A4-0318/96

Proposal for a Council Decision on the provision of loan guarantees for investments carried out by SMEs creating employment (COM(96)0155 - C4-0314/96 - 96/0107(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 5a (new)

>Text following EP vote>

Whereas, in its decision on the 1996 budget, the European Parliament increased the resources in budget heading B5-322 by ECU 50 m from the proposed ECU 7.75 m to ECU 57.75 m to give a clear signal for its initiative for greater growth and employment and to make adequate resources available for the corresponding measures;

(Amendment 2)

Recital 6

>Original text>

Whereas the present initiative should be in compliance with Commission Recommendation [C(96)261 final];

>Text following EP vote>

Whereas the present initiative is applicable to SMEs and more specifically to small enterprises as defined in the Commission Recommendation concerning the definition of small and medium-sized enterprises (C(96)280 EC)1;

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1 OJ L 107, 30.4.1996, p. 4.

(Amendment 3)

Recital 8

>Original text>

Whereas loan guarantees constitute a cost-effective instrument to facilitate access to loans and moreover lower the interest rates applying to these loans; whereas such guarantees should facilitate and stimulate investments by the beneficiary enterprises and should be extended exclusively in those cases where the loans and investments lead to the creation of employment, and whereas both material and immaterial investments should be eligible under the scheme;

>Text following EP vote>

Whereas loan guarantees constitute a cost-effective instrument and under specific conditions which are beneficial to the borrower may facilitate access to loans for SMEs and moreover lower the interest rates applying to these loans; whereas such guarantees should facilitate and stimulate investments by the beneficiary enterprises and should be extended exclusively in those cases where the loans and investments lead to the creation of employment; whereas the percentage of the loan which is guaranteed and the maximum guaranteed loan are determined on the basis of the number of jobs created by the investments thus financed, the size of the beneficiary enterprise and the nature of the investment concerned (cross-border, start-ups, non-resource-intensive, etc.), and whereas both material and immaterial investments should be eligible under the scheme;

(Amendment 15)

Recital 8a (new)

>Text following EP vote>

Whereas particular attention should be given to the financial needs of young entrepreneurs in the process of creating a SME;

(Amendment 4)

Recital 10

>Original text>

Whereas the European Investment Fund (EIF) was set up in June 1994 to contribute to the pursuit of Community objectives by stimulating investment in trans- European networks and small and medium-sized enterprises; and whereas the Community has become a member of the Fund by virtue of Council Decision 94/375/EEC;

>Text following EP vote>

Whereas the European Investment Fund (EIF) was set up in June 1994 to contribute to the pursuit of Community objectives by stimulating investment in trans- European networks and small and medium-sized enterprises; and whereas the Community has become a member of the Fund by virtue of Council Decision 94/375/EEC; whereas, since support for SMEs has so far accounted for only 10% of the Fund's operations, this support has hitherto been disproportionately neglected compared with support for TENs, and whereas implementation of the proposed programme will help to reduce this disproportionality;

(Amendment 5)

Recital 16

>Original text>

Whereas the loan guarantees are to be made available throughout the Community and be implemented as quickly as possible;

>Text following EP vote>

Whereas the loan guarantees are to be made available throughout the Community, and in particular to small enterprises, and be implemented as quickly as possible;

(Amendment 6)

Article 1, first paragraph

>Original text>

The Community shall provide subsidies for the purpose of paying the cost of the guarantee premiums linked to loan guarantees extended by the EIF on a volume of ECU 1 000 million of loans, subject to the availability of appropriations written into the Community budget. Only loans for investment projects involving the creation of employment, and extended to small and medium-sized enterprises, shall be eligible. Particular priority shall be given to small enterprises.

>Text following EP vote>

The Community shall provide subsidies for the purpose of paying the cost of the guarantee premiums linked to loan guarantees extended by the EIF on a volume of ECU 1 000 million of loans in the first instance, subject to the availability of appropriations written into the Community budget. The volume of loans may be increased to a maximum of ECU 2000 m if the budgetary resources available permit. Only loans for investment projects involving the creation of employment, and extended to small and medium-sized enterprises, shall be eligible. The guaranteed individual loans made by financial intermediaries to the final beneficiaries shall be limited to a maximum of ECU 50 000 per job created. This ceiling may be exceeded for start-up investments or in the case of cross-border investments. Particular priority shall be given to small enterprises (of a size defined according to number of employees).

(Amendment 8)

Article 1, second paragraph

>Original text>

The guarantees shall apply during the whole life of the loans and shall in general cover 50% of the size of the loans. They shall be extended by the EIF under the usual terms and conditions applying to its guarantee operations. For investments with a transnational character, the cover rate may reach up to 75% of the size of the loans.

>Text following EP vote>

The guarantees shall apply during the whole life of the loans and shall in general cover 50%, and in duly substantiated cases 75%, of the size of the loans. They shall be extended by the EIF under the usual terms and conditions applying to its guarantee operations. For investments with a transnational character, and/or start-up investments, and/or innovative investments, and/or those relating to environmental protection, and/or investments by small enterprises, the cover rate may reach up to 75% of the size of the loans. At least 90% of the guarantees issued should be made available to small enterprises.

(Amendment 9)

Article 2, first paragraph

>Original text>

The scheme shall operate for an initial period of up to 24 months from the date of its adoption. The scheme should be administered by the EIF on behalf of the Community, exercising the same diligence as for operations carried out from its own resources.

>Text following EP vote>

The scheme shall operate for an initial period of up to 24 months from the date of its adoption and shall be extended for a further 24 months if it is judged to be a success.

(Amendment 10)

Article 2, second paragraph

>Original text>

The detailed terms and conditions for implementing this Decision, notably as regards the monitoring of employment creation, shall be laid down in a Cooperation Agreement between the Commission and the EIF.

>Text following EP vote>

The detailed terms and conditions for implementing this Decision, notably as regards the monitoring of employment creation, shall be laid down in a Cooperation Agreement between the Commission and the EIF. The European Parliament and the Council shall be informed about the Cooperation Agreement and measures stemming therefrom before it is signed.

(Amendment 11)

Article 2, second paragraph a (new)

>Text following EP vote>

Financial intermediaries will be required to acknowledge in all their publicity for the scheme that it is a European Community initiative.

(Amendment 12)

Article 3

>Original text>

The Commission shall inform the European Parliament and the Council on the implementation of this Decision. The Commission shall, notably on the basis of the information made available by the EIF and within 18 months at most from the date of its adoption, provide an evaluation on the overall utilization of the scheme and its impact on the creation of employment and on investment, notably for the purpose of assessing possible future action beyond the initial period.

>Text following EP vote>

The Commission shall inform the European Parliament and the Council by 31 August of each year on the implementation of this Decision. The Commission shall, notably on the basis of the information made available by the EIF and within 18 months at most from the date of its adoption, provide an evaluation on the overall utilization of the scheme and its impact on the creation of employment and on investment. This report shall be used to decide whether the programme is to be extended by issuing a new edition or supplemented by an interest-rate subsidy programme.

>Text following EP vote>

In its evaluation the Commission shall provide detailed information concerning the number of credit files and the extent of the guarantees issued by target- group segment as broken down in the Commission Recommendation concerning the definition of small and medium-sized enterprises (C(96)280 EG).

Legislative resolution embodying Parliament's opinion on the proposal for a Council Decision on the provision of loan guarantees for investments carried out by SMEs creating employment (COM(96)0155 - C4-0314/96 - 96/0107(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(96)0155 - 96/0107(CNS) (( OJ C 146, 21.5.1996, p. 6.)),

- having been consulted by the Council pursuant to Article 235 of the EC Treaty (C4-0314/96),

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

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on Budgets and the Committee on Social Affairs and Employment (A4-0318/96),

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

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

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

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