A4-0304/96

Proposal for a Council Decision establishing a European Guarantee Fund to promote cinema and television production (COM(95)0546 - C4-0070/96 - 95/0281(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 11

>Original text>

Whereas it is essential to reduce the risks in order to enable European production and distribution companies to obtain the credits and loans they need to finance production projects and business development; whereas additional resources are needed primarily to finance productions aimed at the European and international markets and to support the development of companies capable of producing or helping to produce works aimed at those markets;

>Text following EP vote>

Whereas it is essential to reduce the risks incurred by financial backers in order to enable European production and distribution companies to obtain the credits and loans they need to finance production projects; whereas additional resources are needed primarily to finance productions aimed at the European and international markets for films which are developed, produced and distributed using the newest methods and techniques, and to support the development of companies capable of producing or helping to produce works aimed at those markets, for example to assist broadcasters and distributors to undertake the necessary investment, purchase rights, and to provide minimum income guarantees;

(Amendment 3)

Recital 11a (new)

>Text following EP vote>

Whereas the Fund must serve to structure the sector and seek to encourage co- productions and enable television and cinema works to circulate within Europe and internationally;

(Amendment 4)

Recital 11b (new)

>Text following EP vote>

Whereas the Fund must lead banks to become involved on a long-term basis in European cinema and television production and distribution;

(Amendment 5)

Recital 14a (new)

>Text following EP vote>

Whereas the operating costs of the Fund and losses sustained as a result of claims must be covered by payment of the amount guaranteed under the Fund and by the yield from capital investment, in accordance with arrangements to be laid down;

(Amendment 6)

Recital 18a (new)

>Text following EP vote>

Whereas, in performing its task of administration, the EIF will have to define the partnership role which financial institutions will be entitled to play by virtue of their contribution to the Fund's capital;

(Amendment 7)

Recital 18b (new)

>Text following EP vote>

Whereas the special nature of the audiovisual sector is such that it will not be sufficient merely to observe the criteria specific to the EIF; whereas it is therefore appropriate to set up an ad hoc body to administer the Fund, bringing together representatives of external partners, the EIF and the Commission, assisted by a group of experts from banking and audiovisual circles;

(Amendment 8)

Recital 20

>Original text>

Whereas the emergence of a European audiovisual market requires the development of European works as defined in Article 6 of Council Directive 89/552/EEC, that is to say, works originating in the Member States of the Community;

>Text following EP vote>

Whereas the emergence of a European audiovisual market requires the development and distribution of European works as defined in Article 6 of Council Directive 89/552/EEC, that is to say, works originating in the Member States of the Community;

(Amendment 9)

Recital 20a (new)

>Text following EP vote>

Whereas arrangements will be made to deal with projects submitted by small-scale producer countries when the works in question satisfy the criteria of professional and financial credibility;

(Amendment 10)

Recital 20b (new)

>Text following EP vote>

Whereas cinema and television production in small language areas and international distribution of that production are more difficult to develop; whereas the Fund could act as a stimulus in this respect;

(Amendment 11)

Recital 25a (new)

>Text following EP vote>

Whereas, in view of uncertainties regarding the self-sufficiency of the Fund and contributions from external investors to its capital, provision should be made for a five-year test phase; whereas assessment reports on the Fund's financial stability and the regulating effect of assistance after three years of implementation and at the end of the five-year period, will make it possible to determine the conditions under which Fund operations may be continued;

(Amendment 12)

Article 2(2), first indent

>Original text>

- promoting the production of European works of fiction for cinema or television that are aimed at the European and international markets;

>Text following EP vote>

- promoting the production and distribution of European works of fiction for cinema or television that are aimed at the European and international markets, giving particular consideration to productions in smaller language areas;

(Amendment 14)

Article 2(2), first indent a (mew)

>Text following EP vote>

- promoting the intra-European and international circulation of television and cinema films,

(Amendment 15)

Article 2(2), second indent a (new)

>Text following EP vote>

- promoting productions from countries constituting small language and geographical areas and small-scale projects meeting the necessary criteria of professional and financial credibility.

(Amendment 16)

Article 2(2a) (new)

>Text following EP vote>

2a. The Fund shall not only offer guarantees for individual projects, but shall also provide contributions to purchase rights, thereby making provision for the special nature of television works, the rights for which can be recouped only after a very lengthy period, and comprehensive projects aimed, for example, at building up catalogues of works.

(Amendment 17)

Article 3(2), first indent

>Original text>

- proposals may be put to other guarantee institutions, in particular the European Investment Fund (EIF), to offer joint guarantees for both individual operations and portfolios of projects,

>Text following EP vote>

- proposals may be put to other guarantee institutions, in particular the European Investment Fund (EIF), to offer joint guarantees of up to 50% of the total for both individual operations and portfolios of projects,

(Amendment 18)

Article 3(3a) (new)

>Text following EP vote>

3a. The Fund shall also guarantee short-term credits linked to the discounting of contracts to tie up the budget, more especially where SMUs and small-scale projects are concerned.

(Amendment 19)

Article 4(2)

>Original text>

2. As a rule, guarantees given by the Fund may not exceed half the amount of the loans and individual credits covered. In the case of joint guarantees with the EIF, the Fund's exposure shall be reduced proportionately.

>Text following EP vote>

2. Guarantees granted by the Fund shall under no circumstances exceed 50% of the total guarantees, whether national or international, granted by the financial sector.

(Amendment 20)

Article 4(3a) (new)

>Text following EP vote>

3a. The Fund may also act as a reinsurer for other national guarantee or insurance funds which can guarantee one or more projects.

(Amendment 21)

Article 5(1)

>Original text>

1. The Community shall contribute to the Fund's capital, subject to the availability of budget appropriations. A special account shall be opened with the EIF to receive these contributions and any contributions made by third parties.

>Text following EP vote>

1. The Community shall contribute to the Fund's capital, subject to the availability of budget appropriations. A special account shall be opened with the EIF to receive these contributions and any contributions made by third parties in order to maintain parity between the Community and third parties, this being an underlying principle of the Fund.

(Amendment 22)

Article 5(2)

>Original text>

2. The interest accruing on the special account for capital payments, all income from premiums, fees and commissions, and all other forms of income shall be added to the capital.

>Text following EP vote>

2. The investment supplied to the Fund by third parties shall be eligible for a return. Income from premiums, fees, and commissions, and all other forms of income, shall accordingly be added to the capital to attain a total matching the initial amount. Once that amount has been exceeded, a return may be paid to financial partners, after deduction of operating costs and subject to a decision by the Banking Committee.

(Amendment 23)

Article 5(3)

>Original text>

3. The premiums and commissions charged to those granted guarantees shall be set at a level ensuring that revenue and expenditure are in balance.

>Text following EP vote>

3. The premiums and commissions charged to those granted guarantees shall be set on the basis of the eligibility criteria laid down by the Commission and the advisory committee according to the nature of the risks and the duration of the projects covered by the guarantees. The Fund shall be administered in such a way as to ensure that revenue and expenditure are in balance.

(Amendment 24)

Article 5(3a) (new)

>Text following EP vote>

3a. It is essential for the Fund to attain critical mass once its operations have commenced. The capital, moreover, shall remain open to fresh contributions.

(Amendment 25)

Article 5(3b) (new)

>Text following EP vote>

3b. Guarantee contracts shall be signed by the EIF and one or more banking institutions which have either contributed to the Fund's capital or wish to insure themselves under the Fund for the purpose of financing a project.

(Amendment 26)

Article 5(3c) (new)

>Text following EP vote>

3c. Whenever a project is guaranteed by the Fund and yields profits, a commission before tax shall be paid to the Fund.

(Amendment 27)

Article 6(-1) (new)

>Text following EP vote>

-1. The Fund shall be established for a period of five years in order to allow assessment of its financial performance and its impact on the European audiovisual sector.

(Amendment 28)

Article 6(1)

>Original text>

1. The administration of the Fund shall be entrusted to the EIF. The detailed arrangements shall be laid down in a cooperation agreement to be concluded between the Commission and the EIF. The terms of that agreement shall be approved in accordance with the procedure laid down in Article 7(2).

>Text following EP vote>

1. The administration of the Fund shall be entrusted to an ad hoc financial body within the EIF in which external contributors to the Fund shall be represented and which shall be assisted in the prior study of proposals by a group of professional experts. The detailed arrangements for this administration shall be laid down in a cooperation agreement to be concluded by the EIF, the Commission, external partners, and the representatives of the Member States serving on the Advisory Committee.

(Amendment 29)

Article 6(1a) (new)

>Text following EP vote>

1a. Any decisions relating to guarantees shall be taken by the EIF after it has referred proposals to the following two bodies:

>Text following EP vote>

(a) a Preselection Unit set up within the EIF to examine and assess whether projects:

- meet the appropriate standard in terms of scripts and images,

- can secure broadcasting and distribution agreements,

- lend themselves to circulation within and outside Europe.

The unit shall forward its opinion for preselection purposes to the sponsor of the project, who may then conduct negotiations with his banks in preparation for the guarantee agreement.

>Text following EP vote>

(b) a Banking Committee set up within the EIF to assess the financial and technical aspects of projects proposed. The committee shall consist of members of the EIF, representatives of capital contributors, and a representative of the Commission.

(Amendment 30)

Article 6(1b) (new)

>Text following EP vote>

1b. The Commission shall forward to the budgetary authority the text of the cooperation agreement and any amendments whenever that agreement is revised.

(Amendment 31)

Article 6(2)

>Original text>

2. The EIF shall exercise the same diligence in performing this task as in conducting operations which involve its own resources. Individual guarantee operations shall be approved in accordance with the procedures applicable to the EIF's own operations.

>Text following EP vote>

2. The EIF shall perform this task through the two bodies referred to in paragraph 1a.

(Amendment 32)

Article 6(5)

>Original text>

5. The EIF shall refer all proposals to grant guarantees to the Commission for its opinion. If the Commission notifies the EIF of its approval, the EIF may grant the guarantee.

>Text following EP vote>

Deleted

(Amendment 33)

Article 7

>Original text>

The Commission shall be assisted by a committee of an advisory nature, composed of the representatives of the Member States and chaired by the representative of the Commission.

>Text following EP vote>

The Commission shall be assisted by a committee of an advisory nature, composed of one representative per Member State and chaired by the representative of the Commission.

>Text following EP vote>

The committee shall have the task of laying down predetermined eligibility criteria for the purposes of the Fund, taking into account the specific features of SMEs and small-scale projects submitted by independent producers.

>Original text>

The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote.

>Text following EP vote>

The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote.

>Original text>

The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes.

>Text following EP vote>

The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes.

>Original text>

The Commisison shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account.

>Text following EP vote>

The Commisison shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account.

>Text following EP vote>

The committee shall normally meet in public, unless a specific duly motivated decision to the contrary is taken and published in good time. The committee shall publish its agendas two weeks before its meetings. It shall publish the minutes of its meetings. It shall draw up a public register of declarations of interest by its members.

(Amendment 35)

Article 8

>Text following EP vote>

Every year the Banking Committee shall submit a management report and a financial statement to the advisory committee and the Commission, specifying the situation of the Guarantee Fund and the outstanding amount of guarantees granted in order to provide a basis for financial assessment.

>Original text>

After the Fund has been in operation for three years, and every five years thereafter, the Commission shall send the European Parliament, the Council and the Economic and Social Committee an independent evaluation report on the Fund's performance, together with appropriate proposals if necessary.

>Text following EP vote>

After the Fund has been in operation for three years, and on completion of the five-year period referred to above, the Commission shall send the European Parliament, the Council and the Economic and Social Committee an independent report on the Fund's performance, taking account of the financial trend and the Fund's impact on the European audiovisual sector, together with appropriate proposals if necessary.

(Amendment 36)

Article 9

>Original text>

No later than 30 April of each year an annual report drawn up by the Financial Committee of the EIF shall be submitted to the Supervisory Board of the EIF for approval. In particular it shall contain the accounts closed at the end of the preceding year and a list of the operations carried out by the Fund. The Commission shall forward the approved report to the European Parliament and the Council.

>Text following EP vote>

No later than 30 April of each year an annual report drawn up by the Financial Committee of the EIF shall be submitted to the Supervisory Board of the EIF for approval. In particular it shall contain the accounts closed at the end of the preceding year, the profit-and-loss account and the balance sheet and a list of the operations carried out by the Fund including inter alia information on the profile of the beneficiary companies (countries of origin, size of the company). The Commission shall forward the approved report to the European Parliament and the Council.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Decision establishing a European Guarantee Fund to promote cinema and television production (COM(95)0546 - C4-0070/96 - 95/0281(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(95)0546 - 95/0281(CNS) ((OJ C 41, 13.2.1996, p. 8.)),

- having been consulted by the Council pursuant to Article 130 of the EC Treaty (C4-0070/96),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Culture, Youth, Education and the Media and the opinions of the Committee on Budgets and the Committee on Research, Technological Development and Energy (A4-0304/96),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

4. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

5. Instructs its President to forward this opinion to the Council and Commission.