Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL concerning the subscription by the European Union to additional shares in the capital of the European Bank for Reconstruction and Development (EBRD) as a result of the decision to increase this capital 
Date: 2011-02-02
Institutions: European Commission
Subjects: EBRD, European Union, capital increase

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EUROPEAN COMMISSION 

Brussels, 2.2.2011 
COM(2011) 34 final 

2011/0014 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

concerning the subscription by the European Union to additional shares in the capital of 
the European Bank for Reconstruction and Development (EBRD) as a result of the 
decision to increase this capital 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The European Bank for Reconstruction and Development (EBRD) was established in 1990 to 
support the development of market economies from central Europe to central Asia following 
the  widespread  collapse  of  communist  regimes.  The  European  Union,  together  with  the 
European  Investment  Bank  (EIB)  and  40  countries  (including  all  EU  Member  states  at  that 
time),  were  founding  members.  The  EBRD  is currently  owned by  61 countries, the EU and 
the  EIB.  The  EBRD  supports  projects  in  29  countries,  primarily  in  the  private  sector,  that 
cannot  be  fully  financed  by  the  market.  The  Bank  promotes  entrepreneurship  and  fosters 
transition towards open and democratic market economies.  

The proposed decision is intended to permit the European Union to subscribe for additional 
callable shares in the EBRD in the framework of the capital increase decided by the EBRD 
Board of Governor on 14/15 May 2010. The decision will also authorise the Governor of the 
EBRD for the European Union to deposit the requisite instrument of subscription. 

The  European  Union1  became  a  member  of  the  EBRD  subsequent  to  Council  Decision  of 
19 November 1990 on the conclusion of the Agreement establishing the EBRD (90/674/EEC). 
The initial capital of the EBRD was fixed at ECU 10 billion, of which the EU subscribed 3%. 

In 1996, the Governors of the EBRD decided to double the authorised capital of the EBRD for 
which the EU subscribed an additional 30.000 shares of EUR 10.000 each, bringing the EU 
subscribed  capital  at  EUR  600  million2. The EU share in the EBRD total authorised capital 
was  maintained  unchanged.  The  EU  subscription  of  additional  shares  followed  Council 
Decision 97/135/EC adopted on 17 February 1997 providing that "the European Community 
should  subscribe  for  extra  shares  as  a  result  of  the  Decision  to  double  the  capital  of  the 
EBRD". 

At  the  Annual  Meeting  of  the  Governors  of  the  EBRD  on  14/15  May  2010,  the  Board  of 
Governors adopted two Resolutions providing for an increase in the authorised capital stock 
of the Bank of 50% from EUR 20 billion to EUR 30 billion. The capital enhancement of the 
Bank  was  agreed  in  response  to  the  financial  crisis  and  the  recognised  need  by  the  Bank’s 
shareholders  to  step  up  its  activity  to  help  promote  and  support  recovery  in  its  region.  The 
capital  increase  comprises  EUR  1  billion  paid-in  capital  and  EUR  9  billion  of  new  callable 
capital.  

According to Resolution 126 adopted by the Board of Governors, the paid-in shares have been 
funded through the incorporation of unrestricted reserves pro rata shareholders' actual shares 
in  the  Bank's  subscribed  capital.  Following  the  first  capital  increase  of  the  EBRD,  EUR 
19,794 million was subscribed instead of EUR 20,000 million authorised. Consequently, the 
EU  share  in  the  EBRD's  subscribed  capital  is  3.031  %.  The  EU  paid-in  capital  is  therefore 
increased by EUR 30.31 million. The increase of the paid-in shares was effective on 14 May 

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According  to  Council  Decision  90/674/EEC  of  19  November  1990,  the  EU  is  represented  by  the 
Commission in the EBRD. 
The EU subscribed capital in the EBRD was composed of EUR 157.5 million paid-in capital and EUR 
442.5 million callable capital. 

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2010, the date of the adoption of Resolution 126. Consequently, no further action on the part 
of the shareholders is necessary for the issuance of the additional paid-in shares.  

The  subscription  of  callable  shares  amounting  to  a  total  of  EUR  9  billion  will  become 
effective as soon as the individual shareholders have completed their internal procedures and 
deposited  their  instruments  of  subscription,  as  it  was  the  case  for  the  1996  capital  increase. 
The Bank would expect that the callable capital increase will become effective at the end of 
April 2011, but in any event not later than 31 December 2011. Resolution 128 (attached to the 
Decision)  foresees  that  each  member  of  the  Bank  is  entitled  to  subscribe  to  a  number  of 
additional shares (rounded down), up to, but not exceeding, 42.857% of the number of shares 
the member  owned  prior to  the Effective Date of  the capital increase.  For  the EU, it means 
that  the  EU  shall  subscribe  up  to  an  additional  27,013  callable  shares  amounting  to  EUR 
270.13 million taking into account the EU proportion of 3.031% in the subscribed capital.  

The  following  table  summarises  how  the  EU  shares  will  evolve  following  the  new  capital 
increase.  It  shows  notably  the  existing  paid-in  shares  before  the  2010  capital  increase,  the 
capitalisation of reserves, the existing callable capital, the proposed callable capital increase 
and the total of subscribed capital after increase. 

Existing and proposed EU subscribed capital (EUR million) 

Paid-in shares 

Callable capital 

Existing 

(Pre May 2010) 

Capitalisation of 
reserves in 2010 

Total 

Existing 

(Pre May 2010) 

Proposed 
increase 

Total 

Total 
subscribed 
capital after 
increase 

157.50 

30.31 

187.81 

442.50 

270.13 

712.63 

900.44 

Resolution  128  also  provides  for  a  review  mechanism  that  may  allow  a  partial  or  total 
redemption  of  unused  callable  capital  part  of  the  increase  which  could  be  returned  to 
shareholders after the end of the period 2010-2015, under specific conditions still to be agreed 
in  2015.  If  this  were  the  case,  this  unused  callable  capital  would  no  longer  constitute  a 
contingent liability for the shareholders in 2016. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The  EBRD  fourth  Capital  Resources  Review  (CRR4)  for  the  period  2011-2015,  which  was 
undertaken during the past year, reflected the need for the Bank to respond effectively to the 
crisis  and  to  redirect  its  medium  term  strategy  taking  account  of  the  significant  impact  the 
crisis is having on its region of operations. EBRD shareholders (which include all EU member 
states,  the  EIB  and  the  Commission  representing  the  EU)  were  actively  involved  in  the 
process. 

In this framework, the EBRD carried out an analysis of capital enhancement options, based on 
the  need  to  comply  with  the  Bank’s  statutory  ‘gearing  ratio’  and  economic  capital 
requirements,  the  maintenance  of  the  Bank’s  Triple-A  credit  rating,  as  well  as  the  effective 
and  efficient  use  of  shareholders'  capital.  The  current  decision  on  the  EBRD  capital 
enhancement reflects a compromise achieved among the Bank's shareholders. 

The efforts undertaken by the EBRD to mitigate the impact of the crisis in all its countries of 
operations through the proposed capital increase will allow the Bank to sustain a high level of 

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activity and accompany the recovery in its region of operations, in cooperation with the EIB 
and  other  International  Financial  Institutions.  It  is  expected  that  the  capital  increase  would 
enable  the  EBRD  to  have  an  annual  business  volume  of  about  EUR  9  billion  for  2011  and 
2012,  and  about  EUR  8.5  billion  until  2015.  Therefore,  it  is  appropriate  for  the  EU  to 
subscribe  to  those  additional  shares  in  order  to  promote  the  EU's  objectives  in  the  field  of 
economic external relations and preserve its present voting power within the EBRD. 

By  its  nature,  this  capital  subscription  would  require  no  actual  cash  payments  from  the  EU 
budget, unless very serious and unforeseen losses lead to an actual call of the Bank’s capital 
beyond its paid-in portion.  

Against  this  background  and  in  accordance  with  the  proportionality  principle  and  past 
practice, the Commission proposes not to develop a formal impact assessment. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

In the context of the 1996 capital increase, the participation of the EU was decided by Council 
Decision  97/135/EC3  providing  that  the  European  Community  should  subscribe  for  extra 
shares  as  a  result  of  the  decision  to  double  the  capital  of  the  EBRD.  Council  Decision 
97/135/EC was adopted under Article 235 of the Treaty. 

EBRD's  countries  of  operations  are  countries  from  Central  and  Eastern  Europe4  and  from 
Central  Asia,  with  the  largest  share  of  activity  being  in  countries  outside  the  EU.  The  bulk  of 
EBRD  activity  over  the  period  covered  by  the  CRR4  is  expected  to  be  in  EU  Candidates  and 
Potential Candidates and other  middle income countries, including Russia. Since the entry into 
force of the Treaty on the Functioning of the European Union, Article 212 provides the legal 
bases to the EU for carrying out economic, financial and technical cooperation measures, in 
particular  assistance  with  third  countries  and  is  proposed  as  the  legal  basis  for  the  present 
legislative proposal. 

The  proposal  complies  with  the  proportionality  principle,  as  the  EU  participation  in  the 
EBRD's capital has proved to be an efficient means to contribute adequately to promote EU 
objectives and will serve to mitigate the impact of the crisis in EBRD's countries of operations 
and to sustain a high level of EBRD's activity. 

4. 

BUDGETARY IMPLICATION  

The modalities of participation do not foresee any cash payments by shareholders. 

Considering that the EU share in EBRD subscribed capital equals to 3.031%, the EU would 
increase  its  subscribed  capital  by  EUR  300.44  million,  of  which  EUR  270.13  million  as 
subscribed callable shares and EUR 30.31 million as paid-in shares through incorporation of 

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OJ L 52, 22.2.1997, p. 15. 
Since their accession to the EU in 2004 and 2007, EBRD countries of operations include also some EU 
Member States: Poland, Romania, Bulgaria, Slovak Republic, Estonia, Slovenia, Hungary, Latvia, and 
Lithuania. While EBRD has been very active in the transition process, its role has been diminishing in 
these  countries  in  the  past  years  and  will  be  further  diminishing  in  the  future.  In  particular,  several 
countries are expected to engage in graduation by 2015. 

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unrestricted  reserves  of  the  EBRD.  Depending  on  the  future  EBRD  Governors’  decision  in 
2015, part of the callable capital could be redeemed to shareholders.  

As regards the callable part of the capital increase, its budgetary impact will be catered for by 
the budget line 01 03 01 02 "European Bank for Reconstruction and Development - Callable 
portion of subscribed capital", which has been established in the 2011 budget, so as to reflect 
the EU budget's liability deriving from the callable part of the EU participation in the EBRD's 
capital. The  budget line  should be endowed with a  'p.m.' reflecting the contingent nature of 
the call and a budgetary comment defining the size of the contingent liability. Although a call 
is  considered  to  be  highly  unlikely,  the  budgetary  line  and  its  comment  will  reflect  the 
financing needs which could arise in the event of a payment request by the EBRD relating to 
the callable part of the capital subscribed by the EU. 

5. 

OPTIONAL ELEMENTS  

Detailed explanation of the proposal 

Article 1  

Under the terms and conditions of Resolution 128 on capital increase in the form of additional 
subscription of callable capital, the authorised capital stock of the Bank shall be increased by 
900,000 callable shares, each share having a par value of EUR 10,000 which shall be subject 
to redemption in accordance with the provisions of the above Resolution. The EU is entitled 
to subscribe up to 27,013 callable shares  

Article  1  aims  at  authorising  the  EU  to  take  part  in  the  callable  part  of  the  EBRD  capital 
increase by subscribing to the shares it is allowed to. 

Article 2 

According to the terms of the Resolution 128, each member of the EBRD shall deposit with 
the  Bank  an  instrument  of  subscription  whereby  the  member  subscribes  to  the  number  of 
callable  shares  specified  in  such  instrument.  In  addition,  the  member  shall  deposit  a 
representation that the member has duly taken all legal and other internal action necessary to 
enable it to make such subscription. 

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2011/0014 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

concerning the subscription by the European Union to additional shares in the capital of 
the European Bank for Reconstruction and Development (EBRD) as a result of the 
decision to increase this capital 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 212 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

Pursuant  to  Article  4(3)  of  the  Agreement  establishing  the  EBRD,  the  Governors  of 
the  EBRD,  at  their  annual  meeting  in  Zagreb  on  14/15  May  2010,  decided  in  their 
Resolutions 126 and 128 to increase by EUR 10 billion the authorized capital stock of 
the  EBRD  in  order  to  maintain  enough  capital  to  sustain  over  the  medium  term  a 
reasonable level of activity in its countries of operations within statutory limits.  

Prior  to  these  Resolutions,  the  capital  of  the  EBRD  was  fixed  at  EUR  20  billion  of 
which the European Union subscribed 60 000 shares, each share having a par value of 
EUR 10 000. 

Pursuant to Resolution 126 on increase in authorised capital stock, issuance of paid-in 
shares, and payment through reallocation of net income, the authorised capital stock of 
the  EBRD  is  increased  by  100  000  paid-in  shares,  and  each  member  is  issued  a 
number of whole shares, rounded downwards, pro rata to their existing shareholding. 
The paid-in part of the capital increase will be paid through integration in the capital of 
part  of  the  EBRD's  unrestricted  general  reserves.  All  EBRD  shareholders  will 
automatically  receive  paid-in  shares  in  proportion  of  their  existing  shareholding, 
without  any  further  procedural  steps  to  be  taken  by  the  shareholders  themselves. 
Accordingly, the EU is issued 3 031 new shares, each share having a par value of EUR 
10 000 increasing the number of paid-in shares of the EU to 63 031. 

(4) 

Pursuant to the terms and conditions of the Resolution 128 on increase in authorised 
capital  stock,  issuance  and  subscription  of  callable  capital,  and  redemption,  the 
authorised  capital  stock  of  the  EBRD  shall  be  increased  by  900  000  callable  shares, 
each share having a par value of EUR 10 000 which shall be subject to redemption in 

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accordance with the provisions of the above Resolution. Each member shall be entitled 
to  subscribe,  at  par,  a  number  of  whole  callable  shares  up  to,  but  not  in  excess  of, 
42,857 per cent of the number of shares owned by such member immediately prior to 
the  effective  date  of  the  capital  increase.  The  EU  is  thus  entitled  to  subscribe  up  to 
27 013 callable shares. The effective date shall be on or before 30 April 2011, or such 
subsequent date not later than 31 December 2011 as may be determined by the Board 
of Directors of the EBRD. 

(5) 

Pursuant to the terms and conditions of the Resolution 128 on increase in authorised 
capital stock, issuance and subscription of callable capital, and redemption, the EBRD 
Board of Governors could decide in 2015 that part of unutilised callable capital could 
be  redeemed  under  specific  conditions  to  be  agreed  in  2015.  Under  Resolution  128, 
the  EBRD  Board  of  Governors  resolved  that  such  a  redemption  of  callable  shares 
would be automatic and applicable to all EBRD members who have subscribed to the 
callable  shares  authorised  by  this  Resolution.  In  such  a  situation,  the  Commission 
would take note of the EBRD Governors' Resolution and implement it.  

(6) 

It  is  appropriate  for  the  European  Union  to  subscribe  to  those  additional  shares  in 
order  to  achieve  the  European  Union's  objectives  in  the  field  of  economic  external 
relations and preserve its relative voting power within the EBRD. 

HAVE ADOPTED THIS DECISION:  

Article 1 

The European Union shall subscribe 27 013 additional callable shares of EUR 10 000 each in 
the EBRD under the terms and conditions of Resolution 128 of the Board of Governors, the 
text of which is attached to this Decision. 

The Governor of the EBRD for the European Union shall deposit the requisite instrument of 
subscription on behalf of the Union. 

Article 2 

Article 3 

This  Decision  shall  enter  into  force  on  the  third  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX 

RESOLUTION NO. 128 

INCREASE IN AUTHORISED CAPITAL STOCK, 
ISSUANCE AND SUBSCRIPTION OF CALLABLE CAPITAL, 
AND REDEMPTION  

THE BOARD OF GOVERNORS 

Having  received  from  the  Board  of  Directors  a  Report  on  the  Fourth  Capital  Resources 
Review (CRR4) for the period 2011-2015 (the CRR4 Period), which review was carried out in 
accordance with Article 5.3 of the Agreement Establishing the Bank (the Agreement);  

Having  considered  such  Report  and  fully  endorsing  its  findings  and  recommendations, 
including its strategic objectives, the proposed €9 billion annual busin ess volume envelope for 
2011 and 2012 decreasing to €8.5 billion for the re mainder of the CRR4 Period, and capital 
requirements analysis; 

Having concluded that it is desirable and appropriate to increase the authorised capital stock 
by  €9  billion  of  callable  shares  and  to  issue  such  shares,  on  terms  that  anticipate  their 
redemption and the cancellation of the shares redeemed, to all members wishing to subscribe 
for them pro rata to their existing shareholding;  

Agreeing  with  the  observation  in  the  Report  that,  having  regard  to  the  need  of  the  Bank  to 
preserve  sufficient  capital  to  support  the  projected  operational  activity  over  the  next  five 
years, it is envisaged that over such period any and all income of any year will be allocated to 
surplus, with the exception of potential allocations for the purpose of replenishing the EBRD 
Shareholder Special Fund; and  

Exercising its powers under Article 24.1 of the Agreement, including to the extent necessary 
its power to exercise authority over any matter delegated or assigned to the Board of Directors 
under Article 24.2 of the Agreement; 

RESOLVES THAT: 

The  authorised  capital  stock  of  the  Bank  be  increased  and  the  shares  of  capital  stock  so 
increased be made available for subscription on the following terms and conditions: 

1. 

Increase in Authorised Capital Stock 

(a)  The authorised capital stock of the Bank shall, on the Effective Date as defined 
in paragraph 4(a) of  this  Resolution, be increased by 900,000 callable shares, 
each share having a par value of €10,000, wh ich shall be subject to redemption 
in accordance with paragraph 3. 

(b)  Of  the  shares  authorised  by  this  Resolution,  the  number  of  whole  callable 
shares, rounded downwards, up to, but not in excess of, 42.857 per cent5 of the 

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Following the increase in paid-in capital, the Bank’s authorised capital stock will be €21 billion. The €9 
billion  increase  is  a  42.857%  increase  in  the  authorised  capital;  therefore,  each  shareholder  will  be 

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shares subscribed to by each member immediately prior to the Effective Date 
shall be made available for subscription by such members in accordance with 
paragraph 2 of this Resolution. 

(c)  The  callable  shares  authorised  by  this  Resolution  which  shall  not  have  been 
subscribed  to  in  accordance  with  paragraph  2  of  this  Resolution  shall  be 
reserved for initial subscriptions by new members and for special increases in 
the subscriptions of individual members, as may be determined by the Board of 
Governors  pursuant  to  paragraphs  2  and  4  of  Article  5  of  the  Agreement 
Establishing the Bank. 

2. 

Subscriptions 

(a)  Each member shall be entitled to subscribe, at par, a number of whole callable 
shares  up  to,  but  not  in  excess  of,  42.857  per  cent  of  the  number  of  shares 
owned  by  such  member  immediately  prior  to  the  Effective  Date.  Each  such 
subscription shall be on the terms and conditions set forth in this Resolution. 

(b)  On or before 30 April 2011 or such subsequent date not later than 31 December 
2011 as the Board of Directors may determine on or before 30 April 2011, each 
member wishing to subscribe pursuant to this Resolution shall deposit with the 
Bank the following documents in a form acceptable to the Bank: 

(i) 

an  instrument  of  subscription  whereby  the  member  subscribes  to  the 
number of callable shares specified in such instrument; 

(ii) 

a representation that the member has duly taken all legislative and other 
internal action necessary to enable it to make such subscription; and 

(iii)  an  undertaking  that  the  member  will  furnish  such  information  as  the 

Bank may request concerning such action. 

(c)  Each  instrument  of  subscription  shall  become  effective  and  the  subscription 
thereunder shall be deemed to have been made on the Effective Date, or on the 
date  on  which  the  Bank  notifies  the  subscribing  member  that  the  documents 
deposited  by  such  member  pursuant  to  paragraph  2(b)  of  this  Resolution  are 
satisfactory to the Bank, whichever is the later. 

(d) 

If  documents  satisfactory  to  the  Bank  providing  for  subscriptions  in  the 
aggregate amount of shares specified in paragraph 4(a) of this Resolution shall 
not  have  been  deposited  by  the  Effective  Date,  then  the  Board  of  Directors 
may,  at  its  option,  declare  that  the  instruments  of  subscription  already 
deposited by members and the subscriptions thereunder shall become effective 
immediately  notwithstanding any other provision  in this  Resolution, provided 
that  such  action  is  considered  by  the  Board  of  Directors  to  be  in  the  best 
operational  interests  of  the  Bank,  and  provided  further  that  the  aggregate  of 
instruments of subscription already deposited and expected to be deposited in 
the  foreseeable  future  is,  in  the  judgement  of  the  Board  of  Directors, 

entitled to subscribe to up to 42.857% of their current shareholding at the time the increase is approved 
in order to maintain the shareholding composition. 

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sufficiently  close  to  the  aggregate  amount  of  shares  specified  in  the  said 
paragraph 4(a). 

3. 

Redemption  

(a)  The callable shares authorised by this Resolution shall be redeemed by, and at 
no cost to, the Bank after the end of the CRR4 Period, subject to and as further 
provided for in the following provisions of this paragraph 3. 

(b)  Subject  to  the  remaining  provisions  of  this  paragraph  3,  all  or  some  of  the 
callable shares shall be redeemed on the day immediately following the 2016 
Annual Meeting with the number of the shares to be redeemed being calculated 
by  applying  an  agreed  formula  (the  Agreed  Formula)  based  on  the  unutilised 
callable  capital,  if  any,  at  the  end  of  the  CRR4  period  relative  to  a  statutory 
capital  utilisation  threshold  of  87%  at  the  end  of  the  CRR4  Period.  For 
calculation purposes, such unutilised callable capital, if any, shall be equal to 
an amount which is the lesser of €9,000,000,000 and ((87% of A) – B), where: 

(i)  A is the aggregate amount of the Bank’s unimpaired subscribed capital, 

reserves and surpluses at the end of the CRR4 Period; and 

(ii)  B is the aggregate amount of the Bank’s operating assets at the end of the 

CRR4 Period. 

The number of shares, if any, to be redeemed pursuant to the Agreed Formula shall be equal 
to that amount divided by the par value of the shares (€10,000). 6 

(c)  Any  redemption  of  shares  made  in  accordance  with  this  Resolution  shall  be 
subject to the condition that, following any redemption, all relevant provisions 
of the Agreement continue to be complied with (e.g.,: the ratios prescribed in 
Article  12  are  met;  no  callable  shares  have  been  called  to  meet  the  Bank’s 
liabilities (Articles 6.4 and 17 of the Agreement); and no decision to terminate 
the  operations  of  the  Bank  has  been  made  (Articles  41  and  42.2  of  the 
Agreement). 

(d) 

In the period immediately leading up to the 2015 Annual Meeting:  

(i) 

on the basis of known data in relation to 2011-14 as well as reasonable 
the  Bank’s  Management  shall  prepare  an 
projections  for  2015, 
assessment  of  the  Bank’s  financial  position,  and  economic  conditions 
expected  to  prevail  up  to  the  end  of  the  CRR4  period,  including  in 
particular  developments  in  economic  output,  investment,  domestic 
banking  systems  and  international  capital  markets,  and  shall  thereafter 
hold appropriate consultations with the Board of Directors; 

(ii) 

the President shall submit to the Board of Directors a draft report to the 
Board of Governors along with two draft resolutions as described below; 

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According to the Agreed Formula, the amount of unutilised callable capital would be zero if the Bank’s 
operating  assets  are  equal  to  or  in  excess  of  87%  of  the  unimpaired  subscribed  capital,  reserves  and 
surpluses.  

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(iii) 

the  first  resolution  shall  identify  the  number  of  callable  shares  to  be 
redeemed and be as follows: (x) if there is no unutilised callable capital 
applying the Agreed Formula, the resolution shall be a resolution to take 
note that, applying the Agreed Formula, no shares shall be redeemed; (y) 
if there is unutilised callable capital applying the Agreed Formula and the 
assessment of the Bank’s financial position and the prevailing economic 
conditions  is  such  that  the  Agreed  Formula  can  be  applied  without 
adjustment,  the  resolution  shall  be  a  resolution  to  take  note  that  a 
specified  number  of  shares,  being  the  maximum  number  of  shares  that 
may  be  redeemed  applying  the  Agreed  Formula,  shall  be  redeemed;  or 
(z) if there is unutilised callable capital applying the Agreed Formula and 
the  assessment  of  the  Bank’s  financial  position  and  the  prevailing 
economic  conditions  is  such  that  the  Agreed  Formula  should  not  be 
applied, the resolution shall be a resolution to redeem a number of shares, 
which  shall,  be  less  than  the  maximum  number  of  callable  shares  that 
may be redeemed applying the Agreed Formula and may be zero; 

(iv) 

the  second  resolution  shall  provide  for  a  process  for  the  redemption  of 
the  callable  shares  that  have  not  been  redeemed  in  accordance  with 
paragraph 3(e) or (f) after the end of the CRR4 Period; 

(v)  notwithstanding any provision of the Rules of Procedure of the Board of 
Governors,  and  without  prejudice  to  the  powers  of  the  Board  of 
Governors  pursuant  to  Article  24  of  the  Agreement,  the  matter 
concerning the redemption of the callable shares shall be included as an 
item  in  the  agenda  of  the  2015  Annual  Meeting  of  the  Board  of 
Governors,  the  report  shall  be  submitted  for  consideration  and  the 
resolutions for approval by the Board of Governors; 

at the 2015 Annual Meeting, the Board of Governors shall decide on the first 
resolution  by  a  majority  of  the  total  voting  power  of  the  members  voting, 
provided  that  if  such  first  resolution  is  not  approved  by  such  majority,  the 
number  of  callable  shares  to  be  redeemed,  if  any,  shall  be  the  maximum 
number of shares that may be redeemed applying the Agreed Formula, subject 
in all cases to the provisions of paragraph 3(f) below; 

if  the  Bank’s  actual  financial  position  and  the  then  prevailing  economic 
conditions  at  the  end  of  CRR4  Period  are  materially  different  from  those 
expected  on  the  basis  the  projections  previously  provided  to  the  Board  of 
Directors  in  2015  by  the  Bank’s  Management,  a  new  resolution  shall  be 
submitted promptly to the Board of Governors, following a similar process, for 
approval by the same majority at or before the 2016 Annual Meeting. 

(e) 

(f) 

(g)  upon  the  decision  to  redeem  a  specified  number  of  callable  shares  becoming 
operative  in  accordance  with  paragraph  3(e)  or  3(f)  above,  all  members  who 
have  subscribed  to  the  callable  shares  authorised  by  this  Resolution  shall 
surrender  to  the  Bank  part  or  all  of  their  shares  pro  rata  to  their  respective 
holdings  of  such  shares  and  such  redeemed  callable  shares  shall  be  cancelled 
automatically and as of the date of the redemption, with the authorised capital 
of  the  Bank  being  reduced  correspondingly  without  the  need  for  a  further 
resolution of the Board of Governors. 

EN 

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(h) 

at  the  2015  Annual  Meeting,  the  Board  of  Governors  shall  decide  on  the 
second  resolution  by  a  majority  of  the  total  voting  power  of  the  members 
voting. 

4. 

Effectiveness and Other Provisions 

(a)  For the purposes of this Resolution, the Effective Date shall be the date on or 
before 30 April 2011, or such subsequent date not later than 31 December 2011 
as  may  be  determined  by  the  Board  of  Directors,  on  which  documents 
satisfactory to the Bank have been deposited pursuant to paragraph 2(b) of this 
Resolution  providing  for  subscriptions  in  an  aggregate  amount  of  at  least 
450,0007 callable shares. 

(b)  Subject  to  the  provisions  of  this  Resolution,  the  provisions  of  the  Agreement 
shall  apply  mutatis  mutandis  to  the  callable  shares  authorised  by,  and  to  the 
subscriptions  made  under,  this  Resolution  as  if  such  shares  were  part  of  the 
initial  capital  stock  of  the  Bank  and  such  subscriptions  and  payments  were 
initial subscriptions to and payments for such stock. 

(Adopted 14 May 2010) 

7 

Being 50% of the number of newly authorised callable shares 

EN 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  concerning  the 
subscription by the European Union to additional shares in the capital of the European Bank 
for Reconstruction and Development (EBRD) as a result of the decision to increase its capital. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure8  

Title 01 – Economic and Financial Affairs 

1.3. 

Nature of the proposal/initiative  

(cid:133) The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action9  

(cid:58) The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

Objective "To promote prosperity beyond the EU" 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective No. 

2.  Objective  "To  improve  the  EU  profile,  external  representation  and  liaison  with  the  EIB  and 
EBRD,  other  international  financial  institutions,  and  relevant  economic  fora  aiming  at 
strengthening convergence between their strategies and operations and EU external priorities" 

ABM/ABB activity(ies) concerned 

Title 01.03 – International Economic and Financial Affairs 

8 
9 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

EN 

13 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

Through  the  EU's  subscription  to  capital  of  the  EBRD,  the  main  objective  is  to  efficiently 
represent  EU  interests  in  the  governing  bodies  of  the  EBRD,  and  to  ensure  convergence 
between  the  EU  external  priorities  and  the  EBRD's  strategies  and  operations,  as  well  as 
adequate  coordination  with  other  EU  Directors  and  relevant  EU  bodies  when  important  or 
politically sensitive projects or policy debates are taking place. Furthermore, the participation 
in the current capital increase will ensure that the EU share in the capital of the EBRD remains 
at least constant and is not diluted. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

The attainment of objectives will be measured by the volume of EBRD financing operations 
by  regions  and  by  sectors,  by  the  volume  of  EBRD  financing  operations  co-financed  with 
other IFIs and/or Commission programmes, as well as by other indicators in the context of ex-
ante and ex-post assessments of EBRD financing operations. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term 

Article  5.3  of  the  Agreement  Establishing  the EBRD  stipulates  that  the  Board  of  Governors 
shall review the capital stock of the EBRD at intervals of not more than five years. The fourth 
Capital Resources Review (CRR4) for the period 2011-2015 reflected the need for the EBRD 
to  respond  effectively  to  the  crisis  within  statutory  limits  and  to  redirect  its  medium  term 
strategy taking account of the significant impact the crisis is having on its region of operations. 
In  order  to  maintain  enough  capital  to  sustain  over  the  medium  term  a  reasonable  level  of 
activity, the EBRD Governors at their 2010 Annual Meeting decided to increase by EUR 10 
billion the authorized capital stock of the EBRD. 

The modalities of the EU participation in the capital increase of the EBRD do not foresee any 
disbursement: 

Following  the  adoption  of  the  Resolution  126  by  the  Governors,  the  paid-in  part  (EUR  1 
billion) of the capital increase has been paid through integration in the capital of part of the 
EBRD's  unrestricted  general  reserves.  All  EBRD  shareholders  automatically  receive  paid-in 
shares  in  proportion  of  their  existing  shareholding  (equivalent  to  EUR  30.31  million  for  the 
EU), without any further procedural steps to be taken by the shareholders themselves.  

The  present  proposal  aims  at  increasing  the  callable  portion  of  the  EU  subscribed  capital. 
Following  the  adoption  of  the  Resolution  128  by  the  Governors,  the  callable  portion  of  EU 
subscribed capital will increase by EUR 270.13 million (27 013 shares of EUR 10 000 each). 

EU subscription to those additional shares aims at preserving the EU voting power within the 
EBRD. 

EN 

14 

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Members are expected to deposit instruments of subscription on or before 30 April 2011, or 
such subsequent date as the Board of Directors may determine but in any event not later than 
31 December 2011. 

1.5.2.  Added value of EU involvement 

The  EBRD  transition  mandate  is  unique  among  International  Financial  Institutions  (IFIs)  in 
directing  it  to  support  systemic  change  rather  than  delivering  development  outcomes.  This 
choice  was  based  on  the  conviction  that  a  democratic  and  pluralistic  market  economy  is  the 
form  of  social  organisation  best  capable  of  achieving  results  that  people  care  about: 
meaningful  jobs,  poverty  reduction,  higher  incomes,  high-quality  services,  a  sustainable 
environment  and  gender  equality.  Twenty  years  of  economic  and  political  transition  have 
produced impressive results for many of the countries in the EBRD region of operations, but 
the process of transition is far from over and has become more fragile. Experience has shown 
that  transition  to  well-functioning  markets  is  not  a  linear  process,  and  the  crisis  has  brought 
with it important insights into the resilience and sustainability of past transition achievements. 

Between  the  fourth  quarter  of  2008  and  the  second  quarter  of  2009,  the  EBRD  region 
underwent the steepest economic contraction since the early years of transition. The economic 
decline in late 2008 and the first half of 2009 was driven by severe and simultaneous shocks to 
exports, commodity prices and capital flows to the region. These shocks were aggravated by 
well-known  vulnerabilities  in  many  countries  in  the  region,  including  high  private  external 
debt,  excessive  reliance  of  credit  growth  on  external  funding,  and,  in  some  cases, 
denomination of household and corporate debt in foreign currency.  

The  EBRD  responded  in  a  swift  and  determined  manner  to  the  needs  of  its  countries  of 
operations and clients during the crisis. In very adverse circumstances, the EBRD was able to 
play  its  counter-cyclical  role  fully  and  to  offer  a  flexible  and  robust  crisis-response,  both 
quantitatively and qualitatively, in close cooperation with other IFIs. In particular, the EBRD 
was  instrumental  to  further  help  the  region  sustain  and  strengthen  its recovery,  by  financing 
mainly the private sector and leveraging its impact through equity and other innovative risk-
sharing instruments. The EBRD played also a key role in supporting the financial sector and 
SMEs,  but  also  energy  efficiency  and  security,  nuclear  safety,  as  well  as  environmental  and 
municipal infrastructure. The capital increase will allow the Bank to maintain enough capital 
to sustain over the medium term a reasonable level of activity. 

1.5.3.  Lessons learned from similar experiences in the past 

EBRD  shareholders  (which  include  all  EU  member  states,  the  EIB  and  the  Commission 
representing  the  EU)  were  actively  involved  in  the  CRR4  process.  Based  on  the  capital 
requirements  analysis  and  consultations  with  shareholders,  the  following  points  have  been 
considered in deciding the capital increase: 

The EBRD should have the operational capacity to support its region of operations in the 

– 
aftermath of the global financial crisis within the proposed annual business volume path; 

Any  proposed  capital  enhancement method should seek to minimise the impact on the 

– 
budgets of shareholders; 

EN 

15 

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– 
The structure of a capital increase should reflect the temporary nature of crisis and post-
crisis  demands  on  the  EBRD  so  that  any  unutilised  callable  capital  would  be  redeemed  and 
“returned” to shareholders after the end of the CRR4 period. The level of redemption will be 
calculated on the basis of an agreed formula (statutory capital utilisation test) but will also take 
account of the Bank’s financial situation and the economic environment prevailing at the end 
of the CRR4 period; 

The  EBRD  needs  to  maintain  its  Triple-A  rating  to  be  effective  in  implementing  its 

– 
mandate; and 

An increase in subscribed capital through capitalising part of the general reserve will be 

– 
recognised by bondholders as further confirmation of shareholder support. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The  Commission  systematically  promotes  close  cooperation  and  joint  initiatives  with  the 
EBRD,  the  EIB  and  other  IFIs  as  efficient  donor/IFI  concerted  actions  are  increasingly 
necessary  to  sustain  recovery  in  a  fragile  and  fiscally  constrained  economic  environment. 
Close  cooperation  with  the  EBRD  also  underpins  the  achievement  of  EU  objectives  in  the 
field of economic external relations activities.  

Enhancing cooperation with IFIs is one of the Commission's priorities as inter alia stipulated 
in the overall policy framework laid down in the European consensus on development adopted 
in  2005,  which  stresses  the  need  to  improve  aid  co-ordination.  In  addition,  new  and  more 
pressing  existing  challenges  are  to  be  addressed  by  the  EU  in  the  context  of  climate  change 
and development financing. These stem respectively from the UN climate change conference 
in  Copenhagen  (2009),  which  has  underlined  the  need  to  find  solutions  to  finance  the  fight 
against climate change in developing countries, and the Lisbon Treaty (2009) which sets the 
reduction and the eradication of poverty as the primary objective of the Union’s development 
cooperation policy.  

Against this background, the Commission supports, in particular, its cooperation with the EIB 
and the EBRD in the framework of tripartite (EC-EIB-EBRD) Memoranda of Understanding, 
as  well  as  within  grant  and  loan  blending  mechanisms,  such  as  the  Western  Balkans 
Investment Framework and the Neighbourhood Investment Facility. 

EN 

16 

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1.6. 

Duration and financial impact  

(cid:133) Proposal/initiative of limited duration  

–  (cid:133) Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–  (cid:133) Financial impact from YYYY to YYYY  

(cid:58) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from April 2011 to December 2011, 

1.7.  Management mode(s) envisaged10  

(cid:58) Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133) executive agencies  

–  (cid:133) bodies set up by the Communities11  

–  (cid:133) national public-sector bodies/bodies with public-service mission  

–  (cid:133) persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation  

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments  

N/A 

10 

11 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

EBRD Financing Operations will be managed in accordance with the EBRD's own rules and 
procedures, including appropriate audit, control and monitoring measures. As foreseen in the 
Agreement Establishing the EBRD, the Audit Committee of the EBRD, which is supported by 
external  auditors,  assists  the  EBRD  Board  of  Directors  and  is  responsible  for  verifying  the 
regularity  of  the  EBRD  operations  and  accounts.  The  Board  of  Directors,  where  the  EU, 
represented  by  the  Commission,  has  a  Director,  submits  the  audited  accounts  for  each 
financial year for approval of the Board of Governors at each annual meeting and approves the 
budget of the EBRD. The Board of Governors approves, after reviewing the auditor's report, 
the general balance sheet and the statement of profit and loss of the EBRD.  

Furthermore, the Board of Directors establishes policies and takes decisions concerning loans, 
guarantees, investment in equity capital, borrowing by the EBRD, the furnishing of technical 
assistance and other operations of the EBRD in conformity with the general directions of the 
Board of Governors. 

Finally, the Board of Directors has established three Board Committees to assist it in its work: 
the Audit Committee mentioned above, the Budget and Administrative Affairs Committee and 
the Financial  and  Operations Policies Committee.  The  EU  Director  (or  his  alternate)  attends 
all these Boards Committees. 

2.2.  Management and control system 

2.2.1.  Risk(s) identified  

In the framework of CRR4, the analysis of capital enhancement options was based on the need 
to  comply  with  the  EBRD’s  statutory  ‘gearing  ratio’,  economic  capital  requirements  arising 
from  the  application  of  the  “Economic  Capital  Policy”,  the  maintenance  of  the  EBRD’s 
Triple-A credit rating, as well as the effective and efficient use of shareholders' capital.  

A risk for the EU budget relates to the callable nature of part of the capital. In accordance with 
the Agreement establishing it, the EBRD could request payment relating to whole or part of 
the  callable  part  of  the  capital  subscribed  by  the  European  Union  if  it  is  needed  to  meet  its 
liabilities. The likelihood of this event is however judged very low. 

2.2.2.  Control method(s) envisaged  

Article  5.3  of  the  Agreement  Establishing  the EBRD  stipulates  that  the  Board  of  Governors 
shall review the capital stock of the EBRD at intervals of not more than five years. The fifth 
Capital Resources Review (CRR5) for the period 2016-2020 shall be implemented at the end 
of the CRR4 period. 

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2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

The  EBRD  has  an  independent  Office  of  the  Chief  Compliance  Officer  (OCCO),  which  is 
headed  by  a  Chief  Compliance  Officer  (CCO)  reporting  directly  to  the  President,  and 
annually, or as necessary, to the Audit Committee. The OCCO’s mandate is to promote good 
governance and to ensure the highest standards of integrity are applied throughout all of the 
activities of the EBRD in accordance with international best practice. The responsibilities of 
the OCCO include dealing with issues of integrity due diligence, confidentiality, conflicts of 
interest, corporate governance, accountability, ethics, anti-money laundering, counter-terrorist 
financing and the prevention of fraudulent and corrupt practices. The OCCO is responsible for 
investigating  allegations  of  fraud,  corruption  and  misconduct.  It  also  trains  and  advises,  as 
necessary, EBRD staff members who are appointed as directors to the boards of companies in 
which the EBRD holds an equity interest. Financial and integrity due diligence are integrated 
into  the  Bank's  normal  approval  of  new  business  and  the  monitoring  of  its  existing 
transactions. The EBRD publishes the OCCO’s anti-corruption report on its web site.  

Moreover,  the  OCCO  has  the  specific  responsibility  for  administering  the  EBRD’s 
accountability  mechanism,  currently  the  Independent  Recourse  Mechanism  soon  to  be 
replaced with the Project Complaint Mechanism, which assesses and reviews complaints about 
projects financed by the EBRD and provides, where warranted, a determination as to whether 
in approving a particular project, the EBRD acted in compliance with its relevant policies. 

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3. 

3.1. 

Heading of 
multiannual 
financial 
framework 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……….] 

DA/NDA 
(12) 

from 
EFTA13 
countries 

from 
candidate 
countries14 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

01.03.01.02 

4 

European  Bank  for  Reconstruction 
and  Development  –  Callable  portion 
of subscribed capital 

DA 

NO 

NO 

NO 

NO 

12 
13 
14 

DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

The modalities of the EU participation in the capital increase of the EBRD do not foresee any operational expenditure. 

Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

Year 
2010 

Year 
2011 

Year 
2012 

Year 
2013 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to 3 decimal places) 

DG: ECFIN 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

0.090 

0.045 

0.000 

0.000 

TOTAL DG ECFIN 

Appropriations  

0.090 

0.045 

0.000 

0.000 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

0.090 

0.045 

0.000 

0.000 

0.135 

0.135 

0.135 

Year 
2010 

Year 
2011 

Year 
2012 

Year 
2013 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to 3 decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

0.090 

0.045 

0.000 

0.000 

Payments 

0.090 

0.045 

0.000 

0.000 

0.135 

0.135 

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E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–  (cid:58) The proposal/initiative does not require the use of operational appropriations  

EN 

22 

E

 
  
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133) The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  (cid:58) The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

Year 
2010 

Year 
2011 

Year 
2012 

Year 
2013 

… enter as many years as necessary 
to show the duration of the impact 
(see point 1.6) 

TOTAL 

0.135 

0.135 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

0.090 

0.045 

0.000 

0.000 

0.090 

0.045 

0.000 

0.000 

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 515 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

0.090 

0.045 

0.000 

0.000 

15 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

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3.2.3.2.   Estimated requirements of human resources  

–  (cid:133) The proposal/initiative does not require the use of human resources  

–  (cid:58) The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
2010 

Year 
2011 

Year 
2012 

Year 
2013 

… enter as many years as 
necessary to show the 
duration of the impact 
(see point 1.6) 

(cid:121) Establishment plan posts (officials and temporary agents) 

XX 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

1.0 

0.5 

0 

0 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)16 

XX 01 02 01 (CA, INT, SNE from the "global 
envelope") 

XX 01 02 02 (CA, INT, JED, LA and SNE in 
the delegations) 

XX 01 04 yy 17 

- at Headquarters18 

- in delegations  

XX 01 05 02 (CA, INT, SNE - Indirect 
research) 

10 01 05 02 (CA, INT, SNE - Direct research) 

Other budget lines (specify) 

TOTAL 

1.0 

0.5 

0 

0 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG. 

Description of tasks to be carried out: 

Officials and temporary agents 

The main tasks arising from the EBRD capital increase are the 
following: 

- Preparation of legislative proposal; 

16 

17 
18 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 

EN 

24 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
- Follow up of the legislative procedure; 

- Administration of the annual budgetary procedure; 

- Annual reporting; 

- Relations with the Parliament and Council; 

- Relations and communication with EBRD management. 

External personnel 

EN 

25 

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3.2.4.  Compatibility with the current multiannual financial framework  

–  (cid:58) Proposal/initiative is compatible the current multiannual financial framework. 

–  The  proposal  is  compatible  with  existing  financial  programming.  The  EBRD 
could  nevertheless  request,  in  accordance  with  the  Agreement  establishing  it, 
payment relating to whole or part of the callable part of the capital subscribed by 
the  European  Union  if  it  is  needed  to  meet  its  liabilities.  The  likelihood  of  this 
event is however judged very low.  

3.2.5.  Third-party contributions  

–  (cid:58) The proposal/initiative does not provide for co-financing by third parties  

3.3. 

Estimated impact on revenue  

–  (cid:58) Proposal/initiative has no financial impact on revenue. 

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