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COM (83) 015 
 
 
 
Vol. 1983/0 008 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION  OF THE EUROPEAN  COMMUNITIES 
COM(83)  15 final 
Brussels,  13 January 1983 
Amended Proposal for a 
COUNCIL_DECISION 
empowering the Commission to borrow under the New Community Instrument 
for the purpose of promoting investment within the Community 
(submitted to the Council by the Commission in accordance 
with  Article 149(2) of the EEC Treaty) 
COM(83)  15 final 

Explanatory Memorandum 
On 19 October 1982 the Commission sent to the Council and Parliament 
a proposal for a Council Decision empowering the Commission to  con­
tract  loans under the New Community  Instrument  for the puroose of 
promoting investment  within  the Community (1) This  proposal was well 
received  by Parliament, which accepted the principle while requesting 
certain amendments, recorded in the opinion  that  it adopted on 
16 December (2) Discussion  of this opinion has shown the Commission 
that  its own views were broadly the same as Parliament's on some of 
the amendments requested. Consequently, the Commission is now present­
ing a revised proposal for a  Decision,  incorporating the relevant changes. 
This  explanatory memorandum supplements  that  accompanying the original 
proposal,  presented on 19 October. 
This  proposal for a Decision differs from the earlier proposal in the 
following ways. 
(i) There is no longer any reference to a ceiling, although the mecha­
nism of tranches has been maintained. Removing the ceiling ensures 
that  use of the instrument can be uninterrupted; in the Commission's 
opinion this is necessary (it made a similar proposal the  first  time 
the NCI was renewed), and conforms to the logic of its use. As the 
mechanism  of tranches has been maintained, the Council will  stilt  be 
in control of the volume of borrowing : a Council decision is required 
to define the amount and purpose of each tranche. To this end, the 
proposal provides for an initial tranche of 3 000 million ECU in 
principal. 
(ii) The instrument's implementation procedure is stated to be provisio­
nal until  such time as the question of budgetising Community borrow­
ing has been settled. Parliament confirmed  that  it still regarded 
budgetisation as an important principal but  that  it was also advis­
able  that  the New Community  Instrument  should continue to operate, 
but using a procedure which would be provisional  until  such time 
as a solution was found for the wider question of budgetising 
borrowing and lending transactions generally. 
./. 
(1) OJ No 282 of 27.10.1982, p. 5. 
(2) OJ No 

2. 
The Commission did not follow the suggestion in Parliament's opinion 
that  there should be a change in the allocation of responsibilities 
between the EIB and the Commission for the practical aspects of the 
mechanism.  On this point, the original proposal has been maintained, 
for the Commission feels  that  the adjustments it has proposed enable 
it to continue playing to the  full  its specific role in contributing 
and defining borrowing and lending policy at Community  level. 
The attached amended proposal for a  Decision,  which replaces the pro­
posal  presented on 19 October 1982, takes account of these amendments. 

Amended  proposal  for a 
COUNCIL  DECISION 
empowering  the  Commission  to borrow under  the 
New Community  Instrument  for the  purpose  of promoting 
investment  within  the  Community 
(presented under Article  149(2)-  of the  EEC Treaty) 
THE COUNCIL  OF THE  EUROPEAN  COMMUNITIES, 
Having  regard  to the  Treaty establishing  the  European Economic Community, 
and in particular Article  235  thereof, 
Having  regard  to the  proposal from  the  Commission  (1), 
Having  regard  to the  opinion  of the  European Parliament  (2), 
Having  regard  to the  opinion  of the  Economic  and  Social  Committee  (3), 
Whereas,  given  the  vital role  of  investment  in  raising growth rates, 
adjusting production structures  and  providing  a lasting solution  to the  unemploy­
ment problem,the Community's lending instruments should  be  strengthened 
to support  "  investment, especially  in the  growth sectors  of the 
future; 
Whereas,  in  order  to  stimulate economic activity  and  support common poli­
cies,  the  financing facility established  by Council 
Decisions  78/870/EEC  (4) and  82/169/EEC  (5)  empowering  the 
Commission  to contract loans  for the  purpose  of promoting investment  within 
the Community should  be  renewed  and  strengthened alongside existing Commu­
nity  financial institutions  and  bodies,  the  scope  of which should  be  widened; 
Whereas  this Community facility makes  an  additional contribution  to  invest­
ment promotion  in the  Community  and has a  real follow-through effect  and 
financial impact  far  beyond  its  apparent  size,  thus promoting  the  conver­
gence  of Member States' economic trends; 
./. 
(1) OJ No. 
(2) OJ No. 
(3) OJ No. 
(4) OJ No. L 298, 25.10.1978, p. 9 
(5) OJ No. L 78, 24.03.1982, p. 19 

2. 
Whereas  plentiful finance can be found on the capital markets which 
could  be tapped to finance investments  within  the Community; 
Whereas  the Community has creditworthiness in its own  right  which must 
be used to best advantage to reinforce European support for the said 
investments and to support policies decided on at Community  level; 
Whereas  the European Investment Bank has stated  that  it is willing to 
contribute to the implementation of the facility, 
HAS DECIDED  AS  FOLLOWS  : 
Article 1 
The Commission is hereby empowered to borrow on behalf of the European 
Economic  Community under the New Community Instrument. 
The proceeds shall be lent to finance investment projects 
which contribute to greater convergence and integration of the economic 
policies  of the Member States and, through the dissemination of technology 
and innovation or by other means, to reinforcing the competitiveness of 
the Community economy. 
These  projects shall be such  that  they serve the Community's  priority  objec 
tives in the energy and infrastructure sectors, and in the productive  sec­
tor, taking account inter alia of their regional impact and the need to 
combat unemployment. 
This  facility may be used on its own or in conjunction  with  other Community 
financing instruments. 

3. 
Article 2 
Borrowings shall be called by tranches. 
After consulting the European Parliament about the tranches to be autho­
rized and the policies and economic sectors for which borrowings may be  con­
tracted, the  Council,  acting on a proposal  from  the Commission, shall 
by qualified  majority  authorize the tranches and lay down guide­
lines for the eligibility of projects.' 
The Commission shall decide whether or not projects are eligible in 
accordance  with  the guidelines thus laid down. 
The Commission shall borrow on the capital markets  within  the limits of 
the tranches authorized. 
The procedure shall be provisional pending a decision on the budgetiza-
tion  of Community borrowing operations. 
Within the framework of this provisional procedure, the Council hereby decides  that 
the fi rst borrowing tranche shall amount to 3 000 million ECU in principal. 
Article 3 
Associated  borrowing and lending operations shall be expressed in the same 
cur renc y un i t s . 
Lending terms as regards the reimbursement of the principal and the rate 
and payment of interest shall be fixed in such a way  that,  overall, they 
cover  the costs and expenses incurred in concluding and performing  both  the 
borrowing and the lending sides of the operations. 
Article A 
The terms of the borrowings shall be negotiated by the Commission in the 
best interests of the Community, having regard to the conditions on  capi­
tal markets and in accordance  with  the constraints imposed by the duration 
and other financial aspects of the associated loans to be granted. Funds 
borrowed shall be deposited  with  the European Investment Bank, which shall 
invest them on a temporary basis if necessary. 
Where the funds borrowed are denominated, payable or reimbursable in the 
currency of a Member State, they may be contracted only  with  the agreement 
of the competent authorities of  that  State. 

4. 
Article 5 
A mandate shall be given to the Bank to grant and administer loans 
in pursuance of this Decision. To this end, a co-operation agreement 
shall  be drawn up between the Bank and the Commission. The Bank shall 
carry out operations under this mandate in the name, for the account 
and at the risk of the Community. 
The Commission shall decide, in accordance  with 
Article 2, whether projects are eligible. Where the Commission 
gives  a favourable decision, the Sank shall decide whether and on what 
terms to grant the loans, in accordance  with  its usual criteria and  with 
the procedures laid down in its Statute. 
Loan  procedure shall be as follows : 
- loan applications shall be transmitted simultaneously to 
the Commission and to the Bank either direct or through 
a Member State. 
- the Commission and the Bank shall sign the loan contracts. 
Article 6 
The Commission shall inform the Council and Parliament at regular inter­
vals  of the rate of utilization of the tranches and  notify  them, no 
later than the date on which  total  loans signed amount to two thirds of 
the current tranche, of the purpose and amount it intends to 
propose for the next tranche. 
Article 7 
The Commission shall inform the Council and Parliament annually of re­
venue and expenditure arising from borrowing and lending operations. 

5. 
Article  8 
Financial  control  and the  audit  of the Commission's accounts sh..!.l be 
carried  out in accordance  with  the Financial R  vjulation  applicable c 
the General Budget of the European Communities. 
Done at Brussels, 
For the Council 
The President