2007/247/EC: Council Decision of 19 April 2007 on the Community participation in the capital increase of the European Investment Fund
Date: 2007-04-19
Institutions: Council of the European Union
Subjects: European Community, European Investment Fund, shareholding

25.4.2007

EN

Official Journal of the European Union

L 107/5

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 19 April 2007

on the Community participation in the capital increase of the European Investment Fund

(2007/247/EC)

THE COUNCIL OF THE EUROPEAN UNION,

(3)

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Decision 94/375/EC of 6 June 1994
the European Investment
on Community membership of
Fund (1), and in particular Article 3 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (2),

Whereas:

(1)

(2)

The authorised capital of the European Investment Fund
(the Fund) was set at the time of its establishment at EUR
2 billion, divided into 2 000 shares each with a nominal
value of EUR 1 million. In accordance with Article 7(1)
of the Statutes of the European Investment Fund (3) (the
Statutes), the subscribed capital is to be paid-in at a rate
of 20 %.

Pursuant to Decision 94/375/EC, the Community, repre-
sented by the Commission, subscribed for 600 shares of
the Fund for a nominal value of EUR 600 million, of
which EUR 120 million are paid-in.

(1) OJ L 173, 7.7.1994, p. 12.
(2) Opinion delivered on 29 March 2007 (not yet published in the

Official Journal).

(3) OJ L 173, 7.7.1994, p. 1. Statutes as amended on 19 June 2000 by
the General Meeting of the European Investment Fund (OJ C 225,
10.8.2001, p. 2).

(4)

(5)

(6)

(7)

The guarantee and venture capital operations of the Fund
may not exceed the ceilings set by Article 26 of the
Statutes or by the General Meeting of the Fund. The
ceilings depend on the size of the Fund’s capital and
own resources. As the Fund is expected to exhaust its
own resources by mid-2007 and will therefore be unable
to continue its own resources operations, the Board of
Directors has proposed to increase by 50 % the Fund’s
authorised capital in nominal terms.

The ECOFIN Council of 14 March 2006 adopted a report
the European
on the proposals put
Investment Bank Group (the EIB Group) for reinforcing
the contribution by the EIB Group to promoting growth
and employment in the European Union, which includes
the proposal for a capital increase of the Fund.

forward by

The European Council of 23-24 March 2006 welcomed
the EIB Group contribution and invited the relevant
actors to take the necessary follow-up steps, taking into
account the final agreement on the Financial Framework
2007 to 2013.

The Community subscription for the new shares would
support the implementation of the Lisbon strategy and
help achieve the Community’s objectives in the field of
small and medium-sized enterprises, job creation, inno-
vation, research and development, cohesion and regional
policy and enlargement.

A budget allocation of EUR 100 million for the capital
increase of
final
agreement on the Financial Framework 2007 to 2013.

consistent with the

the Fund is

L 107/6

EN

Official Journal of the European Union

25.4.2007

(8)

(9)

New shares should be subscribed by the Fund’s share-
holders at
their discretion over a four-year period,
starting in 2007 and ending in 2010, while respecting
the interests of the financial institution shareholders and
the European Investment Bank as well as the budgetary
constraints of the Community. The price of the new
shares should be set annually and be based on the net
asset value formula agreed between the Fund’s share-
holders.

the dividends

The annual dividends received for the Community parti-
cipation in the Fund from 1995 to 2006 have been duly
returned to the Community budget. During the years
2007 to 2010,
received should be
considered as assigned revenue and be used to cover
part of
increase. This should
the capital
increase the amount of budgetary funds available for
the capital
thus supporting the objective of
maintaining the Community shareholding in the Fund
at 30 % of its capital.

the cost of

increase,

(10) Hitherto the Commission has forwarded the Annual
Reports of the Fund to the European Parliament and
the Council. With a view to simplifying the reporting
procedure,
the Fund
should send directly its Annual Report and the Annual
Report of the Audit Board to the European Parliament
and the Council.

is necessary to provide that

it

Article 2

The Community shall purchase the new shares over a four-year
period starting in 2007. During 2007 to 2010, the dividends
received for the Community participation in the Fund shall be
considered as assigned revenue, in accordance with Article 18(2)
of Council Regulation (EC, Euratom) No 1605/2002 of 25 June
2002 on the Financial Regulation applicable to the general
budget of the European Communities (1), to cover part of the
cost of subscription.

In addition, a total amount of up to EUR 100 million for the
whole period shall be available within the general budget of the
European Union to cover the remaining cost. The budgetary
commitment may be broken down into annual
instalments
over four years in accordance with Article 76(3) of Regulation
(EC, Euratom) No 1605/2002.

Article 3

The Commission shall submit to the Council an evaluation of
the own resources activity of the Fund by 31 July 2012.

Article 4

The Fund shall send its Annual Report and the Annual Report
of the Audit Board to the European Parliament and the Council.

(11) Appropriate coordination, synergy and complementarity
will be ensured between the operations of the Fund and
the European Investment Bank, Community financial
small and medium-sized enterprises
instruments
and, where appropriate, other financial institutions,

for

Article 5

This Decision shall take effect on the day of its publication in
the Official Journal of the European Union.

HAS DECIDED AS FOLLOWS:

It shall apply from 19 April 2007.

Article 1

In addition to its current
shareholding in the European
Investment Fund (the Fund), the Community shall subscribe
for up to 300 shares each of a nominal value of EUR 1
million in the Fund. The subscription of
shares and the
annual payments shall be carried out in accordance with the
terms and conditions that shall be approved by the General
Meeting of the Fund.

Done at Luxembourg, 19 April 2007.

For the Council
The President

B. ZYPRIES

(1) OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation

(EC, Euratom) No 1995/2006 (OJ L 390, 30.12.2006, p. 1).