Amended proposal for a Council Regulation (EC) amending Council Regulation (EC) No 2236/95 laying down general rules for the granting of Community financial aid in the field of trans-European networks
Date: 1998-12-04
Institutions: European Commission
Subjects: EU aid, balance of payments assistance, private sector, public sector, trans-European network

COMMISSION OF THE EUROPEAN  COMMUNITIES 
COMMISSION OF THE EUROPEAN  COMMUNITIES 
COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels, 04.12.1998 
Brussels, 04.12.1998 
Brussels, 04.12.1998 
COM(1998) 723 final 
COM(1998) 723 final 
COM(1998) 723 final 

98/0101  (SYN) 
98/0101  (SYN) 
98/0101  (SYN) 

Amended proposal for a 
Amended proposal for a 
Amended proposal for a 

COUNCIL REGULATION  (EC) 
COUNCIL REGULATION  (EC) 
COUNCIL REGULATION  (EC) 

amending Council Regulation (EC) No. 2236/95 laying down general rules for the 
amending Council Regulation (EC) No. 2236/95 laying down general rules for the 
amending Council Regulation (EC) No. 2236/95 laying down general rules for the 
granting of Community financial  aid in the field  of trans-European  networks 
granting of Community financial  aid in the field  of trans-European  networks 
granting of Community financial  aid in the field  of trans-European  networks 

(Com (98)  172 final-98/0101 (SYN)) 
(Com (98)  172 final-98/0101  (SYN)) 
(Com (98)  172 final-98/0101 (SYN)) 

(presented by the Commission pursuant to Article  189 a (2) 
(presented by the Commission pursuant to Article  189 a (2) 
(presented by the Commission pursuant to Article  189 a (2) 
of the EC-Treaty) 
of the EC-Treaty) 
of the EC-Treaty) 

Explanatory  memorandum 

I 

(1) 

(2) 

(3) 

The  Commission  put  forward  to  the  Council  and  the  Parliament  on  18  March 
1998  a  proposal  for  amending  the  (EC)  Council  Regulation  n°2236/95  laying 
down  general  rules for  granting of Community  financial  aid  in the field  of trans-
European networks (COM (98) 172 final). 

The European  Parliament  delivered  its opinion on the proposal  at its first  reading 
in  the  plenary  session  in  Strasbourg  on  19 November  1998.  It  has  adopted  27 
amendments. 

The Commission can accept  18 amendments out of the 27 adopted by the 
Parliament.  10 amendments can be accepted in full and included as such in the 
Commission proposal (n°2, 3, 9,  10, 12, 15, 16, 18, 19, 22). They will improve 
the initial text and make it more precise. 8 amendments are acceptable in principle 
(n°l, 4, 6, 7, 8, 14, 17, 20) and have been introduced either with slight  drafting 
changes or in a provision different  from the one proposed by the EP. The 
remaining 9 amendments proposed by the European Parliament are not acceptable 
to the Commission. 

On the following pages are the changes described in detail. First are the changes 
which the Commission can accept in full  or in principle, followed  by those that 
the Commission can not accept. 

(4) 

The opinion of the Economic and Social committee delivered on 9 September has 
also been taken into consideration, at least partially, via the EP amendments. 

The following  amendments have been accepted by the Commission : 

II 

Amendment  1  (recital 2a) 
Amendment  1  stresses the importance of granting increased aid to applicant 
countries as well as the need for co-ordination with PHARE and I SPA 
instruments. This amendment deals with the same issue as amendment 2 and its 
principle has been introduced  in recital 3.  The coordination  issue is already 
covered in the original recitals.  . 

Amendment 2 (recital 3) 
The addition of "or to* links with third counlries",highlights the importance of 
granting a higher level of support to the projects which are connecting the 
infrastructure  in the current European Union to the infrastructure  networks in the 
applicant counties. 

Amendment 3 (recital 4a new) 
Amendment 3 requires the application  for support to include a detailed 
breakdown of the financial sources of finance. 

Amendment 4 (recital 4b new) 
This amendment aims to take into consideration the effects  at regional, national 
and European level of a project  eligible for Community support. However, this is 
not an additional criterion but rather further  information required for assessment 
of applications. 

Amendment 6 (recital 8a new) 
Amendment 6 reinforces  and details the scope for the Community  to use part of 
the TEN-budget for risk-capital participation. This new way of using part of the 
TEN-funds  is a very important element in attracting private investment into 
projects and to motivate the private sector to engage in public-private 
partnerships. It has been partially introduced  in the existing recital 2 to complete 
the existing text. 

Amendment 7 (recital 10) 
Amendment 7 adds to the original Commission proposal that to raise the profile 
of European Community subsidies, the regulation should specify  how the 
beneficiary  should publicise the Community contribution. The analogy with 
structural funds cannot be followed,  as it would be disproportionate to the TEN 
support. 

Amendment 8 (art. 4.1.a in reg. 2236/95) 
This specifies that only in exceptional cases and based on a proposal by the 
Commission, and where appropriate with the consent of the member states, 
Community participation may exceed the normal limit of 50%. 

Amendment 9 (art. 4.1 .b in reg. 2236/95) 
As concerns the duration of subsidies of loan interest, it shall as a general rule not 
exceed seven years. This is in line with the Commission opinion. 

Amendment  10 (art. 4.1.e in reg. 2236/95) 
Amendment  10 specifies  that if part of the TEN-budget is used for risk-capital 
participation there needs to be a substantial private sector investment  following 
the Community's participation. 

Amendment  12 (art. 5.3 in reg. 2236/95) 
This specifies that especially  for projects  linking the Community with third-
countries, Community aid may reach 20% of the total investment cost, (see 
amendment 2). 

Amendment  14 (art. 9.1a third indent in reg. 2236/95) new 
Amendment  14 states that estimates of external costs and of  induced-traffic 
volumes shall be submitted, where appropriate, to the Commission, together with 
other economic analyses such as cost-benefit  analyses and  financial  profitability 
analyses. 

Amendment  15 (art. 9.1a fifth indent in reg. 2236/95) new 

3 

This states that the information  given  in the application  forms  must  also contain  a 
description  of the project's  consistency  with  regional  development  plan  and 
foreseeable  socio-economic  effects. 

Amendment  16 (art. 9.1a  last indent  in reg. 2236/95)  new 
This amendment  states that  in the  financial  plan  which  is part  of the  application 
form  it must  clearly  be stated  how  much  of the  financing  comes  from  regional, 
local and  private  sources. 

Amendment  17 (art. 9.2. in reg.  2236/95) 
The  applicant  for  Community  support  shall  supply  the Commission  any  other 
relevant  additional  information  which the Commission  requires, such as the 
hypotheses on which the cost/benefit  analysis  is based. This amendment  makes 
the existing text, more  explicit. 

Amendment  18 (art.  15.4. in reg.  2236/95) 
Amendment  18 states that the Commission  and the Member  States shall  evaluate 
the effects  of the programme  or projects  including  the environmental  impact.  This 
evaluation  should also include a discussion  on the possible  side effects,  which 
have appeared  during and  after  the realisation  of the  project. 

Amendment  19 (art.  16.2. in reg.  2236/95) 
This requires  there to be on all buildings  constructed  with support  under  this 
regulation  and  accessible  to the public, a permanent  commemorative  plaque  with 
the European  emblem  and  a reference  to co-financing  by the  Community. 

Amendment  20 (art.  16 in reg. 2236/95),  new 
Amendment  20  says that the Commission  shall once a year  submit to the 
European  Parliament  a report on the substance  and  implementation  of the  current 
multi annual programme  (MIP). This could  be covered  by the annual report  on 
TENs to the  EP. 

Amendment  22 (art.  18 in reg. 2236/95),  new 
This includes a reference  amount  of 5500 million  ECU  for the implementation  of 
this regulation  in the period  2000-2006, which  is consistent  with the  financial 
statement  attached  to the original  Commission  proposal. 

Ill 

The  following  amendments  are not acceptable  to Commission  and  therefore  arc 
not  included  in the modified  proposal. 

Amendment  5 (recital  8) 
Amendment  5 says that the Commission  should co-ordinate  funding  TEN 
infrastructure  with the other  main Community  financial  instruments, and that  the 
co-ordination  obligations  of the Member  states  should  be set out.  The 
Commission  considers  it unnecessary  to stipulate  in the regulation  itself  the 
internal  working  procedures  of the Commission.  The  provision  on  co-ordination 
obligations  for  the  Member  States  has not  been  adopted  in the  corresponding 

4 

article. 

Amendment  11 (art. 4.2.a in reg. 2236/95), new 
It is here mentioned that at least 55% of the funds available should go to railways, 
a maximum of 25% to roads and a maximum of  15% to traffic  management 
projects. The Commission rejects this proposal, as financial  needs by modes can 
not be foreseen  in advance national priorities put forward  by Member States. It 
could also lead to poor management of the available  funds. 

Amendment  13 (art. 6.1a in reg. 2236/95), new 
Here again restrictions are imposed on the way the budget  is to be used. The 
amendment stipulates that no more than 50% of the Community subsidies may be 
used for priority projects, and that the rest should be used  for other projects.  The 
amendment also mentions annex  1  and 3 in decision No.  1692/96/EC, which are 
the guidelines for transport; the financial  regulation concerns all three TEN 
sectors. 

Amendment 21 (art.  17.3. and  17.4. in reg. 2236/95), new 
This proposes including a new committee procedure in the regulation. The 
Commission can not accept this proposal, as it is a horizontal issue to be dealt 
with separately. The consultative committee procedure proposed does not 
conform to the procedure in Comitology Decision 87/373 of the Council and so 
can not be used unless and until this decision  is amended by the Council  for 
which a separate proposal  by the Commission has been put forward  this year. 

Amendment 23 (art.  19 in reg. 2236/95), new 
In this amendment it is proposed that the Council shall examine whether or not 
this regulation may be extended beyond the period specified  in article  18 (2000-
2006). The Commission rejects this amendment because such a provision is 
unnecessary. The regulation will automatically apply after  2006 if it has not been 
revised. 

Amendment 24 (art.  16.1a in reg. 2236/95), new 

It proposes that the Commission shall draw up an environmental  impact statement 
on  each  major  project  financed  with  Community  aid.  It  falls  under  the 
responsibility  of  the  Member  States  to  ensure  that  projects  comply  with 
Community rules. 

Amendment 25 (art.4.3 in reg.2236/95, new) 

This amendment develops the same idea on private financing as in the proposal  of 
the  Commission.  The  existing  proposal  is  coherent  with  the  provision  of  the 
Cohesion  Fund,  and  leaves  more  flexibility  for  the  Commission  to  promote 
recourse to private financing. 

Amendment 26 (art. 14 in reg.2236/95) 

This  amendment  specifies  the  financial  instruments  and  policies  with  which  co 
ordination  is  needed.  They  are  all  already  covered  by  the  existing  text 

"Community  financial  instruments".  There is no need to go into details in the text 
of the regulation. 

Amendment 30 (art. 15.2 in reg.2236/95) 

This  amendment  imposes  a  systematic  evaluation  of  individual  projects  by  both 
MS and  Commission.  The detailed  evaluation  of specific  projects  falls  under  the 
responsibility  of  the  MS, and  is  coherent  with  the  subsidiarity  principle.  Global 
and overall evaluation of the TEN programme is done by the Commission. 

Amended  proposal  for  a 

COUNCIL  REGULATION  (EC) 

amending Council Regulation (EC) No. 2236/95 laying down general rules for the granting of 
Community financial aid in the field of trans-European networks (Com (98)  172 final-98/0101 
(SYN)) 

Initial  proposal 

Modified  proposal 

Recital 2 

Whereas 

Community 

financial 
(2) 
participation  provided  for  under that  Regulation 
may  exceed  the 
limit  of  50%  for  studies 
undertaken  on the  initiative of the  Commission; 
whereas it is necessary to facilitate the financing 
of  certain  projects  by  including,  among  the 
possible  forms  of  aid,  contributions  to  ihe 
formation  of risk capital; whereas  it  is  desirable 
to  use 
resources  provided 
under Regulation  (EC)  No  2236/95  in  order  to 
maximize the contribution from  private  finance; 

financial 

the 

the 

Community 

financial 
(2)  Whereas 
participation  provided  for  under  that  Regulation 
may  exceed 
limit  of  50%  for  studies 
undertaken  on  the  initiative  of  the  Commission; 
whereas in order to allow the Community to act as 
a  catalyst  for  private  sector  involvement  in  the 
financing  of  TENs,  risk-capital  as  a  form  of  aid 
under  this  regulation  shall  provide  a  basis  for 
future  Community action to support  public-private 
partnership  TEN  projects; whereas  it  is  desirable 
to  use 
provided 
the  -  financial  resources 
under Regulation  (EC)  No  2236/95  in  order  to 
maximize the contribution from  private finance; 

(3) 
Whereas  provision  should  be  made  so 
that  certain  projects  related  to  more  than  one 
Member  State,  or  contributing  strongly  to  the 
broader trans-European  interest,  including those 
with  an  important  environmental  dimension, 
may receive an  increased  level of support; 

Recital 3 

(3)  Whereas  provision  should  be  made  so  that 
certain  projects  related  to more than  one  Member 
State, or to links with third  countries, in  particular 
relevant  applicant  countries,  or  contributing 
strongly  to  the  broader  trans-European  interest, 
important 
very 
with 
those 
including 
environmental  dimension,  may 
receive  an 
increased  level of support 

Recital 4a 

in  the  application  for  financial 
4a.  Whereas 
support  for  a  project,  a  detailed  breakdown  of 
estimates  is  needed  concerning  the  sources  of 
contributions from  the Community, from  national, 
regional  and  local  government  bodies,  as  well  as 
the  extent  of  financial  contributions  from  the 
private sector 

Recital 4b 

^^_  Whereas  the  effects  at  regional,  national  and 
Iviiropean 
for 
* '«immunity  subsidies  under  this  R egti lal i< mi mist 
be  included  as an  additional  information  required 

the  projects^  eligible 

level  of 

for  the  assessment  of  applications 

Recital  10 

(10)  Whereas  it  is  necessary  to  specify  the 
manner  in  which  beneficiaries  should  publicize 
Community  contributions; 

10.  Whereas  in  order  to  increase  the  visibility  of 
European  Community  subsidies  it  is  necessary  to 
specify  the  manner  in  which  beneficiaries  should 
Dublicise Community  contributions; 

HAS  ADOPTED  THIS  REGULATION: 

Article  4 

Forms of  aid 

Article  4 

Forms of  aid 

1.  Community  aid  for  projects  may  take  one  or 
several  of the  following  forms  : 

(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  and  evaluation 
studies,  and  other  technical  support  measures  for 
these  studies. 

Community  participation  may 
exceed  50% of the  total  cost  of a  study 

in  general  not 

Community  participation  may 
exceed  50% of the total  cost  of a  study. 

in  general 

not 

In  exceptional  cases,  at  the  initiative  of  the 
Commission  and  with 
the 
Member 
Community 
participation  may  exceed  the  limit  of  50%,  in 
particular  for  studies  undertaken  at  the  initiative 
of the  Commission; 

the  consent  of 

concerned, 

States 

In  exceptional  cases,  upon  a  relevant  initiative  by 
the  Commission  and,  where  appropriate,  with  the 
consent  of 
concerned, 
the  Member  States 
Community  participation  may  exceed  the  limit  of 
50%. 

(b)  subsidies  of  the  interest  on  loans  granted  by 
the  European  Investment  Bank  or  other  public 
or private  financial  bodies 

b) subsidies  of the  interest  on  loans  granted  by  the 
European  Investment  Bank  or  other  public  or 
private  financial  bodjes.  As  a  general  rule,  the 
duration  of  such  a  subsidy  shall  not  exceed  seven 

(c) contributions  towards  fees  for  guarantees  for 
loans  from  the  European  Investment  Fund  or 
private  financial  bodies; 

(c)  contributions  towards  fees  for  guarantees  for 
the  European  Investment  Fund  or 
loans  from 
private  financial  bodies; 

(d)  direct  grants  to  investments  in  duly  justified 
cases; 

(d)  direct  grants  to  investments  in  duly  justified 
cases; 

risk-capital  participation, 

for 
(e)  grants  or 
investment 
financial 
undertakings  with  a  priority  focus  on  providing 
risk  capital  for  trans-European  network  projects; 

comparable 

funds  or 

funds 

participation, 

risk-capital 
or 

for 
(e)  grants  or 
investment 
financial 
undertakings  with  a  priority  focus  on  providing 
risk  capita]  for  trans-European  network  projects 
sector 
^substantial 
and 

comparable 

involvuig 

private 

investment; 

3.  The following  paragraph  is added  to article 
5(3) 

The following  sub-paragraph is added to article 5 

Article 5 

Article 5 

3.  However  in  the  case  of  projects  related  to 
more  than  one  Member  State,  or  contributing 
strongly  to  the  broader  trans-European  interest, 
including 
important 
environmental  dimension,  the  total  amount  of 
Community  aid  under  this  Regulation  may 
reach 20% of the total investment cost. 

having 

those 

an 

3.  However  in the case of projects  related  to  more 
than  one  Member  State,  or  links  with  third-
countries  or  contributing  strongly  to  the  broader 
trans-European  interest,  including  those  having  an 
total 
important  environmental  dimension, 
amount  of  Community  aid  under  this  Regulation 
may reach 20% of the total investment cost. 

the 

Article 9 

Information required for the assessment and 
identification of applications 

I.  Each  application  for  financial  aid  shall  include 
all  the  information  necessary  for  the  examination 
of the project according to Articles 5, 6 and 7, and 
in particular: 

(a) if the application concerns a project 

- the body responsible for carrying out the project, 

-  a  description  of  the  project  concerned  and  the 
type of Community aid envisaged, 

- the results of the cost/benefit  analysis,  including 
the  results  of  the  potential  economic  viability,  of 
the  financial  profitability  analysis,  and  where 
appropriate  considerations  of  externalities  and  of 
induced  traffic, 

-  the  position  of  the  project,  according  to  the 
guidelines,  in  the  field  of  transport,  on  the  axes 
and nodes, 

-  consistency  with  regional  planning,  and  the 
foreseeable  socio-economic  effects, 

-  a  summary  description  of  the  environmental 
impact,  based  on  the  assessments  carried  out  in 
accordance with Council  Directive 85/337/EEC of 
27  June  1985 on  the  assessment  of the  effects  of 
certain  public  and  private  projects  on 
the 
environment, 

- a statement that alternative possibilities of public 
and  private  financing,  including  the  European 
Investment  Fund  and  the  European  Investment 
9 

Bank,  have  been  examined, 

the  components  of  the 

-  a  financial  plan  listing,  in  euros  or  in  national 
currency,  all 
financial 
package,  including  the  financial  aid  requested 
from  the  Community,  in  its  different  forms  as 
mentioned  in Article  4, and  from  local,  regional  or 
national  government  bodies,  as  well  as 
from 
private  sources, and  the aid  already  granted 

b)  if the  application  relates  to  a  study,  the  study's 
the  methods  and 
objective  and  purpose  and 
techniques  envisaged; 

c) a provisional  time-table  of  work; 

d)  a  description  of  the  control  measures  to  be 
operated  by  the  Member  State  concerned  over  the 
use of the funds  requested. 

relevant  additional 

2.  Applicants  shall  supply  the  Commission  with 
any 
it 
requires,  such  as 
the  hypothesis  on  which 
cost/benefit  analysis  is  based. 

information  which 

3.  The  Commission  may  seek  any  specialist 
advice  it requires  in order to  assess  an  application, 
including  the  opinion  of  the  European  Investment 
Bank. 

Article  15 

Article  15 

of 

and 

impact 

evaluate 

The  Commission  and 

the  Member 
4. 
States  shall  assess  the  manner  in  which  the 
projects  and  the  programmes  have  been  carried 
out 
their 
the 
implementation,  in  order  to  assess  whether  the 
original  objectives  can  be,  or  have  been, 
achieved.  This  evaluation  shall, inter  alia,  cover 
the 
impact  of  projects  on  the  environment, 
regard  being  had  to  the  Community  laws  in 
force.  The  Commission  may  also  require  the 
beneficiary  to  provide  a  specific  evaluation  on 
projects  or  groups  of  projects  supported  under 
the 
this  Regulation,  or 
information  and 
to 
evaluate  such  projects. 

to  provide 
the  assistance 

it  with 
required 

the 

impact  of  projects  on 

4.  The  Commission  and  the  Member  States  shall 
assess  the  manner 
the  projects  and 
in  which 
programmes  have  been  carried  out  and  evaluate 
the  impact  of  their  implementation,  in  order  to 
assess  whether  the  original  objectives  can  be,  or 
have  been,  achieved.  This  evaluation  shall,  inter 
alia,  cover 
the 
environment,  regard  being  had  to  the  Community 
laws  in  force  This  evaluation  should  also  discuss 
possible  side  effects  which  have  appeared  during 
and  after 
the  project.  The 
Commission  may  also  require  the  beneficiary  to 
provide  a  specific  evaluation  on  projects  or 
groups  supported  under  this  Regulation,  or  to 
provide  it  with  the  information  and  the  assistance 
required  to evaluate  such  projects. 

the  realisation  of 

12.  The  second  sentence  of  article  16(2)  is 
replaced  hy  the  following 

Article  If) is replaced  hv the following  : 

Article  16 

Article  16 

10 

Information  and publicity 

1. The Commission  shall  submit  an  annual  report 
on  the  activities  carried  out  under  this  regulation 
to  the  European  Parliament,  the  Council,  the 
to  the 
Economic  and  Social  committee  and 
Committee of the Regions for their appraisal. This 
report  shall  contain  an  evaluation  of  the  results 
achieved  with  Community  aid  in  different  fields 
of  application,  in  terms  of  original  objectives, as 
the  substance  and 
well  as  a  chapter  on 
multiannual 
implementation 
programmes,  especially  an  account  of 
the 
revisions provided  in article 5a. 

current 

of 

2. They  shall ensure, in particular  in the case of 
infrastructure  works, that directly visible display 
panels  are erected  bearing the  Community  logo 
and  the  expression  "Trans-European  networks". 
In 
the  case  of  studies  and/or  any  other 
documents  concerning  a  project,  they  shall 
ensure that they carry the Community logo. 

2.  They  shall  ensure,  in  particular  in  the  case  of 
infrastructure  works,  that  directly  visible  display 
panels  are  erected  bearing  the  Community  logo 
and  the  expressions  "Trans-European  networks". 
At all  facilities  accessible  to the  public  they  shall 
ensure  the  affixing  of  permanent  commemorative 
plaques  with 
the  European  emblem  and  a 
reference  to  cofinancing  by  the  Community.  In 
the  case  of  studies  and/or  any  other  documents 
concerning  a  project,  they  shall  ensure  that  they 
carry the Community  logo. 

Article  18 is replaced by the following 

Article 18 

Budgetary resources 

The  amount  serving  as  financial  reference  for 
implementation  of this  regulation  shall  amount  to 
ECU  5500 million  for  the  period  2000-2006. The 
annual  appropriations  shall  be  approved  by  the 
budgetary  authority  within  the  limits  set  by  the 
Financial  Perspective. 

it 

ISSN 0254-1475 

COM(98) 723 final 

DOCUMENTS 

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