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DOCUMENTS "COM"
COM(80)20
Vol.1980/0011

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)20 final
Brussels ,24th January 1980
PROPOSAL FOR ACOUNCIL DECISION
APPLYING FOR THE SECOND TIME DECISION 78/870/EEC
EMPOWERING THE COMMISSION TOCONTRACT LOANS FOR THE
PURPOSE OFPROMOTING INVESTMENT WITHIN THE COMMUNITY
<présented byp)theCommission totheCouncil )
h-ï cb ■.
i ' ' .
C0M(80 )20final

EXPLANATORY MEMORANDUM
ByitsDecisionof16October1978,theCouncilestablished theNew
t.immunityInstrument (NCI),throughwhichtheCommunityisabletoborrow
fundsonitsownaccountandthushasgreaterscopeforpromotinginvestment
intheCommunitywithaviewtostimulating aneconomicupturnandsupporting
commonpolicies.ThepurposeoftheNCIistohelpimplementinvestment
projectswhichcontribute tothegreaterintegration ofMemberStates'economic
policiesandwhichareinlinewithpriorityCommunityobjectives.
-'■ ^ V
TheCouncilDecisionprovidesfortheraisingofloansnotexceeding .
1000millionEUAandtobeactivatedtranchebytranche,eachtranchebeing
usedtofinanceinvestments inaccordance withguidelineslaiddownwhenthe-
trancheisauthorized .' '
On14May1979,theCouncilauthorized afirsttrancheof500millionEUA
tobeusedforfinancingprojectsintheenergyandinfrastructure sectors.
Nineprojectshavesincebeensigned-totalling277millionEUAintheformof"
NCIloans.Anumberofotherprojectshavereachedanadvancedstageofprepa­
rationandwillbringtotalcommitments to498millionEUA,leavingabalance
ofonly2millionEUAfromthefirsttranche.. ^
Experience withthefirsttranchehasdemonstrated theusefulness ofthenew
instrument .Thefirstseriesofprojectsalonerepresents atotalinvestment
costof3372millionEUA,withEnergyprojectsaccountingfor60%ofthatfigure.
TheCommunity'sborrowingcapacityhasaddedsignificantly totheincentiveto
investmentinthesectorschosenforpriorityattention bytheCommission.The
projectsarehelpingtoattainthegeneralobjectiveslaiddownintheCouncil
Decision,andtheinvestment impactonregionaldevelopment,employment andenergy
suppliesiscontributing totheconvergence ofeconomicpolicies.

Since theborrowings authorized under the first tranche aresoon tobe
used upand inview ofthe success oftheoperation todate ,theCommission
feels that asecond tranche should nowbeauthorized .Priority will ,ofcourse ,
continue tobegiven tothesectors already singled outbytheCouncil .Their
financing requirements are still considerable ,and theCommunity must therefore
provide themost extensive support possible .Accordingly ,theCommission proposes
that thesecond tranche beequivalent tothebalance oftotal authorized borrowings
i.e. 500million EUA,and that the loans again beallocated totheenergy and
infrastructure sectors .
TheC^rwission feels that ,within these existing priority areas ,there
should besome move towards abroader interpretation ofthe concept ofinfra­
structure inthe case ofcertain projects tobe carried out inpriority regions
orinareas hard-hit bythe crisis .
Forinstance ,aspart ofthe integrated operations nowbeing setup,the
second tranche could ,among other things ,make astart onmeeting thefinancing
requirements ofurban renewal projects .
There aretwopossible areas ofpriority financing here :housing and
advance factories .Ashousing issuch apotentially vast field ,consideration
should begiven only tothose projects submitted bythenational authrorities
which ,intheir content andfinancing ,form part oftheprogrammes coordinated
bythepublic authorities andwhich contribute toestablishing production sect,ors
orimproving general economic productivity inthearea inquestion .
Inaccordance with the Oefcision of16October 1978 ,theCommission will
inform theCouncil andtheEuropean Parliament annually ofreceipts andexpense :;
resulting from NCItransactions and,assoon astheamount ofloans taken up
reaches theequivalent of800million EUA,andnotlater than 16October 1980 ,it
will submit areport toboth institutions ontheexperience gained during the
operation ofthat Decision .
TheCommission proposes therefore that ,after consulting Parliament ,the
/ . .
Council adopt theproposal for aDecision attached hereto .
•••/•••

Proposal for a –~
- COUNCIL DECISION
T ■ " '
applying forthesecond time Decision 78/870/EECempowering theCommission
tocontract loans forthe-purpose ofpromoting investment within theCommunity .
THECOUNCIL OFTHEEUROPEAN COMMUNITIES , '
x -• .-
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Decision 78/780/EECof16October 1978 empowering
zheCommission tocontract loans forthepurpose ofpromoting investment
within theCommunity C1),and inparticular Article 2thereof ,
Having regard totheproposal from theCommission (2),
Having regard totheOpinion oftheEuropean Parliament (3),
Wnereas the Commission hasalready contracted alarge proportion ofthe first
tranche ofborrowing authorized byCouncil Decision 79/486/EEC of14May 1979
applying Decision 78/870/EEC;whereas that tranche will soon beused up;
WKereas investment inthe infrastructure andenergy sectors isstill ofparamount
importance for theeconomies oftheMember States ,notably onaccount ofits-
impact onregional development and ,employment ,andcontinues tomake theCommunity
less dependent onimported energy and toguarantee greater security ofsupplies ;
01)OJN°L298,25.10.1978 ,p.9
•'?> OJN°
(3)OJN°

-2«■
Wner'josasecondtrancheofborrowings foron-lending shouldtherefore be
authorized inpursuanceofDecision78/870/EEC;whereasthesamesectors
asthosestipulated inDecision79M86/EECshouldbecoveredbythisoperation;
Whereasitmustbepossibletograntloansinpriorityregionsorareasmore
particularlyaffectedbyrestructuring orconversion problemsof,notablyin
connection withintegrated operations,forthepurposeoffinancing advance
factoriesorhousingprojectsth*taresubmitted bythenationaladministrations
andformpartofprogrammes coordinated bythepublicauthorities withregardto
\
theircontentandfinancing andthathelptoestablishproduction sectorsorto
improvegeneraleconomicproductivity inthosepriorityregionsorareas;
Whereasborrowings ofanamountequivalenttoacapitalsumof500millionEuro­
peanunitsofaccountshouldnowbeauthorized,
HASDECIDED ASFOLLOWSt
Article! .
Asecondtrancheofborrowings isherebyauthorizedforanamountnotexceeding
theequivalent ofacapitalsumot500millionEuropeanunitsofaccount.
' • *
Article 2
Theproductoftheseborrowingsshallbeusedforloanstofinanceinvestment
projectswhicharecarriedoutonCommunityterritory andwhichareconsistent
withpriorityCommunityobjectivesintheinfrastructure andenergysectors.
Forthepurposesofthistranche;
/
infrastructure investmentshallcoverinparticular transport,telecommunication
agricultural improvements ,watersupplyworks,environmental protection,housing
andadvancefactories. '

i
– 3-
/ ' '
energy investment shall contribute togreater self-sufficiency ,security
anddiversification ofCommunity energy supplies ;investment shall ensure
thedevelopment ,exploitation ,transportation and storage ofenergy resources ;
particular attention shall bepaid toenergy conservation and tothedevelopment
ofalternative energy sources . ,."
Article 3
TheCommission shall decide -whether ornotprojects are eligible inaccordance
»
with theguidelines laid down inArticle 3ofDecision 79/486/EEC . '
Done atBrussels ,
Forthe Council ,
The President ,
-< -•*
i