Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1083/2006 as regards certain provisions relating to risk sharing instruments for Member States experiencing or threatened with serious difficulties with respect to their financial stability
Date: 2011-10-12
Institutions: European Commission
Subjects: Cohesion Fund, European Regional Development Fund, Structural Funds, anti-crisis plan, co-financing, economic recession, economic stabilisation, financial aid

EUROPEAN COMMISSION 

Brussels, 12.10.2011 
COM(2011) 655 final 

2011/0283 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 1083/2006 as regards certain provisions relating 
to risk sharing instruments for Member States experiencing or threatened with serious 
difficulties with respect to their financial stability 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

BACKGROUND TO THE PROPOSAL 

•  Reasons and objectives for the proposal 

The  sustained  financial  and  economic  crisis  is  increasing  the  pressure  on  national 
financial  resources  as  Member  States  are  reducing  their  budgets.  In  this  context 
ensuring  a  smooth  implementation  of  cohesion  policy  programmes  is  of  particular 
importance as a tool for injecting funds into the economy.  

Nonetheless, the implementation of the programmes requires significant amounts of 
funding from public and private stakeholders, who, due to the the liquidity problems 
faced  by  financial  institutions  are  not  able  to  provide  such  funding.  This  is 
particularly the case for those Member States which have been most affected by the 
crisis and have received financial assistance under a programme from the European 
Financial  Stabilisation  Mechanism  (EFSM)  for  the  EURO  countries  or  from  the 
Balance  of  Payments  (BoP)  mechanism  for  non  EURO  countries.  To  date,  six 
countries  -  including  Greece  which  has  received  financial  assistance  outside  the 
EFSM - have requested financial assistance under these mechanisms and have agreed 
with the Commission a macro-economic adjustment programme. These countries are 
Hungary,  Romania,  Latvia,  Portugal,  Greece  and  Ireland,  hereafter  called 
"programme countries". Hungary which has entrered the BoP mechanism in 2008 has 
already exited in 2010. 

In  order  to  ensure  that  these  Member  States  (or  any  other  Member  State  which 
maybe  concerned  by  such  assistance  programmes  in  the  future)  continue  the 
implementation  of  the  Structural  Funds  and  Cohesion  Fund  programmes  on  the 
ground and disburse funds to projects, the current proposal contains provisions that 
would  allow  the  creation  of  a  risk  sharing  instrument.  In  order  to  implement  this 
instrument the transfer of part of the financial allocations available to these Member 
States back to the Commission would be allowed. The objective would be to provide 
capital  contributions  to  cover  expected  and  unexpected  losses  of  loans  and 
guarantees  to  be  extended  under  a  risk-sharing  partnership  with  the  European 
Investment Bank and/or other financial institutions with a public policy mission who 
are willing to continue to lend to project sponsors and banks with a view to provide 
private match funding for projects implemented with Structural Funds and Cohesion 
Fund contributions. The overall allocation under cohesion policy for the period 2007-
2013  would  therefore  not  be  modified.  This  will  provide  additional  liquidity  to 
implement  infrastructure  and  productive  investments  in  the  Member  States  at  a 
critical  juncture  and  will  facilitate  the  continuation  of  the  implementation  of  the 
programmes  on  the  ground.  When  the  financial  allocations  made  available  for  the 
risk sharing instrument has not been used to cover losses, it will stay at the disposal 
of the Member State to continue the risk sharing facility or as part of the enveloppe 
available  for  operational  programmes.  Finally,  the  financial  allocations  to  the  risk-
sharing  instrument  would  be  strictly  capped  and  not  create  contingent  liabiities  for 
the Union or the Member State concerned. 

. 

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•  General context 

The deepening  of  the financial crisis in some of the Member States is undoubtedly 
affecting substantially the real economy due to the amount of debt and the difficulties 
encountered by the Governments to borrow money from the market. 

The Commission has put forward proposals in response to the current financial crisis 
and to its socio-economic consequences. In the framework of its recovery package, 
the Commission proposed in December 2008 a number of regulatory changes aiming 
to  simplify  the  implementation  rules  for  cohesion  policy  and  to  provide  additional 
pre-financing  through  advance  payments  to  ERDF  and  ESF  programmes.  The 
additional advance payments paid out to the Member States in 2009 have provided 
an  immediate  cash  injection  of  EUR  6.25  billion,  within  the  financial  envelope 
agreed  for  each  Member  State  for  the  2007-2013  period.  This  amendment  brought 
the  total  of  advance  payments  to  EUR  29.38  billion.  A  proposal  presented  by  the 
Commission in July 2009, provided for additional measures of simplification of the 
implementation  of  the  Structural  Funds  and  the  Cohesion  Fund.  The  adoption  of 
these measures in June 2010 has contributed significantly towards the simplification 
of  the  implementation  of  the  programmes  and  boosted  the  absorption  of  the  funds, 
while  reducing  administrative  burdens  on  beneficiaries.  The  Commission  has  also 
adopted  in  August  2011  a  proposal  for  an  amendment  to  Regulation  (EC)  No 
1083/2006 with a view to increase the amount of community contribution reimbursed 
through interim payments and payments of the final balance by up to 10 percentage 
points above the current limits (COM(2011)482 final of 01/08/2011). When adopted 
by  the  Council  and  Parliament  this  proposal  will  allow  additional  liquidity  to  the 
Member  States  concerned  to  co-finance  the  part  of  the  projects  and  programmes 
which  is  not  eligible  for  contributions  by  the  Structural  Funds  and  the  Cohesion 
Fund.  In  addition,  infrastructure  projects  relevant  in  the  context  of  the  economic 
recovery  of  the  Member  States  concerned  can  also  be  be  supported  if  considered 
appropriate. 

•  Provisions in force in the policy sphere of the proposal 

Article  36  of  Council  Regulation  (EC)  No  1083/2006  (hereinafter  the  'General 
Regulation') provides that the EIB may, at the request of Member States, participate 
in  activities  relating  to  the  preparation  of  projects,  in  particular  major  projects,  the 
arrangement  of  finance,  and  public-private partnerships. It provides  further  that  the 
Member State, in agreement with the EIB, may concentrate the loans granted on one 
or more priorities of an operational programme. The current proposal will facilitate 
the approval of such loans by the EIB, or by other international financial institutions 
as  may  be  the  case,  at  a  moment  when  due  to  the  downgrading  of  the  public  and 
private debt of the State and financial  institutions of the  Member States such loans 
would not be available.  

•  Consistency with other policies and objectives of the Union 

The  proposal  is  consistent  with  other  proposals  and  initiatives  adopted  by  the 
European Commission as a response to the financial crisis. 

EN 

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2. 

CONSULTATION OF INTEREST PARTIES AND IMPACT ANALYSIS 

•  Consultation of interested parties 

There was no consultation of external stakeholders. 

•  Procurement and use of expertise 

Use of external expertise has not been necessary. 

•  Impact analysis 

The  proposal  would  allow  the  Commission  to  implement  under  indirect  centralised 
management risk sharing instrument to cover risks related to loans and guarantees to 
be given to project promotors and other public or private partners. The objective is to 
facilitate  the  rapid  implementation  of  cohesion  policy  programmes  through 
investments  in  infrastructure  and  other  productive  investments  which  will  have  an 
immediate  and  real  impact  on  the  economy  and  contribute  to  the  creation  of 
employment.  

This will not impose additional financial requirements to the overall budget since the 
total  financial  allocation  for  the  period  from  the  Funds  to  the  Member  States  in 
question will not change. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed measures 

It is proposed to modify Article 14(1) of Regulation (EC) No 1083/2006 with a view 
to  allow  for  risk  sharing  instrument  to  be  managed  under  indirect  centralised 
manangement. It is proposed furthermore to amend Article 36(2) of Regulation (EC) 
No 1083/2006 with a view to allow Member States experiencing or threatened with 
serious difficulties with respect to their financial stability, to contribute part of their 
allocations  under 
the  "Convergence"  and  "Regional  competitiveness  and 
employment"  objectives  of  cohesion  policy  to  the  provisioning  and  capital 
allocations  to  loans  or  guarantees  issued  to  project  promotors  and  other  public  or 
private  partners  directly  or  indirectly  by  the  EIB  or  other  international  financial 
institutions. 

The  terms  and  conditions  applicable  to  such  risk  sharing  instrument  should  be 
decided  by  the  Commission,  upon  request  from  the  Member  State  concerned.  The 
Commission  upon  request  of  the  Member  States  concerned  should  adopt  ad  hoc 
decisions to set the terms and conditions applicable to such instrument, on the basis 
of  allocations  to  be  transferred  from  the  Structural  Funds  and  Cohesion  Fund 
allocations from the Member State concerned.  

EN 

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•  Legal basis 

Council  Regulation  (EC)  No  1083/2006  of  11  July  2006  laying  down  general 
provisions on the European Regional Development Fund, the European Social Fund 
and  the  Cohesion  Fund  and  repealing  Regulation  (EC)  No  1260/1999  defines  the 
common  rules  applicable  to  the  three  Funds.  Based  on  the  principle  of  shared 
management  between  the  Commission  and  the  Member  States,  this  Regulation 
includes  provisions  for  the  programming  process  as  well  as  arrangements  for 
programme  (including  financial)  management,  monitoring,  financial  control  and 
evaluation of projects. 

•  Subsidiarity principle 

The proposal complies within the subsidiarity principle to the extent that it seeks to 
facilitate  support  through  Structural  Funds  and  Cohesion  Fund  for  certain  Member 
States which experience serious difficulties, notably with problems in their economic 
growth  and  financial  stability  and  with  a  deterioration  in  their  deficit  and  debt 
position,  also  due  to  the  international  economic  and  financial  environment.  In  this 
context, it is necessary to establish at the European Union level a mechanism which 
allows the European Commission to set up risk sharing instruments which facilitate 
the  provision of  loans  or guarantees aiming at co-financing private contributions to 
projects implemented with public support under Structural Funds and the Cohesion 
Fund.  

•  Proportionality principle 

The proposal conforms to the proportionality principle: 

The current proposal is indeed proportionate since it provides increased support from 
the Structural Funds and the Cohesion Fund to the Member States in difficulties or 
threatened with severe difficulties caused by exceptional occurrences going beyond 
their  control  and  falling  under  the  conditions  of  Council  Regulation  (EU)  No 
407/2010  (establishing  the  European  financial  stabilization  mechanism),  or  in 
difficulties  or  seriously  threatened  with  difficulties  as  regards  their  balance  of 
payments and falling under the conditions of Council Regulation (EC) No 332/2002, 
as well as to Greece, which received financial assistance outside the EFSM under the 
Intercreditor Agreement and the Euro Area Loan Facility Act.  

•  Choice of instruments 

Proposed instrument: regulation. 

Other instruments would not be appropriate for the following reasons: 

The  Commission  has  explored  the  scope  for  manoeuvre  provided  by  the  legal 
framework  and  considers  necessary,  in  the  light  of  the  experience  up  to  now,  to 
propose modifications to the General Regulation. The objective of this revision is to 
further  facilitate  the  co-financing  of  projects  thereby  accelerating  both  their 
implementation and the impact of such investments on the real economy. 

EN 

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4. 

BUDGETARY IMPACT 

There is no impact on commitment appropriations since no modification is proposed 
to the maximum amounts of Structural Funds and Cohesion Fund financing provided 
for in the operational programmes for the programming period 2007-2013. 

This proposal could result in an acceleration of payments which will be compensated 
by  the  end  of  the  programming  period.  Therefore,  the  total  payment  appropriations 
for the whole programming period remains unchanged. 

In  the  light  of  Member  State's  request  to  benefit  from  the  action  and  taking  into 
account  the  evolution  in  regard  to  the  submission  of  interim  payments,  the 
Commission  will  in  2012  review  the  need  for  additional  payment  credits  and  if 
necessary propose the necessary actions to the Budgetary Authority. 

The  proposal  shows  the  willingness  on  the  part  of  the  Commission  to  assist  the 
efforts  of  the  Member  States  to  deal  with  the  financial  crisis.  The  amendment  will 
provide  the  Member  States  concerned  with  the  funds  necessary  to  support  projects 
and the recovery of the economy. 

EN 

5 

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2011/0283 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 1083/2006 as regards certain provisions relating 
to risk sharing instruments for Member States experiencing or threatened with serious 
difficulties with respect to their financial stability 

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 177 thereof, 

Having regard to the proposal from the European Commission, 

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

Having regard to the opinion of the European Economic and Social Committee1, 

Having regard to the opinion of the Committee of the Regions2, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

The  unprecedented  global  financial  crisis  and  economic  downturn  have  seriously 
damaged economic growth and financial stability and provoked a strong deterioration 
in financial and economic conditions in several Member States.  

(2)  Whilst  important  actions  to  counterbalance  the  negative  effects  of  the  crisis  have 
already been taken, including amendments of the legislative framework, the impact of 
the financial crisis on the real economy, the labour market and citizens is being widely 
felt.  

(3) 

Based  on  Article  122(2)  of  the  Treaty  providing  the  possibility  of  granting  Union 
financial  assistance  to  a  Member  State  in  difficulties  or  seriously  threatened  with 
severe  difficulties  caused  by  exceptional  occurrences  beyond  its  control,  Council 
Regulation  (EU)  No  407/2010  of  11  May  2010  establishing  a  European  financial 
stabilisation mechanism3 has established such a mechanism with a view to preserving 
the financial stability of the Union. 

1 
2 
3 

OJ L , , p. . 
OJ L , , p. . 
OJ L 118, 12.5.2010, p. 1. 

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6 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

By  Council  Implementing  Decisions  2011/77/EU4  and  2011/344/EU5  Ireland  and 
Portugal were granted such financial assistance.  

Greece  was  experiencing  serious  difficulties  with  respect  to  its  financial  stability 
already  before  the  entry  into  force  of  Regulation  (EU)  No  407/2010.  Therefore 
financial assistance to Greece could not be based on that Regulation. 

The  Intercreditor  Agreement  and  the  Loan  Facility  Agreement  concluded  for  Greece 
on 8 May 2010 entered into force on 11  May  2010. It foresees that  the Intercreditor 
Agreement will remain in full force and effect for a three-year programme period as 
long as there are any amounts outstanding under the Loan Facility Agreement. 

Council  Regulation  (EC)  No  332/2002  of  18  February  2002  establishing  a  facility 
providing medium-term financial assistance for Member States' balances of payments6 
has established an instrument providing that the Council will grant mutual assistance 
where a Member State which has not adopted the euro is in difficulties or is seriously 
threatened with difficulties as regards its balance of payments. 

By  Council  Decisions  2009/102/EC7,  2009/290/EC8  and  2009/459/EC9  Hungary, 
Latvia and Romania respectively were granted such financial assistance.  

On  11  July  2011,  finance  ministers  of  the  17  euro-area  Member  States  signed  the 
Treaty  establishing  the  European  Stability  Mechanism  (ESM).  It  is  foreseen  that  by 
2013,  the  ESM  will  assume  the  tasks  currently  fulfilled  by  the  European  Financial 
Stability  Facility  and  the  European  financial  stabilisation  mechanism.  This  future 
mechanism should therefore already be taken into account by this Regulation. 

(10)  The  European  Council  conclusions  of  23  and  24  June  2011  welcomed  the 
Commission's  intention  to  enhance  the  synergies  between  the  loan  programme  for 
Greece and the Union funds, supporting efforts to increase Greece's capacity to absorb 
Union funds in order to stimulate growth and employment by refocusing on improving 
competitiveness and employment creation. Moreover, the conclusions welcomed and 
supported the preparation by the Commission, together with the Member States, of a 
comprehensive programme of technical assistance to Greece.  

(11) 

In the statement  by  the Heads  of State or  Government  of  the  Euro  Area and  the  EU 
Institutions of 21 July 2011, the Commission and the European Investment Bank were 
invited  to  enhance  the  synergies  between  loan  programmes  and  Union  funds  in  all 
countries  under  Union  or  International  Monetary  Fund  assistance.  This  Regulation 
contributes to that objective. 

(12)  The  implementation  of  the  operational  programmes  and  projects  in  the  field  of 
infrastructure and productive investment in Greece faces serious problems because the 

4 
5 
6 
7 
8 
9 

OJ L 30, 4.2.2011, p. 34. 
OJ L 159, 176.2011, p. 88. 
OJ L 53, 23.2.2002, p. 1. 
OJ L 37, 6.2.2009, p. 5. 
OJ L 79, 25.3.2009, p. 39. 
OJ L 150, 13.6.2009, p. 8. 

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(13) 

(14) 

(15) 

conditions  for  the  participation  of  the  private  sector  and  particularly  of  the  financial 
sector changed dramatically as a result of the economic and financial crisis. 

In  order  to  alleviate  those  problems  and  to  speed  up  the  implementation  of  the 
operational programmes and projects, as well as to strengthen the economic recovery, 
it  is  appropriate  that  the  managing  authorities  of  the  Member  States  having 
experienced serious difficulties with respect to financial stability and which have been 
granted  financial  assistance  according  to  one  of  the  financial  assistance  mechanisms 
set out above may contribute financial resources from operational programmes to the 
establishment  of  risk  sharing  instruments  providing  loans  or  guarantees  or  other 
financial facilities, in support of projects and operations foreseen under an operational 
programme. 

In  light  of  the  EIB's  long-standing  expertise  as  the  major  financier  of  infrastructure 
projects  and  its  commitment  to  support  the  economic  recovery,  the  Commission 
should  be  able  to  create  in  partnership  with  the  EIB  risk  sharing  instruments.  The 
specific terms and conditions of the co-operation should be laid down in an agreement 
between the Commission and the EIB.  

In  view  of  the  need  to  expand  investment  opportunities  which  may  emerge  in  the 
Member  States  concerned,  the  Commission  may  also  establish  risk  sharing 
instruments with national or international public sector bodies or bodies governed by 
private law with a public service mission providing adequate guarantees as referred to 
in  Article  54(2)(c)  of  Council  Regulation  (EC,  Euratom)  No  1605/2002  of  25  June 
2002  on  the  Financial  Regulation  applicable  to  the  general  budget  of  the  European 
Communities10 under terms and conditions similar to those of the EIB. 

(16)  To  respond  rapidly  in  the  context  of  the  current  economic  and  financial  crisis,  such 
risk sharing instrument should be implemented by the Commission in accordance with 
Article 54(2) of Regulation (EC, Euratom) No 1605/2002. 

(17)  Regulation (EC) No 1083/2006 should therefore be amended accordingly, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1083/2006 is amended as follows:: 

(1) 

In Article 14, paragraph 1 is replaced by the following: 

"1. The budget of the European Union allocated to the Funds shall be implemented 
within  the  framework  of  shared  management  between  the  Member  States  and  the 
Commission,  in  accordance  with  Article  53(1)(b)  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,  *  with  the  exception  of  the  risk 
sharing  instruments  referred  to  in  Article  36(2a)  and  of  the  technical  assistance 
referred to in Article 45. 

10 

OJ L 248, 16.9.2002, p. 1. 

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The  principle  of  sound  financial  management  shall  be  applied  in  accordance  with 
Article 48(2) of Regulation (EC, Euratom) No 1605/2002. 

_________________ 

* 

OJ L 248, 16.9.2002, p. 1" 

(2) 

In Article 36, the following paragraph 2a is inserted: 

"2a.  Member  States  meeting  one  of  the  conditions  set  out  in  Article  77(2),  may 
contribute a part of the financial allocations indicated in Article 19 and Article 20 to 
a risk sharing instrument, to be established by the Commission in agreement with the 
European  Investment  Bank,  or  in  agreement  with  national  or  international  public 
sector  bodies  or  bodies  governed  by  private  law  with  a  public  service  mission 
providing  adequate guarantees  as  referred to in Article 54(2)(c) of Regulation (EC, 
Euratom) No 1605/2002, under similar terms and conditions to those applied to and 
by the European Investment Bank, to cover the provisioning and capital allocation of 
guarantees  and  loans,  as  well  as  other  financial  facilities,  granted  under  the  risk 
sharing instrument. 

Such  risk  sharing  instrument  shall  be  used  exclusively  for  loans  and  guarantees,  as 
well as other financial facilities, to finance operations co-financed by the European 
Regional Development Fund or the Cohesion Fund, regarding expenditure which is 
not covered by Article 56.  

The  risk  sharing  instrument  shall  be  implemented  by  the  Commission  within  the 
framework  of  indirect  centralised  management  in  accordance  with  Article  54(2)  of 
Regulation (EC, Euratom) No 1605/2002.  

Payments  to  the  risk  sharing  instrument  shall  be  made  in  tranches,  in  accordance 
with  the  scheduled  use  of  the  risk  sharing  instrument  in  providing  loans  and 
guarantees financing specific operations. 

The  Member  State  concerned  shall  address  a  request  to  the  Commission  who  shall 
adopt a decision by means of an implementing act, describing the system established 
to  guarantee  that  the  amount  available  is  used  for  the  exclusive  benefit  of  the 
Member  State  which  provided  it  within  its  cohesion  policy  financial  allocation 
pursuant to Article 18(2), as well as the terms and conditions applicable to such risk 
sharing instrument. These terms and conditions shall at least address the following: 

(a) traceability and accounting, information on the use of the funds and monitoring 
and control systems; and 

(b) structure of the fees and other administrative and management costs.  

The  financial  allocations  to  the  risk-sharing  instrument  shall  be  strictly  capped  and 
shall  not  create  contingent  liabiities  for  the  Union  budget  or  the  Member  State 
concerned. 

Any  amount  left-over  after  the  completion  of  an  operation  covered  by  the  risk 
sharing  instrument  may  be  reused,  at  the  request  of  the  Member  Sate  concerned, 
within  the  risk-sharing  instrument,  if  the  Member  State  still  meets  one  of  the 

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conditions set out as specified in Article 77(2). If the Member State no longer meets 
those conditions, the amount left-over shall be considered as assigned revenue within 
the meaning of Article 18 of the Financial Regulation. At the request of the Member 
State  concerned,  additional  commitment  appropriations  generated  by  this  assigned 
revenue shall be added the following year to the cohesion policy financial allocation 
of the Member State concerned." 

Article 2 

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

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council 
amending Council Regulation (EC) No 1083/2006 as regards certain provisions 
relating  to  risk  sharing  instruments  for  Members  States  experiencing  or 
threatened with serious difficulties with respect to their financial stability. 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

Regional Policy; ABB activity 13.03 

Employment and Social Affairs; ABB activity 04.02 

Cohesion Fund, ABB 13.04 

3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B.A lines)): 

The proposed new action will be implemented on the following budget lines: 

•  13.031600 Convergence (ERDF) 

•  13.031800 Regional competitiveness & employment (ERDF) 

•  13.04.02 Cohesion Fund 

•  13.03.xx  [New  line]  Risk  sharing  instrument  financed  from  the  ERDF 

envelope 

•  13.04.xx [New line] Risk sharing instrument financed from the CF envelope 

•  04.02.xx [New line] Risk sharing instrument financed from the ESF envelope 

3.2. 

Duration of the action and of the financial impact: 

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3.3.  Budgetary characteristics: 

Budget 
line 

13.031600 

13.031800 

13.03xx 

04.0217 

04.02xx 

13.04.02 

13.04.xx 

04.0219 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

Non-
comp 

Non-
comp 

Non-
comp 

Non-
comp 

Non-
comp 

Non-
comp 

Non-
comp 

Non-
comp 

Diff 

NO 

NO 

Diff 

NO 

NO 

Diff 

NO 

NO 

Diff 

NO 

NO 

Diff 

NO 

NO 

Diff 

NO 

NO 

Diff 

NO 

NO 

Diff 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

No 1b 

No 1b 

No 1b 

No 1b 

No 1b 

No 1b 

No 1b 

No 1b 

4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA)  

Since no new financial resources are proposed for commitment appropriations, no figures 
are inserted in the tables but n.a. (non-applicable) is indicated. The proposal is therefore 
in line with the multi-annual financial framework for 2007-2013.  

This  proposal  could  result  in  an  acceleration  of  payments  appropriations  (2012-2013) 
which  will  be  compensated  by  the  end  of  the  programming  period.  Therefore,  the  total 
payment appropriations for the whole programming period remains unchanged. 

The  financial  allocations  to  the  risk-sharing  instrument  including  management  fees  and 
other eligible costs, shall be strictly limited to the amount of the financial allocation to the 

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12 

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risk-sharing instrument and there shall be no further liability on the general budget of the 
Union or to the budget of the Member State concerned.  

. 

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13 

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Secti
on 
no. 

Expenditure type 

Operational expenditure11  

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

EUR million (to 3 decimal places) 

Year 
n 

n + 1 

n + 2 

n + 3 

n + 4 

n + 5 
and 
later 

Total 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a.

n.a.

n.a 

… 

n.a 

 n.a.  ….. 

n.a

0.

Administrative expenditure within reference amount12 

Technical 
& 
administrative  assistance 
(NDA) 

8.2.4 

c 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

a+c 

b+c 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a.

n.a.

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a.

n.a.

n.a. 

n.a. 

n.a 

n.a. 

n.a. 

n.a.

0,000

Administrative expenditure not included in reference amount13 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

Administrative  costs,  other 
than  human  resources  and 
not 
associated 
included in reference amount 
(NDA) 

costs, 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a.

n.a.

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a.

n.a.

8.2.5 

d 

8.2.6 

e 

Total indicative financial cost of intervention  

TOTAL  CA 
cost 
Resources 

of 

TOTAL  PA 
cost 
Resources 

of 

including 
Human 

including 
Human 

a+c
+d
+e 

b+c
+d
+e 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a.

n.a.

n.a 

n.a. 

n.a 

n.a. 

n.a. 

n.a.

n.a

11 
12 
13 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned 
Expenditure within article xx 01 04 of Title xx. 
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

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14 

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Co-financing details 

Co-financing body 

…………………… 

TOTAL CA including co-
financing 

f 

a+c
+d+
e+f 

EUR million (to 3 decimal places) 

n + 1 

n + 2 

n + 3 

n + 4 

Year 
n 

n  +  5 
and 
later 

Total 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

4.1.2.  Compatibility with Financial Programming 

⌧  Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 

(cid:133) 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 

(cid:133) 
Agreement14 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

⌧ 

Proposal has no financial implications on revenue 

(cid:133) 

Proposal has financial impact – the effect on revenue is as follows: 

EUR million (to one decimal place) 

Budget line 

Revenue 

Prior to
action 
[Year 
n-1] 

Situation following action 

[Yea
r n] 

[n+1] [n+2] [n+3

] 

[n+4]  [n+5]

15

a) Revenue in absolute terms 

n.a.

n.a.

n.a.

n.a. 

n.a. 

n.a. 

b) Change in revenue 

 ∆ 

n.a.

n.a.

n.a.

n.a. 

n.a. 

n.a. 

(Please  specify  each  revenue  budget  line  involved,  adding  the  appropriate  number  of 
rows to the table if there is an effect on more than one budget line.) 

14 
15 

See points 19 and 24 of the Inter-institutional agreement. 
Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years 

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4.2. 

Human Resources FTE (including officials, temporary and external staff) – see detail 
under point 8.2.1. 

Annual requirements 

Year n 

n + 1 

n + 2 

n + 3 

n + 4 

n + 5 
and 
later 

Total  number  of  human 
resources 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

The  sustained  financial  and  economic  crisis  is  increasing  the  pressure  on  national  financial 
resources,  as  Member  States  are  reducing  their  budgets.  In  this  context  ensuring  a  smooth 
implementation  of  cohesion  policy  programmes  is  of  particular  importance  as  a  tool  for  injecting 
funds into the economy. In order to ensure that these Member States continue the implementation of 
the Structural Fund and Cohesion Fund programmes on the ground and disburse funds to projects, 
the  proposal  contains  provisions  that  would  allow  the  Commission  to  implement  a  risk  sharing 
instrument.  

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with  other 
financial instruments and possible synergy 

The  proposal  will  allow  the  continuation  of  the  implementation  of  the  programmes,  injecting 
additional  money  mobilised  by  the  EIB  and  other  international  financial  institutions  into  the 
economy. 

5.3. 

Objectives,  expected  results  and  related  indicators  of  the  proposal  in  the  context  of 
the ABM framework 

The  objective  is  to  help  those  Member  States  mostly affected by the financial crisis to be able to 
continue with the implementation of the programmes on the ground, hence injecting funds into the 
economy. 

5.4.  Method of Implementation (indicative) 

Show  below  the  method(s)  chosen  for  the  implementation  of  the  action:  indirect  centralised 
management by the Commission in accordance with Article 54(2) of Regulation (EC, Euratom) No 
1605/2002.  

On a request from the Member States, the programming of some operational programmes will be 
revised  downward  in  order  to  make  available  commitment  appropriations  within  the  financial 
allocation of the Member States. These appropriations will be placed on a budget line dedicated to 
implement the action. When the action is completed and amounts providing the funding of the risk 
sharing facilities are not needed anymore, they will be returned as assigned revenue on the budget 
lines which provided the initial funding or the equivalent budget lines supporting the financing of 
operational programmes. 

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6. 

MONITORING AND EVALUATION 

6.1.  Monitoring and reporting rules, management and control 

EIB Financing Operations will be managed by the EIB in accordance with the EIB's own rules and 
procedures, including appropriate audit, control and monitoring measures. As foreseen in the EIB 
Statute, the Audit Committee of the EIB, which is supported by external auditors, is responsible for 
verifying  the  regularity  of  the  EIB  operations  and  accounts.  The  EIB  accounts  are  approved 
annually by its Board of Governors. 

Furthermore, the EIB Board of Directors, where the Commission is represented by a Director and 
an alternate Director, approves each EIB Financing Operation and monitors that the EIB is managed 
in accordance with its Statute and with the general directives laid down by the Board of Governors. 

The  existing  tripartite  agreement  between  the  Commission,  the  Court  of  Auditors  and  the  EIB  of 
October 2003, renewed for another four-year period in 2007, details the rules under which the Court 
of Auditors is to carry out its audits on the EIB Financing Operations under EU guarantee.The EIB 
shall  provide  the  Commission  with  statistical,  financial  and  accounting  data  on  each  of  the  EIB 
Financing Operations as necessary to fulfil its reporting duties or requests by the European Court of 
Auditors  as  well  as  an  auditor’s  certificate  on  the  outstanding  amounts  of  the  EIB  Financing 
Operations. 

Monitoring  by  the  Commision  in  accordance  with  sound  financial  management  shall  include  the 
drawing up of regular reports on progress made in implementing the initiative by means of financial 
implementation.  

When other financial institutions participate in the risk-sharing instrument their internal rules and 
procedures,  respectively  the  agreements  they  have  signed  with  the  Commission,  regarding  the 
management, reporting, management and control shall apply accordingly. 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

This  proposal  has  been  prepared  at  the  request  from  the  Cabinet  of  the  President  of  the 
Commission. 

6.2.2.  Measures taken following an intermediate/ex-post evaluation (lessons learned from similar 

experiences in the past) 

N/A 

6.2.3.  Terms and frequency of future evaluation 

N/A 

7. 

ANTI-FRAUD MEASURES  

The EIB has the main responsibility for the adoption of fraud prevention measures, notably through 
the  application  to  the  financed  operations  of  the  "EIB’s  Policy  on  preventing  and  deterring 
Corruption,  Fraud,  Collusion,  Coercion,  Money  Laundering  and  the  Financing  of  Terrorism  in 
European Investment Bank activities" as adopted in April 2008. 

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17 

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The EIB's rules and procedures include, among the detailed arrangements to fight against fraud and 
corruption, the competence of OLAF to carry out internal investigations. In particular, in July 2004, 
the EIB Board of Governors approved a decision "concerning the terms and conditions for internal 
investigations in relation to the prevention of fraud, corruption and any illegal activity detrimental 
to the Communities' financial interests". 

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8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

(Headings of Objectives, 
actions and outputs should be 
provided) 

Type of 
output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 and 
later 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

Commitment appropriations in EUR million (to 3 decimal places) 

OPERATIONAL OBJECTIVE 
No.1 Sustain the implementation 
of the operational programmes 

TOTAL COST 

0,000 

0,000 

0,000 

0,000 

0,000 

0,000 

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19 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of 
post 

Staff to be assigned to management of the action using existing and/or additional 
resources (number of posts/FTEs) 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

Officials 
or 
temporary 
staff (XX 
01 01) 

A*/AD 

B*, 
C*/AST 

Staff financed by art. 
XX 01 02 

Other  staff  financed 
by art. XX 01 04/05 

TOTAL 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

8.2.2.  Description of tasks deriving from the action 

N/A 

8.2.3. 

Sources of human resources (statutory) 

(When  more  than  one  source  is  stated,  please  indicate  the  number  of  posts  originating 
from each of the sources) 

Posts  currently  allocated  to  the  management  of  the  programme  to  be 

(cid:133) 
replaced or extended 

(cid:133) 

(cid:133) 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing 

(cid:133) 
service (internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise 

(cid:133) 
of the year in question 

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8.2.4.  Other Administrative expenditure included in reference amount (XX 01 04/05 – 

Expenditure on administrative management) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5  

and 
later 

TOTAL 

Budget line 

(number and heading) 

1  Technical and administrative 

assistance (including related staff 
costs) 

Executive agencies 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

Other technical and administrative 
assistance 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

- intra muros  

- extra muros 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

Total Technical and administrative 
assistance 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

8.2.5.  Financial  cost  of  human  resources  and  associated  costs  not  included  in  the 

reference amount 

EUR million (to 3 decimal places) 

Type of human resources 

Year n 

Year n+1  Year n+2  Year n+3  Year n+4 

Year n+5 

and later 

Officials  and  temporary  staff 
(XX 01 01) 

Staff financed by Art XX 01 02 
(auxiliary,  END,  contract  staff, 
etc.) 

(specify budget line) 

Total cost of Human 
Resources and associated 
costs (NOT in reference 
amount) 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

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Calculation– Officials and Temporary agents 

Reference should be made to Point 8.2.1, if applicable 

n.a. 

Calculation– Staff financed under art. XX 01 02 

Reference should be made to Point 8.2.1, if applicable 

n.a. 

8.2.6.  Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places) 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n 

Year 
n+5 

and 
later 

TOTAL 

XX 01 02 11 01 – Missions 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

XX 01 02 11 02 – Meetings & Conferences 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

XX 01 02 11 03 – Committees  

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

XX 01 02 11 04 – Studies & consultations 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

XX 01 02 11 05 - Information systems 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

 2  Total Other Management 

Expenditure (XX 01 02 11) 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

3  Other expenditure of an 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

administrative nature (specify 
including reference to budget line) 

Total Administrative expenditure, other 
than human resources and associated 
costs (NOT included in reference 
amount) 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

Calculation - Other administrative expenditure not included in reference amount 

n.a. 

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