Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
Date: 2013-05-23
Institutions: European Commission
Subjects: EIB loan, climate change, economic reform, guarantee, investment abroad, small and medium-sized enterprises

EUROPEAN 
COMMISSION 

Brussels, 23.5.2013  
COM(2013) 293 final 

2013/0152 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on granting an EU guarantee to the European Investment Bank against losses under 
financing operations supporting investment projects outside the Union 

{SWD(2013) 178 final} 
{SWD(2013) 179 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The European Union provides a budgetary guarantee to the European Investment Bank (EIB) 
covering risks of a sovereign and political nature in connection with its financing operations 
carried  out  outside  the  Union  in  support  of  the  Union's  external  policy  objectives.  The  EU 
guarantee  for  the  EIB's  external  operations  is  an  effective  means  to  combine  EU  budgetary 
funds,  through  the  provisioning  of  the  Guarantee  Fund  for  external  actions,  with  EIB  own 
resources. In addition, the EIB finances investment grade operations outside the Union at its 
own risk, as well as activities under specific mandates such as in ACP countries.  

The need for an EU budget guarantee for the EIB's external operations stems from the Bank's 
obligation under its Statute to ensure adequate security for all its lending operations and, more 
broadly, from the need to safeguard the creditworthiness of the EIB and not compromise its 
task of contributing to the steady development of EU Member States. The EU guarantee has 
been  the  key  instrument  ensuring  the  compatibility  between  the  EIB's  financial  structure, 
which  is  significantly  more  leveraged  than  other  International  Financial  Institutions  (IFIs), 
and the significantly higher inherent risk of lending to third countries, taking into account the 
need  to  avoid  a  deterioration  of  the  Bank's  AAA  rating  whilst  limiting  the  EIB  capital 
consumption. While the recently approved EIB capital increase would allow to increase EIB 
lending inside EU, EIB external activity should not be affected. 

The  overall  scope  and  general  conditions  of  the  EU  guarantee  coverage  for  EIB  external 
operations are set out in decisions of the European Parliament and of the Council. The most 
recent  decision  covering  the  EIB  financing  operations  outside  the  Union  over  the  period 
beginning on 1 February 2007 and ending on 31 December 2013 was established by Decision 
No 1080/2011/EU of the European Parliament and of the Council of 25 October 20111 (the 
‘current Decision’). Article 16 of the current Decision requires the Commission to present to 
the  European  Parliament  and  to  the  Council  a  proposal  for  establishing  the  EU  guarantee 
under the next multiannual financial framework. 

In  this  context,  Recital  40  of  the  current  Decision  foresees  specific  requirements:  "When 
submitting the proposal on the EU guarantee under the next multiannual financial framework, 
the Commission should be invited in particular to examine, in close cooperation with the EIB 
and  taking  into  account  the  implications  of  the  provisioning  of  the  Guarantee  Fund,  the 
ceilings  covered  by  the  EU  guarantee,  the  list  of  potentially  eligible  countries  and  the 
possibility for the EIB to provide micro-credit financing and other types of instruments. The 
Commission  and  the  EIB  should  also  examine  the  possibilities  of  enhancing,  in  the  future, 
synergy  between  the  financing  through  the  IPA,  the  ENPI,  the  DCI,  the  EIDHR  and  the 
Instrument for Stability and the external mandate of the EIB". 

The proposed new decision will cover the EU guarantee for EIB external financing operations 
over the period beginning on 1 January 2014 and ending on 31 December 2020. 

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Decision  granting  an  EU  guarantee  to  the  European  Investment  Bank  against  losses  under  loans  and 
loan  guarantees  for  projects  outside  the  Union  and  repealing  Decision  No  633/2009/EC  (OJ  L  280, 
27.10.2011, p. 1). 

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2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The  Commission  carried  out  an  Impact  Assessment  (IA)2  which  accompanies  this  proposal. 
The following policy options were considered:  

• 

• 

• 

No new EU budget guarantee extended to any new EIB operations outside the Union 
(option 0). 

A  base  line  scenario  with  no  change  in  the  existing  EU  guarantee  which  would 
remain applicable as such in the next mandate, i.e. until 31/12/2020 (option 1). 

Adapting  the  current  set-up  of  the  existing  mandate  with  a  combination  of 
amendments  responding  to  the  new  policy  context.  Three  sub-options  have  been 
defined:  

–  Sub-option  2.1  (CLOSE)  amending  the  geographical  scope  of  the  mandate  in 
order  to  focus  the  EU  guarantee  on  closest  regions  neighbouring  the  Union  by 
excluding  Asia,  Latin  America  and  South  Africa  from  the  geographical  scope, 
extending  the  guarantee  to  all  type  of  microfinance  operations,  substantially 
increasing the dedicated climate change envelope, and drafting of annual country 
strategy papers. 

–  Sub-option  2.2  (MICRO)  maintaining  the  current  geographical  scope,  creating  a 
microfinance mandate which would benefit from an EU comprehensive guarantee, 
introducing  targets  for  climate  change  financing  within  the  regional  envelopes, 
and updating technical operational regional guidelines in line with the multiannual 
indicative programming of EU external financial instruments.  

–  Sub-option  2.3 

focusing 

(FOCUS) 

the  mandate  on 

less  credit-worthy 
beneficiaries,  microfinance  operations  continuing  not  to  be  explicitly  eligible, 
introduction  of  an  overall  signature  target  accompanied  by  the  introduction  of  a 
tracking  system  allowing  to  monitor  absolute  and  relative  Green  House  Gas 
emission reduction of all EIB projects supported under the mandate, and updating 
technical  operational  regional  guidelines  in  line  with  the  multiannual  indicative 
programming of EU external financial instruments.  

• 

Provide the guarantee to other European Financial Institutions which are eligible in 
the various blending facilities (option 3).  

The following main impacts have been acknowledged: 

Option 0 would lead to a withdrawal of the EIB from a number of countries and a significant 
increase  in  funding  costs  for  investment  projects  located  in  these  countries.  This  is  deemed 
not to be politically desirable in particular in the context of the global economic crisis which 
emphasises  the  significant  investment  needs.  It  seems  essential  to  continue  preserving  an 
adequate investment flow to countries outside the Union.  

Option 1 would not respond to the new policy context. 

It  was  acknowledged  that  sub-option  2.3  (FOCUS)  would  bring  more  positive  impacts  and 
ranked better than the other sub-options MICRO and CLOSE analysed, in particular in terms 
of  budgetary  impact  and  coherence  and  complementarity  to  the  Union  policies  and 
instruments. 

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SWD(2013)XX 

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Option 3 would open the EU guarantee to other institutions and would therefore decrease the 
share of EIB guaranteed lending, which could have a negative impact on the visibility of EU 
action,  given  the  EIB's  EU  institutional  standing.  Moreover,  the  EU  budget  would  assume 
additional  contingent  liabilities  on  financing  operations  conducted  by  other  financial 
institutions which are not strictly part of the EU institutional constellation and do not have the 
same  shareholders.  Finally,  the  other  institutions  have  their  own  strategies  agreed  by  their 
respective  governing  bodies  which  could  limit  the  influence  of  the  Union  through  its 
guarantee.  

The preferred option is therefore the sub-option 2.3 (FOCUS). 

The  impact  assessment  was  based  on  informal  exchanges  of  views  with  key  external 
stakeholders  including  representatives  of  Member  States  and  main  relevant  NGOs' 
representatives,  which  were  organised  through  meetings  and  seminars  in  June  and  October 
2012  in  order  to  take  stock  of  the  state  of  play  of  respective  reflections.  In  particular, 
exchanges of views were undertaken on the problems identified in this report as well as on the 
options  envisaged  to  address  them.  The  IA  report  was  also  based  on  the  widespread 
consultations of key stakeholders (those affected by the current Decision, those involved in its 
implementation  and  of  the  legislators)  that  took  place  in  the  context  of  the  revision  of  the 
mandate  2007-2013  concluded  at  end-2011.  All  these  consultations  and  informal  exchanges 
of views provided sufficient ground to form a view on the position of external stakeholders. 

Details  on  the  main  outcome  of  these  consultations  are  provided  in  the  Impact  Assessment 
report. 

Following a first request for resubmission, the IA Board delivered a positive opinion on the 
draft IA report on 29 January 2013. The IAB requested further clarifications on the status of 
implementation of the recommendations of the mid-term review and on EIB's role within EU 
financing  for  external  action  and  in  complementarity  to  other  actors'  activity,  further 
improvements  of  the  assessment  of  impacts  and  comparison  of  options  sections,  as  well  as 
more  details  on  the  stakeholders'  view  presentation.  The  report  was  further  improved 
accordingly.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The  proposal  for  a  decision  of  the  European  Parliament  and  of  the  Council  is  based  on  the 
dual  legal  basis  of  Articles  209  and  212  of  the  Treaty  on  the  Functioning  of  the  European 
Union. In particular Article 209(3), in conjunction with Article 208, provides that the EIB is 
to contribute, under the terms laid down in its Statute, to the implementation of the measures 
necessary to further the objectives of Union development cooperation policy. 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  The  subsidiarity  principle 
therefore does not apply.  

The proposal complies with the proportionality principle, as the EU guarantee has proved to 
be  an  efficient  means  of  covering  the  political  and  sovereign  risks  relating  to  EIB  external 
operations  carried  out  in  support  of  the  Union  external  policies.  The  new  EU  guarantee 
mandate  for  2014-2020  will  allow  the  existing  efficient  and  economically  sound  practice  to 
continue. 

Where possible and relevant, the draft  legislative  proposal  incorporates the language agreed 
during the inter-institutional negotiations and reflected in Decision 1080/2011/EU.  

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4. 

BUDGETARY IMPLICATION 

The Guarantee Fund for external actions ("Guarantee Fund" or "GF"), established by Council 
Regulation (EC, Euratom) No  480/2009  of  25  May 2009 establishing a Guarantee Fund for 
external actions3, provides a liquidity cushion for the Union budget against losses incurred on 
EIB financing operations and other Union external action, i.e. Macro Financial Assistance and 
Euratom loans. The EIB mandate represents more than 90% of the portfolio covered by the 
GF.  

The GF is endowed by one annual payment from the EU budget. The provisioning mechanism 
of  the  GF  which  aims  at  maintaining  the  GF  at  a  level  of  9%  of  outstanding  loan 
disbursements  creates  therefore  de  facto  a  limit  in  the  size  of  the  EIB  external  mandate 
covered  by  EU  budget  guarantee.  In  2010,  an  external  evaluation  of  the  functioning  of  the 
Guarantee Fund concluded that the 9% provisioning rate was deemed appropriate. 

The ceiling proposed is compatible with the provisioning amounts envisaged in the technical 
input  from  the  European  Commission  to  the  negotiation  of  the  individual  programmes 
implementing  the  next  Multiannual  Financial  Framework  sent  by  the  Commission  on  27 
March  2013  (EUR  1.193  billion  for  the  2014-2020  Financial  Framework  in  current  prices) 
and is based on expected patterns of disbursements and reimbursements of guaranteed loans. 

The  proposal  foresees  a  maximum  ceiling  of  the  EIB  financing  operations  under  EU 
guarantee  throughout  the  period  2014-2020  of  EUR  28  bn.  This  maximum  ceiling  shall  be 
broken down into two parts: (i) a fixed ceiling of a maximum amount of EUR 25 billion; and 
(ii) an optional additional amount of EUR 3 billion. The activation in whole or in part of this 
optional  amount  and  its  regional  distribution  will  be  decided  under  ordinary  legislative 
procedure following a mid-term review.  

The  more  limited  size  of  the  fixed  ceiling  compared  to  the  current  Decision  is  due  to 
budgetary restraint in the amount of the provisioning budget line of the Guarantee Fund under 
the next Multiannual Financial Framework and is not linked to the current performance and 
effectiveness of the scheme or absorption capacity considerations.  

The budgetary implications as regards the provisioning of the Guarantee Fund, including the 
underlying  assumptions,  as  well  as  the  human  and  administrative  resources  involved  in  the 
administration  of  the  EU  guarantee  are  set  out  in  the  legislative  financial  statement 
accompanying the proposal. 

5. 

OPTIONAL ELEMENTS 

On  the  basis  of  the  outcome  of  the  impact  assessment,  the  proposal  aims  to  ensure  the 
continuation  of  the  EU  guarantee  for  EIB  external  financing  for  the  next  financial 
perspectives 2014-2020, whilst introducing some changes: 

Focus the geographical scope of the mandate on less creditworthy beneficiaries where 

• 
the use of the guarantee would display the highest value added. 

• 
Reinforce  the  climate  change  dimension  of  the  mandate  in  order  to  incentivise  EIB 
operations  in  this  key  sector  of  the  Union  external  action  through  the  introduction  of  an 
overall  signature  target  accompanied  by  the  introduction  of  a  tracking  system  allowing  to 
monitor  absolute  and  relative  Green  House  Gas  emission  reduction  of  all  significant  EIB 
projects supported under the mandate. 

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OJ L 145, 10.6.2009, p. 10. 

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• 
Better  align  EIB  financing  with  the  Union  policies  and  reinforce  coherence  and 
complementarity with EU instruments to more satisfactorily mirror policy developments in a 
timely manner through the provision to update the technical operational regional guidelines in 
line with the multiannual indicative programming of EU external financial instruments. 

Detailed explanation of the key elements of the proposal 

Article  1  extends  the  EU  guarantee  for  the  next  financial  perspective  2014-2020,  with  the 
possibility of a six-month extension to ensure the continuity of EIB financing operations. The 
EU  guarantee  is  limited  to  65%  of  the  aggregate  amount  of  the  EIB  outstanding  disbursed 
amounts plus related amounts (e.g. interest, commissions, and other possible charges that are 
due by a guaranteed obligor to the EIB pursuant to a loan or a guarantee agreement), in line 
with  the  current  Decision.  It  stresses  that  the  EIB  uses  its  own  rules  and  procedures  when 
granting  financing  covered  by  the  EU  guarantee,  but  also  makes  the  guarantee  coverage 
conditional  on  the  EIB  financing  being  carried  out  in  support  of  the  Union  external  policy 
objectives.  Compared  to  the  current  Decision,  the  proposal  clarifies  explicitly  that  the  EU 
budgetary guarantee covers loans, loan guarantee and debt capital market instruments issued 
for the benefit of investment projects. 

Article  2  sets  out  the  ceilings  for  EIB  financing  under  EU  guarantee  (fixed  and  optional 
ceilings). The regional ceilings under the fixed ceiling are detailed in Annex I of the proposed 
decision. 

Article  3  sets  out  the  general  objectives  and  principles  to  be  pursued  by  EIB  financing 
operations  covered  by  the  EU  guarantee.  These  general  objectives  are  local  private  sector 
development  (in  particular  SMEs),  development  of  social,  environmental  and  economic 
infrastructure, and climate change mitigation and adaptation. Over the period covered by the 
new decision, climate change operations should represent an average of at least 25% of total 
EIB financing operations. The EIB shall, in cooperation with the Commission and following a 
public consultation, update its climate change strategy in this regard. Regional integration will 
be  an  underlying  objective  for  all  EIB  financing  activity.  Moreover,  EIB  financing  shall 
contribute indirectly to the Union development objectives. 

Article  4  deals  with  the  list  of  countries  concerned  by  the  proposal  and  their  potential  and 
actual  eligibility.  As  in  the  current  Decision,  the  Commission  is  empowered  to  adopt 
delegated  acts  to  activate  or  suspend  the  actual  eligibility  for  EIB  financing  under  the  EU 
guarantee  for  countries  listed  as  potentially  eligible  countries,  while  the  modification  of  the 
list of potentially eligible countries would require a separate decision by the legislator. Article 
4  also  provides  for  the  suspension  of  disbursements  on  existing  EIB  financing  operations 
benefiting from a Comprehensive Guarantee in case of suspension of eligibility. Compared to 
the  current  Decision,  the  eligibility  of  Myanmar  for  EIB  financing  under  EU  guarantee  is 
established.  This  reflects  the  progress  that  has  been  made  in  the  Union's  relations  with  this 
country. The more detailed justification for extending the EU guarantee to EIB financing in 
Myanmar  is  set  out  in  the  annex  of  the  Impact  Assessment  accompanying  this  proposal.  It 
takes  into  account  the  political  situation  in  the  country  and  the  bilateral  relations  with  the 
Union,  the  democracy,  human  rights  and  fundamental  freedoms  situation  as  well  as  the 
macro-economic situation and investment needs.  

Article  8  outlines  the  nature  of  the  EU  guarantee  which  will  cover  risks  of  a  political  or 
sovereign nature for financing operations entered into by the EIB. It also requires that the EU 
guarantee, through an appropriate method, is focussed on EIB financing operations where the 
EU  guarantee  brings  significant  financial  benefits.  The  aim  of  such  a  method  would  be  to 
ensure that the EU guarantee coverage is utilised to the maximum benefit of beneficiaries, e.g. 
in  countries  and  for  operations  that  have  difficulties  in  obtaining  finance  from  the  capital 

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market on acceptable terms, while investment grade countries or borrowers may have access 
to EIB own risk facilities. 

Article 18 provides a mid term review of the implementation of the mandate by 31 December 
2017, based on an external evaluation. 

Annex I sets out the regional ceilings under the fixed ceiling.  

Annex II sets out the list of potentially eligible regions and countries. 

Annex III sets out the list of eligible regions and countries. 

Annex IV presents the regional policy framework in which EIB operates outside the Union. 

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2013/0152 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on granting an EU guarantee to the European Investment Bank against losses under 
financing operations supporting investment projects outside the Union 

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 
Articles 209 and 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) 

In  addition  to  its  core  mission  of  financing  investment  in  the  Union,  the  European 
Investment Bank (EIB) undertakes financing operations outside the Union in support 
of the Union's external policies. This allows the budget funds of the Union available to 
the external regions to be complemented by the financial strength of the EIB for the 
benefit  of  the  targeted  third  countries.  In  undertaking  such  financing  operations,  the 
EIB contributes to the general principles and policy objectives of the Union. 

Article  209(3)  of  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  in 
conjunction with Article 208 thereof, provides that the EIB is to contribute, under the 
terms  laid  down  in  its  Statute,  to  the  implementation  of  the  measures  necessary  to 
further the objectives of Union development cooperation policy. 

(3)  With  a  view  to  supporting  Union  external  action,  and  in  order  to  enable  the  EIB  to 
finance investments outside the Union without affecting the credit standing of the EIB, 
the majority of its operations outside the Union have benefited from an EU budgetary 
guarantee ("EU guarantee") administered by the Commission. 

(4) 

The latest EU guarantee for EIB financing operations signed during the period from 1 
February 2007 to 31 December 2013 was established by Decision No 1080/2011/EU 
of  the  European  Parliament  and  of  the  Council  of  25  October  2011  granting  an  EU 
guarantee  to  the  European  Investment  Bank  against  losses  under  loans  and  loan 
guarantees  for  projects  outside  the  Union  and  repealing  Decision  No  633/2009/EC4. 
An EU guarantee for EIB financing operations outside the Union in support of Union 
policies should be established for the 2014-2020 multiannual financial framework. 

(5) 

A  list  of  countries  potentially  eligible  for  EIB  financing  under  the  EU  guarantee 
should  be  established.  It  is  also  appropriate  to  establish  a  list  of  countries  actually 
eligible for EIB financing under the EU guarantee.  

4 

OJ L 280, 27.10.2011, p. 1. 

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(6)  Myanmar  should  be  added  to  both  lists  following  the  recent  developments  which 
allowed the Union to open a new chapter in its relations with Myanmar and in order to 
support the on-going political and economic reforms in the country. 

(7) 

(8) 

(9) 

(10) 

(11) 

In  order  to  reflect  significant  policy  developments,  the  list  of  countries  actually 
eligible  for  EIB  financing  operations  under  the  EU  guarantee  should  be  reviewed  as 
appropriate and the power to adopt acts in accordance with Article 290 TFEU should 
be  delegated  to  the  Commission  in  respect  of  amendments  to  Annex  III  to  this 
Decision.  It  is  of  particular  importance  that  the  Commission  carry  out  appropriate 
consultations during its preparatory work, including at expert level. The Commission, 
when preparing and drawing-up delegated acts, should ensure a simultaneous, timely 
and  appropriate  transmission  of  relevant  documents  to  the  European  Parliament  and 
Council. 

In  order  to  cater  for  the  potential  evolution  of  the  actual  provisioning  needs  of  the 
Guarantee Fund in accordance with Council Regulation (EC, Euratom) No 480/2009 
of  25  May  2009  establishing  a  Guarantee  Fund  for  external  actions5,  the  maximum 
ceiling of the EU guarantee should be broken down into a fixed ceiling of a maximum 
amount of EUR 25 bn and an optional additional amount of EUR 3 bn.  

The amounts covered by the EU guarantee in each region should continue to represent 
ceilings for the EIB financing under the EU guarantee and not targets that the EIB is 
required to meet. The ceilings should be evaluated as part of the mid-term review of 
this Decision. 

In order to enhance the coherence and the focus of the EIB external financing activity 
on supporting Union policies, and for the maximum benefit of beneficiaries, Decision 
No  1080/2011/EU  set  out  general  objectives  for  EIB  financing  operations  across  all 
eligible  regions  and  countries,  i.e.  local  private  sector  development,  in  particular  in 
support  of  small  and  medium-sized  enterprises  (SMEs),  social  and  economic 
infrastructure  and  climate  change  mitigation  and  adaptation,  building  on  the 
comparative  strengths  of  the  EIB  in  areas  where  it  has  a  well-proven  track  record. 
These objectives should be maintained in this Decision. 

Improving access to financing for SMEs, including SMEs from the Union investing in 
the  regions  covered  by  this  Decision,  can  play  an  essential  role  in  stimulating 
economic development and in combating unemployment. In order to effectively reach 
out to SMEs, the EIB should cooperate with local financial intermediary institutions in 
the eligible countries, in particular to ensure that part of the financial benefits is passed 
on to their clients and provide added value compared to other sources of finance.  

(12)  The  coverage  of  the  EU  guarantee,  which  is  limited  to  risks  of  a  sovereign  and 
political nature, is not sufficient in itself to ensure a meaningful EIB activity in support 
of micro-finance. Therefore such activity, where appropriate, should be carried out in 
connection with budgetary resources available under other instruments. 

(13)  The  EIB  should  continue  to  finance  investment  projects  in  the  areas  of  social, 
environmental and economic infrastructure, and should consider increasing its activity 
in  support  of  health  and  education  infrastructure  when  there  is  clear  added  value  in 
doing so. 

5 

OJ L 145, 10.6.2009, p. 10 

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(14)  The  EIB  should  also  continue  to  finance  investment  projects  in  support  of  climate 
change  mitigation  and  adaptation,  to  further  the  promotion  of  the  Union's  climate 
goals on a global scale. 

(15)  Within  the  areas  covered  by  the  general  objectives,  regional  integration  among 
countries,  in  particular  economic  integration  between  Pre-accession  countries, 
Neighbourhood  countries  and  the  Union,  should  be  an  underlying  objective  for  EIB 
financing  operations.  Within  the  aforementioned  areas,  the  EIB  should  be  able  to 
support  partner  countries  through  foreign  direct  investments  by  companies  from  the 
Union that contribute to promoting technology and knowledge transfer, providing that 
due  consideration  has  been  made  during  the  investment  projects'  due  diligence  to 
minimise  the  risks  that  EIB  financing  operations  lead  to  negative  repercussions  on 
employment  in  the  Union.  The  EIB  should  also  be  encouraged  to  support  foreign 
direct investment in partner countries by companies from the Union at its own risk. 

(16)  The practical measures for linking the general objectives of the EU guarantee and their 
implementation  are  to  be  set  out  in  regional  technical  operational  guidelines.  Such 
guidelines should be consistent with the wider Union regional policy framework. The 
regional  technical  operational  guidelines  should  be  reviewed  and  further  updated 
following  the  review  of  this  Decision  in  order  to  adapt  to  the  developments  in  the 
Union external policies and priorities.  

(17) 

In accordance with Article 19 of the Statute of the EIB, applications made directly to 
the  EIB  for  EIB  financing  operations  to  be  carried  out  under  this  Decision  are  to  be 
submitted  to  the  Commission  for  an  opinion  on  the  conformity  with  relevant  EU 
legislation and policies. In the event that the Commission delivers a negative opinion 
on  an  EIB  financing  operation  in  the  framework  of  the  Article  19  procedure,  the 
operation shall not be covered by the EU guarantee. 

(18)  While  the  EIB's  strength  remains  its  distinctiveness  as  an  investment  bank,  EIB 
financing operations should contribute to the general principles guiding Union external 
action,  as  referred  to  in  Article  21  of  the  Treaty  on  European  Union  (TEU),  of 
promoting  and  consolidating  democracy  and  the  rule  of  law,  human  rights  and 
fundamental  freedoms,  and  to  the  implementation  of  international  environmental 
agreements  to  which  the  Union  is  a  party.  In  particular,  in  relation  to  developing 
countries,  EIB  financing  operations  should  foster  their  sustainable  economic,  social 
and environmental development, particularly in the most disadvantaged amongst them, 
their  smooth  and  gradual  integration  into  the  world  economy,  the  campaign  against 
poverty, as well as compliance with objectives approved by the Union in the context 
of  the  United  Nations  and  other  competent  international  organisations.  While 
contributing to the implementation of the measures necessary to further the objectives 
of  Union  development  cooperation  policy  in  accordance  with  Article  209(3)  of  the 
Treaty, the EIB should strive to support indirectly the achievement of the UN's 2015 
Millennium Development Goals in all regions where it is active. 

(19)  The EIB activity under this Decision should support the Agenda for Change proposed 
by  the  Commission  and  be  coherent  with  the  relevant  principles  of  the  European 
Consensus on Development and the principles of aid effectiveness outlined in the Paris 
Declaration of 2005, the Accra Agenda for Action of 2008 and the Busan Partnership 
Agreement  of  2011.  Furthermore,  it  should  be  coherent  with  the  EU  Strategic 
Framework and Action Plan on Human Rights and Democracy adopted by the Council 
on  25  June  2012  and  international  environmental  agreements  including  biodiversity 
commitments.  It  should  be  implemented  through  a  number  of  concrete  measures,  in 

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particular  by  reinforcing  the  EIB's  capacity  to  appraise  environmental,  social  and 
development  aspects  of  investment  projects,  including  human  rights  and  conflict-
related  risks,  and  by  promoting  local  consultation  with  public  authorities  and  civil 
society.  In  this  context,  the  EIB  should  implement  and  further  develop  its  Results 
Measurement  framework  (REM)  which  provides  a  detailed  set  of  performance 
indicators measuring the economic, environmental, social, and development impact of 
its  financing  operations  throughout  the  lifecycle  of  the  underlying  investment.  The 
implementation of the REM should be evaluated as part of the mid-term review of this 
Decision. When carrying out due diligence in respect of an investment project, the EIB 
should,  where  appropriate  and  in  line  with  the  Union's  social  and  environmental 
principles, require the investment project promoter to carry out local consultations and 
disclose  their  results  to  the  public.  EIB  financing  agreements  involving  public 
counterparts should explicitly include the possibility to suspend disbursements in case 
of revocation of eligibility under this Decision of the country in which the investment 
project takes place. 

(20)  At  all  levels,  from  upstream  strategic  planning  to  downstream  investment  project 
development,  it  should  be  ensured  that  EIB  financing  operations  comply  with  and 
support  Union  external  policies  and  the  general  objectives  set  out  in  this  Decision. 
With a view to increasing the coherence of Union external action, dialogue on policy 
and  strategy  should  be  further  strengthened  between  the  Commission  and  the  EIB, 
including  the  European  External  Action  Service  (EEAS).  The  Memorandum  of 
Understanding  to  be  revised  in  2013  to  enhance  cooperation  and  early  mutual 
exchange  of  information  between  the  Commission  and  the  EIB  at  operational  level 
should continue to be applied. It is of particular importance to have an early exchange 
of views between the Commission and the EIB, including the EEAS, as appropriate, in 
the  process  of  preparing  programming  documents  in  order  to  maximise  synergies 
between their activities. The cooperation in relation to the respect of human rights and 
conflict prevention issues should also be reinforced. 

(21)  Union external relations should be supported by new instruments from 2014, including 
the 
an  umbrella  Regulation  establishing  common  rules  and  procedures  for 
implementation  of  the  Union's  instruments  for  external  action6.  With  a  view  to 
enhancing  the  coherence  of  overall  Union  support  in  the  regions  concerned, 
opportunities  should  be  seized  to  combine  EIB  financing  with  Union  budgetary 
resources when and as appropriate, in the form of financial instruments provided for in 
Title VIII of Regulation (EU, Euratom) No 966/2012 of the European Parliament and 
of  the  Council  of  25  October  2012  on  the  financial  rules  applicable  to  the  general 
budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/20027 
and  technical  assistance  for  project  preparation  and  implementation,  through  the 
Instrument  for  Pre-Accession  Assistance  II  (IPA  II)8,  the  European  Neighbourhood 
Instrument (ENI)9, the Development Cooperation Instrument (DCI)10, the Partnership 
Instrument for cooperation with third countries11, the Instrument for the promotion of 
Democracy  and  Human  Rights  worldwide12,  the  Instrument  for  Stability13,  and  the 

6 
7 
8 
9 
10 
11 
12 

COM(2011)842 Final 
OJ L 298, 26.10.2012, p. 1. 
COM(2011)838 Final 
COM(2011)839 Final  
COM(2011)840 Final  
COM(2011)843 Final 
COM(2011)844 Final 

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(22) 

Instrument for Nuclear Safety Cooperation14. Following Decision No 1080/2011/EU, 
the  Commission  established  an  EU  Platform  for  Blending  in  External  Cooperation 
with  a  view  to  optimising  the  functioning  of  mechanisms  for  the  blending  of  grants 
and loans outside the Union. 

In its financing operations outside the Union that fall within the scope of this Decision, 
the  EIB  should  endeavour  further  to  enhance  coordination  and  cooperation  with 
European Financial Institutions and International Financial Institutions, notably those 
participating  in  the  EU  Platform  for  Blending  in  External  Cooperation.  This 
cooperation  includes,  where  appropriate,  cooperation  on  sector  conditionality  and 
mutual  reliance  on  procedures,  use  of  joint  co-financing  and  participation  in  global 
initiatives,  such  as  those  promoting  aid  coordination  and  effectiveness.  Such 
coordination  and  cooperation  should  strive  to  minimise  possible  duplication  of  costs 
and  unnecessary  overlap.  The  tripartite  Memorandum  of  Understanding  between  the 
Commission,  the  EIB  Group  and  the  European  Bank  for  Reconstruction  and 
Development (EBRD) in respect of cooperation outside the Union, which allows the 
EIB  Group  and  the  EBRD  to  act  in  a  complementary  way  by  relying  on  their 
respective  comparative  advantages,  was  updated  in  2012  to  cover  the  extension  of 
EBRD's  geographical  scope  to  the  Mediterranean  region  and  should  continue  to  be 
applied.  The  principles  set  out  in  this  Decision  should  also  be  applied  when  EIB 
financing  is  implemented  through  cooperation  agreements  with  other  European 
Financial Institutions and International Financial Institutions. 

(23)  The EIB should be encouraged to increase its operations and to diversify its operations 
outside  the  Union  without  recourse  to  the  EU  guarantee  so  that  the  use  of  the  EU 
guarantee can be focused on countries and investment projects with poor access to the 
market, taking into account debt sustainability considerations, where the EU guarantee 
therefore  provides  greater  added  value.  Consequently,  and  always  with  the  aim  of 
supporting the objectives of the Union external policies, the EIB should be encouraged 
to lend at its own risk, including in support of Union economic interests, in countries 
and in favour of investment projects having a sufficient creditworthiness according to 
the assessment of the EIB and taking into account its own risk absorption capacity. 

(24)  The  EIB  should  expand  the  range  of  innovative  financial  instruments  it  offers, 
including by focusing more on developing guarantee instruments. Moreover, the EIB 
should actively seek to participate in risk sharing instruments and debt capital market 
financing of projects with stable and predictable cash flow generation. In particular, it 
should  consider  supporting  debt  capital  market  instruments  issued  or  granted  for  the 
benefit  of  an  investment  project  carried  out  in  the  eligible  countries.  In  addition,  the 
EIB should increase its provision of loans in local currencies and issue bonds in local 
markets,  provided  that  beneficiary  countries  put  in  place  the  necessary  structural 
reforms, in particular in the financial sector, as well as other measures to facilitate EIB 
activities. 

(25)  The EIB financing operations in support of Union external policies should continue to 
be conducted in accordance with the principles of sound banking practice. They should 
continue  to  be  managed  in  accordance  with  the  EIB's  own  rules  and  procedures, 
including  appropriate  control  measures  and  compliance  with  the  EIB's  statement  on 
social and environmental standards, as well as with the relevant rules and procedures 

13 
14 

COM(2011)845 Final 
COM(2011)841 Final 

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concerning the Court of Auditors and the European Anti-Fraud Office (OLAF). In its 
financing operations the EIB should adequately implement its policies towards weakly 
regulated  or  non-cooperative  jurisdictions  in  order  to  contribute  to  the  international 
fight against tax fraud, tax evasion and money-laundering. 

(26)  The  EIB  should  take  appropriate  measures  ensuring  that,  when  financing  operations 
subject  to  the  EU  guarantee,  the  financial  interests  of  the  European  Union  are 
protected by the application of preventive measures against fraud, corruption and any 
other  illegal  activities  and  that  OLAF  is  entitled  to  conduct  on-the-spot  checks  and 
Inspections in the premises of the beneficiaries. 

HAVE ADOPTED THIS DECISION:  

Article 1 
EU guarantee 

1. 

2. 

3. 

4. 

5. 

1. 

The  Union  shall  grant  the  European  Investment  Bank  (EIB)  a  budgetary  guarantee 
for  financing  operations  carried  out  outside  the  Union  ("EU  guarantee").  The  EU 
guarantee  shall  be  granted  as  a  global  guarantee  in  respect  of  payments  due  to  the 
EIB,  but  not  received  by  it,  in  connection  with  loans,  loan  guarantees,  and  debt 
capital  market  instruments  granted  for  or  issued  for  the  benefit  of  EIB  investment 
projects that are eligible in accordance with paragraph 2.  

Eligible  for  the  EU  guarantee  shall  be  the  EIB  loans,  loan  guarantees,  and  debt 
capital market instruments that are granted for or issued for the benefit of investment 
projects carried out in eligible countries in accordance with the EIB's own rules and 
procedures  and  in  support  of  the  relevant  Union  external  policy  objectives,  where 
EIB  financing  has  been  granted  in  accordance  with  a  signed  agreement  which  has 
neither expired nor been cancelled ("EIB financing operations"). 

The EU guarantee shall be restricted to 65% of the aggregate amount disbursed and 
guaranteed under EIB financing operations, less amounts reimbursed, plus all related 
amounts. 

The  EU  guarantee  shall  cover  EIB  financing  operations  signed  during  the  period 
from 1 January 2014 to 31 December 2020.  

If, on expiry of the period referred to  in paragraph 4, the European Parliament and 
the  Council  have  not  adopted  a  decision  granting  a  new  EU  guarantee  to  the  EIB 
against losses under its financing operations outside the Union, that period shall be 
automatically extended by six months. 

Article 2 
Ceilings for EIB financing operations under EU guarantee 

The  maximum  ceiling  of  the  EIB  financing  operations  under  EU  guarantee 
throughout  the  period  2014-2020  shall  not  exceed  EUR  28  000  000  000.  Amounts 
cancelled shall not count against the ceiling. 

This maximum ceiling shall be broken down into: 

(a) a fixed ceiling of a maximum amount of EUR 25 000 000 000; 

(b) an optional additional amount of EUR 3 000 000 000. 

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The  activation  in  whole  or  in  part  of  the  amount  referred  to  in  point  (b)  and  its 
regional  distribution  shall  be  decided  following  the  mid-term  review  in  accordance 
with Article 18. 

2. 

The  fixed  ceiling  referred  to  in  paragraph  1(a)  shall  be  broken  down  into  regional 
ceilings and sub-ceilings as laid down in Annex I. Within the regional ceilings, the 
EIB  shall  progressively  ensure  a  balanced  country  distribution  within  the  regions 
covered by the EU guarantee.  

Article 3 
General objectives and principles 

1. 

The EU guarantee shall be granted only for EIB financing operations which support 
any of the following general objectives: 

2. 

3. 

4. 

5. 

6. 

7. 

(a) 

local private sector development, in particular support to SMEs; 

(b)  development of social, environmental and economic infrastructure; 

(c) 

climate change mitigation and adaptation. 

EIB  financing  operations  carried  out  under  this  Decision  shall  contribute  to  the 
general  principles  guiding  Union  external  action,  as  referred  to  in  Article  21  TEU 
and shall contribute to the implementation of international environmental agreements 
to which the Union is a party. 

Regional integration among countries, including economic integration between Pre-
accession countries, Neighbourhood countries and the Union, shall be an underlying 
objective for EIB financing operations within areas covered by the general objectives 
as defined in paragraph 1. 

In  developing  countries,  as  defined  in  the  Organisation  for  Economic  Cooperation 
and Development (OECD) list of official development assistance (ODA) recipients, 
EIB  financing  operations  shall  contribute  indirectly  to  the  objectives  of  the  Union 
policy in development cooperation as referred to in Article 208 TFEU. 

EIB  financing  operations  supporting  the  objectives  provided  for  in  paragraph  1(a) 
may include support to investment projects by SMEs from the Union. 

EIB  financing  operations  supporting  the  objectives  provided  for  in  paragraph  1(b) 
shall  support  investment  projects  in  the  areas  of  transport,  energy,  including 
renewable energy, energy systems transformation enabling a switch to lower carbon 
intensive technologies and fuels, energy security and energy infrastructure, including 
for  gas  production  and  transportation  to  EU  energy  market,  environmental 
infrastructure,  including  water  and  sanitation  and  green  infrastructure,  information 
and  communication  technology,  including  telecommunications  and  broadband 
network infrastructure, health and education. 

EIB  financing  operations  supporting  the  objectives  provided  for  in  paragraph  1(c) 
shall support investment projects in climate change mitigation and adaptation which 
contribute to the overall objective of the United Nations Framework Convention on 
Climate Change, in particular by avoiding or reducing greenhouse gas emissions in 
the  areas  of  renewable  energy,  energy  efficiency  and  sustainable  transport,  or  by 
increasing  resilience  to  the  adverse  impacts  of  climate  change  on  vulnerable 
countries,  sectors  and  communities.  Over  the  period  covered  by  the  Decision,  the 

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8. 

1. 

2. 

3. 

4. 

5. 

6. 

1. 

volume  of  these  operations  shall  represent  at  least  25%  of  total  EIB  financing 
operations. 

In  line  with  Union  and  international  climate  change  objectives,  before  the  end  of 
2016,  the  EIB,  in  cooperation  with  the  Commission  and  following  a  public 
consultation,  shall  update  its  climate  change  strategy  as  regards  EIB  financing 
operations. 

Article 4 
Countries covered 

The list of countries potentially eligible for EIB financing under EU guarantee is set 
out in Annex II. The list of countries eligible for EIB financing under EU guarantee 
is set out in Annex III and shall include no countries other than those listed in Annex 
II. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 17  concerning amendments to Annex III. The Commission's decisions shall 
be based on an overall economic and political assessment, including aspects related 
to  the  democracy,  human  rights  and  fundamental  freedoms  as  well  as  the  relevant 
European Parliament resolutions and Council decisions and conclusions.  

Delegated  acts  amending  Annex  III  shall  not  affect  the  EU  guarantee  coverage  of 
EIB financing operations signed before the entry into force of those delegated acts, 
subject to paragraph 4.  

Disbursements  on  EIB  financing  operations  benefiting  from  a  Comprehensive 
Guarantee as referred to in Article 8(1) shall not be made in countries not listed in 
Annex III. 

The EU guarantee shall cover only EIB financing operations  carried out in eligible 
countries that have concluded a framework agreement with the EIB establishing the 
legal conditions under which such operations are to be carried out. 

The EU guarantee shall not cover EIB financing operations in a specific country with 
which the agreement concerning such operations has been signed after that country's 
accession to the Union. 

Article 5 
Contribution of EIB financing operations to Union policies 

The Commission shall update, together with the EIB, the existing regional technical 
operational  guidelines  for  EIB  financing  operations  within  one  year  following  the 
adoption of this Decision.  

The  regional  technical  operational  guidelines  shall  be  consistent  with  the  wider 
Union  regional  policy  framework  set  out  in  Annex  IV.  In  particular  the  regional 
technical operational guidelines shall ensure that EIB financing under this Decision 
is  complementary  to  corresponding  Union  assistance  policies,  programmes  and 
instruments in the different regions. 

In  updating  these  guidelines,  the  Commission  and  the  EIB  shall  take  into  account 
relevant  European  Parliament  resolutions  and  Council  decisions  and  conclusions. 
The EEAS shall also be consulted on policy issues, as appropriate. 

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15 

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The  Commission  shall  transmit  to  the  European  Parliament  and  to  the  Council  the 
updated guidelines, as soon as they are established. 

Within  the  framework  set  out  by  the  regional  technical  operational  guidelines,  the 
EIB shall define corresponding financing strategies and ensure their implementation. 

The regional technical operational guidelines shall be reviewed following the review 
referred to in Article 18. 

An  EIB  financing  operation  shall  not  be  covered  by  the  EU  guarantee  in  the  event 
that  the  Commission  delivers  a  negative  opinion  on  such  an  operation  within  the 
framework of the procedure provided for in Article 19 of the Statute of the EIB. 

Article 6 
Cooperation with the Commission and the EEAS 

The consistency of EIB external actions with Union external policy objectives shall 
be further strengthened, with a view to maximising synergies between EIB financing 
operations and Union budgetary resources, in particular through the updating of the 
regional technical operational guidelines referred to in Article 5, as well as through 
regular and systematic dialogue and early exchange of information on: 

(a) 

strategic  documents  prepared  by  the  Commission  and/or  the  EEAS  as 
appropriate,  such  as  country  and  regional  strategy  papers, 
indicative 
programmes, action plans and pre-accession documents; 

(b) 

the EIB's strategic planning documents and investment project pipelines; 

(c) 

other policy and operational aspects. 

The  cooperation  shall  be  carried  out  on  a  region-by-region  basis,  including  at  EU 
Delegation level, taking into consideration the EIB's role as well as the policies of the 
Union in each region. 

Article 7 
Cooperation with other European Financial Institutions and International Financial 
Institutions 

EIB financing operations shall be carried out, where appropriate, in cooperation with 
other European Financial Institutions and International Financial Institutions in order 
to  maximise  synergies,  cooperation  and  efficiency,  to  develop  jointly  innovative 
financial instruments, to ensure prudent and reasonable sharing of risks and coherent 
investment  project  and  sector  conditionality,  and  in  order  to  minimise  possible 
duplication of costs and unnecessary overlap. 

The  cooperation  referred  to  in  paragraph  1  shall  be  facilitated  by  coordination 
between the Commission, the EIB and the main European Financial Institutions and 
International  Financial  Institutions  operating  in  the  different  regions,  carried  out 
where  appropriate  in  the  context  of  memoranda  of  understanding  or  other  Union 
regional cooperation frameworks. 

2. 

1. 

2. 

1. 

2. 

Article 8 
Coverage and terms of the EU guarantee 

1. 

For EIB financing operations entered into with a State, or guaranteed by a State, and 
for other EIB financing operations entered into with regional or local authorities, or 

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2. 

3. 

4. 

5. 

6. 

1. 

public  enterprises  or  institutions  owned  and/or  controlled  by  a  State,  where  such 
other EIB financing operations have an appropriate EIB credit risk assessment taking 
into account the credit risk situation of the country concerned, the EU guarantee shall 
cover  all  payments  due  to  the  EIB,  but  not  received  by  it  ("Comprehensive 
Guarantee"). 

For  the  purposes  of  paragraph  1,  the  Palestine  is  represented  by  the  Palestinian 
Authority and Kosovo15 by the Government of Kosovo. 

For EIB financing operations other than those referred to in paragraph 1 and for EIB 
financing operations consisting of debt capital markets instruments, the EU guarantee 
shall cover all payments due to the EIB but not received by it, where the non-receipt 
has been caused by the realisation of one of the following political risks ("Political 
Risk Guarantee"): 

(a) 

non-transfer of currency; 

(b) 

expropriation; 

(c)  war or civil disturbance; 

(d)  denial of justice upon breach of contract. 

EIB financing operations shall focus on investment projects where the EU guarantee 
brings meaningful financial value added according to EIB credit risk assessment. 

The Commission and the EIB shall set out in the agreement referred to in Article 13 
a method allowing the EIB to identify, within its external activity, the operations to 
be financed under this Decision and the operations to be financed at the own risk of 
the  EIB.  The  method  shall  be  based  on  the  creditworthiness  of  EIB  financing 
operations as assessed by the EIB, the regions and ceilings as defined in Annex I, the 
nature of the counterparty (whether a sovereign/State, a sub-sovereign as referred to 
in  paragraph  1  or  private),  EIB  risk  absorption  capacity  and  other  relevant  criteria, 
including added value of the EU Guarantee. 

When  the  EU  guarantee  is  called,  the  Union  shall  be  subrogated  to  any  relevant 
rights  of  the  Bank  in  respect  of  any  obligation  in  connection  to  its  financing 
operations, in accordance with the agreement referred to in Article 13. 

Article 9 
EIB assessment and monitoring of investment projects 

The  EIB  shall  carry  out  thorough  due  diligence  and,  where  appropriate  and  in  line 
with  Union  social  and  environmental  principles,  require  appropriate  local  public 
consultation,  on  development-related  aspects  of  investment  projects  covered  by  the 
EU guarantee. 

Where  appropriate,  the  appraisal  according  to  first  subparagraph  shall  include  an 
assessment  of  how  the  capacities  of  the  beneficiaries  of  EIB  financing  can  be 
reinforced throughout the project cycle with technical assistance. 

The  EIB's  own  rules  and  procedures  shall  include  the  necessary  provisions  on 
assessment of environmental and social impact of investment projects and of aspects 

15 

This designation is without prejudice to positions on status, and is in line with UNSCR 1244/99 and the 
ICJ Opinion on the Kosovo declaration of independence. 

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related  to  human  rights  and  conflict  prevention,  to  ensure  that  only  investment 
projects that are economically, financially, environmentally and socially sustainable 
are supported under this Decision.  

In  addition  to the ex-ante assessment of development-related aspects, the EIB shall 
monitor the implementation of financing operations. In particular, it shall require the 
project  promoters  to  carry  out  thorough  monitoring  during  project  implementation 
until  completion,  inter  alia,  on  the  development,  environmental  and  human  rights 
impact of the investment project. The EIB shall verify the information provided by 
the project promoters. 

The EIB monitoring shall also cover the implementation of intermediated operations 
and the performance of financial intermediaries in support of SMEs.  

The EIB shall establish a comprehensive tracking system of monitoring relative and 
absolute  greenhouse  gas  emissions  reduction  throughout  significant  EIB  financing 
operations where emissions are significant and data is available. 

2. 

3. 

4. 

Article 10 
Annual reporting and accounting 

1. 

The Commission shall report annually to the European Parliament and to the Council 
on EIB financing operations carried out under this Decision. The report shall include: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

an  assessment  of  EIB  financing  operations  at  project,  sector,  country  and 
regional levels; 

an assessment of the application of the method referred to in Article 8(5); 

an assessment of the added value and the development impact of EIB financing 
operations  at  an  aggregated  basis  and  their  contribution  to  the  fulfilment  of 
Union external policy and strategic objectives, taking into account the regional 
technical operational guidelines referred to in Article 5; 

an  assessment  of  the  financial  benefit  transferred  to  beneficiaries  of  EIB 
financing operations on an aggregated basis; 

an  assessment  of  the  quality  of  EIB  financing  operations,  in  particular,  the 
extent  to  which  the  EIB  has  taken  into  account  environmental  and  social 
sustainability  in  the  due  diligence  and  monitoring  of  the  investment  projects 
financed; 

calls on EU Guarantee; 

information  on  the  climate  change  and  biodiversity  financing  volumes  under 
this  Decision,  the  impact  on  absolute  and  relative  greenhouse  gas  emission 
reductions of all significant investments as defined in the EIB climate change 
strategy referred to in Article 3 on an aggregated basis as well as the number of 
projects assessed against the climate risk; 

a  description  of  the  cooperation  with  the  Commission  and  other  European 
Financial  Institutions  and  International  Financial  Institutions,  including  co-
financing. The report shall in particular include a breakdown of Union financial 
resources  and  resources  of  other  European  Financial  Institutions  and 
International  Financial  Institutions  used  in  combination  with  EIB  financing, 
thus giving an overview of the overall investment supported by EIB financing 
operations  carried  out  under  this  Decision.  The  report  shall  also  mention  the 

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conclusion  of  new  Memoranda  of  understanding  between  the  EIB  and  other 
European Financial Institutions or International Financial Institutions having a 
bearing on EIB financing operations under this Decision; 

(i) 

information  on  the  follow  up  of  the  functioning  of  the  Memorandum  of 
understanding between the EIB and the European Ombudsman in so far as the 
Memorandum concerns EIB financing operations covered by this Decision. 

For the purposes of the Commission's reporting referred to in paragraph 1, the EIB 
shall  provide  the  Commission  with  yearly  reports  on  EIB  financing  operations 
carried  out  under  this  Decision  including  all  necessary  elements  allowing  the 
Commission to report in accordance with paragraph 1. The EIB may also provide to 
the  Commission  additional  information  relevant  for  the  Council  and  the  European 
Parliament to have a comprehensive overview of EIB external activity. 

The EIB shall provide the Commission with statistical, financial and accounting data 
on each EIB financing operation, as well as any additional information necessary to 
fulfil the Commission's reporting duties or requests by the Court of Auditors and an 
auditor's certificate on the outstanding amounts of the EIB financing operations. EIB 
shall  also  provide  the  Commission  any  other  necessary  documents  in  line  with  the 
Regulation  (EU,  Euratom)  No  966/2012  of  the  European  Parliament  and  of  the 
Council of 25 October 2012 on the financial rules applicable to the general budget of 
the Union and repealing Council Regulation (EC, Euratom) No 1605/200216. 

For the purposes of the Commission's accounting and reporting of the risks covered 
by  the  EU  guarantee,  the  EIB  shall  provide  the  Commission  with  the  EIB's  risk 
assessment and grading information concerning EIB financing operations. 

The  EIB  shall  provide  the  Commission,  at  least  on  a  yearly  basis,  an  indicative 
multiannual  programme  of  the  planned  volume  of  signatures  of  EIB  financing 
operations,  so  as  to  ensure  compatibility  of  the  EIB's  forecast  financing  with  the 
ceilings  established  in  this  Decision  and  for  the  Commission  to  ensure  appropriate 
budgetary  planning  for  provisioning  the  Guarantee  Fund17.  The  Commission  shall 
take account of this forecast when preparing the draft budget.  

The  EIB  shall  continue  to  provide  the  European  Parliament,  the  Council  and  the 
Commission  with  all  its  independent  evaluation  reports  which  assess  the  practical 
results  achieved  by  the  specific  activities  of  the  EIB  under  this  Decision  and  other 
external mandates. 

The  EIB  shall  provide  the  information  referred  to  in  paragraphs  2  to  6  at  its  own 
expense. 

Article 11 
Public disclosure of information 

In  accordance  with  its  own  transparency  policy,  the  EIB  shall  make  publicly 
available on its website information relating to: 

(a) 

all  EIB  financing  operations  carried  out  under  this  Decision,  in  particular 
indicating whether an investment project is covered by the EU guarantee; 

OJ L 298, 26.10.2012, p. 1. 
Council  Regulation  (EC,  Euratom)  No  480/2009  of  25  May  2009  establishing  a  Guarantee  Fund  for 
external actions (OJ L 145, 10.6.2009, p. 10). 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

16 
17 

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(b)  unless  confidentiality  requirements  apply,  any  memoranda  of  understanding 
between  the  EIB  and  other  European  Financial  Institutions  or  International 
Financial Institutions having a bearing on EIB financing operations under this 
Decision. 

2. 

The Commission shall make publicly available on its website information relating to 
all  cases  of  recoveries  under  the  agreement  referred  to  in  Article  14,  unless 
confidentiality requirements apply. 

Article 12 
Non-cooperative jurisdictions 

In  its  financing  operations,  the  EIB  shall  not  tolerate  any  activities  carried  out  for  illegal 
purposes,  including  money  laundering,  financing  of  terrorism,  tax  fraud  and  tax  evasion, 
corruption, and fraud affecting the financial interests of the EU. In particular the EIB shall not 
participate  in  any  financing  operation  implemented  in  an  eligible  country  through  a  foreign 
non-cooperative jurisdiction identified as such by the OECD, the Financial Action Task Force 
or other relevant international organisations. 

Article 13 
Guarantee agreement 

The  Commission  and  the  EIB  shall  sign  a  guarantee  agreement  laying  down  the  detailed 
provisions  and  procedures  relating  to  the  EU  guarantee  as  set  out  in  Article  8,  and  shall 
inform the European Parliament and the Council accordingly. 

Article 14 
Recovery of payments made by the Commission 

1. 

2. 

Where the Commission makes any payment under the EU guarantee, the EIB shall, 
in the name and on behalf of the Commission, pursue the recovery of claims for the 
amounts paid. 

No later than the date of signature of the guarantee agreement referred to in Article 
13,  the  Commission  and  the  EIB  shall  sign  a  separate  agreement  laying  down  the 
detailed provisions and procedures relating to recovery of claims. 

Article 15 
Auditing by the Court of Auditors 

The EU guarantee and the payments and recoveries under it attributable to the general budget 
of the Union shall be audited by the Court of Auditors. 

Article 16 
Anti-Fraud measures 

1. 

2. 

The  EIB  shall  inform  OLAF  immediately  when,  at  any  stage  of  the  preparation, 
implementation  or  closure  of  projects  subject  to  the  EU  guarantee,  it  detects  a 
potential  case  of  fraud,  corruption  or  other  illegal  activity  that  may  affect  the 
financial interests of the EU. 

OLAF may carry out investigations, including on-the-spot checks and inspections, in 
accordance  with  the  provisions  and  procedures  laid  down  in  Regulation  (EC)  No 
1073/1999, Regulation (Euratom, EC) No 2185/96 and Regulation (EC, Euratom) No 

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2988/95 in order to protect the financial interests of the European Union, with a view 
to establishing whether there has been fraud, corruption or any other illegal activity 
affecting  the  financial  Interests  of  the  Union  in  connection  with  any  financing 
operations. 

Article 17 
Exercise of the delegation  

1. 

2. 

3. 

4. 

5. 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The  delegation  of  power  referred  to  in  Article  4  shall  be  conferred  on  the 
Commission for an indeterminate period of time. 

The delegation of power referred to in Article 4 may be revoked at any time by the 
European Parliament or by the Council. A decision of revocation shall put an end to 
the  delegation  of  the  power  specified  in  that  decision.  It  shall  take  effect  the  day 
following  the  publication  of  the  decision  in  the  Official  Journal  of  the  European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force. 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A  delegated  act  adopted  pursuant  to  Article  4  shall  enter  into  force  only  if  no 
objection  has  been  expressed  either  by  the  European  Parliament  or  by  the  Council 
within a period of two months of notification of that act to the European Parliament 
and  to  the  Council  or  if,  before  the  expiry  of  that  period,  the  European  Parliament 
and the Council have both informed the Commission that they will not object. That 
period shall be extended by two months at the initiative of the European Parliament 
or of the Council. 

Article 18 
Mid-term Review 

By  31  December  2017,  the  Commission  shall  submit  to  the  European  Parliament  and  the 
Council  a  mid-term  report  evaluating  the  implementation  of  this  Decision  in  the  first  years 
accompanied, where appropriate, by a proposal for its amendment. The report shall draw upon 
an external evaluation and contribution from the EIB. 

Article 19 
Final reporting 

By 31 December 2021, the Commission shall present to the European Parliament and to the 
Council a final report on the application of this Decision. 

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Article 20 
Entry into force 

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 I 

REGIONAL CEILINGS  

A. 

B. 

C. 

Pre-accession countries: EUR 8 400 000 000; 

Neighbourhood  and  Partnership  countries:  EUR  12  400  000  000,  broken  down 
into the following indicative sub-ceilings: 

(i)  Mediterranean countries: EUR 8 400 000 000; 

(ii)  Eastern Europe, Southern Caucasus and Russia: EUR 4 000 000 000; 

Asia  and  Latin  America:  EUR  3  600  000  000,  broken  down  into  the  following 
indicative sub-ceilings: 

(i)  Latin America: EUR 2 150 000 000; 

(ii)  Asia: EUR 1 200 000 000; 

(iii)  Central Asia: EUR 250 000 000 

D. 

South Africa: EUR 600 000 000. 

Within the overall fixed ceiling, the EIB shall, where appropriate, request the Commission to 
agree to reallocate an amount of up to 20 % of the sub-regional ceilings within regions and up 
to 10 % of the regional ceilings between regions. 

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POTENTIALLY ELIGIBLE REGIONS AND COUNTRIES 

ANNEX II 

A. 

Pre-accession countries 

1. 

Candidates 

Iceland,  the  former  Yugoslav  Republic  of  Macedonia,  Montenegro,  Serbia, 
Turkey 

2. 

Potential candidates 

Albania, Bosnia and Herzegovina, Kosovo 

B. 

Neighbourhood and Partnership countries 

1.  Mediterranean countries 

Algeria,  Egypt,  Israel,  Jordan,  Lebanon,  Libya,  Morocco,  Palestine,  Syria, 
Tunisia 

2. 

Eastern Europe, Southern Caucasus and Russia 

Eastern Europe: Belarus, Republic of Moldova, Ukraine 

Southern Caucasus: Armenia, Azerbaijan, Georgia 

Russia 

C. 

Asia and Latin America 

1. 

Latin America 

Argentina,  Bolivia,  Brazil,  Chile,  Colombia,  Costa  Rica,  Cuba,  Ecuador,  El 
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, 
Uruguay, Venezuela 

2. 

Asia 

Afghanistan,  Bangladesh,  Bhutan,  Brunei,  Cambodia,  China  (including  Hong 
Kong  and  Macao  Special  Administrative  Regions),  India,  Indonesia,  Iraq, 
Laos,  Malaysia,  Maldives,  Mongolia,  Myanmar,  Nepal,  Pakistan,  Philippines, 
Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam, Yemen 

3. 

Central Asia 

Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan 

D. 

South Africa 

Republic of South Africa 

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ANNEX III 

ELIGIBLE REGIONS AND COUNTRIES 

A. 

Pre-accession countries 

1. 

Candidates 

Iceland,  the  former  Yugoslav  Republic  of  Macedonia,  Montenegro,  Serbia, 
Turkey 

2. 

Potential candidates 

Albania, Bosnia and Herzegovina, Kosovo 

B. 

Neighbourhood and Partnership countries 

1.  Mediterranean countries 

Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Tunisia 

2. 

Eastern Europe, Southern Caucasus and Russia 

Eastern Europe: Republic of Moldova, Ukraine 

Southern Caucasus: Armenia, Azerbaijan, Georgia 

Russia 

C. 

Asia and Latin America 

1. 

Latin America 

Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, 
Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, 
Venezuela 

2. 

Asia 

Bangladesh,  Brunei,  Cambodia,  China  (including  Hong  Kong  and  Macao 
Special  Administrative  Regions),  India,  Indonesia,  Iraq,  Laos,  Malaysia, 
Maldives, Mongolia, Myanmar, Nepal, Pakistan, Philippines, Singapore, South 
Korea, Sri Lanka, Thailand, Vietnam, Yemen 

3. 

Central Asia 

Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan 

D. 

South Africa 

Republic of South Africa 

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ANNEX IV 

REGIONAL POLICY FRAMEWORK 

EIB  activity  in  partners  participating  in  the  pre-accession  process  takes  place  in  the 
framework  established  in  the  Accession  and  European  Partnerships  which  set  out  the 
priorities for candidates and potential candidates with a view to making progress in moving 
closer to the Union, and which provide a framework for Union assistance. The Stabilisation 
and Association Process is the Union policy framework for the Western Balkans. It is based 
on  progressive  partnership,  in  which  the  Union  offers  trade  concessions,  economic  and 
financial  assistance  and  contractual  relationships  through  Stabilisation  and  Association 
Agreements. Pre-accession financial assistance helps the candidates and potential candidates 
prepare  for  the  obligations  and  challenges  of  membership  of  the  Union.  This  assistance 
supports  the  reform  process,  including  preparations  for  eventual  membership.  It  focuses  on 
institution-building,  alignment  with  the  acquis  of  the  Union,  preparation  for  Union  policies 
and instruments and promotion of measures to achieve economic convergence. 

EIB  activity  in  neighbourhood  countries  takes  place  in  the  framework  of  the  new  European 
Neighbourhood Policy "A new response to a changing Neighbourhood’, adopted on 25 May 
2011 and the Council conclusions adopted on 20 June 2011, which calls notably for greater 
support  to  partners  committed  to  building  democratic  societies  and  undertaking  reforms,  in 
line  with  the  “more  for  more”  and  "mutual  accountability"  principles,  and  provides  the 
strategic policy framework for the EU relations with the neighbours. In the framework of this 
cooperation,  EIB  financing  under  this  Decision  will  also  be  targeted  at  policies  promoting 
inclusive  growth  and  job  creation  contributing  to  social  stability  in  line  with  an  incentive-
based approach supporting Union external policy objectives, including in relation to migration 
issues. 

In  order  to  achieve  these  objectives  the  Union  and  its  partners  implement  jointly  agreed 
bilateral  action  plans  defining  a  set  of  priorities  including  on  political  and  security  issues, 
trade  and  economic  matters,  environmental  and  social  concerns  and  integration  of  transport 
and energy networks. 

The Union for the Mediterranean, the Eastern Partnership, the Black Sea Synergy, the Union 
Strategy  for  the  Danube  Region  and  the  Union  Strategy  for  the  Baltic  Sea  Region  are 
multilateral and regional initiatives aimed at fostering cooperation between the Union and the 
respective  group  of  neighbourhood  partner  countries  facing  common  challenges  and/or 
sharing  a  common  geographical  environment.  The  Union  for  the  Mediterranean  aims  to 
relaunch  the  Euro-Mediterranean  integration  process  by  supporting  mutual  economic,  social 
and  environmental  development  on  both  sides  of  the  Mediterranean  and  supports  improved 
socio-economic  development,  solidarity,  regional  integration,  sustainable  development  and 
knowledge building, underlining the need to increase financial cooperation to support regional 
and  trans-national  projects.  The  Union  for  the  Mediterranean  supports,  in  particular,  the 
creation  of  maritime  and  land  highways,  the  de-pollution  of  the  Mediterranean,  the 
Mediterranean  solar  energy  plan,  the  Mediterranean  Business  Development  Initiative,  civil 
protection  initiatives  and  the  Euro-Mediterranean  university.  The  Union  Strategy  for  the 
Baltic  Sea  Region  supports  a  sustainable  environment  and  optimal  economic  and  social 
development in the Baltic Sea region. The Union Strategy for the Danube Region supports, in 
particular,  the  development  of  transport,  energy  connections  and  security,  sustainable 
environment and socio-economic development in the Danube region. The Eastern Partnership 
aims  to  create  the  necessary  conditions  to  accelerate  political  association  and  further 
economic  integration  between  the  Union  and  Eastern  partner  countries.  The  Russian 
Federation  and  the  Union  have  a  wide-ranging  strategic  partnership,  distinct  from  the 

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European Neighbourhood Policy and expressed through the Common Spaces and Roadmaps. 
These  are  complemented  at  multilateral  level  by  the  Northern  Dimension  which  provides  a 
framework for cooperation between the Union, Russia, Norway and Iceland (Belarus, Canada 
and the US are observers to the Northern Dimension). 

EIB activity in Latin America takes place in the framework of the Union, Latin America and 
the  Caribbean  Strategic  Partnership.  As  highlighted  in  the  September  2009  Commission 
Communication "The European Union and Latin America: Global Players in Partnership", the 
Union's  priorities  in  the  field  of  cooperation  towards  Latin  America  are  the  promotion  of 
regional integration and the eradication of poverty and social inequality in order to promote 
sustainable economic and social development. These policy objectives will be fostered taking 
into  account  the  different  level  of  development  of  Latin  American  countries.  Bilateral 
dialogue  and  cooperation  will  be  pursued  in  areas  of  common  interest  for  both  regions, 
including environment, climate change, disaster risk reduction and energy, science, research, 
higher education, technology and innovation. 

The EIB is encouraged to be active in Asia, in particular in less prosperous countries. In this 
diverse  region,  the  Union  is  deepening  its  strategic  partnerships  with  China  and  India  and 
negotiations  are  progressing  on  new  partnership  and  free  trade  agreements  with  South-East 
Asian  countries.  At  the  same  time,  development  cooperation  remains  high  on  the  Union's 
agenda  with  Asia;  the  Union  development  strategy  for  the  Asian  region  aims  at  eradicating 
poverty  by  supporting  broad-based  sustainable  economic  growth,  promoting  a  conducive 
environment  and  conditions  for  trade  and  integration  within  the  region,  enhancing 
governance,  increasing  political  and  social  stability,  and  supporting  the  achievement  of  the 
2015  Millennium  Development  Goals.  Policies  are  being  put  in  place  jointly  to  address 
common challenges, such as climate change, sustainable development, security and stability, 
governance  and  human  rights,  as  well  as  the  prevention  of,  and  response  to,  natural  and 
humanitarian disasters. 

The Union Strategy for a new partnership with Central Asia adopted by the European Council 
in  June  2007  has  strengthened  regional  and  bilateral  dialogue  and  Union  cooperation  with 
Central  Asian  countries  on  major  issues  facing  the  region,  such  as  poverty  reduction, 
sustainable development and stability. The implementation of the strategy has brought about 
important  advances  in  the  fields  of  human  rights,  the  rule  of  law,  good  governance  and 
democracy,  education,  economic  development,  trade  and  investment,  energy  and  transport 
and environmental policies. 

EIB activity in South Africa takes place in the framework of the Joint EU Country Strategy 
Paper for South Africa. The main focal areas identified in that Strategy Paper are employment 
creation and capacity development for service delivery and social cohesion. EIB activities in 
South Africa have taken place in high complementarity with the EU development cooperation 
programme,  namely  through  the  EIB  focus  on  private  sector  support  and  investments  in 
expansion  of  infrastructure  and  social  services  (housing,  electric  power,  drinking  water 
purification and municipal infrastructure). The mid-term review of the EU Country Strategy 
Paper for South Africa conducted in 2009-2010 has proposed the strengthening of actions in 
the  area  of  climate-change  through  activities  supporting  the  creation  of  green  jobs.  For  the 
period  2014-2020,  EIB  activity  is  expected  to  support  in  a  complementary  fashion  EU 
external cooperation policies, programmes and instruments by continuing to focus on key EU-
South  Africa  priorities  in  order  to  promote  equitable  and  sustainable  economic  growth, 
contribute  to  employment  creation  and  capacity  development,  and  support  the  sustainable 
provision and equitable access to basic infrastructure and services  

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

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 granting an 
EU  guarantee  to  the  European  Investment  Bank  against  losses  under  financing 
operations supporting investment projects outside the Union 
Policy area(s) concerned in the ABM/ABB structure18  

1.2. 

Policy Area: Title 01 - Economic and Financial Affairs 

ABB Activity: International 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 
action19  

X 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  

The general objective of EIB activity outside the Union under the external mandate is 
to support the Union's external policies by financing relevant investment projects in 
partner countries through the combination of the EU budget guarantee with EIB own 
resources. 

Through its financing operations outside the Union under the EU guarantee, the EIB 
should  support  the  economic,  social  and  environmental  sustainable  development  of 
Union partner countries, and their partnership with the Union. 

The general objectives to be sought by EIB financing operations under the mandate 
are the following: 

(a) 

(b) 

(c) 

local private sector development, in particular support to SMEs; 

development of social, environmental and economic infrastructure; 

climate change mitigation and adaptation. 

1.4.2. 

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

Specific ABM objective No.2: "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 

18 
19 

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

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Title 01.03 – International Economic and Financial Affairs 

1.4.3.  Expected result(s) and impact 

An impact assessment has been carried out in conjunction to this proposal. The main 
impacts of the proposal have been assessed in the IA report. 

1.4.4. 

Indicators of results and impact  

A  framework  to  measure  the  results  and  impacts  of  EIB  operations  has  been 
developed by the EIB through the operational monitoring of a set of indicators. The 
"REsults  Measurement  framework  (REM)20  improves  the  ex-ante  assessment  of 
expected  project  results  and  enhances  the  EIB’s  ability  to  report  on  actual  results 
achieved.  The  REM  framework  serves  to  show  how  EIB  loans  generate  outputs, 
which  enable  outcomes  and,  over  time  lead  to  impacts,  which  are  in  line  with  the 
Bank’s mandate objectives. 

In addition, progress towards specific and operational objectives of the proposal will 
be monitored through core indicators as indicated in 2.1.  

As  regard  the  financing  for  projects  that  promote  climate  action,  eligibility  for 
climate  change  operations  would  be  clarified  against  agreed  criteria  building  on  - 
and,  if  needed,  tightening  -  existing  EIB  definitions  to  track  climate  change 
expenditure  (e.g.  introducing  benchmarks  related  with  GHG  emission  reduction, 
improving if appropriate the definitions for energy efficiency and adaptation), which 
would  also  be  used  in  the  monitoring  phase  to  'operationalise'  the  Rio  Marker  or 
equivalent system as proposed by the Commission to track the EU budget under the 
next MFF. 

In  parallel  the  EIB  should  keep  developing  methodologies  to  assess  climate  risk  in 
order  to  reinforce  the  climate  resilience  for  all  relevant  operations,  and  integrate 
carbon  pricing  in  economic  cost  benefit  analysis.  Restrictive  eligibility  and  criteria 
for carbon-intensive projects should also be improved in relevant sector policies. 

1.5. 

Grounds for the proposal/initiative  

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

Article 16 of Decision 1080/2011/EU states that the Commission shall present to the 
European  Parliament  and  the  Council  a  proposal  for  establishing  the  EU  guarantee 
under the next multiannual financial framework (2014-2020).  

Under  the  terms  of  Decision  1080/2011/EU  of  the  European  Parliament  and  of  the 
Council,  the  EU  guarantee  covers  EIB  financing  operations  signed  between  1 
February 2007 and 31 December 2013. Therefore, a new Decision should be adopted 
under the ordinary legislative procedure before the current mandate expires21.  

20 
21 

http://www.eib.org/projects/cycle/monitoring/rem.htm  
It  should  be  noted  that,  if,  on  expiry  of  the  current  mandate  on  31  December  2013,  the  European 
Parliament and the Council have not adopted a decision granting a new EU guarantee to the EIB for its 
financing  operations  outside  the  Union,  Decision  1080/2011/EU  foresees  that  that  period  shall  be 
automatically extended by six months. 

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1.5.2.  Added value of EU involvement 

EIB financing operations outside the Union represent a highly visible and effective 
tool in support of the Union's external action. The main benefits of EIB intervention 
in such countries, beyond the financial contribution, include the passing on to project 
promoters  of  expertise  and  the  application  of  EU  environmental,  social  and 
procurement standards to the investment projects financed. In addition to the above 
benefits,  the  EIB  passes  on  in  full  the  financial  advantages  resulting  from  the  EU 
guarantee and the attractive funding costs of the EIB to final beneficiaries in the form 
of competitive interest rates. 

The  mandate  under  EU  guarantee  cover  provides  for  the  necessary  political  and 
financial  backing  by  the  Union  for  countries  and  investment  projects  which  would 
not normally fit within EIB's standard guidelines and criteria due to the higher risk. 

1.5.3.  Lessons learned from similar experiences in the past 

The  Impact  Assessment  (IA)  prepared  for  this  decision  draws  from  lessons  learned 
from  the  implementation  of  the  previous  mandates.  The  new  legislative  proposal 
aims at address the problems identified in the IA report. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

EIB  financing  operations  will  complement  the  activities  carried  out  under  the 
external  assistance  instruments.  In  order  to  further  increase  support  for  the  Union 
external policies in each specific region, the linkage between EIB priorities and the 
Union policies will be strengthened. This will be achieved through the establishment 
and  the  mid-term  update  of  regional  technical  operational  guidelines  which  will 
provide a stronger framework for dialogue and cooperation between the EIB and the 
Commission.  Where  appropriate,  EIB  financing  operations  may  be  usefully 
combined with EU budget resources in the form of co-financing grants, risk capital, 
risk  sharing  or  technical  assistance  for  project  preparation  and  implementation  or 
enhancement of the legal and regulatory framework. 

EN 

31 

   EN 

1.6. 

Duration and financial impact  

x Proposal/initiative of limited duration  

–  x  Proposal/initiative in effect from 01/01/2014 to 31/12/2020  

EIB financing operations can be signed by the EIB from 2014 to 2020. An extension of six 
months is foreseen if the European Parliament and the Council have not adopted a decision 
granting a new EU guarantee to the EIB for its financing operations outside the Union at the 
end of 2020.  

–  x  Financial impact from 2014 to undefined 

The total duration of the action and of its financial impact will be determined by the maturity 
of  the  signed  EIB  financing  operations.  The  final  impact  will  depend  on  the  amount  of 
potential calls and recovery (see also point 3.2.2 below). 

(cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 
1.7.  Management mode(s) envisaged22  

X Direct management by the Commission  

Comments  

In  line  with  existing  provisions,  the  proposal  foresees  that  the  EIB  finances  investment 
projects in accordance with its own rules and procedures. The Commission is responsible for 
managing directly the EU guarantee. The EIB and the Commission enter into a guarantee and 
a  recovery  agreements  laying  down  the  detailed  provisions  and  procedures  relating  to  the 
implementation of the proposed Decision. 

22 

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 

EN 

32 

   EN 

                                                 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

EIB  financing  operations  under  EU  guarantee  will  be  managed  by  the  EIB  in 
accordance  with  the  EIB's  own  rules  and  procedures,  including  appropriate  audit, 
control and monitoring measures.  

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 (and agreed to be renewed for four years in 2007 and again 
in 2011) details the rules under which the Court of Auditors is to carry out its audits 
on the EIB financing operations under EU guarantee. 

Regular reports are envisaged in the proposal as in Decision No 1080/2011/EU. The 
Commission will annually report on the implementation of the mandate by the EIB to 
the European Parliament and the Council. 

Reporting on results will be based on an appropriate aggregation of indicators across 
the entire portfolio where this is possible, or across a given sector. These indicators 
will  be  measured  throughout  the  project  cycle  at  appraisal  level  and  during 
monitoring  until  the  project  is  fully  implemented  as  soon  as  the  first  development 
outcomes are measurable - typically up to three years after project completion. They 
will,  to  the  extent  possible,  also  be  used  for  ex-post  evaluation.  These  indicators 
should  cover the following areas: i)  amount  signed by  region,  ii)  amount  disbursed 
by region, iii) progress in achieving a balanced distribution of activity by country, iv) 
breakdown  of  activity  across  the  various  objectives,  v)  volume  of  climate  change 
lending against target financing and impact on absolute and relative GHG emission 
reductions,  vi)  number  of  projects  assessed  against  climate  risk,  vii)  number  and 
amount  of  operations  blended  with  EU  grants,  and  viii)  number  and  amount  of 
operations co-financed with other IFIs. 

Furthermore,  the  EIB  shall  provide  the  Commission  with  statistical,  financial  and 
accounting data on each of the financing operations covered by the EU guarantee 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  of  the  Financing  Operations 
covered. 

A  mid-term  evaluation  will  be  carried  out  after  three  years  from  the  start  of  the 
mandate. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The risk for the EU budget is linked to the budget guarantee provided by the Union 
to  the  EIB  for  its  operations  in  third  countries.  The  guarantee  provides  a 
comprehensive cover for all payments not received by the EIB under sovereign and 
sub-sovereign  operations  and  only  political  risk  cover  for  other  operations  with  a 
sharing  of  risk  between  the  Union  and  the  EIB.  In  any  case,  the  EU  guarantee  is 
restricted to 65 % of the aggregate amount of credits disbursed and guarantees less 
amounts reimbursed, plus all related amounts.  

EN 

33 

   EN 

The budget entry ("p.m.") reflecting the budget guarantee for the EIB loans to third 
countries would be activated only in the case of an effective call on the guarantee by 
the  EIB  which  cannot  be  wholly  covered  by  the  Guarantee  Fund.  Although  such 
recourse to the budget (i.e. beyond the Guarantee Fund amounting to EUR 2,002 mn 
on 31 December 2012) is considered to be highly unlikely, the comments associated 
with the budgetary line reflect the financing needs which could arise in the event of a 
payment request by the EIB relating to a default covered by the EU guarantee. 

In 2012 and early 2013, the Guarantee Fund was called to cover defaults on loans in 
Syria.  In  the  yearly  reports  from  the  Commission  to  the  EP  and  to  the  Council  on 
guarantees  covered  by  the  general  budget,  country  risk  indicators  are  analysed  and 
indicate  the  evolution  of  risk  of  defaults.  The  report  provides  information  on 
quantitative aspects of the risk borne by the EU Budget. However, the quality of the 
risks  depends  on  the  type  of  operation  and  the  standing  of  the  borrowers.  The  risk 
assessment in the report is based on the information on the economic and financial 
situation, ratings and other known facts of the countries having received guaranteed 
loans.  

2.2.2.  Control method(s) envisaged  

The  Commission  is  responsible  for  managing  the  EU  guarantee.  EIB  financing 
operations  in  the  context  of  the  proposed Decision  will  be  carried  out  according  to 
EIB  standard  rules  of  procedure  and  sound  banking  practice.  The  EIB  and  the 
Commission  enter  into  an  agreement  laying  down  the  detailed  provisions  and 
procedures relating to the implementation of the proposed Decision. See also 2.1. 

2.3.  Measures to prevent fraud and irregularities  

The EIB has the main responsibility for the adoption of fraud prevention measures, 
notably through the application to the financing 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"  currently 
under  revision.  The  EIB  has  adopted  a  policy  towards  weakly  regulated,  non-
transparent and non-cooperative jurisdictions in December 2010.  

Moreover,  Article  17  of  the  Decision  foresees  the  implementation  of  Anti-Fraud 
measures.

EN 

34 

   EN 

3. 

3.1. 

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………………………...……….] 

Diff./non-
diff. 
(23) 

from 
EFTA24 
countries 

from 
candidate 
countries25 

from third 
countries 

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

Heading of 
multiannual 
financial 
framework 

4 

01.0305  EU  guarantee  for  EIB  loans 
and  loan  guarantees  for  operations  in 
third countries 

01.0306 Provisioning of the Guarantee 
Fund 

Diff/ 

Non 
diff. 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

23 
24 
25 

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

EN 

35 

   EN 

 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

Number  Heading 4 

EUR million  

DG: ECFIN 

(cid:121) Operational appropriations  

Number of budget line 01 0305 

Number of budget line 01 0306 

of 

Appropriations 
administrative 
 from the envelope for specific programmes26  
Number of budget line 01 0306 

an 

TOTAL appropriations 
for DG ECFIN 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

2018-2020 

TOTAL 

Commitments 

Payments 

(1) 

(2) 

Commitments 

(1a) 

Payments 

(2a) 

nature 

financed 

p.m. 

p.m.

58.48
2

58.48
2

p.m.

p.m.

239.7
59

239.7
59

p.m. 

p.m. 

272.6
64 

272.6
64 

p.m.

p.m.

199.0
39

199.0
39

p.m.

p.m.

178.0
55

178.0
55

p.m.

p.m.

159.7
50

159.7
50

p.m.

p.m.

84.82
0

84.82
0

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

0 

0 

0.5 

0. 

0 

0 

0 

58.48
2

58.48
2

239.7
59

239.7
59

273.1
64 

199.0
39

273.1
64 

199.0
39

178.0
55

178.0
55

159.7
50

159.7
50

84.82
0

84.82
0

p.m. 

p.m. 

1192.569 

1192.569 

0.5 

1193.069 

1193.069 

26 

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. 

EN 

36 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Commitments 

(4) 

(cid:121) TOTAL operational appropriations  

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(5) 

(6) 

TOTAL appropriations  
under HEADING 4 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

58.48
2

58.48
2

239.7
59

239.7
59

272.6
64399 

272.6
64 

199.0
39

199.0
39

178.0
55

178.0
55

159.7
50

159.7
50

84.82
0

84.82
0

1192.569 

1192.569 

0

0

0.5 

0

0

0

0

0.5 

58.48
2

58.48
2

239.7
59

239.7
59

273.1
64 

273.1
64 

199.0
39

199.0
39

178.0
55

178.0
55

159.7
50

159.7
50

84.82
0

84.82
0

1193.069 

1193.069 

EN 

37 

EN 

 
  
 
 
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

DG: ECFIN 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

2018-2020 

TOTAL 

EUR million  

0.917

0.917

0.917 

0.917

0.917

0.917

0.917

6.419 

TOTAL DG ECFIN 

Appropriations  

0.917

0.917

0.917 

0.917

0.917

0.917

0.917

6.419 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

0.917

0.917

0.917 

0.917

0.917

0.917

0.917

6.419 

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

Commitments 

Payments 

EUR million  

Year 
2014 

59.39
9

59.39
9

Year 
2015 

240.6
76

240.6
76

Year 
2016 

274.0
81 

274.0
81 

Year 
2017 

199.9
56

199.9
56

2018-2020 

TOTAL 

178.9
72

178.9
72

160.6
67

160.6
67

85.73
7

85.73
7

1199.488 

1199.488 

EN 

38 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

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

–  X  The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
2015 

Year 
2016 

Year 
2017 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

2018-2020 

TOTAL 

s Cost 

t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Cost 
s
t
u
p
t
u
o

f
o

r
e
b
m
u
N

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

s Cost 

t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Cost 

r
e
b
m
u
N

s Cost 

t
u
p
t
u
o

f
o

r
e
b
m
u
N

Total  
cost 

Total 
numbe
r of 
output
s 

Year 
2014 

Cost 

Indicate 
objectives and 
outputs  

(cid:216) 

Type 
of 
output
27 

Avera
ge 
cost  
of the 
output 

r
e
b
m
u
N

f

SPECIFIC OBJECTIVE No 128… 

- Output 

- Output 

- Output 

Sub-total for specific objective N°1 

SPECIFIC OBJECTIVE No 2"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 

27 
28 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.4.2. "Specific objective(s)…" 

EN 

39 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
priorities". 

- Output 

Sub-total for specific objective N°2 

1 

58.4
82

1

239.
759

1

272.
664

1

199.
039 

1 178.
055

1

159.
750

1

84.8
20

7

1192.5
69 

TOTAL COST 

58.4
82

239.
759

272.
664

199.
039

178.
055

159.
750

84.8
20

1192.5
69 

The estimated impact on operational appropriations can be summarised as follows: 

• 

01 0305 - "EC guarantee for EIB loans and loan guarantees for operations in third countries'" 

The budget entry ("p.m.") reflecting the budget guarantee for the EIB loans to third countries will be activated only in the case of an effective call 
on the guarantee which cannot be wholly covered by the Guarantee Fund. 

• 

01 0306 – "Provisioning of the Guarantee Fund" 

The Guarantee Fund for external actions has to be provisioned according to the Guarantee Fund Regulation (Council Regulation (EC, Euratom) 
No 480/2009). In line with this Regulation, loans are provisioned on the basis of the outstanding amount at the end of a year. The provisioning 
amount is calculated at the beginning of the year "n" as the difference between the target amount (9% of the outstanding amount) and the Fund's 
net assets at the end of the year "n-1". This provisioning amount is introduced in the year "n" to the "n+1" preliminary budget and effectively 
paid in one transaction at the beginning of the year "n+1" from budget line 01 0306. 

The Guarantee Fund also covers Macro-financial Assistance and Euratom loans which fall outside the scope of the proposed Decision. Therefore, 
the estimated budgetary needs take into account existing signed operations as well as potential new operations under these two activities. The 
effective  annual  needs  for  provisioning  of  the  Guarantee  Fund  in  2014-2020  will  ultimately  depend  on  the  actual  rhythm  of  signatures, 
disbursements and reimbursement of the loans on the three activities, as well as the evolution of the Guarantee Fund assets.  

The table below highlights the expected external action activities covered by the Guarantee Fund for the period 2012-2020 (volume of signatures 
and disbursements of loans).  

EN 

40 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External action activities covered by the Guarantee Fund and Guarantee Fund assets 2012-2020 (EUR ml) 

(A) 

(B) 

(C) 

Indicative volume of signed 
EIB financing operations  
(New Decision 2014-2020 - 
Total of fixed ceiling = EUR 
25,000 million) 
Outstanding disbursed amount 
of EIB operations based on 
estimated disbursements and 
amortisations (old and new 
Decisions) 

Outstanding disbursed amount 
of other operations based on 
estimated disbursements and 
amortisations (MFA+ Euratom) 

(D) = (B) + 
(C) 

Total outstanding disbursed 
amount based on estimated 
disbursements and 
amortisations 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

3 959 

4 450 

3 600 

3 600 

3 600 

3 550 

3 500 

3 550 

3 550 

22 526 

25 826 

29 098 

31 685 

34 024 

35 600 

37 187 

38 274 

39 533 

573 

1 310 

2 187 

2 266 

2 336 

2 204 

1 725 

1 230 

907 

23 099 

27 136 

31 285 

33 951 

36 360 

37 804 

38 912 

38 504 

40 440 

Notes: 

(C) These figures include new possible MFA and Euratom loans. 

While  the  lending  volumes  should  be  compatible  with  the  overall  provisioning  foreseen  for  the  Financial  Framework,  annual  needs  for  the 
provisioning of the Guarantee Fund could vary as they will eventually be calculated on the basis of the total outstanding disbursed amount at the 
end of year n-2. Should the annual needs in a future year exceed the foreseen provisioning amount for that year, the additional contribution will 
principally come through a reallocation from the financing instruments incorporating geographical programming, especially in case of activation 
of the optional additional ceiling. The budgetary impact of the possible activation of the optional additional ceiling would have to be calculated 
on the basis of updated forecasts on provisioning needs at the time of the mid-term review. 

EN 

41 

EN 

 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The expected needs for 2014-2020 take account of the impact of existing calls on Syrian defaulted loans having taken place in 2012 and early 
2013,  as  well  as  further  expected  calls  during  two  years  after  the  adoption  of  this  proposal,  if  the  default  situation  persists  over  these  years. 
However, they do not take into account the exceptional budgetary needs such as further possible defaults on payments by other loan beneficiaries 
which may occur, or adjustments of the valuation of the Fund's assets. It is indeed difficult to estimate potential further defaults on payments. It 
should be recalled that, according to the Guarantee Fund Regulation, the replenishment of the Fund is a compulsory expenditure which would 
require, in case of unexpected defaults, the recourse to other Heading 4 resources. 

The  semi-annual  Commission  reports  to  the  European  Parliament  and  the  Council  on  guarantees  covered  by  the  general  budget  allow  for  the 
factoring  in  of  the  maximum  risks  covered  by  the  budget  (cf.  the  report  [COM(2013)211  and  the  accompanying  staff  working  document 
SWD(2013)130 - Situation at 30 June 2012]). 

EN 

42 

EN 

 
  
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  

–  X  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

2018-2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

0.917

0.917 

0.917

0.917

0.917

0.917 

0.917

6.419

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 529 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

0.917

0.917 

0.917

0.917

0.917

0.917 

0.917

6.419

0.500 

0.917

0.917 

1.417

0.917

0.917

0.917 

0.917

6.919

TOTAL 

0.917

0.917 

1.417

0.917

0.917

0.917 

0.917

6.917

29 

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. 

EN 

43 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.   Estimated requirements of human resources  

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

–  X  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 
2014 

Year 
2015 

Year 
2016 

Year 
2016 

2018-2020 

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

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

7

7

7

7 

7 

7

7

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)30 

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 31 

- at Headquarters32 

- 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 

7

7

7

7 

7 

7

7

Title  01.03  –  International  Economic  and  Financial  Affairs  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, together if necessary 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary agents 

The main tasks arising from the proposal are the following: 

- Preparation of the legislative proposal, 

-  Follow  up  of  the  legislative  procedure  with  the  European  Parliament  and  with  the 
Council, 

-  Relations  and  communications  with  the  EIB,  notably  for  the  preparation  of  the 
reporting, the preparation and follow-up of the guarantee and recovery agreements, the 

30 

31 
32 

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 

44 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
operational regional guidelines, the possible calls to the EU guarantee, 

- Follow-up of the EIB investment projects in the context of Article19 of Statute of the 
EIB, 

- Administration of the annual budgetary procedure and management of the Guarantee 
Fund, 

- Preparation of reporting required by the legislation. 

External personnel 

EN 

45 

   EN 

 
 
3.2.4.  Compatibility with the current multiannual financial framework  

–  X  Proposal/initiative is compatible the current multiannual financial framework. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework33. 

3.2.5.  Third-party contributions  

–  X  The proposal/initiative does not provide for co-financing by third parties  

–  The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
cofinanced  

33 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

46 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  (cid:133)  Proposal/initiative has no financial impact on revenue. 

–  X  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

X 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the ongoing 
budget year 

Budget revenue line: 

Article …………. 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative34 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

If the Guarantee Fund is above its target amount, the exceeding amount is reversed to 
the general budget line. 

The method for calculating the possible impact on revenue is described in detail in 
part 3.2.2 above on the mechanism of the functioning of the Guarantee Fund. 

34 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

47 

   EN