Proposal for a Council Decision amending Decision 2000/24/EC in order to include the Maldives in the list of countries covered, following the Indian Ocean tsunamis of December 2004
Date: 2005-09-30
Institutions: European Commission
Subjects: EIB loan, European Investment Bank, Indian Ocean, Maldives, credit guarantee, financial loss, investment abroad, natural disaster

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.9.2005 
COM(2005) 460 final 

2005/0195 (CNS) 

Proposal for a 

COUNCIL DECISION 

amending Decision 2000/24/EC in order to include the Maldives in the list of countries 
covered, following the Indian Ocean tsunamis of December 2004 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

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•  Grounds for and objectives of the proposal 

Council Decision 2000/24/EC, as amended, establishes a global Community guarantee 
for the European Investment Bank (EIB) in respect of all payments not received by it 
but  due  in  respect  of  credits  opened  for  investment  projects  in  certain  regions.  The 
Decision  contains  a  list  of  countries  covered  which  does  not  include  the  Maldives,  a 
country severely affected by the Indian Ocean tsunamis of December 2004. 

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•  General context 

The  tsunamis  in  the  Indian  Ocean  region  on  26  December  2004  devastated  certain 
coastal areas of surrounding countries, in particular India, Indonesia, the Maldives and 
Sri  Lanka.  The  Commission  and  the  EIB  swiftly  started  exploring  the  possibility  for 
the EIB to set up a long term lending facility to help finance the reconstruction efforts. 

At  its  meeting  of  18th  January,  ECOFIN  "expressed  its  satisfaction  at  the  initiative 
concerning the  EIB,  and called  on the EIB and the Commission to continue work on 
preparing its contribution". 

Following  work  undertaken  on  needs  assessment  by  International  Financial 
Institutions,  joint  missions  to  Indonesia  and  Sri  Lanka  by  EIB  and  Commission 
services,  and  taking  into  account  the  immense  and  unexpected  amounts  of  funds 
provided by public and private international donors, it has  become clear that most of 
the  infrastructure  reconstruction  needs  of  the  countries  concerned  will  be  met  from 
available grants and highly concessional loan financing. 

However  EIB  have  identified  a  small  number  of  potential  projects  in  some  of  the 
affected  countries  (Indonesia,  Sri  Lanka,  the Maldives),  and  have  agreed  to  prioritise 
the  remaining  margin  within  the  existing  Asia  and  Latin  America  (ALA)  lending 
mandate, established by Council Decision 2000/24/EC as amended, towards lending to 
these countries. The Commission would provide grant support alongside EIB loans to 
jointly identified projects in these countries, as and when necessary. 

The  existing  ALA  lending  mandate  covers  Indonesia  and  Sri  Lanka  (amongst  other 
countries), but does not include the Maldives. This proposal would add the Maldives to 
the  countries  covered  by  the  Decision,  thereby  allowing  the  EIB  to  lend  to  the 
Maldives under the coverage of a Community guarantee.  

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•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

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2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The European Investment Bank has been involved in the preparation of this legislative 
proposal. 

Summary of responses and how they have been taken into account 

The comments of the EIB have been taken into account. 

•  Collection and use of expertise 

There was no need for external expertise. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

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The proposal would amend the existing Council Decision (2000/24/CE as amended) by 
adding the Maldives to the list of countries covered by the Decision. 

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•  Legal basis 

The  proposal  is  based  on  Article  181a  of  the  Treaty  establishing  the  European 
Community. 

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•  Subsidiarity principle 

The  proposal  amends  an  existing  legal  instrument,  which  provides  for  a  guarantee  at 
Community level. The subsidiarity principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The proposal provides for a simple amendment to an existing legal instrument, rather 
than the creation of a new legal instrument. 

The  Community  guarantee  for  EIB  external  actions  is  administrated  through  existing 
systems in the Commission and EIB. 

•  Choice of instruments 

Proposed instruments: Other (Council Decision). 

Other means would not be adequate for the following reason(s). 

The Community guarantee for EIB external actions is established by Council Decision. 

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4)  BUDGETARY IMPLICATION 

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The proposal has no implication for the Community budget. 

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2005/0195 (CNS) 

Proposal for a 

COUNCIL DECISION 

amending Decision 2000/24/EC in order to include the Maldives in the list of countries 
covered, following the Indian Ocean tsunamis of December 2004 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
181a thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

The  tsunamis  in  the  Indian  Ocean  region  on  26  December  2004  caused  widespread 
damage to certain coastal regions of surrounding countries.  

The  European  Investment  Bank  (EIB)  has  identified  potential  projects  in  the  most 
seriously  affected  countries,  including  the  Maldives,  which  could  benefit  entities 
which have suffered direct or indirect losses as a result of the tsunamis. 

Council Decision 2000/24/EC of 22 December 1999 granting a Community guarantee 
to  the  European  Investment  Bank  against  losses  under  loans  for  projects  outside  the 
Community (Central and Eastern Europe, Mediterranean countries, Latin America and 
Asia  and  the  Republic  of  South  Africa)3  does  not  include  the  Maldives  in  the  list  of 
countries covered. 

(4) 

Council Decision 2000/24/EC should therefore be amended to include the Maldives, 

HAS DECIDED AS FOLLOWS:  

Article 1 

Article 1(2) of Decision 2000/24/EC is amended as follows: 

-  in  the  fourth  indent  the  words  “the  Maldives”  are  inserted  between  the  words  “Malaysia” 
and “Mongolia”. 

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OJ C , , p. . 
OJ C , , p. . 
OJ L9, 13.1.2000, p.24. Decision as last amended by Decision 2005/47/EC (OJ L 21, 25.1.2005, p.9). 

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Article 2 

This Decision shall take effect on the day of its adoption. 

Done at Brussels,  

For the Council 
The President 

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