
Amendment 7 adds to the original Commission proposal that to raise the profile 
of European Community subsidies, the regulation should specify how the 
beneficiary should publicise the Community contribution. The analogy with 
structural funds cannot be followed, as it would be disproportionate to the TEN 
support. 
Amendment 8 (art. 4.1.a in reg. 2236/95) 
This specifies that only in exceptional cases and based on a proposal by the 
Commission, and where appropriate with the consent of the member states, 
Community participation may exceed the normal limit of 50%. 
Amendment 9 (art. 4.1 .b in reg. 2236/95) 
As concerns the duration of subsidies of loan interest, it shall as a general rule not 
exceed seven years. This is in line with the Commission opinion. 
Amendment 10 (art. 4.1.e in reg. 2236/95) 
Amendment 10 specifies that if part of the TEN-budget is used for risk-capital 
participation there needs to be a substantial private sector investment following 
the Community's participation. 
Amendment 12 (art. 5.3 in reg. 2236/95) 
This specifies that especially for projects linking the Community with third-
countries, Community aid may reach 20% of the total investment cost, (see 
amendment 2). 
Amendment 14 (art. 9.1a third indent in reg. 2236/95) new 
Amendment 14 states that estimates of external costs and of induced-traffic 
volumes shall be submitted, where appropriate, to the Commission, together with 
other economic analyses such as cost-benefit analyses and financial profitability 
analyses. 
Amendment 15 (art. 9.1a fifth indent in reg. 2236/95) new 
3 
This states that the information given in the application forms must also contain a 
description of the project's consistency with regional development plan and 
foreseeable socio-economic effects. 
Amendment 16 (art. 9.1a last indent in reg. 2236/95) new 
This amendment states that in the financial plan which is part of the application 
form it must clearly be stated how much of the financing comes from regional, 
local and private sources. 
Amendment 17 (art. 9.2. in reg. 2236/95) 
The applicant for Community support shall supply the Commission any other 
relevant additional information which the Commission requires, such as the 
hypotheses on which the cost/benefit analysis is based. This amendment makes 
the existing text, more explicit. 
Amendment 18 (art. 15.4. in reg. 2236/95) 
Amendment 18 states that the Commission and the Member States shall evaluate 
the effects of the programme or projects including the environmental impact. This 
evaluation should also include a discussion on the possible side effects, which 
have appeared during and after the realisation of the project. 
Amendment 19 (art. 16.2. in reg. 2236/95) 
This requires there to be on all buildings constructed with support under this 
regulation and accessible to the public, a permanent commemorative plaque with 
the European emblem and a reference to co-financing by the Community. 
Amendment 20 (art. 16 in reg. 2236/95), new 
Amendment 20 says that the Commission shall once a year submit to the 
European Parliament a report on the substance and implementation of the current 
multi annual programme (MIP). This could be covered by the annual report on 
TENs to the EP. 
Amendment 22 (art. 18 in reg. 2236/95), new 
This includes a reference amount of 5500 million ECU for the implementation of 
this regulation in the period 2000-2006, which is consistent with the financial 
statement attached to the original Commission proposal. 
Ill 
The following amendments are not acceptable to Commission and therefore arc 
not included in the modified proposal. 
Amendment 5 (recital 8) 
Amendment 5 says that the Commission should co-ordinate funding TEN 
infrastructure with the other main Community financial instruments, and that the 
co-ordination obligations of the Member states should be set out. The 
Commission considers it unnecessary to stipulate in the regulation itself the 
internal working procedures of the Commission. The provision on co-ordination 
obligations for the Member States has not been adopted in the corresponding 
4 
article. 
Amendment 11 (art. 4.2.a in reg. 2236/95), new 
It is here mentioned that at least 55% of the funds available should go to railways, 
a maximum of 25% to roads and a maximum of 15% to traffic management 
projects. The Commission rejects this proposal, as financial needs by modes can 
not be foreseen in advance national priorities put forward by Member States. It 
could also lead to poor management of the available funds. 
Amendment 13 (art. 6.1a in reg. 2236/95), new 
Here again restrictions are imposed on the way the budget is to be used. The 
amendment stipulates that no more than 50% of the Community subsidies may be 
used for priority projects, and that the rest should be used for other projects. The 
amendment also mentions annex 1 and 3 in decision No. 1692/96/EC, which are 
the guidelines for transport; the financial regulation concerns all three TEN 
sectors. 
Amendment 21 (art. 17.3. and 17.4. in reg. 2236/95), new 
This proposes including a new committee procedure in the regulation. The 
Commission can not accept this proposal, as it is a horizontal issue to be dealt 
with separately. The consultative committee procedure proposed does not 
conform to the procedure in Comitology Decision 87/373 of the Council and so 
can not be used unless and until this decision is amended by the Council for 
which a separate proposal by the Commission has been put forward this year. 
Amendment 23 (art. 19 in reg. 2236/95), new 
In this amendment it is proposed that the Council shall examine whether or not 
this regulation may be extended beyond the period specified in article 18 (2000-
2006). The Commission rejects this amendment because such a provision is 
unnecessary. The regulation will automatically apply after 2006 if it has not been 
revised. 
Amendment 24 (art. 16.1a in reg. 2236/95), new 
It proposes that the Commission shall draw up an environmental impact statement 
on each major project financed with Community aid. It falls under the 
responsibility of the Member States to ensure that projects comply with 
Community rules. 
Amendment 25 (art.4.3 in reg.2236/95, new) 
This amendment develops the same idea on private financing as in the proposal of 
the Commission. The existing proposal is coherent with the provision of the 
Cohesion Fund, and leaves more flexibility for the Commission to promote 
recourse to private financing. 
Amendment 26 (art. 14 in reg.2236/95) 
This amendment specifies the financial instruments and policies with which co­
ordination is needed. They are all already covered by the existing text 
"Community financial instruments". There is no need to go into details in the text 
of the regulation. 
Amendment 30 (art. 15.2 in reg.2236/95) 
This amendment imposes a systematic evaluation of individual projects by both 
MS and Commission. The detailed evaluation of specific projects falls under the 
responsibility of the MS, and is coherent with the subsidiarity principle. Global 
and overall evaluation of the TEN programme is done by the Commission. 
Amended proposal for a 
COUNCIL REGULATION (EC) 
amending Council Regulation (EC) No. 2236/95 laying down general rules for the granting of 
Community financial aid in the field of trans-European networks (Com (98) 172 final-98/0101 
(SYN)) 
Initial proposal 
(2) Whereas Community financial 
participation provided for under that Regulation 
may exceed the limit of 50% for studies 
undertaken on the initiative of the Commission; 
whereas it is necessary to facilitate the financing 
of certain projects by including, among the 
possible forms of aid, contributions to ihe 
formation of risk capital; whereas it is desirable 
to use the financial resources provided 
under Regulation (EC) No 2236/95 in order to 
maximize the contribution from private finance; 
(3) Whereas provision should be made so 
that certain projects related to more than one 
Member State, or contributing strongly to the 
broader trans-European interest, including those 
with an important environmental dimension, 
may receive an increased level of support; Modified proposal 
Recital 2 
(2) Whereas Community financial 
participation provided for under that Regulation 
may exceed the limit of 50% for studies 
undertaken on the initiative of the Commission; 
whereas in order to allow the Community to act as 
a catalyst for private sector involvement in the 
financing of TENs, risk-capital as a form of aid 
under this regulation shall provide a basis for 
future Community action to support public-private 
partnership TEN projects; whereas it is desirable 
to use the - financial resources provided 
under Regulation (EC) No 2236/95 in order to 
maximize the contribution from private finance; 
Recital 3 
(3) Whereas provision should be made so that 
certain projects related to more than one Member 
State, or to links with third countries, in particular 
relevant applicant countries, or contributing 
strongly to the broader trans-European interest, 
including those with very important 
environmental dimension, may receive an 
increased level of support 
Recital 4a 
4a. Whereas in the application for financial 
support for a project, a detailed breakdown of 
estimates is needed concerning the sources of 
contributions from the Community, from national, 
regional and local government bodies, as well as 
the extent of financial contributions from the 
private sector 
Recital 4b 
^^_ Whereas the effects at regional, national and 
Iviiropean level of the projects^ eligible for 
* '«immunity subsidies under this R egti lal i< mi mist 
be included as an additional information required 
(10) Whereas it is necessary to specify the 
manner in which beneficiaries should publicize 
Community contributions; 
Article 4 
Forms of aid 
1. Community aid for projects may take one or 
several of the following forms : 
(a) co-financing of studies related to projects, 
including preparatory, feasibility and evaluation 
studies, and other technical support measures 
for these studies. 
Community participation may in general not 
exceed 50% of the total cost of a study 
In exceptional cases, at the initiative of the 
Commission and with the consent of the 
Member States concerned, Community 
participation may exceed the limit of 50%, in 
particular for studies undertaken at the initiative 
of the Commission; 
(b) subsidies of the interest on loans granted by 
the European Investment Bank or other public 
or private financial bodies 
(c) contributions towards fees for guarantees for 
loans from the European Investment Fund or 
private financial bodies; 
(d) direct grants to investments in duly justified 
cases; 
(e) grants or risk-capital participation, for 
investment funds or comparable financial 
undertakings with a priority focus on providing 
risk capital for trans-European network projects; for the assessment of applications 
Recital 10 
10. Whereas in order to increase the visibility of 
European Community subsidies it is necessary to 
specify the manner in which beneficiaries should 
Dublicise Community contributions; 
HAS ADOPTED THIS REGULATION: 
Article 4 
Forms of aid 
(a) Co-financing of studies related to projects, 
including preparatory, feasibility and evaluation 
studies, and other technical support measures for 
these studies. 
Community participation may in general 
exceed 50% of the total cost of a study. not 
In exceptional cases, upon a relevant initiative by 
the Commission and, where appropriate, with the 
consent of the Member States concerned, 
Community participation may exceed the limit of 
50%. 
b) subsidies of the interest on loans granted by the 
European Investment Bank or other public or 
private financial bodjes. As a general rule, the 
duration of such a subsidy shall not exceed seven 
(c) contributions towards fees for guarantees for 
loans from the European Investment Fund or 
private financial bodies; 
(d) direct grants to investments in duly justified 
cases; 
(e) grants or risk-capital participation, for 
investment funds or comparable financial 
undertakings with a priority focus on providing 
risk capita] for trans-European network projects 
and involvuig ^substantial private sector 
3. The following paragraph is added to article 
5(3) 
Article 5 
3. However in the case of projects related to 
more than one Member State, or contributing 
strongly to the broader trans-European interest, 
including those having an important 
environmental dimension, the total amount of 
Community aid under this Regulation may 
reach 20% of the total investment cost. investment; 
The following sub-paragraph is added to article 5 
Article 5 
3. However in the case of projects related to more 
than one Member State, or links with third-
countries or contributing strongly to the broader 
trans-European interest, including those having an 
important environmental dimension, the total 
amount of Community aid under this Regulation 
may reach 20% of the total investment cost. 
Article 9 
Information required for the assessment and 
identification of applications 
I. Each application for financial aid shall include 
all the information necessary for the examination 
of the project according to Articles 5, 6 and 7, and 
in particular: 
(a) if the application concerns a project 
- the body responsible for carrying out the project, 
- a description of the project concerned and the 
type of Community aid envisaged, 
- the results of the cost/benefit analysis, including 
the results of the potential economic viability, of 
the financial profitability analysis, and where 
appropriate considerations of externalities and of 
induced traffic, 
- the position of the project, according to the 
guidelines, in the field of transport, on the axes 
and nodes, 
- consistency with regional planning, and the 
foreseeable socio-economic effects, 
- a summary description of the environmental 
impact, based on the assessments carried out in 
accordance with Council Directive 85/337/EEC of 
27 June 1985 on the assessment of the effects of 
certain public and private projects on the 
environment, 
- a statement that alternative possibilities of public 
and private financing, including the European 
Investment Fund and the European Investment 
9 
Article 15 
4. The Commission and the Member 
States shall assess the manner in which the 
projects and the programmes have been carried 
out and evaluate the impact of their 
implementation, in order to assess whether the 
original objectives can be, or have been, 
achieved. This evaluation shall, inter alia, cover 
the impact of projects on the environment, 
regard being had to the Community laws in 
force. The Commission may also require the 
beneficiary to provide a specific evaluation on 
projects or groups of projects supported under 
this Regulation, or to provide it with the 
information and the assistance required to 
evaluate such projects. 
12. The second sentence of article 16(2) is 
replaced hy the following 
Article 16 Bank, have been examined, 
- a financial plan listing, in euros or in national 
currency, all the components of the financial 
package, including the financial aid requested 
from the Community, in its different forms as 
mentioned in Article 4, and from local, regional or 
national government bodies, as well as from 
private sources, and the aid already granted 
b) if the application relates to a study, the study's 
objective and purpose and the methods and 
techniques envisaged; 
c) a provisional time-table of work; 
d) a description of the control measures to be 
operated by the Member State concerned over the 
use of the funds requested. 
2. Applicants shall supply the Commission with 
any relevant additional information which it 
requires, such as the hypothesis on which 
cost/benefit analysis is based. 
3. The Commission may seek any specialist 
advice it requires in order to assess an application, 
including the opinion of the European Investment 
Bank. 
Article 15 
4. The Commission and the Member States shall 
assess the manner in which the projects and 
programmes have been carried out and evaluate 
the impact of their implementation, in order to 
assess whether the original objectives can be, or 
have been, achieved. This evaluation shall, inter 
alia, cover the impact of projects on the 
environment, regard being had to the Community 
laws in force This evaluation should also discuss 
possible side effects which have appeared during 
and after the realisation of the project. The 
Commission may also require the beneficiary to 
provide a specific evaluation on projects or 
groups supported under this Regulation, or to 
provide it with the information and the assistance 
required to evaluate such projects. 
Article If) is replaced hv the following : 
Article 16 
10 
2. They shall ensure, in particular in the case of 
infrastructure works, that directly visible display 
panels are erected bearing the Community logo 
and the expression "Trans-European networks". 
In the case of studies and/or any other 
documents concerning a project, they shall 
ensure that they carry the Community logo. Information and publicity 
1. The Commission shall submit an annual report 
on the activities carried out under this regulation 
to the European Parliament, the Council, the 
Economic and Social committee and to the 
Committee of the Regions for their appraisal. This 
report shall contain an evaluation of the results 
achieved with Community aid in different fields 
of application, in terms of original objectives, as 
well as a chapter on the substance and 
implementation of current multiannual 
programmes, especially an account of the 
revisions provided in article 5a. 
2. They shall ensure, in particular in the case of 
infrastructure works, that directly visible display 
panels are erected bearing the Community logo 
and the expressions "Trans-European networks". 
At all facilities accessible to the public they shall 
ensure the affixing of permanent commemorative 
plaques with the European emblem and a 
reference to cofinancing by the Community. In 
the case of studies and/or any other documents 
concerning a project, they shall ensure that they 
carry the Community logo. 
Article 18 is replaced by the following 
Article 18 
Budgetary resources 
The amount serving as financial reference for 
implementation of this regulation shall amount to 
ECU 5500 million for the period 2000-2006. The 
annual appropriations shall be approved by the 
budgetary authority within the limits set by the 
Financial Perspective. 
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