COMMISSION OF THE EUROPEAN COMMUNITIES 
m&\ C0M(91) 395 fina 
Brussels, 14 November 1991 
Amendment to the proposal for a 
COUNCIL REGULATION (EEC) 
REGARDING THE "EC INVESTMENT PARTNERS"" FINANCIAL INSTRUMENT 
for Asian, Latin American and Mediterranean Countries 
(presented by the Commission pursuant to Article 149(3) 
of the EEC-Treaty) 
During its session of 14 June 1992, the European Parliament has 
examined the Commission proposal on a Council regulation 
concerning the "EC Investment Partners" financial instrument for 
Asian, Latin American and Mediterranean countries COM (90) 575 
and has approved unanimously the draft report proposed by its 
Development Commission. 
This report provides for same amendments to the original text. 
The present proposal taices into consideration the amendments that 
the Commission has a has accepted during the session of 14 June 
1991 . 
- A ^v-> -
Amendment to the proposal for a 
COUNCIL RFfilllAJlQN (£Ec) 
REGARDING THE "EC INVESTMENT PARTNERS" FINANCIAL INSTRUMENT 
for Asian, Latin American and Mediterranean Countries 
Initial proposal of the Commission 
of the European Communities (1) Amendments 
First recital 
Whereas the Community ie fostering 
financial, technical and economic 
cooperation with the countrlee of 
Asia and Latin America and with the 
Mediterranean region; Whereas the Community 
financial, technical 
cooperation with 
countrlee; is fostering 
and economic 
developing 
Second recital 
Whereas the Council has adopted 
guidelines on new forms of 
cooperation to benefit the 
Mediterranean region, on the one 
hand, and Asia and Latin America, on 
the other; Insert after fifth recital 
Fifth recital 
Whereas 
derived certain benefits can be 
from cooperation between 
Community firms and enterprises in 
the developing countries given that 
it is an excellent vehicle for the 
transfer of know-how and a catalyst 
for the provision of further aid; Whereas joint ventures and 
investment by EC firms with 
developing countries can provide 
certain benefits to developing 
countries including: capital 
transfer; know-how; employment; 
training and skills 
transfer, enhanced possibility of 
exports and supply of local needs; 
OJ No. CHI, JU. \. 19<i] , p. 
Eight recital 
Whereas the résulte attained thuo 
far bear witness to the considerable 
potential of this financial 
instrument in achieving the 
aforementioned objective; Whereas the made of the 
facilities thus far bears witness to 
the considerable potential of thio 
financial instrument in achieving 
the aforementioned objective; 
Ninth recital 
Whereas the continuation and 
extension of ECIP for a further 
five-year trial period from 1 
January 1992 is therefore necessary 
to meet the new needs of the 
countries of Latin America, Asia and 
the Mediterranean; Whereas the continuation and 
extension of ECIP for a further 
three-year trial period is necessary 
to confirm the utility of this 
Instrument and refine it s 
application in order to meet the new 
needs of the countries of Latin 
America, Asia and the Mediterranean; 
Article 1 
For a five-year trial period 
starting on 1 January 1992, and as 
part of its economic cooperation 
with the countries of Latin America, 
Asia and the Mediterranean, the 
Community shall operate special 
cooperation shcemes aimed at 
promoting investment by economic 
operators in the Community, 
particularly in the shape of joint 
ventures with local operators in the 
countries eligible. For a three-year trial period 
starting on 1 January 1992, and as 
part of its economic cooperation 
with the countries of Latin America, 
Asia and the Mediterranean, the 
Community shall operate special 
cooperation shcemes aimed at 
promoting investment by economic 
operators in the Community, 
particularly in the shape of joint 
ventures with local operators in the 
countries eligible. 
Article 3(1), second subparagraph 
On the other hand, in the case of 
facilities 2, 3 and 4 set out in 
Article 2, Community funds shall be 
provided exclusively through the 
financial institutions defined in 
Article 4 below; this shall apply to 
institutions within the Community 
and to those from an eligible non-
Community country that have signed a 
framework agreement with the 
Community. On the other hand, in the case of 
facilities 2, 3 and 4 set out in 
Article 2, application for, and 
provision of. Community funds shall 
be made exclusively through the 
financial institutions defined in 
Article 4 below; this shall apply 
to institutions within the Community 
and to those from an eligible non-
Community country that have signed a 
framework aqreemont with the 
Community. 
Article 3(2) 
2- With regard to facility 3 set out 
in Article 2, the financial 
institutions must provide an amount 
at least equal to that provided by 
the Community. 2. With regard to facility 3 eet 
out in Article 2, the financial 
institutions must provide an amount 
at lease equal to that provided by 
the Community. Priority shall pe 
given to regueete from email and 
medium-sized enterprises. 
Article 4 
The financial institutions shall be 
selected by the Commission from 
among development banks, commercial 
banks, merchant banks and investment 
promotion bodies. The financial institutions shall be 
selected by the Commission, in the 
lighc of the opinion of the 
committee, foreseen in Article 7 bis 
Article 4, second paragraph (new) 
Framework agreements signed by the 
Commission shall make express 
provision for the Court of Auditors 
to have the power, as laid down in 
Article 206a of the Treaty, to 
monitor the activities of such 
institutions which are related to 
financial projects financed by the 
Community budget. 
Article 5, introductory phrase 
Four types of criteria shall be 
applied by the Commission in 
selecting the projects; The Commission shall ensure that the 
projects are selected on the basis 
of the following four types of 
criteria, and in the light of the 
appropriations adopted by the 
budgetary authority: 
Article 5(2) 
2- The contribution to development 
in terms of: 
creation of added value 
creation of local jobs 
promotion of local entrepreneurs 
transfer of technology 
transfer of know-how 
impact on the balance of payments 
favourable i.npact on the 
environment 
manufacture and supply to the 
local market of products that 
have been difficult to obtain or 
are of a lesser quality; 2. The contribution to development 
in terms of: 
ici 
iAl 
i*l 
ill 
JLal Impact on the local economy 
creation of added value 
encouragement of local 
entrepreneurs 
transfer of technology 
know-how, and enhancement and 
of 
IL 
ill techniques ^.T.ployed 
training and ekills acguisition 
by local managers and workforce 
effects on women 
creation of local jobs in 
conditions that do not exploit 
the people employed 
impact on the balance of 
payments 
favourable impact on the environment 
( j ) manufacture and supply to the 
local market of products that 
have been difficult to obtain 
or are of a lesser quality. 
Article 5(3) 
3. Compatibility with the sectoral, 
and geographical aspects of 
Community policy. 3. Compatibility with the sectoral, 
geographical, environmental, social, 
human rights and development aspects 
of Community policy. 
Article 6 
Countries eligible shall be those 
that have concluded a cooperation or 
association agreement with the 
Community Countries eligible shall be those 
that have concluded a cooperation or 
association agreement with the 
Community. The Commission and the 
European Investment Bank consult each other 
in order to ensure that their 
actions in relation to th e 
Mediterranean reqlon are coherent 
and complementaryt avoiding overlap._ 
Article 7, second paragraph (new) 
The Commission shall report on the 
possibility of creating a separate 
ECIP fund with legal identity, 
managed by the Commission or the 
European Investment Bank. and 
subject to review by the Court of 
Auditors, which would be the vehicle 
for egulty holdings and equity 
loans, to which repayments would be 
returned. 
Article 7a (new) 
1. The Commission shall be assisted by the Committee 
established by Council Regulation (EEC) article n* 
on financial and technical assistance to and economic 
cooperation with the developing countries of Latin America 
and Asia, and by Council Regulation (EEC) Article n* 
on cooperation with the Mediterranean countries. 
2. The Committee shall deliver Its opinion on the choice of 
financial partners, the general approach to direct equity 
holdings, and other matters relating to ECIP referred to it 
by the Commission. 
3. Concerning matters pointed out in paragraph 2 above, 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. 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. The votes of 
the representatives of the Member States within the committee 
shall be weighted in the manner set out In that Article. The 
chairman shall not vote. 
The Commission shall adopt measures which shall apply immediately. 
However, If these measures are not in accordance with the opinion 
of the committee, they shall be communicated by the Commission to 
the Council forthwith. In that event : 
The Commission shall defer application of the measures which it has 
decided for a period to be laid down in each act adopted by the 
Council, but which may In no case exceed three months from the date 
of communication. 
The Council, acting by a qualified majority, may take a different 
decision within the time limit referred to In the previous paragraph. 
Article 8 
The Commission shall send to the 
European Parliament and to the 
Council an annual progress report 
and an appraisal report at the 
halfway stage and at the end of the 
five-year period. The Commission shall send to the 
European Parliament and to the 
Council an annual progress report, 
notably on the projects selected, 
the appropriations granted and the 
repayments to the Community budget. 
and an appraisal report at the 
halfway stage and at the end of the 
three-year period. 
Article 8a (new) 
The Commission shall consider and 
report to Parliament and Council on 
the feasibility of extending this 
programme, funded under existing 
Lome arrangements, to ACP countries. 
Article 8b (new) 
Subject to its conclusions based on 
the annual and appraisal reports, 
and an Independent evaluation, the 
Commission shall propose not later 
that 1 January 1994 a draft 
Regulation setting up a 5-year 
renewable programme of the ECIP 
type. 
9 
ISSN 0254-1475 
COM(91) 395 final 
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