ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80)70
Vol.1980/0026

Disclaimer
Conformément aurèglement (CEE, Euratom) n°354/83 duConseil du1erfévrier 1983
concernant l'ouverture aupublic desarchives historiques delaCommunauté économique
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p.1),telquemodifié par lerèglement (CE, Euratom) n°1700/2003 du22septembre 2003
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Community andtheEuropean Atomic Energy Community (OJL43,15.2.1983, p.1),as
amended byRegulation (EC, Euratom) No1700/2003 of22September 2003 (OJL243,
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filehave been declassified inconformity with Article 5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung (EWG, Euratom) Nr.354/83 desRates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
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\
COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)70 final
Brussels,28-February1980
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COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL ANDPARLIAMENT
SECONDREPORTON.EURATOMBORROWING ANDLENDINGACTIVITIES .
1979
C0MC80)70final

Note from the Commission tothe Council.-and Parliament
Second report onthe '
EURATOM borrowing andlending activities
INTRODUCTION
Onthebasis ofaproposal "bytheCommission ,theCouncil empowered
thelatter on29March 1977 toissue loans onbehalf oftheEuropean Atomic
Energy Community :thefunds raised were tobemade available intheform
<i
ofloans tofinance investment projects relating totheindustrial production
of*electricity innuclear power stations andtoindustrial fuel-cycl -e
installations (1). ''
Pursuant -tothis Decision ,theCouncil fixed at500million European
Unit-s ofAccount the maximum amount ofthe loans which the Commission is
empov /ered toissue onbehalf ofEuratom (1),with theproviso that the
Commission shall inform theCouncil assoon asthe operations have reached a
level of300million EUA ,ttoenable theCouncil todecide onthefixing of
afarther amount inthelight oftheexperience gained .\
>. * '
Attheoperational level ,theCommission administers this financial
instrument inclose ,cooperation with theEuropean Investment "Bank .
;.:The ..Ew.Qjp.feaji Council of21-22 June 1979 reaffirmed tha^economic growth
would notbepossible during thenext fewdecades without thedevelopment
ofnuclear energy .Afresh impetus should therefore begiven tonuclear
programmes ,thus making itincumbent upon Euratom tocontribute to
this policy through itsfinancial instrument . . .
This report isthesecond submitted bytheCommission pursuant to ' .
Article 4ofDecision 77/270Euratom ,which stipulates .that :"TheCommission
shall ,inform theCouncil andtheEuropean Parliament atregular intervals
oftherevenue andexpenditure transactions arising outofthecontracting
andservicing ofEuratom loans issued andgranted ".
(1)O.J.L88of6April 1977 ,ECBull .3-1977 ,Item 2.-1.101
.„Decisions 77/270and77/271Euratom .

2«■»
II.ΤΜΡΕΠΈΝΤΑΤΙΟΪΤ ΟΡΤΗΕϊίΑΝΌΛΤΕ''■'
Actiontaken(loans)
• .'' ''' , '
Asat31Decemfter'T979,i'heToanpositionw'as"aS"Tol'l ows":
-Loansdisbursed *
-Loansprojectedbutnotyetmadeavailable
ofwliich:coveredbyDecision77/271■-
coveredbyDecision80/29
setasideforapossiblethirdtranche
-7Applications beingconsidered
-Applications notifiedorpossible320millionEUA
1039millionEUA
180millionEUA
500millionEUA
359millionEUA
345millionEUA
1010millionEUA
TheprojectsfinancedareinBelgium,France,ItalyandtheFederalRepublic
ofGermany.
Abreakdovmofthetotalisgiveninthefollowingtablei'',
-SociétéLuxembourgeoise decentralesnucléaires
fortheMiilheim-Karlich nuclearpowerstation(D)*1
--CentralesnucléairesEuropénnesàNeutronsRapidesNERSA
fortheCreys-Malvillenuclèarpowerstation(F)
-EnteNazionaleperl'EnergiaElettrica ENELforcheAltoLazionuclearpowerstation(i)
--SociétéRéuniesd'EnergieduBassindel'EscautEBES
fortheDoelnuclearpowerstation(B)111.42millionEUA
88.99millionEUA
69.69millionEUA
50.54millionEUA
320.54millionEUA
Ontheborrowingside,Euratombondissuesonthecapitalmarkethave
beenwellreceived.Sincethebankscannowofferinvestorsafurther
AAAratingtheyhavegainedaccesstoawiderrangeofborrowerswhilethe
.investmentpromotorshavebeenabletodiversifytheirsystemofraising'
funds. i
Detailsoftheloanscontractedupto31December1979aregivenoverleaf.

AmountofLoan RateinTerm EUAequivalentrounded
_ (year)offtonearestmillion
(31December1979)
m200000000 5.75 10. 80
n-i18000000 6,50 15 7
S5.18000000 8.75 15 13
FS80DOO000 4,25 12 35
USi-50000000 9.125 12 .35
m-80000000 6.25 12 35
FS20000Ό00 3 6 9
LFr500000000 8 8 12
FF20000000 9.75 •10
-χ-4
FS15000000 3.G25 6 7
FS30000000 3.875 6 13
FF 60000000 8.75 6 10
FB1500000000 8.75 8. 37
•'FF150000000 9.75 8 26
323
,COOPERA/;?I0î7ΒΕΤ'ΓΞΕΝHÉRATOKANDTHEEIB
Cooperation betweenEuratomandtheEIBisbasedontheagreementbetween
theCommissionandtheEIB,thetextofwhichisincorporated intheminutes
oftheCouncilmeetingof29March1977-Tothisoutlineagreementhavebeen
addedanumberofpracticalprovisionsagreeduponbythedepartmentsof
thetwoinstitutions .
-Inalltheapplications processedsofar,theEuratomloanhasbeen
accompanied withpart-financing bytheEIB.
Duringtheperiodunderreview,cooperationbetweenEuratomandthefelB
hasbeenhighlysuccessful.ThecommissionpaidtotheEIBamountsto
0.125/fcp.a.ofthetotalloansgranted.
"*
\
IV.ASSESS!1ZIJT ;
Thesio'zing-downinthenuclearprogrammeinmostMemberStatesduring ~
recentyears,referredtointhepreviousreport,provedtobelessmarkedin
1979andthisisreflectedinthelevelofapplicationsforfinancingshown
inSectionIIabove.However,theamountspaidouttodatecoveronlybetween
2and3^ofthecosts,dependingontheproject.

Loansrequestedandgrantedremainedwithinthelimitof20$ofthecapital
expenditureforanygivanproject,laiddownbytheCouncilandtheceiling
forEuratoratransactions .Euratorarequiresthesameguarantees aB'theEIB.
ExperienceinthetwoandahalfyearsduringwhichDecisions77/2f0and
77/27IEuratomhavebeenapplied,suggeststhatcertainamendmentstothe
definitions andproceduresshouldbeconsidered s
1.Whantheamountof300millionEUAforloanswasreached,theCommission
proposedtotheCouncilnewarrangements foranadditional amountof ^
1000millionEUA.On20December1979"*"theCouncildecidedtoallowthe
Commissiontoissueasecondtrancheof500millionEUA*.andtookformal
noteofthefollowingdeclaration bytheCommissions "TheCommission
declaresthatitwillshortlyboledtopresent,anet*proposaldesigned
toincreasetheceilingforEuratomborrowingsinviewoftheloan
applications alreadysubmittedornotified.OnthatoccasiontheCommission
willexaminethequestionofthescopeoftheDecisionof20March1977**.
2.Experiencehasshownthatnewapplications maybesubmittedwhichfulfil
theobjectivesofthatdecisioninthattheyfacilitatetheuseofnuclear
powertoincreasetheCommunity'sself-sufficienc^in thearesofenergy
supplies.Amongsuchapplications referenceshouldbemadeto%
-thefinancingofinstallations designedtoexploituraniumdepositsboth
insideandoutsidetheCommunity,onconditionthataspecificpercentage
oftheproduction(basedontheleveloffinancinggrantedbyEuratom)
ismadeavailabletoCommunityundertakings f
-methodsoftransportingfissilematerials(for©sample,methodsof
transporting spentfueltothere–processing plantsatCapdalaHague
orVJindscale)} -
-heatproductionfromnuclearreactorsforuseinindustryordistribution ,
suchasurbanheating(forexample?theexistingcaseofanuclearreactor
firstprovidingheatto.anuclearresearchcentreandsubsequently to
otherusers),whichisverymuchinlinewithCommunitypolicyonenergy
conservation . .
Withregardtothelastsectormentioned(productionofheat)the!
applications arenoteligibleunderthetermsofthefirstarticleof
Decision77/270Euratom.jtheCommissionisthereforeconsideringamodification
ofthisprovision.
*O.J.L12/28of17.1.1980 <Décision80/29Euratom
2059/80e

-5-
I-Jhiletherehasbeenasignificant growthinthenumberofloan^
applications submitted ,andexamined,thereisalwaysacertaintime-lag
inarrangingfundsforcertainprojects.Thisismainlyattributable ,
toanincreaseintheownresourcesofcertainelectricity companiesdue
tohiaJiertariffsandtheirabilitytoborrowatarateclosetooreven
lowerthanthatofferedbyEuratom.
CONCLUSIONS 'v'-
»,
Theactiontakenin1979hasshownthatdynamicuseofEuratom'g
financialinstrumenthasled'tothefixingofanewceilingof500million
EUAandtheneedforabroaderdefinitionoftheinvestmentseligiblefor
Euratom .loans.
ι
This,reportisaddressedtotheCouncilandEuropeanParliamentfpr...
informationpurposes. , -'