COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 08.09.1995 
COM(95) 428 final 
94/0065 (SYN) 
Re-examined proposal for a 
COUNCIL REGULATION ŒO 
laying down general rules for the granting of 
Community financial aid in the field 
of trans-European networks 
(presented by the Commission pursuant to Article 189 c (d) 
of the EC Treaty) 

Explanatory memorandum 
I. 
Context 
On 2 March 1994 the Commission submitted to the Council and Parliament a proposal 
for a Council Regulation (liC) laying down general rules for the granting of Community 
financial aid in the field of trans-Huropean networks (COM(94)62 final SYN 94/0065). 
Parliament gave its opinion on first reading on 30 November 1994. 
In the light of Parliament's opinion, on 17 March 1995 the Commission submitted to the 
Council an amended proposal for a Council Regulation (COM(95)32 final). 
The Council adopted its common position on 31 March 1995. 
On 12 July 1995 Parliament approved this common position, to which it proposed 
21 amendments. 
A summary of the re-examined proposal and of the amendments not included by the 
Commission is set out below. The amendments not included are set out in the Annex. 
II. 
A. Rc-cxamined proposal 
The Commission has re-examined its proposal on the basis of the amendments proposed 
by Parliament and has included the following amendments, in letter or spirit: 
8th recital (amendment 3) 
The inclusion of a reference to extension of the partnership between the public and 
private sectors emphasizes one of the essential objectives of the Regulation. 
Article 2 (amendment 8) 
This addition makes it clear that not only enterprises which run services in the public 
interest but also enterprises which undertake projects considered to be in the public 
interest may submit projects. 
Article 4(1 a) (amendment 22) 
Here Parliament takes up the idea in the Commission's original proposal that, with the 
consent of the Member States concerned, the Commission could propose feasibility studies 
in exceptional cases, for example for transfrontier interconnections. The Community 
contribution to such studies could, on a proposal from the Commission or the States 
concerned, be extended to 100% of the total cost of the study if necessary. 
Article 5 (second part of amendment 23) 
Addition of this paragraph makes it possible to raise the upper limit for the Community 
contribution from 10% to 30% of the total cost of the project in exceptional cases, 
particularly for major projects entailing low investment. 
Article 18 (amendment 19) 
At the time of adoption of the declaration of 6 March 1995 by the three institutions on 
the incorporation of financial provisions into legislative acts, the Commission stated that 
it would not include financial provisions in its proposals for legislative acts concerning 
multiannual programmes not subject to the co-decision procedure. 
B. Amendments not included 
The following amendments have not been included: 
Amendment 1 
Article 189c of the I'reaty provides for the cooperation procedure with Parliament; this 
repetition would be tautological. 
Amendments 2 and 24 
The wording in the common position highlights the transitional nature of this provision 
by clearly stating the extent and duration of the transition period. 
Amendments 4. 10 and first part of 22 
The term "feasibility study" covers all forms of preparatory study prior to implementation 
of a project. There is no need for these additions. 
Amendments 5 and J 2 
The direct and indirect socio-economic effects of projects include the consequences for 
regional planning. There is no need for this addition. 
Amendment 6 
The evaluation of the potential economic viability with the help of cost/benefit analyses 
includes the economic and social aspects. There is no need to mention them explicitly. 
The "capacity of existing infrastructures" criterion is covered by the guidelines proposed 
for trans-European networks. 
Amendments 7 and 13 
An explicit list of Community policies is not essential in this context. In the case of 
energy and telecommunications policies, the Treaty provides no legal basis for these 
policies at the moment. 
Amendment 8 (first part) 
IV-. reparatory studies are "parts of projects", within the meaning of the second subparagraph 
of Article 2(1). This detail is not essential. 
Amendment 11 (second part) 
Article 5(4) reflects the "philosophy" of the Regulation, i.e. that the Community support 
provided for in this Regulation is intended to start up projects and to stimulate funding 
from the public or private sectors. 
Amendment 12 
The criteria "consistency with Community regional planning", "trans-frontier nature" and 
"ability |of the project | to fill gaps in the network" arc covered by the guidelines referred 
to in Article 6(1). There is no need to mention them here. 
Amendment 14 
It is not essential in this context to specify the "public or private" nature of the body. 
Amendment 15 
"Social profitability" and "overall physical planning" are too imprecise to serve as 
assessment criteria. 
Amendment 16 
Many of the projects are too complex to keep fully within a time limit of six months 
between receipt of the application and the decision whether to grant aid. 
Amendment 17 
As is standard practice when implementing internal policies and in line with the Financial 
Regulation, commitments and payments under this Regulation will be expressed in ECU. 
Amendment 18 
A consultative committee (procedure I) would be inappropriate given that the action taken 
by the Community in this field complements the action taken by the Member States. 
Amendment 20 
In the common position the Commission accepted the revision clause as a compromise, 
considering that the regulations on Community funding commonly provide for a 
live-yearly review. 
Amendment 21 
The Commission has been advocating deletion of financial provisions from this 
Regulation (Article 18). Consequently, this renders the recital on this subject superfluous. 
Amendment 22 (third part, final part) 
In the spirit of the Regulation the financial aid from the Community may not exceed the 
minimum amount deemed necessary to launch a project. Also, given the limited 
resources available, there is good reason to place the time limit on the duration of any 
interest rate subsidy. 
Legally, the wording "any other type" of financial aid is too imprecise to serve as a legal 
basis. 
Common position 
8th recital Re-examined proposal for a 
COUNCIL REGULATION 
laying down general rules for the granting of 
Community financial aid in the field 
of trans-European networks 
(Submitted by the Commission pursuant 
to Article I89c(d) of the EC Treaty) 
Re-examined proposal 
8th recital 
Whereas involvement of private capital 
in funding trans-European networks 
should be increased; 
Article 2 Whereas involvement of private capital 
in funding trans-European networks 
should be increased and the partnership 
between the public and private sectors 
extended; 
Article 2 
eligibility Eligibility 
Projects shall be eligible if they are 
financed by the Member Slates or by 
regional or local authorities or by 
bodies working within an 
administrative or legal framework 
which makes them equivalent to 
public entities, in particular public or 
private enterprises which run public 
services or services in the public 
interest. 
Article 4(1 a) 2. Projects shall be eligible if they are 
financed by the Member States or by 
regional or local authorities or by 
bodies working within an 
administrative or legal framework 
which makes them equivalent to 
public entities, in particular public or 
private enterprises which run public 
services or services in the public 
interest or undertake projects 
considered to be in the public interest. 
Article 4(1 a) 
(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, duly substantiated 
cases, at the initiative of the (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, duly substantiated 
cases, and with the consent of the 
Commission and with the consent 
of the Member Stales concerned. 
Community participation may 
exceed the limit of 50%; Member States concerned, the 
Commission may propose studies. 
Community participation in such 
studies may, if necessary, be 
extended to 100% of the total cost. 
Article 5(3) 
Regardless of the form of 
intervention chosen, the total 
amount of Community aid under 
this Regulation shall not exceed 
10% of the total investment cost. Article 5(3) 
3. Regardless of the form of 
intervention chosen, the total 
amount of Community aid under 
this Regulation shall not exceed 
10% of the total investment cost. 
Where projects are of modest scope 
and/or entail low investment, the 
Community financial contribution 
may exceed the abovementioned 
10% limit, if proposed by the 
Commission and agreed by the 
Member States concerned, although 
in such cases it must not exceed an 
upper limit of 30%. 
Article 18 
Budgetary resources Article 18 
The financial reference amount for the 
implementation of this Regulation is 
ECU 2 345 million for the period 
1995-1999. Deleted 
ANNEX 
European Parliament amendments not included by the Commission 
Common position of the Council1 Amendments by Parliament 
(Amendment 1) 
Citation 5 
Acting in accordance with the 
procedure laid down in Article 189c 
of the Treaty, Acting in accordance with the 
procedure laid down in Article 189c 
of the Treaty and in cooperation with 
the European Parliament. 
(Amendment 2) 
Recital 7 
Whereas the guidelines referred to in 
Article 129c(1) of the Treaty, 
proposed bv the Commission, are under 
consideration by the European 
Parliament and the Council; whereas, 
should the decisions adopting these 
guidelines not have entered into 
force when this Regulation enters 
into force, provision should be made 
on a transitional basis for a 
possible Community contribution to 
specific priority projects within the 
limits of the appropriations 
available for the financial year 1995 
and at the latest until 31 December Whereas until such time as the 
Council and the European Parliament 
have decided on the guidelines 
referred to in Article 129c(1) of the 
Treaty, infrastructure projects which 
contribute to the achievement of the 
objectives of Article 129b of the 
Treaty concerning the establishment 
and development of trans-European 
networks may be supported; 
(Amendment 4) 
Recital 9 
Whereas Community aid may take the 
form in particular of feasibility 
studies, loan guarantees or interest 
rate subsidies; whereas these 
subsidies and guarantees relate in 
particular to financial support from 
the European Investment Bank or other 
public or private financial bodies; 
whereas in certain duly justified 
cases direct grants to investments 
may be considered; Whereas Community aid may take the 
form in particular of preparatory, 
feasibility and technical studies, 
loan guarantees or interest rate 
subsidies; whereas these subsidies 
and guarantees relate in particular 
to financial support from the 
European Investment Bank or other 
public or private financial bodies; 
whereas in certain cases direct 
grants to investments may be 
considered; 
3 
(Amendment 5) 
Recital 13 
Whereas Community aid is to be 
granted to projects on the basis of 
how much they contribute to the 
objectives of Article 129b of the 
Treaty and the other objectives and 
priorities covered by the guidelines 
referred to in Article 129c of the 
Treaty; whereas account should also 
be taken of other aspects such as the 
stimulative effect on public and 
private finance, , the direct and 
indirect socio-economic effects of 
projects, in particular on 
employment, and the consequences for 
the environment; Whereas Community aid is to be 
granted to projects on the basis of 
how much they contribute to the 
objectives of Article 129b of the 
Treaty and the other objectives and 
priorities covered by the guidelines 
referred to in Article 129c of the 
Treaty; whereas account should also 
be taken of other aspects such as the 
stimulative effect on public and 
private finance, the direct and 
indirect socio-economic effects of 
projects, in particular on 
employment, and the consequences for 
the environment and regional 
planning; 
;Amendment 6) 
Recital 14 
Whereas the Commission must carefully 
evaluate the potential economic 
viability of the projects, with the 
help of cost/benefit analyses and 
other appropriate criteria, as well 
as their financial profitability; Whereas the Commission must carefully 
evaluate the potential economic 
viability of the projects, with the 
help of cost/benefit analyses 
involving financial, economic and 
social perspectives, analyses of the 
capacity of existing infrastructures 
and other appropriate criteria; 
(Amendment 7) 
Recital 15 
Whereas Community financial support 
under Article 129c(1) of the Treaty 
must be compatible with Community 
policies, in particular on networks 
and as regards environmental 
protection, competition and the award 
of public contracts; whereas 
environmental protection includes an 
environmental impact assessment; Whereas Community financial support 
under Article 129c(1) of the Treaty 
must be compatible with Community 
policies, in particular with a 
sustainable common transport policy 
and as regards energy , 
telecommunications. environmental 
protection, competition and the award 
of public contracts; whereas 
environmental protection includes an 
environmental impact assessment of 
projects; 
Article 2(1 (Amendment 8) 
second subparagraph and (2), first subparagraph 
Parts of projects within the meaning 
of the first subparagraph shall also 
be eligible insofar as they form 
technically and financially 
independent units. Parts of projects within the meaning 
of the first.subparagraph shall also 
be eligible insofar as they form 
technically and financially 
independent units, in particular 
preparatory, feasibility and 
technical studies. 
/yO 
2. Projects shall also be eligible if 
they are financed by the Member 
States or by regional or local 
authorities or by bodies working 
within an administrative or legal 
framework which makes them equivalent 
to public entities, in particular-
public or private enterprises which 
run public services or services in 
the public interest. 2. Projects shall also be 
eligible if they are financed by the 
Member States or by regional or local 
authorities or by bodies acting 
within an administrative or legal 
framework which makes them equivalent 
to public entities, in particular 
public or private enterprises which 
run public services or services in 
the public interest or undertake 
projects considered to be in the 
public interest. 
(Amendment 24) 
Article 3, first paragraph 
Should the dec ions adopting the 
guidelines refe red to in Article 
129c(1) of the Treaty not yet have 
entered into force when this 
Regulation enters into force, 
specific projects, the financing of 
which is of a priority nature and 
which relate in particular to 
transport infrastructure, may be 
regarded as eligible within the 
meaning of this Regulation. Should the decisions adopting the 
guidelines referred to in Article 
129c(1) of the Treaty not yet have 
entered into force when this 
Regulation enters into force, 
transport infrastructure projects in 
particular, which contribute to the 
achievement of the objectives of the" 
creation and development of trans-
European networks as set out in 
Article 129b of the Treaty may be 
regarded as eligible within the 
meaning of this Regulation until that 
date. 
(Amendment 22) 
Article 4(1)(a) to (d) 
(a) co-financing of studies related 
to projects, including 
preparatory, feasibility and 
evaluation studies and other 
technical support measures for 
these studies. (a) co-financing of studies related 
to projects, including 
preparatory, feasibility^ 
evaluation and technical studies 
and other technical support 
measures for these studies. 
Community participation may in 
general not exceed 50% of the 
total cost of a study. Community participation may in 
general not exceed 50% of the 
total cost of a study. 
In exceptional, duly 
substantiated cases, at the 
initiative of the Commission and 
with the consent of the Member 
States concerned, Community 
participation may exceed the 
Umit of 5Q%; For studies undertaken at the 
initiative of the Commission and 
in exceptional, duly 
substantiated cases, at the 
initiative of the Commission and 
with the consent of the Member 
States concerned, Community 
participation may be extended to 
100% of the total cost: 
^ 
(b) subsidies of the interest on 
loans granted by the European 
Investment Bank or other public 
or private financial bodies,. As 
a general rule, the duration of 
a subsidy shall not exceed fivo 
Ye?rs.; (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 
other financial institutions; 
(d) direct grants to investments in 
duly justified cases; (c) contributions towards, fees for 
guarantees for loans from the 
European Investment Fund or 
other financial institutions; 
(d) direct grants to investments and 
any other tyre of financial aid 
found suitable for the 
achievement of the same 
objectives in duly justified 
cases, in particular in island, 
landlocked and peripheral 
regions where the trans-European 
networks are essential for 
development; 
(Amendments 23 and 11) 
Article 5(3) and (4) 
4, The financial resources provided 
for under this Regulation shall not, 
in principle, be assigned to projects 
or stages of projects which benefit 
from other sources of Community 
funding. Deleted 
(Amendment 12) 
Article 6(2) and (3) 
2. Community aid shall be assigned to 
projects that are potentially 
economically viable and for which the 
financial profitability at the time 
of application is deemed 
insufficient. 2. Community aid shall be assigned 
to projects that are potentially 
economically and socio-economically 
viable. taking account of their 
direct or indirect effects. in 
particular on employment. 
3. The decision to grant Community 
assistance should also take account 
of: 3. The decision to grant Community 
assistance should also take account 
of: 
the maturity of the project; 
the stimulative effect of 
Community intervention on public 
and private finance; the maturity of the project; 
the stimulative effect of 
Community intervention on public 
and private finance; . 
yfc 
the soundness of the financial 
package; 
direct or indirect socio-economic 
effects. in particular on, 
employment ; 
the environmental consequences^. the soundness of the financial 
package; 
the environmental'consequences! 
consistency with Community 
regional planning; 
the trans-fropu^r nature ?f the 
project and its ability to fill 
gaps in the network. 
(Amendment 13) 
Article 7 
The projects financed under this 
Regulation shall comply with 
Community law and Community policies, 
in particular in relation to 
environmental protection, competition 
and the award of public contracts. The projects financed under this 
Regulation shall comply with 
Community law and Community policies, 
in particular with the provisions 
concerning the common transport^ 
poli-ÇYi energy. telecomwucsUogs, 
environmental protection, competition 
and the award of public contracts. 
(Amendment 14) 
Article 8 
Applications for financial aid shall 
be submitted to the Commission by the 
Member State concerned or by the body 
directly concerned with the agreement 
of the Member State. Applications for financial aid shall 
be submitted to the Commission by the 
Member State concerned or by the 
public or private body directly 
concerned with the agreement of the 
Member State. 
(Amendment 15) 
Article 9(1)(a), indents 3 to 5 
the results of the cost/benefit 
analyses, including the results of 
the potential economic viability 
analysis and of the financial 
profitability analysis; - the results of the cost/benefit 
analyses, including the results 
of the potential economic 
viability analysis and of the 
financial and social 
profitability analysis; 
the position of the project, 
according to the guidelines, in 
the field of transport, on the 
axes and nodes; 
consistency 
planning; with regional the position of the project, 
according to the guidelines, in 
the field of transport, on the 
axes and nodes; 
consistency with regional 
planning and overall physical 
planning; 
13 
(Amendment 16) 
Article 10 
The Commission shall decide to grant 
financial aid under this Regulation 
according to its assessment of the 
applications in accordance with the 
selection criteria and the procedure 
specified in Article 17. It shall 
notify its decision directly to the 
beneficiaries and to the Member 
States. The Commission shall decide to grant 
financial aid under this Regulation 
according to its assessment of the 
applications in accordance with the 
selection criteria and the procedure 
specified in Article 17, as far as is 
possible within six months of receipt 
of the application. It shall notify 
its decision directly to the 
beneficiaries and to the - Member 
States. 
(Amendment 17) 
Article 11(2a) (new) to (4) 
2a. Commitments and payments shall 
be expressed and made in ECUs. 
3. Decisions to grant financial aid 
taken by the Commission under Article 
10 shall be binding as commitments to 
incur expenditure authorized by the 
Budget. 
4. As a general rule, payments shall 
be made in the form of advances, 
intermediate payments and a final 
payment. The advance, which shall not 
normally exceed 50% of the first 
annual tranche, shall be paid once 
the application for aid has been 
approved. Intermediate payments shall 
be made on the basis of requests for 
payment, taking account of the 
progress made in implementing the 
project or study and, if necessary, 
taking account of revised financial 
plans in a rigorous and transparent 
manner. 3. Decisions to grant financial aid 
taken by the Commission under Article 
10 shall be binding as commitments to 
incur expenditure authorized by th~e 
Budget. 
4. As a general rule, payments 
shall be made in the form of 
advances, intermediate payments and a 
final payment. The advance, which 
shall not normally exceed 50% of the 
first annual tranche, shall be paid 
once the application for aid has been 
approved. Intermediate payments shall 
be made on the basis of requests for 
payment, taking account of the 
progress made in implementing the 
project or study and, if necessary, 
taking account of revised financial 
plans in a rigorous and transparent 
manner, provided at least two-thirds 
of the expenditure related to the 
earlier payment has been effected. 
/</ 
(Amendment 18) 
Article 17(2) to (4) 
2. In implementing this Regulation, 
the Commission shall be assisted by 
one Committee that will meet in the 
appropriate composition according to 
the sectors treated: 2. In implementing this Regulation, 
the Commission shall be assisted by 
one Committee. of a consultative 
nature, that will meet in the 
appropriate composition according to 
the sectors treated: 
trans-European networks in the 
field of transport; 
trans-European networks in the 
field of telecommunications; 
trans-European networks in the 
field of energy. 
The Committee shall be composed of 
representatives of the Member States 
and chaired by a representative of 
the Commission. trans-European networks in the 
field of transport; 
trans-European networks in the 
field of telecommunications; 
trans-European networks in the 
field of energy. 
The Committee shall be composed of 
representatives of the Member States 
and chaired by a representative of 
the Commission. 
The European Investment Bank shall 
appoint a representative to the 
Committee who shall not vote. 
3. The representative of the 
Commission shall submit to the 
Committee a draft of the measures to 
be adopted. 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. The 
Opinion shall be delivered by the 
majority laid down in Article 148(2) 
of the Treaty in the case of 
decisions which the Council is 
required to adopt on a proposal from 
the Commission. When votes are taken 
within the Committee, the votes of 
the representatives of the Member 
States within the Committee shall be 
weighted as defined in that Article. 
The Chairman shall not vote. The European Investment Bank shall 
appoint a representative to the* 
Committee who shall not vote. 
3. The representative of the 
Commission shall submit to the 
Committee a draft of the measures to 
be adopted. 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. 
4. (a 1 The Commission shall adopt 
the measures envisaged if 
they are in accordance with 
the opinion of the Committee. 4. The Opinion shall be recorded in 
the minutes; each Member State shall 
have the riaht to request that its 
position be included in the minutes. 
If 
(b) If the mj^Q:;.nrej,^_onyisaqed are 
not in accordance with the 
opinion of the Committee, or 
if no opinion is delivered, 
the Commission shall, without 
delay, submit to the Council 
a proposal relating to, the 
measures to be taken. The 
Council shall act bv a 
qualified majority. 
If, on the exoirv of a period of 
three months from the date of 
referral to the Council, the Council 
has not acted, the proposed measures 
shall be adopted by the Commission. 4â^- The Commission shall take full 
account of the Committee's Qpin^9^ 
It Shall inform the Committee of t^a 
way in which it has done so. 
(Amendment 20) 
Article 19 
Article 19 Deleted 
Revision clause 
Before the end of 1999. acting in 
accordance with the procedure laid 
down in the third paragraph of 
Article 129d of the Treaty, the 
Council shall examine whether and 
under which conditions the measures 
provided for in this Regulation will 
be continued after the end of the 
period referred to in Article 18. 
J* 
ISSN 0254-1475 
COM(95) 428 final 
DOCUMENTS 
EN 01 07 
Catalogue number : CB-CO-95-467-EN-C 
ISBN 92-77-93369-0 
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