WRITTEN QUESTION E-2351/00 by William Abitbol (UEN) to the Commission. EIB control of the EIF.
Date: 2000-07-13
Institutions: European Parliament, Provisional data
Subjects: European Investment Bank, European Investment Fund, interinstitutional relations (EU)

20.3.2001

EN

Official Journal of the European Communities

C 89 E/187

Can the Commission explain the meaning of its reference to the (cid:145)recreational

1.
woodland(cid:146)?

function of the

Can it state what type of initiatives to develop the recreational function of forests have already been

2.
implemented?

(1) OJ C 312, 7.12.1988, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(7 September 2000)

The recreational function of woodlands covers the whole range of forest services including providing
public and leisure facilities. These services are often based on the perception of the natural environment
that an urban population has. The activities in question can undermine the other dimensions of
woodlands, namely the environmental and economic ones. What is more, there are also incompatibilities
between the various forms of leisure (walking, cycling, horse riding, hunting). It is up to the owners and
managers of woodlands to ensure that they are managed and used in such a way as to fulfil all their
functions in the best way possible.

Initiatives to develop the recreational dimension of forests vary according to local conditions. They are
implemented by private and public woodland owners and can cover among other things access, facilities
and the structure of forest stands.

Under Article 30 of Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural
development from the European Agricultural Guidance and Guarantee Fund (EAGGF) (1), the Community
can take part in the funding of investments in forests that are intended to improve significantly their
economic, environmental and social value.

(1) OJ L 160, 26.6.1999.

(2001/C 89 E/210)

WRITTEN QUESTION E-2351/00

by William Abitbol (UEN) to the Commission

(13 July 2000)

Subject: EIB control of the EIF

Following the authorisation of its Board of Governors on 5 June 2000, the European Investment Bank
obtained, on 19 June 2000, the majority of the shareholders of the European Investment Fund enabling it
to assume control over that Fund.

In this way, by an astute manoeuvre which alters the ownership structure of the Fund, the EIB has
managed, on the pretext of rationalisation of its activities, to purge the Fund, in significant (cid:129) and sufficient
(cid:129) numbers, of its private shareholders. This has happened despite the opposition of the French banks,
who were effectively left to fight the battle alone, even though the matter affects the EU(cid:146)s entire network of
local banks and, through them, the tissue of our small and medium-sized enterprises.

Without calling the operation itself into question, even if it may be contested on a number of grounds, one
may legitimately draw attention to its immediate effects: it will put the brakes on any real activity of the
Fund in support of SMEs, and will mean suspension of the currently operational contracts.

As if this were not enough, the absence of an operational structure for this (cid:145)new-look(cid:146) (or subordinate)
Fund is compounded by the hasty repeal of the old statutes under which the EIF(cid:146)s activities could be
reserved for SMEs in the Union. This will now allow non-EU, non-banking establishments to benefit from
the funds disbursed (cid:129) until the contrary is proved (cid:129) from the public coffers of the Member States.

In view of this prospect, SMEs in the Union quite justifiably fear that their access to funding will become
even more problematic. One may join them in asking whether the EIB, which now enjoys undivided
control, genuinely intends, via the Fund, to make aid to the Union(cid:146)s SMEs its main priority.

C 89 E/188

Official Journal of the European Communities

EN

20.3.2001

Can the Commission explain to Parliament what action it intends to take, as the Fund(cid:146)s second-biggest
shareholder, in order to call on the EIB to clarify the priorities it intends to assign to the Fund and, in
particular, to secure guarantees from the EIB concerning the continuation and the quality of the facilities
offered to SMEs in the Union for projects carried out within EU territory?

Answer given by Mr Solbes Mira on behalf of the Commission

(4 October 2000)

Under the revised statutes of the European investment fund (EIF), which were approved by the share-
holders of the EIF in the annual general meeting on 19 June 2000, the EIF will continue to have a tripartite
shareholder structure including the European Investment Bank (EIB), the Commission and a group of
banks ((cid:145)financial institutions(cid:146)). This was a common objective of the EIB, the Commission and the financial
institutions.

As part of the overall proposal for the reform, the EIB has offered a package to the financial institutions,
enabling them to elect to remain shareholders of the EIF or to sell to the EIB if, for their own reasons, they
did not wish to participate in the re-launched EIF.

The principal objective of the reform is to ensure continued efficient support for small and medium-sized
enterprises (SMEs) within the Community, by strengthening the EIF within the EIB Group and concentrat-
ing the venture capital activities of the two institutions in the EIF, thereby achieving greater clarity between
their respective roles, removing overlaps, exploiting synergies and maximising impact for the benefit of
SMEs (1). EIB has always underlined that these were the main underlying reasons for initiating the reform of
the EIF.

This reform, endorsed by the Ecofin Council and approved by the board of governors of the EIB, is in
response to an invitation by the European Council to the Community(cid:146)s financial institutions to intensify
their efforts to promote venture capital for high technology and early-stage enterprises. To this end, the
EIB will also transfer to the EIF the management of its substantial venture capital activities.

The statutory task of the EIF is to contribute to the pursuit of Community objectives. The EIF(cid:146)s existing
activities are to be pursued in close cooperation with its shareholders.

The EIF(cid:146)s activities in support of SMEs will therefore continue both on own resources and on behalf of
third parties (including initiatives such as growth and environment and growth and employment, which
involve the use of budgetary funds). New tasks of administering special resources may be taken on by the
EIF, provided they are compatible with its task. The EIB Group will continue to provide all products
supplied by the EIF including guarantees for trans-European networks (TENs) projects.

The Commission and the financial institutions will continue to exert their influence on the EIF(cid:146)s activity
through representation on the EIF(cid:146)s board of directors and audit board. In addition, the EIB has undertaken
to adhere to a framework respecting the interests of minority shareholders thereby giving them
appropriate influence over the strategic direction of the EIF.

(1) The activities of the EIF, founded in 1994, targeted two areas of Community interest, namely trans-European
networks (TENs) and small and medium sized enterprises (SMEs). In 1997, the Amsterdam European Council invited
the EIB to develop its own venture capital activities. In response, the EIB put in place the so-called ASAP facility to
support growth and employment by new initiatives in favour of infrastructure and SMEs. The EIB(cid:146)s new activities
under ASAP were implemented rapidly and overlapped with the SME activities,
in particular venture capital,
of the EIF.