PROPOSAL FOR A COUNCIL DECISION ON COMMUNITY MEMBERSHIP OF THE EUROPEAN INVESTMENT FUND
Date: 1993-01-12
Institutions: European Commission
Subjects: European Commission, development bank, investment, shareholding, small and medium-sized enterprises, transport network

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC93)  3 

f i n al 

Brussels,  12  January  1993 

THE  EUROPEAN  INVESTMENT  FUND 

(EIF) 

PROPOSAL FOR AN 
ADDITION TO THE PROTOCOL ON THE 
STATUTE OF THE EUROPEAN  INVESTMENT BANK 

empowering the Board of Governors of the EIB 
to establish the European  Investment  Fund 

PROPOSAL FOR A COUNCIL DECISION ON 
COMMUNITY MEMBERSHIP OF THE 
EUROPEAN  INVESTMENT FUND 

(PRESENTED BY THE  COMMISSION) 

'-i^& 

\ ,mm 

4. 

—zÊËîM 

ï£=24±^i&pytï 

F 

v?  V S5 

THE EUROPEAN  INVESTMENT FUND  (EIF) 

Explanatory Memorandum 

A. 

INTRODUCTION 

In the context  of  promoting economic  recovery  in Europe, a proposal  to 
set  up  a  European  Investment  Fund  (EIF) was  endorsed  by  the  European 
Council  in Edinburgh on  11 and  12 December, who  invited  the Council  and 
the  EIB  to  give  urgent  and  sympathetic  consideration  to  the 
establishment as quickly as possible of  the Fund. 

The discussions on  the Fund were originally  initiated by  the Commission 
representatives  in  the  Bank's  Board  of  Directors  and  reflected  the 
concern  -  also  highlighted  In C0M(92)  2000  -  that  the  Bank  should  be 
able  to contribute  fully  to  the  pursuit  of  the  Community's  objectives 
by  assuming  and  managing  more  specific  risks  without  jeopardizing  its 
credit  standing  and  mainstream  lending.  A  Working  Party  of  Board 
Members  (principally  representatives  of  Ministries  of  Finance)  was 
mandated  to  conduct  a  detailed  examination  of  the  modalities  and  to 
work out  specific proposals. 

B.  PESCRtPTIQN OF THE EIF 

The  Fund  is a  tripartite  organization  In which  the Community,  the  EIB 
and other  financial  institutions will  participate. 

The  main  objectives  of  the  Fund  will  be  to  contribute  to  the 
strengthening of  the  Internal market  and  the furthering of economic and 
social  cohesion. Major  Infrastructure projects  in the  framework  of  the 
transeuropean  networks  (TENs),  as  well  as  small  and  medium-sized 
enterprises  (SMEs), especially  in Community  assisted  areas, constitute 
the main  targets of  support  of  the EIF. Other  projects, for example  in 
the areas of environmental  protection and energy  production, may  become 
eligible  later after  decision of  the Fund's ruling bodies. 

The  Fund's  operations  will  predominantly  take  the  form  of  fInane la I 
guarantees, while  the  provision  of  equity  will  constitute  a  secondary 
activity  and  be  developed  at  a  later  stage.  Loan  guarantees  are, 
besides  feasibility  studies  and  interest  subsidies, one  of  the  three 
ways  set  out  In  the  Union  Treaty  (Title  XII, Art.  129C)  in which  the 
Community  should  concentrate  Its  financial  interventions  In  favour  of 
TEN projects. The targetting of SMEs, especially  in Community assisted 
areas, on  the other  hand, corresponds  to  the  objectives  of  both  Title 
XI I I (Industry) and Title XIV  (Economic and Social  Cohesion) of  the new 
Treaty.  The  operations  of  the  Fund  will  be  co-ordinated,  where 
necessary, with other  forms of Community  Intervention. 

The  EIF  is  intended  to direct  the main  part  of  its activities  towards 
projects  that should operate wholly or partially on a self-financing or 
commercial  basis.  The  existence  of  the  Fund  will  thus  facilitate 
private  Infrastructure  financing  by  providing  a  complement  or 
alternative  to  recourse  to  government  guarantees  for  infrastructure 
financing. The viability  criterion will  also be an essential  element  in 
its approach  to SMEs. 

./. 

T 

2. 

The  EIF  Itself  will  operate  on  a  self-sustaining  basis  and  therefore 
seek  an  acceptable  return  on  Invested  capital  by  charging  Its  services 
in  line with  market  practices. As  a  separate  legal  entity,  Its  accounts 
will  be  totally  distinct  from  those  of  the  EIB,  although  It  will  be 
created  by  decision  of  the  Bank's  Board  of  Governors.  It  will  also  be 
managed  on  a day-to-day  basis  by  the  EIB  under  mandate. 

Supervision  and  direction  of  the  Fund's  policy  and  activities  will  take 
place  at  the  level  of  Its  General  Meeting,  Supervisory  Board  and 
Financial  Committee.  The  contributions  from  the  Community  budget  wi I I 
be  subject  to  the  provisions  of  Article  24  of  the  Financial  Regulation 
and  to  the  normal  control  of  the  Court  of  Auditors. 

C. 

CAPITAL  REQUIREMENTS 

The  initial  subscribed  capital  amounts  to  ECU  2  billion.  According  to 
initial  estimates  based  on  the  prudential  ratios  suggested  for  the  EIF, 
this  would  cover  between  5  and  10  billion  ECUs  of  guarantees.  The 
Community  budget  will  provide  30% of  the  Initial  capital,  the  EIB  40% 
and  other  financial  institutions  the  remaining  30%. 

Only  20%  of  subscribed  capital  will  be  paid-in;  as  far  as  the 
Community's  share  in  the  capital  is  concerned,  this  amounts  to  four 
annual  instalments  of  30 MECU  each,  or  120 MECU  in  total. 

The  other  80% of  the  Community's  capital  share  (480 MECU) will  take  the 
form  of  uncalled  subscribed  capital. This  remaining  capital  can  only  be 
called  by  the  Fund  as  and  when  required  to  meet  Its  liabilities,  and 
not  as  a  way  to  permit  an  expansion  of  Its  operations.  In  addition, 
great  care  has  been  taken  to  ensure  that  the  likelihood  of  this 
happening  Is  minimal.  The  Fund's  Statute  will  include  a  number  of 
specific  ceilings  and  prudential  rules  to  this  effect,  limiting  total 
exposure 
all 
as 
shareholders  have  every  interest  In  the  Fund's  financial  success. 

diversification 

effective 

ensuring 

risk 

and 

As  largest  shareholder  of  the  Fund,  the  EIB  will  finance  Its  share  out 
of  its  annual  surpluses.  Share  subscriptions  by  financial  institutions 
will  probably  be  phased  over  several  years  as  a  large  number  of  them 
are  concerned.  The  broad  concept  has  already  been  presented  to  a  large 
number  of  institutions  and  many  have  shown  a  receptive  attitude  to  a 
potential  shareholding  in  the  Fund. 

D. 

BANKING  SOLVENCY  RATIO  DIRECTIVE 

The  Commission  will  take  the  necessary  steps  to  have  the  EIF  classed  as 
a  'multilateral  development  bank'  under  the  Solvency  Ratio  Directive 
for  Credit  Inst I tutions<1>. 

./. 

(1) Council  Directive  89/647  of  18  December  1989  (O.J.  L386  of 
30.12.89,  p.  14)  as  amended  by  Commission  Directive  91/31  of 
19  December  1990  (O.J.  L17 of  23.01.91,  p.  2 0 ). 

"*> 

3. 

COMMISSION  PROPOSAIS 

Since  the Board of Governors of  the EIB  is currently  not  empowered 
to establish  a Fund, an addition  to the Protocol  on  the Statute of 
the European  Investment  Bank  Is required  to this effect. This will 
entail  an  article  236 procedure. The Commission  therefore  Invites 

-  the  Council,  after  consulting  the  European  Parliament,  to 
deliver  an  opinion  In  favour  of  calling  a  conference  of 
representatives  of  the  Governments  of  Member  States  on  the 
basis  of  the  proposed  addition  to  the  Protocol  on  the  EIB 
attached  to this memorandum-, 

-  the  President  of  the Council  to convene  the conference  for  the 

purpose of determining  the amendment  by common  accord. 

The  Commission  also  asks  the  Council,  after  consulting  the 
Parliament,  to  adopt  the  decision  In  annex  on  the  Community's 
membership of  the Fund. 

U 

PROPOSAL  FOR AN 
ADDITION TO THE PROTOCOL ON THE 
STATUTE OF THE EUROPEAN  INVESTMENT  BANK 

empowering  the Board of Governors of  the EIB 
to establish  the European  Investment  Fund 

HIS MAJESTY  THE KING OF THE BELGIANS, 
HER MAJESTY  THE QUEEN OF  DENMARK, 
THE PRESIDENT OF THE FEDERAL  REPUBLIC OF  GERMANY, 
THE PRESIDENT OF THE HELLENIC REPUBLIC, 
HIS MAJESTY  THE KING OF SPAIN, 
THE PRESIDENT OF THE FRENCH REPUBLIC, 
THE PRESIDENT OF  IRELAND, 
THE PRESIDENT OF THE  ITALIAN REPUBLIC, 
HIS ROYAL HIGHNESS THE GRAND  DUKE OF  LUXEMBOURG, 
HER MAJESTY  THE QUEEN OF THE NETHERLANDS, 
THE PRESIDENT OF THE PORTUGUESE  REPUBLIC, 
HER MAJESTY  THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN 
AND NORTHERN  IRELAND, 

RECALLING  the objective  defined  by  the Treaty, 

DESIRING  to  contribute  to  this  objective  and  especially  to  the 
strengthening  of  the  internal  market  and  to  economic  and  social 
cohesion, 

DETERMINED  to  provide  for  the  necessary  financial  Instruments  to  this 
end, 

HAVING  REGARD  to  the  conclusions  of  the  Presidency  of  the  European 
Council  in  Edinburgh  that  urgent  and  sympathetic  consideration  should 
be  given  to  the  establishment  as  quickly  as  possible  of  a  European 
Investment  Fund,  within  the  context  of  promoting  economic  recovery  in 
Europe, 

AFFIRMING  the benefits of close co-operation between  the Community,  the 
European  Investment  Bank  and  other  undertakings  in  the  Member  States 
with an  Interest  In the objectives of  the Fund, 

HAVE  DECIDED  to  empower  the  Board  of  Governors  of  the  European 
Investment  Bank  to establish  the  European  Investment  Fund  and  to  this 
end  have designated  as their  plenipotentiaries : 

WHO,  having  exchanged  their  full  powers,  found  in  good  and  due  form, 
have agreed  as follows : 

./. 

*> 

2. 

ARTICLE A 

The  Protocol  on  the  Statute  of  the  European  Investment  Bank,  attached 
to  the  Treaty  establishing  the  European  Economic  Community  shaI I be 
completed  by the addition of  the following article : 

"Article 30 

1.  The Board of Governors of  the European  Investment  Bank may, acting 
unanimously,  decide  to create  the European  Investment  Fund,  with 
legal  personality  and  financial  autonomy,  and  of  which  the  Bank 
will  be a founding  member. 

2. 

The  Board  Is empowered  to  establish  the  Statute  of  the  Fund  and 
thus  to  define  Its  objectives,  structure,  capital,  membership, 
financial  resources, means of  intervention, auditing arrangements, 
as well  as  the  relationship  between  the  ruling bodies of  the Bank 
and  those of  the Fund. 

The  Protocol  on  the  Privileges  and  Immunities  of  the  European 
Communities,  as  well  as  the  arrangements  for  and  the  content  of 
amendments  to the texts establishing  It, shall  apply  to the Fund. 

3.  Notwithstanding  the  provisions of  Article  20.2, the Bank  shall  be 
entitled  to contribute  to the subscribed  capital  of  the Fund up to 
the  amount  determined  by  the  Board,  following  unanimous  decision 
thereto. 

4.  The  European  Economic  Community,  represented  by  the  Commission, 
may  become  a member  of  the  Fund  and  contribute  to  its subscribed 
capital. Other  undertakings  with  an  Interest  In  the objectives of 
the Fund shall  be  invited  to become members." 

ARTICLE B 

1.  This  addition  to  the  Protocol  on  the  Statute  of  the  European 
Investment  Bank  shall  be  ratified  by  the  High  Contracting  Parties  in 
accordance  with  their  respective  constitutional  requirements.  The 
instruments  of  ratification  shall  be  deposited  with  the  government  of 
the  I ta I Ian Republic. 

This  addition  shall  enter  Into  force  following  the deposit  of  the 
2. 
instrument  of  ratification  by  the  last  signatory  State  to  take  this 
step. 

./. 

ARTICLE C 

This addition to the Protocol  on  the Statute of  the European  Investment 
Bank,  drawn  up  in  a  single  original  In  the  Danish,  Dutch,  English, 
French,  German,  Greek,  Irish,  Italian,  Portuguese  and  Spanish 
languages,  the  texts  in  each  of  these  languages  being  equally 
authentic, shall  be deposited  in the archives of  the government  of  the 
Italian  Republic,  which  will  transmit  a certified  copy  to each  of  the 
governments of  the other  signatory States. 

IN WITNESS  WHEREOF  the  undersigned  Plenipotentiaries  have  signed  this 
add it ion. 

Done at 

on 

1993 

7 

PROPOSAL  FOR A COUNCIL DECISION ON 
COMMUNITY MEMBERSHIP OF THE EUROPEAN  INVESTMENT FUND 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES 

Having  regard  to the Treaty  instituting the European Economic Community 
and  In particular Article 235 thereof; 

Having  regard  to the proposal  by  the Commission*1) ; 

Having  regard  to the opinion of Par I lament*2^ ; 

Whereas  the  European  Council  in Edinburgh  Invited  the  Council  and  the 
European  Investment  Bank  to  give  urgent  and  sympathetic  consideration 
to  the  establishment  as  quickly  as  possible  of  a  European  Investment 
Fund  (EIF); 

Whereas  the  EIF  should  constitute a cost-effective and efficient  means 
whereby  the  Community,  together  with  the  Bank  and  other  financial 
institutions, can provide a significant  contribution  to the accelerated 
completion  of  large  Infrastructure  projects  of  Community  interest  and 
can facilitate  investment  by small  and medium-sized  enterprises  (SMEs), 
especially  in Community  assisted areas; 

Whereas  Investments  in  large  infrastructure  projects  of  Community 
interest  and  In  particular  those  belonging  to  transeuropean  networks 
are essential  to  the reinforcement  of  economic  and  social  cohesion and 
to  the proper  functioning  of  the  internal  market, and  whereas  some of 
these  investments might  involve  projects of mutual  interest  with  third 
countries ; 

Whereas  investment  support  for  SMEs,  especially  In Community  assisted 
areas,  Is  an  essential  factor  In  the  reinforcement  of  economic  and 
social  cohesion; 

Whereas the EIF will  foster  investment  In both areas; 

Whereas a speedy  implementation of  the EIF will  stimulate  sustained  and 
balanced growth within  the Community; 

Whereas Article  30 of  the Statute of  the EIB empowers  the Bank's Board 
of  Governors  to  create  the  EIF  and  whereas  the  Board  has  decided  to 
create the EIF<3>; 

Whereas the Community may become a member of  the EIF; 

Whereas  appropriate  co-ordination  shall  be  assured  between  the 
operations  of  the  Fund  and  other  Community  financial  and  budgetary 
Instruments; 

./. 

(1) 
(2) 
(3) 

7 

2. 

Whereas  In  order  to  meet  the  objectives  of  the  Fund,  it  would  be 
appropriate  to  consider  It  as  a multilateral  development  bank  for  the 
purposes of Council  Directive 89/647 as amended  by Commission  Directive 
91/31; 

Whereas  Article  24  of  the  Financial  Regulation  shall  apply  to  the 
contributions  from  the  Community  budget  and  the  Commission  shall 
furnish  all  the  Information  necessary  to the Court  of  Auditors  for  the 
examination  of  the  accounts  of  all  Community  revenue  and  expenditure 
stemming  from  its  membership  of  the  EIF;  and  whereas  the  specific 
provisions  concerning  the audit  of  the EIF  itself  are contained  in the 
Statute of  the Fund; 

HAS DECIDED AS FOLLOWS : 

Sole Article 

The  European  Economic  Community,  represented  by  the  Commission, 
becomes  a  member  of  the  European  Investment  Fund  and  hereby  approves 
the Statute of  the Fund, as annexed  to the present  Decision. 

Done 

1 

ANNEX 

EIF  STATUTE 

(Document  still  at draft  stage; will  be  Included  as soon as available) 

s* 

FINANCIAL  STATEMENT 

SECTION  1 

FINANCIAL  IMPLICATIONS 

1 .  Title of operation 

European  Investment  Fund  (EIF) 

2. 

Budget  heading  Involved 

Section  III  (Commission), Part B  (Operating  appropriations), 

Article  B2-400  and  Article  B5-730  for  the  paid-in  part  of 
subscribed capital. 

Article B5-731  for  the callable part of subscribed capital. 

These  lines  are  to  be  created  by  SAB,  as  are  the  corresponding 
chapters and  t it les. 

3. 

Legal  basis 

To  be  created  by  the  proposed  decision,  on  the  basis  of  Article 
235 of  the Treaty. 

4. 

Description of operation 

4.1  Specific  objectives  of  operation  : the  European  Council  of 
11,  12  December  in  Edinburgh  approved  the  creation  of  the 
European  Investment  Fund  (EIF).  The  Community  (30%  of 
capital),  the  European  Investment  Bank  (40%)  and  financial 
institutions  (30%) will  be the members of  the EIF. 

4.2  The  duration  of  the  Community's  Involvement  in  the  Fund  is 
undefined  and  will  in principle  cover  the whole  life of  the 
Fund.  The  Community's  budgetary  contribution  to  the  paid-in 
capital  of  the  Fund  is  spread  out  over  4  years  (cf.  point 
7.1). 

4.3  Target  population  : the  EIF  specifically  aims  to support  the 
creation  of  transeuropean  networks  throughout  the  Community 
and  the financing needs of small  and medium-sized  enterprises 
(SMEs), especially  In Community  assisted areas. 

5. 

Classification of expenditure 

5.1  Non-compulsory expenditure. 
5.2  Differentiated appropriations. 
5.3  Type  of  revenue  Involved  : as  a  shareholder  of  the  EIF,  the 
Community  will  be  entitled  to  receive  dividend  payments  if 
and when  the Fund's General  Meeting decides  to make  dividends 
avallable. 

6. 

Type of expenditure or  revenue 

-  the  Community's  contribution  will  take  the  form  of  a  30% 

participation  in the subscribed  capital  of  the Fund. 

-  the  Community  will  receive  dividend  payments  in proportion  to 

its capital  share. 

./. 

/K) 

7. 

Financial  Impact on appropriations for operations 

7.1  Method of calculating total  cost 

- The  total  subscribed  capital  of  the EIF  amounts  to 2 billion 
ECU, of which  the Community  holds 30% (600 million ECU). 20% 
of  this amount  (120 million  ECU) will  be  paid-in  in 4 equal 
annual  Instalments of 30 million ECU  from  1993 onwards. 

- A  token  entry  Is  proposed  for  the  callable  part  of  the 
Community's  capital, given  that  the amount  and  timing of  any 
call  on  this budget  line cannot  be calculated  in advance and 
furthermore  it  Is highly unlikely  that  this budget entry will 
be called on at any moment  (similar  treatment  to that  for the 
callable capital  of  EBRD). 

7.2  Indicative schedule of appropriations 

-  the  paid-in  part  of  the  Community's  share  in  the subscribed 
capital  will  be  paid  to  the  EIF  in  four  equal  annual 
instalments  of  30  million  ECUs  from  1993  onwards  i.e.  120 
mi I I ion ECUs  in total. 

- The  callable  part  shall  be  subject  to  call  only  as  and  when 

required by  the Fund  to meet  its  liabilities. 

7.3  Financing 

In  1993,  the  30  MECU  contribution  to  the  paid-in  capital 
could be financed as follows: 

-  14  MECU  under  Article  B2-400  ,  corresponding  to  the 

available margin under  category  2; 

-  16 MECU under Article B5-730, to be deducted  from  resources 
allocated  to  transeuropean  networks  (under  category  3)  In 
the 1993 budget. 

The  choice  of  budgetary  lines  for  1993  is without  prejudice 
to  the  decisions  to  be  taken  on  which  lines  should  finance 
the  capital  contributions  In  subsequent  years;  these 
decisions  will  be  taken  In  the  framework  of  the  annual 
budgetary procedure, taking account of  the characteristics of 
the projects financed. 

8.  Anti-fraud  measures 

Not applicab le. 

SECTION 2  :  ADMINISTRATIVE EXPENDITURE 

The proposed operation will  not  Involve any  increase  in the number 
of Commission staff or administrative expenditure 

./. 

3. 

SECTION 3  :  ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 

1.  Objectives and coherence with  financial  programming 

The  quantified  objectives  are  to be  defined  by  the  ruling  bodies 
of  the  EIF, once  the Fund  is established. The  Fund  Is expected  to 
extend guarantees up to 5-10 billion ECUs  In total. 

2. 

Grounds for  the operation 

! 

The proposed  operation  is a cost-effective one  and  constitutes an 
efficient  use of budget  resources  for  the following  reasons : 

a. The  capital  of  the  EIF  will  not  only  be  provided  by  the 
Community,  but  also  by  the  EIB  as  well  as  by  other  financial 
institutions. 

b. The  EIF  will  facilitate  access  to  private  capital  for 
Investments  of  considerable  Importance  to  the  Community, 
notably  through  the extension of  loan guarantees. 

c. The  Fund  will  generate  a  substantial  leverage  effect.  It  is 
estimated  that  the  Fund,  whose  total  subscribed  capital  will 
amount  to 2 billion  ECUs, will  be able  to extend  guarantees up 
to  5 - 10  billion  ECUs;  In total  this could  support  up  to  20 
billion ECUs of projects. 

d. Compared  to  loan guarantees  directly  extended  by  the Community 
budget  (e.g.  In favour  of  transeuropean  network  projects),  the 
Fund provides a much  better  protection  for  the Community  budget 
should  a call  be made upon  those guarantees. 

3.  Monitoring  and evaluation of  the operation 

The  EIF  will  operate  on  a  commercial  basis.  It  will  generate 
income  from  Its  activities  as  It  will  charge  premiums  and  fees 
which  are  commensurate  with  the  level  of  risk  taken  on  by  the 
Fund.  The  performance  of  the  Fund  will  be  measured  by  several 
indicators : 

-  the overall  demand  for  Its services; 
-  the volume of  its activities; 
-  the 

Investments 

volume 

of 

generated 

by 

the 

Fund's 

Intervent Ions; 
its financial  performance  in terms of yearly  net  Income; 

-  etc. 

/ >l 

IMPACT ASSESSMENT  FORM 

THE  IMPACT OF THE PROPOSAL ON BUSINESS 
with special  reference  to small  and medium-sized 
enterprises  (SMEs) 

Title of proposal  : European  Investment  Fund  (EIF) 

The proposal 

1. 

From  a subsidiarity  point  of  view, the EIF's activities are  to be 
carried out at a Community  level  for  the following reasons : 

a. The  target  sectors  (transeuropean  networks  -  TENs  -  and  small 
and medium-sized  enterprises -  SMEs -, especially  in Community 
assisted  areas) are of direct Community  interest. 

b. The Fund will  be organically  linked to the EIB, the Community's 

largest  financial  Instrument  after  the Community budget. 

c. The pooling  at  a Community  level  of  large  financial  guarantees 
extended on a commercial  basis greatly  Improves diversification 
and hence  lowers premium  levels. 

The  impact on business 

2. 

a. The establishment of TENs (in the transport, telecommunications 
and  energy  transport  sector)  will  be  beneficial  to  Community 
cross-border 
business 
activities, 

in  general 

facilitate 

and  will 

b. Besides  its support  for networks, the EIF will  also address the 
financing  needs  of  SMEs,  especially  In  Community  assisted 
areas,  through  the  extension  of  guarantees  and  of  equity 
through  financial  Intermédiaires. 

3. 

No specific action  Is requested  from business. 

4. 

The economic effects of  the proposal  are substantial  : 

a. Employment : 

-  the  Implementation of  TENs  will  generate  a  very  substantial 
Investment  effort  (public  works,  high-tech  and  research, 
etc.)  and  will  therefore  result  in  the  creation  of  an 
Important  number  of  jobs,  both  for  the  execution  of  the 
Investment  programmes  and  for  the  operation  and  maintenance 
of  the networks. 

-  financing support  for SMEs, especially  in Community  assisted 

areas,  will  help these firms to prosper  and develop. 

b.  Investment : 

considerable  effect  (cf.  4.a),  concentrated  In sectors  with  a 
high 
trains, 
telecommunications networks, etc.) as well  as  In regions which 
are catching up with  the Community  average. 

high-speed 

potential 

economic 

(e.g. 

./. 

/)li 

2. 

c. Competitive  position  : 

will  be  Improved  through  the provision  of  high  quality  services 
in the  transport,  telecommunications  and energy  fields. 

5. 

The  financing  needs  of  SMEs,  especially  in  Community  assisted 
areas,  are  specifically  taken  Into  account  by  the  current 
proposa I. 

Consultation 

6. 

The  current  proposal  has been widely  discussed with  a  large  number 
of  financial  Institutions,  some  of  which  are  likely  to  become 
shareholders of  the  EIF. 

V 

ISSN 0254-1475 

COM(93) 3 final 

DOCUMENTS 

ËN 

0! 

Catalogue number : CB-CO-93-011-EN-C 

ISBN 92-77-51912-6 

Office for Official Publications of the European Communities 
L -2985 Luxembourg