Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2015/1017 as regards creation of a Solvency Support Instrument
Date: 2020-05-29
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: European Fund for Strategic Investments, company in difficulties, economic consequence, economic recession, economic recovery, epidemic, financial aid, financial solvency, infectious disease, investment policy

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   EUROPEAN COMMISSION  Brussels, 29.5.2020  COM(2020) 404 final 2020/0106 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2015/1017 as regards creation of a Solvency Support Instrument  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  Commission  is  proposing  to  harness  the  full  power  of  the  EU  budget  to  mobilise 
investment  and  frontload  financial  support  in  the  crucial  first  years  of  recovery.  These 
proposals are based on three pillars: 

 

 

an  increase  of  the  ceilings  under  the  2014-2020  Multi-Annual  Financial  Framework  to  
enable  the  immediate  implementation  of  measures  within  the  Union  and  beyond  in 
response of the impact of the COVID-19 pandemic; 

an  emergency  European  Recovery  Instrument  as  an  exceptional  measure,  based  on  
Article 122 of TFEU, the financing of which will be based on an empowerment provided 
in the proposal for the Own Resources Decision. The funds will enable implementation of 
fast-acting measures to protect livelihoods, increase prevention and strengthen resilience 
and recovery in response to the crisis; 

 

a reinforced Multi-Annual Financial Framework for 2021-2027. 

In  this  context,  the  Commission  is  proposing  to  address  the  negative  socio-economic 
consequences  of  the  Covid-19  pandemic  for  workers,  households  and  companies  in  the 
Union.  Many  European  companies  are  already  facing  solvency  difficulties  because  of  the 
crisis  and  the  problems  will  accentuate  as  restrictions  on  economic  and  social  activities 
remain  in  place  and  the  distancing  rules  will  continue  to  impact  business  activities  across 
many  sectors.  The  difficulties  may  be  long-lasting  even  beyond  the  current  lockdown  and 
deepen existing economic disparities between and within Member States.   

It is difficult to put an exact number on the equity repair needs resulting from the economic 
impact  of  the  Covid-19  pandemic.  Commission  estimates  derived  from  firm-level  data 
suggest that these needs could be in the region of EUR 720 billion in 2020 in case the baseline 
scenario  underlying  the  Spring  Forecast  were  to  materialise.  These  needs  would  go 
significantly higher in case the lockdown measures stay in place longer than assumed in the 
Spring  Forecast,  or  will  have  to  be  re-imposed  due  to  a  resurge  of  the  outbreak.  In  a  stress 
scenario,  in  which  2020  GDP  growth  would  be  projected  at  -15.5%,  the  direct  impact  on 
equity of all incorporated companies (listed and non-listed) in the EU27 could rise to EUR 1.2 
trillion.  If  left  unaddressed  these  capital  shortfalls  may  lead  to  a  prolonged  period  of  lower 
investment  and  higher  unemployment.  The  impact  of  the  capital  shortfall  will  be  uneven 
across  sectors,  regions,  industrial  ecosystems  and  Member  States,  leading  to  divergences  in 
the Single Market. In general, most European industrial ecosystems rely  on complex supply 
chains spread across Member States in the Single Market. 

This is compounded by the fact that the capacity of Member States to provide state aid differs 
greatly. 

This  proposal  puts  forward  a  temporary  equity-based  instrument,  for  which  the  investment 
period in relation to the solvency support window runs in general until end-2024 in terms of 
approvals by the Investment Committee and the governing bodies of EIB/EIF and until end-
2026 in terms of signature of the operations. Companies to be supported under the proposal 
are those with an otherwise viable business model but which are solvency constrained due to 
the Covid-19 crisis. The purpose is to help them weather this difficult period so that they are 
in a position to carry the recovery when the time comes. 

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Another objective of the proposal is to counter-balance the expected distortions in the Single 
Market, given that certain Member States may not have sufficient budgetary means available 
to  provide  adequate  support  to  companies  in  need.  The  availability  of  national  solvency 
support measures for companies may therefore differ substantially across Member States and 
lead to an unlevelled playing field. Further, as there is a considerable risk that the impact of 
COVID-19  will  be  long-lasting,  this  lack  of  capacity  to  help  viable  companies  can  lead  to 
systemic  distortions,  creating  new  or  cementing  existing  disparities.  Given  the  strong 
interconnectedness  of the European economy, an economic downturn in  one part of the EU 
would  have  negative  spill-over  effects  on  cross-border  supply  chains  and  the  whole  EU 
economy.  Conversely,  for  the  same  reason,  support  in  one  part  of  the  EU  would  also  have 
positive spill-over effects on cross-border supply chains and the whole EU economy. 

In  the  context  of  the  economic  slowdown  induced  by  Covid-19  where  public  finances  are 
becoming  constrained,  it  is  also  important  to  mobilise  private  resources  to  support  the 
solvency of viable companies in the Union to the maximum extent possible. 

Those  objectives  will  be  implemented  by  providing  a  Union  guarantee  to  the  European 
Investment  Bank  (EIB)  under  the  EFSI  Regulation1.  Solvency  support  will  form  a  third 
window under the EFSI – a solvency support window – in order to mobilise private capital to 
support  the  solvency  of  eligible  companies.  The  EIB  Group  will  use  the  EU  guarantee  to 
invest  mainly  through  intermediaries  or  reduce  the  risk  for  private  investors  of  investing  in 
eligible companies, thereby mobilising private resources to their support. The EIB Group will 
do  so  by  investing  in,  guaranteeing  or  financing  equity  funds,  special  purpose  vehicles, 
investment platforms, national promotional banks or institutions or, where necessary, through 
direct investments or other relevant arrangements.  

This  proposal  is  part  of  the  overall  recovery  initiative  announced  by  the  Commission.  It  is 
essential that such an instrument is put in place as soon as possible in 2020, at the latest by the 
start  of  October  2020,  and  that  it  can  be  deployed  at  full  capacity  quickly  in  the  course  of 
2021. 

The  Solvency  Support  Instrument  will  be  open  to  all  Member  States  and  to  all  the  sectors 
covered by the EFSI Regulation, with a focus on those Member States whose economies have 
been most affected by the effects of the Covid-19 pandemic and/or where the availability of 
State  solvency  support  is  more  limited.  The  purpose  is  to  help  restore  the  viability  of 
companies  and  unlock  their  growth  potential,  whilst  contributing  towards  Union  priorities, 
such as the green and digital transition or the support to cross-border activity in the Union as 
well as strengthening the social dimension and convergence of the Union. The support will be 
available to benefit all the objectives of the Regulation.  

To aid the roll-out of the Instrument, Member States can (i) establish national special purpose 
vehicles  that  could  apply  for  support  under  the  solvency  support  window;  (ii)  invest  in  line 
with State aid rules alongside the EIB Group guarantee or investment either directly or via a 
national  promotional  bank  or  institution  into  funds  or  special  purpose  vehicles;  and  (iii) 
facilitate  the  creation  of  equity  funds  or  special  purpose  vehicles  by  engaging  with 
institutional investors. 

The Commission should be able to participate in a possible capital increase (in one or more 
rounds) of the European Investment Fund (EIF), which will play a key role in supporting the 

1 

Regulation  (EU)  2015/1017  of  the  European  Parliament  and  of  the  Council  of  25  June  2015  on  the 
European  Fund  for  Strategic  Investments,  the  European  Investment  Advisory  Hub  and  the  European 
Investment Project Portal and amending Regulation (EU) No 1291/2013 and (EU) No 1316/2013  – the 
European Fund for Strategic Investments (OJ L 169, 1.7.2015, p. 1). 

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economic  recovery  through  issuing  guarantees,  undertaking  securitisation  operations  and 
supporting equity investments throughout the Union. A financial envelope of up to EUR 500 
000 000 should be reserved in the revised Multiannual  Financial Framework for the current 
period  for  this  purpose  so  that  the  Union,  represented  by  the  Commission,  will  be  able  to 
maintain its overall share in the EIF capital. 

The governance structure of the EFSI will be maintained and will apply to the third window. 
Under  the  solvency  support  window,  the  Investment  Committee  will  approve  each  EIB 
financing or investment  operation, i.e. it will decide on the granting of the EU guarantee to 
financing,  guarantee  or  investment  in  a  fund,  special  purpose  vehicle,  national  promotional 
bank or institution or other vehicle. For operations to be conducted by the EIF, the Investment 
Committee is consulted on the financial products that the Steering Board and the Managing 
Director  have  approved  under  which  the  EIF  will  conclude  the  individual  operations. 
Individual decisions to select the companies, which will receive intermediated support will be 
made  by  the  fund  or  vehicle  manager  in  line  with  the  criteria  established  in  the  EFSI 
Regulation  and  the  relevant  contractual  arrangements  signed  with  the  EIB.  The  Investment 
Committee  may  also  retain  the  right  to  approve  underlying  sub-operations  in  line  with  the 
EFSI  Regulation  in  case  of  EIB  financing  or  investment  operations.  Member  States  are  not 
involved in the decision-making over the granting of the EU guarantee. Once the Investment 
Committee under the proposed InvestEU Regulation2 has taken up its functions, the tasks of 
the Investment Committee under the EFSI Regulation shall be performed by the former. 

In  line  with  the  current  EFSI  Regulation,  no  geographical  quotas  will  be  established.  The 
climate action target is maintained. 

However,  the  Steering  Board  shall  define  specific  geographical  concentration  limits  for  the 
solvency support window, in line with the principles set out under this Regulation in order to 
ensure,  respectively,  that  the  majority  of  the  EU  guarantee  under  the  solvency  support 
instrument  supports  eligible  companies  in  Member  States  and  sectors  which  have  been 
economically most adversely affected  by the Covid-19 pandemic and that the majority of that 
guarantee  supports  eligible  companies  in  Member  States,  where  the  availability  of  State 
solvency  support  is  more  limited.  This  would  ensure  that  the  EU  guarantee  is  steered  as 
needed  in  a  flexible  manner.  The  limits  can  be  updated  over  time  in  view  of  the  Covid-19 
impacts, whilst avoiding that support from the Instrument would be concentrated in a limited 
number of Member States. 

The Solvency Support  Instrument will support companies in the Union which, while viable, 
would  face  solvency  risks  due  to  the  economic  crisis  caused  by  the  Covid-19  pandemic 
(excluding those considered to have been in difficulty in State aid terms3 at the end of 2019) 
with  a  view  to  bringing  them  back  to  and  enhancing  a  sustainable  and  profitable  business 
track.  Further  criteria  on  equity  and  hybrid  financing  will  be  set  out  in  the  investment 
guidelines  or  will  be  established  in  the  guarantee  agreement.  To  avoid  that  companies  with 
access to equity financing benefit from the Instrument and ensure its additionality, the equity 
financing should be provided on commercial terms or according to terms similar to the State 
Aid  Temporary  Framework4  (such  as  remuneration  and  exit  strategy),  while  paying  due 

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Commission proposal for a Regulation of the European Parliament and of the Council establishing the 
InvestEU Programme (COM(2018)439), partial agreement on the legislative proposal by the European 
Parliament and the Council in April 2019. 
As defined in  Article 2(18) of  Commission Regulation (EU) No 651/2014 of 17 June  2014 declaring 
certain categories of aid compatible with the internal market in application of Articles 107 and 108 of 
the Treaty (OJ L 187, 26.6.2014, p. 1). 
C(2020)1863 final, as amended by C(2020)3156 final. 

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regard  to  the  European  nature  of  the  Instrument  and  to  the  funds’  and  other  vehicles’ 
independent  management,    and  take  into  account  the  disparity  of  equity  markets  across  the 
Union. The due diligence on the funds or other intermediary vehicles will be done by the EIB 
or  EIF  in  line  with  their  rules  and  procedures  and  the  objectives  of  the  Solvency  Support 
Window,  with  the  due  diligence  on  the  underlying  companies  done  by  the  funds  or  other 
vehicles. 

The intermediary funds or vehicles would be established in the Union.  

• 

Consistency with existing policy provisions in the policy area 

The proposal complements the investment support and access to finance available under the 
EFSI  Regulation  and  the  proposed  InvestEU  Regulation  for  the  Multiannual  Financial 
Framework  2021-2027  by  providing  support  to  companies,  which  have  a  viable  business 
model  but  may  face  solvency  issues  due  to  the  Covid-19  crisis.  The  Solvency  Support 
Instrument allows such companies to weather the impact of the crisis via temporary solvency 
support.  

The  Solvency  Support  Instrument  is  complementary  to  other  Union  programmes  that  are 
focused on mitigating the impacts of the Covid-19 crisis or relaunching the economy as the 
Covid-19  crisis  eases.  It  complements  in  particular  support  to  SMEs  that  will  be  provided 
through (i) the recovery assistance for cohesion (REACT-EU), which will provide frontloaded 
support  also  for  SMEs;  and  (ii)  the  Pan-European  Guarantee  Fund  in  response  to  Covid-19 
crisis being established by the EIB underpinned by a guarantee from the Member States. Also, 
the SME window being reinforced under InvestEU will provide additional support from 2021. 

• 

Consistency with other Union policies 

The  Solvency  Support  Instrument  is  consistent with  the  relevant  Union  policies  such  as  the 
European  Green  Deal,  Sustainable  Europe  Investment  Plan  and  the  sectorial  policies  that 
relate to investment support. 

The  conditions  of  the  financing  and  investment  operations  under  the  solvency  support 
window  should  be  consistent  with  State  aid  rules  to  ensure  a  level  playing  field  and  to 
facilitate possible combinations with support provided directly by Member States. In addition, 
due  regard  is  given  to  the  European  nature  of  the  Solvency  Support  Instrument  and  to  the 
funds’ and other vehicles’ independent management. 

The  EU  guarantee  will  be  set  to  avoid  any  undue  distortion  of  competition,  as  it  would  be 
limited to addressing the challenge of restoring the capital position of companies, which were 
not in difficulty before the Covid-19 outbreak and which are facing significant solvency risks 
because  of  the  crisis.  Moreover,  private  investors  will  be  crowded  in  and  the  emergence  of 
new funds and vehicles will be encouraged. Commercial logic will be applied in decisions on 
financing  and  independent  commercially-run  fund  managers  will  select  companies  with 
adequate return prospects. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

 The proposal amends the EFSI Regulation, so the same legal basis is applicable. 

• 

Subsidiarity  

The objectives of the proposal cannot be sufficiently achieved by the Member States and can 
be better  achieved by the Union. Due to  the disparities in  Member States' fiscal  capacity to 

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act, action at Union level can better achieve the objectives pursued, by reason of its scale and 
effects. More specifically, action at the Union level will allow to counterbalance distortions in 
the  internal  market  caused  by  the  different  fiscal  capacity  of  individual  Member  States  to 
provide  State  aid  for  solvency  support  to  their  companies  and  also  allowing  for  inter-
connected  supply  chains  in  internal  market  to  function  with  less  disruption  by  avoiding 
bankruptcies of viable companies. Moreover, it will allow for economies of scale in the use of 
the  Union  budget  guarantee  in  combination  with  the  EIB  Group  financing  by  catalysing 
private investment in the whole Union.  

• 

Proportionality 

The  proposal  does  not  go  beyond  what  is  necessary  to  achieve  the  objectives  pursued.  It  is 
intended to support companies and projects that suffer from the economic consequences of the 
Covid-19 pandemic, which affects all Member States. Mobilising private funds for solvency 
support alongside public funds leverages budgetary resources in an efficient and proportionate 
manner. 

3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

This  proposal  is  part  of  the  package  to  counter  the  negative  economic  consequences  of  the 
Covid-19 pandemic and is a crisis measure.  

• 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
European Parliament and the Council, a stakeholder consultation could not be carried out. 

• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

 4. 

BUDGETARY IMPLICATIONS 

The EU guarantee provided under the EFSI Regulation will be increased from EUR 26 billion 
to EUR 92,4 billion. In accordance with the estimated riskiness of the portfolio to be created 
under  the  solvency  support  window  the  portion  of  the  EU  guarantee  attributed  to  that  third 
window  is  estimated  to  necessitate  provisioning  at  50  %,  reflecting  the  higher  risk  of  the 
targeted investments in the current economic circumstances. Moreover, the considerable size 
of  the  EU  guarantee  and  the  types  of  interventions  envisaged  also  point  to  a  need  for  a 
conservative provisioning approach. This means that the additional provisioning in relation to 
the  increased  EU  guarantee  will  be  EUR  33,2  billion.  Overall  the  EU  guarantee  fund's 
provisioning  rate  will  accordingly  be  brought  to  45,8  %  of  total  EU  guarantee  obligations. 
Consequently,  the  EFSI  guarantee  fund  should  be  increased  by  EUR  33,2  billion,  thus 
reaching EUR 42,3 billion in total.  

The additional resources will be mobilised through an increase of the ceilings under the 2014-
2020 Multi-Annual Financial Framework and financing made available through the European 
Recovery Instrument based on empowerment provided in the new Own Resources Decision. 

A specific amount of EUR 100 million will be needed to cover costs relating to establishing 
and managing the structures (equity funds, special purpose vehicles, investment platforms and 
others) through which the support under the solvency support window is to be provided and 
for related advisory services and technical assistance, notably to support the green and digital 
transformation of companies financed under the solvency support window.  

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The  participation  of  the  Union  in  a  possible  forthcoming  capital  increase  (in  one  or  more 
rounds)  of  the  EIF  will  need  a  financial  envelope  of  up  to  EUR  500  million  in  the  revised 
Multiannual Financial Framework for the current period. This relates to the Union share of the 
paid-in part of a capital increase. The Union should be able to maintain its overall share in the 
EIF capital. 

Further budgetary information is provided in the legislative financial statement accompanying 
this proposal. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The EIB, directly or through the EIF, will implement the Solvency Support Instrument. The 
monitoring and reporting arrangements will be laid down in the guarantee agreement and will 
be  in  line  with  the  existing  requirements.  The  monitoring  will  include  key  performance 
indicators to track the progress towards achieving the objectives of solvency support window. 

• 

Detailed explanation of the specific provisions of the proposal 

The specific provisions are explained by relevant Chapter of the EFSI Regulation. 

Chapter II 

A third window (solvency support window) is established under the EFSI. 

The criteria for the use of the EU guarantee under the solvency support window define that 
the  companies  and  projects  that  are  eligible  to  benefit  from  the  EU  guarantee  under  the 
window must not have been in difficulty in State aid terms at the end of 2019, so that the EU 
guarantee  is  directed  to  provide  solvency  support  to  help  them  to  recover  from  the  crisis 
caused  by  the  Covid-19  pandemic.  Companies  also  encompass  special  purpose  vehicles, 
project companies and public-private partnerships.  

The  support  is  provided  through  investments  or  funds,  special  purpose  vehicles,  investment 
platforms or through other intermediated means. Cooperation with national promotional banks 
or institutions is encouraged. 

Chapter III and the Investment Guidelines (Annex II) 

To  be  eligible  for  solvency  support,  companies  need  to  be  established  and  operating  in  the 
Union.  

It  is  foreseen  that  both  EIB  and  EIF  can  carry  out  operations  under  the  solvency  support 
window. 

The general objectives of the EFSI are complemented by a reference to the European Green 
Deal and the Strategy on shaping Europe’s digital future and to the need of avoiding regional 
disparities resulting from asymmetric recovery in the aftermath of the COVID-19 pandemic.  

The  Steering  Board  shall  set  any  necessary  requirements  relating  to  the  control  of 
intermediaries  (funds,  special  purpose  vehicles  and  others)  in  the  light  of  any  applicable 
public order or security considerations.  

The  support  can  be  channelled  through  a  variety  of  instruments  and  products,  including 
through national  promotional institutions and banks in  compliance with  the applicable State 
aid and international rules.  

The EU guarantee in relation to the solvency support window amounts to EUR 66,4 billion. 
Its  introduction  brings  the  total  EU  guarantee  to  maximum  EUR  92,4  billion.  The 

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corresponding  provisioning  (at  50  %  provisioning  rate  as  regards  the  increase  of  the  EU 
guarantee)  amounts  to  EUR  33,2  billion,  bringing  the  EFSI  guarantee  fund  to  EUR  42,3 
billion in total. Consequently, the overall provisioning rate is adjusted to 45,8 %.  

The investment period in relation to the solvency support window runs in general until end-
2024  in  terms  of  approvals  by  the  Investment  Committee  and  the  governing  bodies  of 
EIB/EIF  and  until  end-2026  in  terms  of  signature  of  the  operations.  However,  60  %  of  the 
financing and investment operations must have been approved already by end-2022. 

The Investment Committee approves the use of the EU guarantee under the solvency support 
window  as  is  currently  the  case  for  the  other  two  windows.  In  the  case  of  operations 
conducted by the EIF, the Investment Committee is consulted on the financial products. Once 
the Investment Committee under the proposed InvestEU Regulation is in place, it will be in 
charge of granting of the EU guarantee also for the solvency support window in order to avoid 
duplication of structures. 

The  target  is  to  mobilise  up  to  EUR  300  billion  in  the  real  economy  under  the  solvency 
support window.  

A  separate  amount  of  EUR  100  million  is  foreseen  to  cover  costs,  advisory  services  and 
technical assistance linked to the set-up and management of funds, special purpose vehicles, 
investment platforms and other vehicles for the purposes of the solvency support instrument. 
It  shall  also  support  the  green  and  digital  transformation  of  companies  financed  under  the 
solvency support window.  

The  Commission  will  manage  this  support.  It  may  also  entrust  tasks  to  the  European 
Investment Advisory Hub (EIAH), if appropriate. 

Annex II provides more technical details on the instruments and products to be used and on 
the  financing  structures  under  the  solvency  support  window  and  refers  to  the  setting  of 
specific geographic concentration limits by the Steering Board. 

Chapter IIIa 

The participation of the Union in forthcoming capital increase(s) of the EIF is foreseen in this 
Chapter. 

Chapter IV  

Technical assistance and advisory support will be available from the Commission or via the 
EIAH to support Member States to establish funds, special purpose vehicles or other vehicles 
that would meet the requirements of the Union guarantee, especially for Member States with 
undeveloped  equity  markets.  This  support  may  also  cover  costs  for  the  setting  up  and 
managing of the funds or other vehicles. 

Chapter VI 

Specific  reporting  requirements  regarding  financing  and  investment  operations  under  the 
solvency support window shall be laid down in the guarantee agreement with the EIB. 

Chapter VIII 

In  order  to  ensure  fast  operationalisation  of  the  Solvency  Support  Instrument,  the  EIB  may  
propose to the Investment Committee granting of the support of the EU guarantee under the 
solvency  support  window  for  guarantees  or  financing  it  has  provided  in  the  period  between 
the adoption by the Commission of this legislative proposal and the signature of the amended 
guarantee  agreement  between  the  Commission  and  the  EIB.  To  qualify  for  such 
“warehousing”  the  relevant  guarantees  or  financing  must  fulfil  the  criteria  of  the  solvency 

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support window. The EIB shall present such proposal once the amended EFSI Regulation is in 
force. 

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2020/0106 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) 2015/1017 as regards creation of a Solvency Support 
Instrument 

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 172 and 173, the third paragraph of Article 175 and Article 182(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee5,  
Having regard to the opinion of the Committee of the Regions6,  

Acting in accordance with the ordinary legislative procedure, 

Whereas 

(1) 

(2) 

(3) 

Commission  estimates  derived  from  firm-level  data  suggest  that  the  equity  repair 
needs resulting from the Covid-19 pandemic could be in the region of EUR 720 billion 
in 2020. The number could go higher in case lockdown measures were to stay in place 
for longer than currently assumed, or if they had to be re-imposed due to a resurgence 
of contaminations. If left unaddressed these capital shortfalls may lead to a prolonged 
period  of  lower  investment  and  higher  unemployment.  The  impact  of  the  capital 
shortfall will be uneven across sectors and Member States, leading to divergences in 
the single market. This is compounded by the fact that the capacity of Member States 
to provide State aid differs greatly. 

In accordance with Regulation [European Union Recovery Instrument] and within the 
limits  of  resources  allocated  therein,  recovery  and  resilience  measures  under  the 
solvency  support  window  of  the  European  Fund  for  Strategic  Investments  should  be 
carried  out to  address  the  unprecedented  impact  of  the  COVID-19  crisis.   Such 
additional  resources  should  be  used  in  such  a  way  as  to  ensure  compliance  with  the 
time limits provided for in Regulation [EURI].    

In order to counter the severe economic consequences of the Covid-19 pandemic in the 
Union,  companies  that  have  encountered  difficulties  because  of  the  economic  crisis 
caused  by  the  pandemic  and  that  cannot  obtain  sufficient  support  through  market 
financing,  or  measures  undertaken  by  Member  States,  should  be  provided  with  a 
facility  for  solvency  support  as  a  matter  of  urgency  under  a  Solvency  Support 
Instrument which should be added as a third window under the EFSI. 

5 
6 

OJ C […], […] , p. […] . 
OJ C […], […], p. […]. 

EN 

9 

  EN 

                                                 
(4) 

(5) 

(6) 

(7) 

(8) 

Companies  supported  under  the  Solvency  Support  Instrument  should  be  established 
and operating in the Union, meaning that they  should have their registered office in a 
Member  State  and  should  be  active  in  the  Union  in  the  sense  that  they  have  
substantial  activities  in  terms  of  staff,  manufacturing,  research  and  development  or 
other  business  activities  in  the  Union.  They  should  pursue  activities  in  support  of 
objectives covered by this Regulation. They should have a viable business model and 
not have been in difficulty in terms of the State aid framework7 already at end 2019. 
Support  should  be  targeted  at  eligible  companies  operating  in  those  Member  States 
and  sectors  which  are  most  impacted  by  the  Covid-19  crisis  and/or  where  the 
availability of State solvency support is more limited.  

The EU guarantee granted to the European Investment Bank (EIB) should be increased 
by EUR 66 436 320 000 in order to create the third window of the EFSI – the solvency 
support window – under which solvency support should be provided. 

The provisioning of the EU guarantee should be increased accordingly. Given the high 
level  of  riskiness  of  the  investment  and  financing  operations  under  the  solvency 
support window the overall EFSI provisioning rate should be adjusted to 45,8 %.  

The  amount  of  the  EU  guarantee  available  under  the  solvency  support  window  is 
expected to mobilise up to EUR 300 000 000 000 of investment in the real economy. 

The delivery modes of the support should be flexible in view of the need of differing 
solutions  in  different  Member  States.  They  should  include,  inter  alia,  EIB  Group 
financing, or  guarantee  or investment  in  existing independently managed funds or in 
special  purpose  vehicles  that  in  turn  invest  in  eligible  companies.  Furthermore,  the 
support  could  be  channelled  via  newly  established  independently  managed  funds, 
including via first-time teams, or via special purpose vehicles especially set up either 
at  European  or  regional  or  national  level  with  a  view  to  benefiting  from  the  EU 
guarantee  in  order  to  invest  in  eligible  companies.  The  EU  guarantee  could  also  be 
used  to  guarantee  or  finance  an  intervention  by  a  national  promotional  bank  or 
institution  in  line  with  State  aid  rules  together  with  private  investors  in  support  of 
eligible companies. Undue distortion of competition in the internal market should be 
avoided. 

(9) 

The  equity  funds,  special  purpose  vehicles,  investment  platforms  and  national 
promotional  banks  and  institutions  should  provide  equity  or  quasi-equity  (such  as 
hybrid debt, preferred stock or convertible equity) to eligible companies, but excluding 
entities targeting buy-out (or replacement capital) intended for asset stripping. 

(10)  The  financing  and  investment  operations  should  be  aligned  with  current  policy 
priorities of the Union such as the European Green Deal and the Strategy on shaping 
Europe’s digital future. Support to cross-border activities should also be targeted.  

(11)  Financing  and  investment  operations  under  the  solvency  support  window  should  be 
decided upon until end-2024 with at least 60 % of financing and investment operations 
to be decided by end-2022 to allow for a rapid reaction to the economic crisis caused 
by the Covid-19 pandemic. 

(12) 

In order to be able to channel support to the European economy through the European 
Investment Fund (EIF), the Commission should be in a position to participate in one or 

7 

As defined in  Article 2(18) of  Commission Regulation (EU) No 651/2014 of 17 June  2014 declaring 
certain categories of aid compatible with the internal  market in application of Articles 107 and 108 of 
the Treaty (OJ L 187, 26.6.2014, p.1). 

EN 

10 

  EN 

                                                 
more possible capital increases of the EIF in order to allow it to continue supporting 
the  European  economy  and  its  recovery.  The  Union  should  be  able  to  maintain  its 
overall share in the EIF capital. A sufficient financial envelope to this effect should be 
foreseen in the revised Multiannual Financial Framework for the current period. 

(13)  An  amount  of  EUR  100  000  000  should  be  established  to  support  the  set-up  and 
management of investment  funds, special  purpose vehicles  and investment  platforms 
in  Member  States,  in  particular  in  those  which  do  not  have  developed  equity  fund 
markets,  and  to  support  the  green  and  digital  transformation  of  companies  financed 
under the solvency support window.  

(14)  The Investment Committee under the InvestEU Regulation should become responsible 
for granting the EU guarantee also under this Regulation once it is established. 

(15)  Article 137(2) of the Agreement on the withdrawal  of the United Kingdom  of Great 
Britain  and  Northern  Ireland  from  the  European  Union  and  the  European  Atomic 
Energy  Community  provides  that  the  United  Kingdom  and  projects  located  in  the 
United  Kingdom  shall  only  be  eligible  for    financial  operations  guaranteed  by  the 
Union budget under the EFSI approved by the entities and bodies, including the EIB 
and  the  European  Investment  Fund  (‘EIF’),  or  by  persons  entrusted  with  the 
implementation  of  part  of  those  actions  before  the  date  of  entry  into  force  of  the 
Withdrawal  Agreement.  Further,  Article  143(1)  of  the  Withdrawal  Agreement  limits 
the  liability  of  the  United  Kingdom  for  its  share  of  the  contingent  liabilities  of  the 
Union to those contingent liabilities, which arise from financial operations decided by 
the Union before the date of the entry into force of the Withdrawal Agreement. Any 
contingent liability of the Union under this Regulation is subsequent to the date of the 
withdrawal of the United Kingdom from the Union. Therefore, this Regulation should 
not apply to and in the United Kingdom. 

 (16)  Horizontal financial rules adopted by the European Parliament and the Council on the 
basis of Article 322 of the Treaty on the Functioning of the European Union (TFEU) 
apply  to  this  Regulation.  These  rules  are  laid  down  in  the  Financial  Regulation  and 
determine  in  particular  the  procedure  for  establishing  and  implementing  the  budget 
through  grants,  procurement, prizes, indirect  implementation,  and provide for checks 
on  the  responsibility  of  financial  actors.  Rules  adopted  on  the  basis  of  Article  322 
TFEU  also  concern  the  protection  of  the  Union's  budget  in  case  of  generalised 
deficiencies as regards the rule of law in the Member States, as the respect for the rule 
of law is an essential precondition for sound financial management and effective EU 
funding. 

(17)  Regulation (EU) No 2015/1017 should therefore be amended accordingly, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EU) No 2015/1017 is amended as follows: 

(1) 

In Article 2, the following point (9) is added: 

Article 1 

‘(9) 
‘companies’  means  for  the  purposes  of  the  solvency  support  window 
companies, project companies, public-private partnerships and other legal structures.’ 

(2) 

In Article 3, the following point (c) is added: 

EN 

11 

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the solvency of companies established in a Member State and operating in the 

‘(c) 
Union.’ 

(3) 

In Article 4, point (iv) of point (a) of paragraph 2 is amended as follows: 

‘the    pricing  of  operations  under  the  EU  guarantee  which  is  to  be  in  line  with  the 
EIB’s pricing policy; for the solvency support window, other arrangements may be 
agreed;’ 

(4) 

In Article 5, an indented subparagraph is added to the last subparagraph of paragraph 
1 as follows: 

‘—  support  to  funds,  special  purpose  vehicles,  investment  platforms  or  other 
arrangements under the solvency support window.’  

(5) 

In paragraph 1 of Article 6, the following subparagraph is added in point (a): 

‘However, support under the solvency support window shall only be granted if it is to 
the benefit of companies that were not in difficulty in State aid terms8 already at the 
end of 2019 but since then face significant solvency risks due to the crisis caused by 
the Covid-19 pandemic;’ 

(6) 

In Article 6, paragraph 3 is added as follows: 

financial 
‘3.  Notwithstanding  paragraph  2, 
intermediaries  may  be  limited  to  a  minimum  size  in  financing  and  investment 
operations under the solvency support window.’ 

sub-operations  by 

the 

the 

(7) 

A new point (e) in paragraph 2 of Article 7 is added: 

‘the guidance referred to in Section 6 point d of Annex II.’ 

(8) 

In Article 8, a third paragraph is added as follows: 

‘Notwithstanding the first paragraph, only companies established in a Member State 
and  operating  in  the  Union  can  be  supported  by  the  financing  and  investment 
operations under the solvency support window.’ 

(9) 

In Article 9, a second sentence is added to the first subparagraph of paragraph 2 as 
follows: 

‘The  EU  guarantee  shall  also  be  granted  for  financing  and  investment  operations 
conducted by the EIF under the solvency support window.’ 

(10) 

In  Article  9,  the  introductory  sentence  of  the  third  subparagraph  of  paragraph  2  is 
amended as follows: 

‘The  operations  concerned  shall  be  consistent  with  Union  policies,  including  the 
European Green Deal9 and the Strategy on shaping Europe’s digital future10, as well 
as supporting an inclusive and symmetric recovery in the aftermath of the COVID-19 
pandemic, and support any of the following general objectives:’ 

(11) 

In Article 9, point (j) is added to the third subparagraph of paragraph 2 as follows: 

8 

9 
10 

As defined in  Article 2(18) of  Commission Regulation (EU) No 651/2014 of 17 June  2014 declaring 
certain categories of aid compatible with the internal market in application of Articles 107 and 108 of 
the Treaty (OJ L 187, 26.6.2014, p. 1). 
COM(2019)640 final. 
COM(2020)67 final. 

EN 

12 

  EN 

                                                 
solvency support under the solvency support window to companies referred to 

‘(j) 
in Article 3(c) supporting any of the objectives referred to in this paragraph.’ 

(12) 

In Article 9, the final subparagraph of paragraph 2 is deleted and a new paragraph 2a 
introduced as follows: 

‘While recognising the demand-driven nature of the EFSI, the EIB shall: 

(a) 

(b) 

(c) 

target  that  at  least  40  %  of  EFSI  financing  under  the  infrastructure  and 
innovation  window  support  project  components  that  contribute  to  climate 
action, in line with the commitments made at the 21st Conference of the Parties 
to  the  United  Nations  Framework  Convention  on  Climate  Change  (COP21). 
EFSI financing for SMEs and small mid- cap companies shall not be included 
in that computation. The EIB shall use its internationally agreed methodology 
to identify those climate action project components or cost shares; 

ensure that the majority of EFSI financing under the solvency support window 
is  utilised  to  support  eligible  companies  in  Member  States  and  sectors 
economically most hit by the Covid-19 pandemic; 

ensure that the majority of EFSI financing under the solvency support window 
is  utilised  to  support  eligible  companies  in  Member  States  where  the 
availability of State solvency support is more limited. 

The  Steering  Board  shall,  where  necessary,  provide  detailed  guidance  concerning 
points (a) to (c). 

(13) 

In Article 9, points (a) and (b) of paragraph 3 are amended as follows: 

‘(a)  31 December 2020, for EIB operations under the infrastructure and innovation 
window  for  which  a  contract  between  the  EIB  and  the  beneficiary  or  financial 
intermediary has been signed by 31 December 2022; 

(b)   31  December  2020,  for  EIF  operations  under  the  SME  window  for  which  a 
contract  between  the  EIB  and  the  beneficiary  or  financial  intermediary  has  been 
signed by 31 December 2022;’ 

(14) 

In Article 9, point (c) is added to paragraph 3 as follows: 

‘(c)   31  December  2024,  for  EIB  or  EIF  operations  under  the  EU  guarantee  for 
solvency  support  window  referred  to  in  the  third  subparagraph  of  Article  11(1).  
Contracts  between the EIB or EIF  and the beneficiary or financial  intermediary for 
those operations shall be by 31 December 2026 subject to the approval by the EIB or 
EIF governing bodies in accordance with Article 4(6) of Regulation [EURI].’  

(15) 

In Article 10, points (b) and (c) of paragraph 2 are amended as follows: 

‘(b)  EIB  funding  or  guarantees  to  the  EIF  enabling  it  to  undertake  loans, 
guarantees,  counter-guarantees,  any  other  form  of  credit  enhancement  instrument, 
capital  market  instruments  and  equity  or  quasi-equity  participations,  including  in 
favour of national promotional banks or institutions, investment platforms, funds or 
special purpose vehicles; 

(c)  EIB  guarantees  to  national  promotional  banks  or  institutions,  investments 
platforms,  funds  or  special  purpose  vehicles  under  a  counter-guarantee  of  the  EU 
guarantee.’ 

(16) 

In Article 10, a third subparagraph is added to paragraph 2 as follows: 

EN 

13 

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‘The  eligible  instruments  under  the  solvency  support  window  shall  result  in 
providing  equity  or  quasi-equity  to  companies  referred  to  in  Article  3(c).  Hybrid 
instruments may be used in line with Annex II if such instruments fulfil the purpose 
of the window.’ 

(17) 

In Article 10, a second sentence is added to paragraph 4 as follows: 

‘Under  the  solvency  support  window,  the  EIF  may  grant  a  guarantee  to  funds  and 
special purpose vehicles.’ 

(18) 

In Article 10, paragraph 5 is added as follows: 

‘The  intermediaries  under  the  solvency  support  window  shall  be  established  in  a 
Member State and operate in the Union. The Steering Board shall set any necessary 
requirements relating to the control of intermediaries (funds, special purpose vehicles 
and others) in the light of any applicable public order or security considerations.’ 

(19)  Article 11(1) is amended as follows: 

‘1.  The  EU  guarantee  shall  not,  at  any  time,  exceed  EUR  92  436  320  000,  of 
which a part may be allocated for EIB funding or guarantees to the EIF in accordance 
with paragraph 3 or under the solvency support window.  

An amount of up to EUR 66 436 320 000 of the EU guarantee shall be allocated for 
operations under the solvency support window. 

An amount of up to EUR 56 476 320 000 out of the amount referred to in the second 
subparagraph shall be allocated for implementing measures referred to in Article 2 of 
Regulation  [EURI]  and  shall  only  be  available  as  of  the  date  referred  to  in  Article 
4(3) of that Regulation. 

Aggregate  net  payments  from  the  general  budget  of  the  Union  under  the  EU 
guarantee  shall  not  exceed  EUR  92  436  320  000  and  not  exceed  EUR  26  000  000 
000 before [the date of entry into force of this Regulation].’ 

(20) 

In Article 11(3), the first sentence shall be amended as follows: 

‘3.  Where the EIB provides funding or guarantees under the SME window to the 
EIF in order to conduct EIB financing and investment operations, the EU guarantee 
shall  provide  for  a  full  guarantee  on  such  funding  or  guarantees  up  to  an  initial 
amount of EUR 6 500 000 0000, provided that an amount of at least EUR 4 000 000 
000 of funding or guarantees is gradually provided by the EIB without coverage by 
the EU guarantee.’ 

(21) 

In Article 11, the second subparagraph of paragraph 6 is amended as follows: 

‘The EU guarantee shall also cover the amounts referred to in the second, third and 
fourth subparagraphs of Article 9(6).’ 

(22)  Article 12 is amended as follows: 

(a) 

In paragraph 2, a new point (e) is added:  

‘(e)  an amount of EUR 28 238 160 000 out of the amount referred to in point (ii) of 
Article 3(2)(c) of Regulation [EURI].’  

(b) 

In paragraph, 3 a second subparagraph is inserted:  

‘Endowment  to  the  guarantee  fund  provided  for  in  point  (e)  of  paragraph  2  of  this 
Article shall constitute an external assigned revenue in accordance with Article 21(5) 
of the Financial Regulation.’ 

EN 

14 

  EN 

(c) 

 Paragraph 5 is amended as follows: 

‘5.  Endowments to the guarantee fund referred to in points (a) to (d) of paragraph 
2  and endowment  referred to  in  point  (e) of paragraph 2 shall be used to reach an 
appropriate  level  (target  amount)  to  reflect  the  total  EU  guarantee  obligations.  The 
target amount shall be set at 45,8 % of the total EU guarantee obligations.’ 

(d)  Paragraph 7 is amended as follows: 

‘7. 
From 1 January 2028, if as a result of calls on the EU guarantee, the level of 
the guarantee fund falls below 50 % of the target amount, or it could fall below that 
level  within  a  year  according  to  a  risk  assessment  by  the  Commission,  the 
Commission  shall  submit  a  report  on  any  exceptional  measures  that  could  be 
required.’ 

(e)  Paragraph 10 is amended as follows: 

’10.  In the  event  that  the EU guarantee is  fully restored to  an amount of EUR 92 
436 320 000, any amount in the guarantee fund in excess of the target amount shall 
be paid to the general budget of the Union.’ 

(23) 

In Article 13, the second paragraph is amended as follows: 

‘If  necessary,  payment  appropriations  may  be  entered  in  the  general  budget  of  the 
Union  beyond  2020  and  up  to  and  including  the  financial  year  2027  to  fulfil  the 
obligations stemming from Article 12(5).’ 

(24)  Chapter IIIa is inserted as follows: 

‘Article 13a 

Participation in a capital increase of the European Investment Fund 

The Union shall subscribe shares in forthcoming capital increases of the European Investment 
Fund so that its relative share in the capital remains at current level. The subscription of the 
shares and the payment of up to EUR 500 000 000 of the paid-in part of the shares shall be 
carried out in accordance with the terms and conditions that shall be approved by the General 
Meeting of the Fund.’ 

(25)  Article 14 is amended as follows: 

a) In paragraph 2, point (i) is inserted as follows: 

‘(i)  providing  support  to  financing  and  investment  operations  under  the  solvency 
support window.’ 

b) Paragraph 3 is amended as follows: 

‘EIAH services shall be available for public and private project promoters, including 
national  promotional  banks  or  institutions,  investment  platforms,  funds,  special 
purpose vehicles and regional and local public entities.’ 

(26)  Article 14a  is inserted as follows; 

‘Article 14a 

Financing of advisory services and technical assistance  

An amount of up to EUR 100 000 000 shall be made available for covering costs, advisory 
services  and  technical  and  administrative  assistance  to  set-up  and  manage  funds,  special 
purpose  vehicles,  investment  platforms  and  other  vehicles  for  the  purposes  of  the  solvency 
support  window  including  for  support  referred  to  in  point  (i)  of  Article  14(2)  and  having  a 

EN 

15 

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special focus on Member States with less developed equity markets. The technical assistance 
shall also be available to support the green and digital transformation of companies financed 
under this window.  

The Commission shall implement this amount under direct or indirect management as referred 
to in points (a) and (c) of Article 62(1) of the Financial Regulation. 

An amount of EUR 80 000 000 out of the amount referred to in the first subparagraph shall 
constitute  an  external  assigned  revenue  in  accordance  with  Article  21(5)  of  the  Financial 
Regulation and shall be subject to Article 4(4) and (8) of the [EURI] Regulation. 

(27) 

In Article 16, a second subparagraph is added to paragraph 2 as follows: 

‘Operations  under  the  solvency  support  window  shall  be  reported  on  separately,  as 
appropriate and as set out in the guarantee agreement.’ 

(28) 

In Article 16,  a second subparagraph is added to paragraph 3 as follows: 

‘Annual  financial statements  of the EU  guarantee, prepared in  compliance with  the 
accounting rules as adopted by the Accounting Officer of the Commission as referred 
to  in  Article  80  of  the  Financial  Regulation  (EU,  Euratom)  2018/1046  of  the 
European  Parliament  and  of  the  Council  of  18  July  2018  on  the  financial  rules 
applicable to the general budget of the Union. The unaudited financial statements and 
any  information  necessary  to  produce  the  Union  accounts  shall  be  provided  by  the 
EIB  group  by  15  February  of  the  following  financial  year  and  audited  financial 
statements by 31 March of the following financial year.’ 

(29) 

In Article 18(3), the introductory sentence is amended as follows:  

‘3.  By 30 June 2018, by 30 December 2021 and every three years thereafter:’ 

(30) 

In Article 24, paragraphs 3 and 4 are added as follows: 

‘3.  The EIB may submit to the Investment Committee after the entry into force of 
this  Regulation  financing  and  investment  operations  approved  by  its  governing 
bodies  during  the  period  from  the  adoption  of  the  Commission  proposal  to  amend 
Regulation (EU) 2015/2017 until the signature of the amended guarantee agreement 
resulting from the amended Regulation if such operations fulfil the requirements for 
support  under  the  solvency  support  instrument.  Operations  to  be  submitted  to  the 
Investment Committee must not have benefited from the support of the EU guarantee 
previously. 

Once the Investment Committee foreseen in the InvestEU Regulation has taken 
4. 
up its functions, it will also become responsible for granting the EU guarantee under 
this Regulation.’ 

(31)  Annex II to Regulation (EU) 2015/1017 is amended as follows: 

(1) 

In Section 1, the third paragraph is replaced by the following: 

‘The investment  guidelines only apply to EFSI operations relating to the debt 
and equity instruments referred to in Article 10(2)(a) of this Regulation and to 
EFSI  operations  under  the  Solvency  Support  Window  referred  to  in  Articles 
10(2)(b)  and  10(2)(c).  The  guidelines  are  thus  not  applicable  to  EFSI 
operations relating to the instruments referred to in Article 10(2)(b) other than 
those supported under the Solvency Support Window.’ 

(2)  Section 2 is amended as follows: 

EN 

16 

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(a) 

In point (b), the first paragraph is replaced by the following: 

‘(b) The EU guarantee shall be granted to support, directly or indirectly, 
the  financing  of  new  operations.  In  the  infrastructure  field,  greenfield 
investments 
(asset  creation)  should  be  encouraged.  Brownfield 
investments (extension and modernisation of existing assets) may also be 
supported. Under the Solvency Support  Window, financing shall aim at 
improving the equity base of companies and their solvency. The terms of 
the financing should avoid distorting competition between companies. As 
a rule, the EU guarantee shall not be granted for supporting refinancing 
operations (such as replacing existing loan agreements or other forms of 
financial  support  for  projects  which  have  already  partially  or  fully 
materialised),  except  under  the  Solvency  Support  Window  or  in 
exceptional  and  well-justified  circumstances  where  it  is  demonstrated 
that such a transaction will enable a new investment of an amount at least 
equivalent  to  the  amount  of  the  transaction  and  that  would  fulfil  the 
eligibility  criteria  and  general  objectives  laid  down  in  Article  6  and 
Article 9(2) respectively.’ 

(b)  Point (c)  is amended as follows: 

‘(c) The EU guarantee shall support a wide range of products to allow the 
EFSI  to  adapt  to  market  needs  while  encouraging  private  investment  in 
projects, without crowding out private market finance. In this context, it 
is  expected  that  the  EIB  will  provide  financing  under  the  EFSI  with  a 
view to reach an overall target of at least EUR 500 000 000 000 of public 
or  private  investment  under  the  Infrastructure  and  Innovation  Window 
and  under  the  SME  Window  together,  which  includes  financing 
mobilised  through  the  EIF  under  EFSI  operations  relating  to  the 
instruments referred to in Article 10(2)(b), national promotional banks or 
institutions and through increased access to financing for entities having 
up  to  3  000  employees.  The  eligible  products  shall  include  inter  alia11 
loans,  guarantees/counter-guarantees,  mezzanine  and  subordinated 
finance,  capital  market  instruments  including  credit  enhancement,  and 
equity  or  quasi-equity  participations, 
through  national 
promotional banks or institutions, investment platforms funds or special 
purpose  vehicles.  In  this  context,  in  order  to  allow  a  broad  range  of 
investors to invest in EFSI projects, the EIB shall be allowed to structure 
appropriate portfolios. Under the Solvency Support Window the eligible 
products  shall  consist  of  those  that  result  in  providing  investments, 
intermediated  equity  or  quasi-equity  to  companies  and  projects,  but 
excluding entities targeting buy-out (or replacement capital) intended for 
asset  stripping.  It  is  expected  that  EIB  and  EIF  will  provide  financing 
with  a  view  to  reach  a  target  of  up  to  EUR  300  000  000  000  of 
investment under the Solvency Support Window. 

including 

(c) 

In point (d), the first sentence is amended as follows: 

‘(d)  National  promotional  banks  or  institutions,  investment  platforms,  
funds and special purpose vehicles shall be eligible for coverage by the 

11 

This is a non-exclusive indication of products that may be offered via the EFSI. 

EN 

17 

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EIB  guarantee  under  the  counter-guarantee  of  the  EU  guarantee  in 
accordance with Article 10(2)(c).’ 

(3) 

In Section 6, point (d) is added as follows: 

‘(d) Solvency Support Window 

– 

– 

– 

– 

– 

– 

– 

The  EU  guarantee  may  be  used  to  support  EIB  or  EIF  financing,  or 
guarantees to, or investments in funds, special purpose vehicles or other 
investment platforms, including through national promotional banks or 
institutions  or  other  relevant  arrangements,  that  provide  equity  and 
equity-type investments in companies. 

Funds,  special  purpose  vehicles  or  investment  platforms  that  target 
companies engaging in  cross-border  activities within the Union and/or 
companies which have high potential for green or digital transformation 
shall be particularly targeted under the Solvency Support Window.  

The  funds,  special  purpose  vehicles  or  investment  platforms  shall 
provide financing on commercial terms or on terms consistent with the 
State  aid  Temporary  Framework12,  while  paying  due  regard  to  the 
European nature of the Solvency Support Instrument and to the funds’ 
and other vehicles’ independent management.  

The funds, special purpose vehicles or investment platforms shall have 
commercial management that take investment decisions or independent 
management that is at arm’s length from any investors.   

Companies  targeted  by  funds,  special  purpose  vehicles  or  investment 
platforms  shall  be  encouraged  to  comply,  to  the  extent  possible,  with 
minimum  high-level  social  and  environmental  safeguards  in  line  with 
guidance provided by the Steering Board. Such guidance should include 
adequate provisions  for  avoiding undue  administrative burdens,  taking 
into account the size of companies and including lighter provisions for 
SMEs. Companies with a certain level of exposure to a pre-defined list 
of environmentally harmful activities, in particular the sectors covered 
by the EU Emissions Trading System (EU ETS), shall be encouraged to 
put in place, in the future, green transition plans. Companies shall also 
be  encouraged  to  advance  in  their  digital  transformation.  Technical 
assistance shall be available to assist companies for the purpose of these 
transitions. 

The  operations  under  this  window  shall  be  carried  out  in  accordance 
with the EIB’s or the EIF’s internal rules  and procedures. All relevant 
information for the assessment of the operation shall be made available 
to the members of the Steering Board and of the Investment Committee.  

EIB  or  EIF  guarantees  or  investments  shall  be  priced  in  line  with 
Article 4(2)(a)(iv) or Article 4(2)(a)(v).’ 

(4) 

In Section 8, point (b) is amended as follows: 

‘(b) Geographical Concentration 

12 

Communication  from  the  Commission:  Temporary  Framework  for  State  aid  measures  to  support  the 
economy in the current COVID-19 outbreak (C(2020)1863), as amended by C(2020) 3156 final. 

EN 

18 

  EN 

                                                 
EFSI-supported operations shall not be concentrated in any specific territory at 
the  end  of  the  investment  period  concerned.  To  this  end  the  Steering  Board 
shall  adopt 
indicative  geographical  diversification  and  concentration 
guidelines.  The  Steering  Board  may  decide  to  modify  these  indicative  limits, 
after consulting the Investment Committee. 

The  Steering  Board  shall  set  specific  diversification  and  concentration  limits 
under the Solvency Support Window to ensure that the respective requirements 
of Article 9(2a)(b) and (c) are fulfilled, whilst avoiding excessive concentration 
in a limited number of Member States. The Steering Board shall regularly take 
stock of the economic impact of the Covid-19 pandemic on Member States and 
sectors.  On  this  basis,  the  Steering  Board  may  decide  to  modify  these  limits, 
after consulting the Investment Committee.  

The  Steering  Board  shall  explain  its  decisions  relating  to  the  indicative  and 
Solvency Support Window specific limits to the European Parliament and the 
Council in writing. The EFSI should aim to cover all Member States.’ 

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

Article 2 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

19 

  EN 

LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Regulation  of  the  European  Parliament  and  of  the  Council  amending  Regulation 
(EU) 2015/1017 as regards creation of a Solvency Support Instrument 

1.2. 

Policy area(s) concerned in the ABM/ABB structure13  

Policy area: Economic and Financial Affairs 

ABB Activity: Financial operations and instruments 

For a detailed account of the ABB Activities, refer to  Section 1.4.2. 

1.3. 

Nature of the proposal/initiative  

 The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action14  

relates 

to  a  new  action 

following  a  pilot 

X The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

Supporting  growth-enhancing  investments  and  solvency  support  in  line  with  Union 
priorities such as the European Green Deal, Sustainable Europe Investment Plan and 
the sectorial policies that relate to investment support.  

1.4.2. 

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

Specific  Objective  1: Increasing  the  volume  of  European  Investment  Bank  Group 
(EIB Group) financing and investment operations in priority areas 

Specific  Objective  2: To  provide  advisory  support  for 
investment  project 
identification, preparation and development  to  public and private counterparts or to 
support the set up and  management of funds and other vehicles for the purposes of 
the solvency support instrument 

ABM/ABB activity(ies) concerned 

ECFIN: Financial operations and instruments 

1.4.3.  Expected result(s) and impact 

The proposal  is  expected to  mobilise EUR 300 000 000 000 investment  in  the real 
economy  by  supporting  companies  facing  economic  difficulties  due  to  the  crisis 
caused by the Covid-19 pandemic in the Union. 

13 
14 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

20 

  EN 

 
                                                 
1.4.4. 

Indicators of results and impact  

The  achievement  of  the  objectives  of  the  proposal  will  be  monitored  through  key 
performance  indicators  and  key  monitoring  indicators  in  line  with  existing 
arrangements  relating  to  the  Infrastructure  and  Innovation  Window  and  the  SME 
Window under the EFSI Regulation. Specific indicators will be set for the Solvency 
Support Window, as appropriate. 

1.5. 

Grounds for the proposal/initiative  

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

The Commission is proposing to reinforce its proposal for the Multiannual Financial 
Framework  to  address  the  negative  economic  consequences  of  the  Covid-19 
pandemic for companies and projects in the Union. Many of them are already facing 
solvency  difficulties  because  of  the  crisis  and  the  problems  will  accentuate  as  the 
lockdown period continues and the distancing rules will continue to impact business 
activities across many sectors. The difficulties may be long-lasting even beyond the 
lockdown.  

Companies to be supported are those with a viable business model prior to the crisis 
but which are solvency constrained due to the Covid-19 crisis. The purpose is to help 
them  weather  this  difficult  period  so  that  they  are  still  there  to  carry  the  recovery 
when the time comes. 

1.5.2.  Added value of EU involvement 

The  proposal  intends  to  counter-balance  expected  distortions  in  the  Single  Market 
given  that  the  availability  of  solvency  support  measures  for  companies  may  differ 
substantially across Member States and lead to an unlevel playing field.  

1.5.3.  Lessons learned from similar experiences in the past 

It is proposed to leverage budgetary expenditure through providing an EU guarantee 
in order to attract in addition private financing to support companies in the Union, as 
has already successfully been done under the EFSI Regulation. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

The  proposal  is  consistent  with  the  relevant  Union  policies  such  as  the  European 
Green Deal, Sustainable Europe Investment Plan and the sectorial policies that relate 
to investment support. 

The Solvency Support Instrument is complementary to other Union programmes that 
are  focused  on  mitigating  the  impacts  of  the  Covid-19  crisis  or  relaunching  the 
economy as the Covid-19 crisis eases. It complements in particular support to SMEs 
that will be provided through (i) the recovery assistance for cohesion (REACT-EU), 
which  will  provide  frontloaded  support  also  for  SMEs;  and  (ii)  the  Pan-European 
Guarantee  Fund  in  response  to  Covid-19  crisis  being  established  by  the  EIB 
underpinned by a guarantee from the Member States. Also, the SME window being 
reinforced under InvestEU will provide additional support from 2021. 

EN 

21 

  EN 

1.6. 

Duration and financial impact  

x Proposal/initiative of limited duration  

–   

Proposal/initiative in effect from 2020 to 2026  

–  x 

Financial impact from 2020 to 2027 

1.7.  Management mode(s) planned15  

x Direct management by the Commission 

–  x by its departments, including by its staff in the Union delegations;  

–   

by the executive agencies  

 Shared management with the Member States  

x Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  X the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–   public law bodies; 

–    bodies  governed  by  private  law  with  a  public  service  mission  to  the  extent  that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with the 
implementation  of  a  public-private  partnership  and  that  provide  adequate  financial 
guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

Comments  

The  EFSI  Guarantee  Fund  is  under  direct  management  of  the  Commission.  The  European 
Investment  Advisory  Hub  is  managed  indirectly  through  the  EIB.  Advisory  services  and 
technical  assistance  may  be  managed  directly  or  indirectly  by  the  Commission,  including 
through the EIB. 

15 

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 

22 

  EN 

                                                 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

In accordance with Article 10 of the EFSI Regulation, the EIB, in cooperation with 
the  EIF  as  appropriate,  shall  report  semi-annually  to  the  Commission  on  EIB 
financing  and  investment  operations.  In  addition,  the  EIB,  in  cooperation  with  the 
EIF  as  appropriate,  shall  report  annually  to  the  European  Parliament  and  to  the 
Council on EIB financing and investment operations.  By 31 March of each year, the 
Commission  is  required  to  send  to  the  European  Parliament,  the  Council  and  the 
Court  of  Auditors  an  annual  report  on  the  situation  of  the  Guarantee  Fund  and  the 
management thereof in the previous year. 

In  accordance  with  Article  12  of  the  EFSI  Regulation,  the  EIB  shall  evaluate  the 
functioning  of  the  EFSI  and  provide  its  evaluation  to  the  European  Parliament,  the 
Council  and  the  Commission.  Moreover,  the  Commission  shall  evaluate  the  use  of 
the  EU  guarantee  and  the  functioning  of  the  Guarantee  Fund  and  provide  it  to  the 
European Parliament and the Council. A comprehensive report on the functioning of 
the  EFSI  is  required  every  three  years  (next  in  2021),  as  well  as  a  comprehensive 
report on the use of the EU guarantee and the functioning of the Guarantee Fund. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The EIB financing  and investment  operations covered by the EU  guarantee carry  a 
non-negligible financial risk. The probability of a call upon the guarantee is tangible. 
However, it is estimated that the Guarantee Fund provides the protection required for 
the Union budget. Projects themselves may be subject to implementation delays and 
cost overruns. 

Even if based on conservative assumptions, the cost-efficiency of the initiative could 
suffer  from  insufficient  market-uptake  of  the  instruments  and  changing  market 
conditions over time reducing the assumed multiplier effect. 

In  accordance  with  Article  8(4)  of  the  EFSI  Regulation,  the  resources  of  the 
Guarantee  Fund are to be invested. Those investments will bear  an investment  risk 
(e.g. market and credit risk) and some operational risk. 

2.2.2. 

Information concerning the internal control system set up 

The EFSI is governed by a Steering Board, which determines the strategic orientation 
of  the  EFSI,  the  operating  policies  and  procedures,  the  rules  applicable  to  the 
operations with the investment platforms and national promotional banks and the risk 
profile of the EFSI.  

Decisions on the use of the EFSI support under the solvency support window are to 
be  made  by  the  Investment  Committee  as  is  currently  the  case  for  the  other  two 
windows. In the case of operations conducted by the EIF, the Investment Committee 
is  consulted  on  the  financial  products.  The  Investment  Committee  is  composed  of 
independent  experts  who  are  knowledgeable  and  experienced  in  the  areas  of 
investment  projects  and  are  accountable  to  the  Steering  Board,  who  supervises  the 
fulfilment of the EFSI's objectives.  

EN 

23 

  EN 

 
The  EFSI  Managing  Director  is  responsible  for  the  day-to-day  management  of  the 
EFSI and preparation of the meetings of  the Investment Committee. The Managing 
Director  is  directly  accountable  to  the  Steering  Board  and  reports  every  quarter  on 
the  activities  of  the  EFSI  to  the  Steering  Board.  The  Managing  Director  was 
appointed by the President of the EIB, after approval by the European Parliament of 
the candidate selected by the Steering Board.   

The Commission manages the assets of the Guarantee Fund in accordance with the 
EFSI Regulation and under its internal rules and procedures in force. 

2.3.  Measures to prevent fraud and irregularities  

Article  21  of  the  EFSI  Regulation  clarifies  the  competence  of  the  European  Anti-
Fraud Office (OLAF) to carry out investigations on operations supported under this 
initiative. The EIB Group has established specific rules for cooperation  with OLAF 
in  connection  with  possible  cases  of  fraud,  corruption  or  any  other  illegal  activity 
detrimental to the financial interests of the Communities. 

Beyond that, the EIB's rules and procedures are applicable, including, inter alia, the 
EIB Anti-Fraud Policy. 

EN 

24 

  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 budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

1a 

1a 

Heading of 
multiannual 
financial 
framework 

1 

16 
17 
18 

Number  
Heading 
………………………...……………] 

(2014-2020 

1a 

MFF) 

Diff./Non-
diff.16 

from 
EFTA 
countries
17 

from 
candidate 
countries18 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

01.010401  Support  expenditure  for 
Structural 
"European 
Investments (EFSI)" 

Fund 

for 

01.040101 European Investment Fund 
—  Provision  of  paid-up  shares  of 
subscribed capital 

01.0404  Guarantee  for  the  European 
Fund for Strategic Investments (EFSI) 

01.040502 
the 
Provisioning 
Guarantee for the "European Fund for 
(EFSI)"  – 
Strategic 
Solvency Window 

Investments 

of 

Non-diff 

NO 

NO 

NO 

NO 

Diff 

NO 

NO 

NO 

NO 

01.040602 
Investment 
European 
Advisory  Hub  (EIAH)  and  European 
Investment  Project  Portal  (EIPP)  – 
(Technical  assistance)  –  Solvency 
Window 

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Number  
Heading 1 (2021-2027 MFF) 

Diff./Non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

02.0104  Support  expenditure 
Fund 
"European 

for 
Structural 

for 

Non-diff 

NO 

NO 

NO 

NO 

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 

25 

  EN 

 
 
                                                 
Investments (EFSI)" 

02.0501  Guarantee  for  the  "European 
Fund 
Investments" 
(EFSI) 

for  Strategic 

the 
Provisioning 
02.050202 
Guarantee for the "European Fund for 
Strategic 
(EFSI)"  – 
Solvency Window 

Investments 

of 

1 

Diff 

NO 

NO 

NO 

NO 

Investment 
European 
02.050302 
Advisory  Hub  (EIAH)  and  European 
Investment  Project  Portal  (EIPP)  – 
(Technical  assistance)  –  Solvency 
Window 

EN 

26 

  EN 

 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

Number  Heading 1a (MFF 2014-2020) then Heading 1 (MFF 2021-2027) 

EUR million (to three decimal places) 

2020 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

TOTAL 

(2020) 

01.010401 
then  02.0104  Support 
expenditure  for  "European  Fund  for  Structural 
Investments (EFSI)" 

Commitments = 
Payments 

(3) 

2,000 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

2,000 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

Commitments 

500,000 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

01.040101  European 
Investment  Fund  — 
Provision  of  paid-up  shares  of  subscribed 
capital 

01.0404 (2020) then 02.0501 Guarantee for the 
"European  Fund  for  Strategic  Investments 
(EFSI)" 

01.040502  (2020)  then  02.050202 Provisioning 
of  the  Guarantee  for  the  "European  Fund  for 
Strategic 
(EFSI)"  –  Solvency 
Window 

Investments 

01.040602  (2020)  then  02.050302  European 
Investment  Advisory  Hub 
and 
European  Investment  Project  Portal  (EIPP)  – 
(Technical assistance) – Solvency Window 

(EIAH) 

TOTAL appropriations for the envelope 
of the programme 

Payments 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1) 

(2) 

500,000 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

4.980,00
0 

2.490,00
0 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

4.980,000 

490,000 

500,000 

500,000 

500,000 

500,000 

p.m. 

p.m. 

4.980,000 

Commitments 

(1) 

18,000 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

18,000 

Payments 

(2) 

8,000 

10,000 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

18,000 

Commitments 

=1+3 

Payments 

=2+3 

5.500,00
0 

3.000,00
0 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

5.500,000 

500,000 

500,000 

500,000 

500,000 

500,000 

p.m. 

p.m. 

5.500,000 

2,000 

2,000 

500,000 

500,000 

p.m. 

p.m. 

EN 

27 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
In  addition  to  the  financial  envelope  allocated  to  the  EFSI  guarantee  under  Regulation  (EU)  2015/1017  (EFSI  Regulation),  EUR 
28 318,160 million  (in  current  prices)  will  be  available  as  external  assigned  revenues,  within  the  meaning  of  Article  21(5)  of  the  Financial 
Regulation as financing from the European Union Recovery Instrument. Out of this up to EUR 6,520 million may be dedicated to administrative 
expenditure, including external staff costs. 

A specific amount of EUR 80 million will be needed to cover operational costs relating to establishing and managing the structures (equity funds, 
special purpose vehicles, investment platforms and others) through which the support under the solvency support window is to be provided and 
for related advisory services and technical assistance, including administrative support.  In line with the provisions of the EURI Regulation, the 
legal commitments covered by external assigned revenue stemming from borrowing shall be entered into by 31 December 2024.   

The indicative breakdown of the expenditure from external assigned revenue is as follows: 

EFSI - Solvency Instrument 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Post 
2027 

TOTAL 

Commitments 

Operational expenditure from 
EURI external assigned revenues 

Payments 

(1) 

(2) 

Administrative support 
expenditure from EURI external 
assigned revenues  

Commitments  = 
Payments 

(3) 

8.275,
120 

8.441,
120 

5.740,
120 

5.855,
280 

4.717,
773 

4.718,
773 

4.718,
773 

3.539,
080 

3.539,
080 

3.539,
080 

3.539,
080 

1,880 

0,880 

0,880 

0,720 

0,720 

0,720 

0,720 

Total external assigned revenues 

Commitments 

=1+3  8.277,
000 

8.442,
000 

5.741,
000 

5.856,
000 

0,720 

0,720 

0,720 

Payments 

=2+3 

4.719,
653 

4.719,
653 

4.719,
653 

3.539,
800 

3.539,
800 

3.539,
800 

3.539,
800 

28.311,64
0 

28.311,64
0 

6,520 

28.318,16
0 

28.318,16
0 

EN 

28 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial  
framework  

5 / 7 

‘Administrative expenditure’ 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR million (to three decimal places) 

DG: ECFIN 

 Human resources  

 Other administrative expenditure  

TOTAL DG  ECFIN 

Appropriations  

TOTAL appropriations 
under HEADING 5 (2020) /  
HEADING 7 (2021-2027) 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

TOTAL appropriations  
across HEADINGS  
of the multiannual financial frameworks 

Commitments 

Payments 

2020 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Post 2027 

Total 

EN 

29 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on appropriations of an administrative nature 

3.2.2.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

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

nature, as explained below: 

EUR million (to three decimal places) 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

HEADING 5/7 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5/7 
of the multiannual 
financial framework  

Outside HEADING 5/719 
of the multiannual 
financial framework  

Human resources  

0,880 

0,880 

0,880 

0,720 

0,720 

0,720 

0,720 

5,520 

2 

1 

3 

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

TOTAL 

2 

1,880 

0,880 

0,880 

0,720 

0,720 

0,720 

0,720 

8,520 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that 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.  Additional  external  staff  and  will  be  solely  financed  from 
assigned revenues. 

19 

For 2020: 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.  From  2021: 
External assigned revenue. 

EN 

30 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.2.  Estimated requirements of human resources 

–    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 time equivalent units 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

 Establishment plan posts (officials and temporary staff) 

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

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)20 

XX 01 02 01 (AC, END, INT from the ‘global 
envelope’) 

XX 01 02 02 (AC, AL, END, INT and JED in the 
delegations) 

XX 01 04 yy 21 

- at Headquarters 

- in Delegations  

XX 01 05 02 (AC, END, INT - Indirect research) 

10 01 05 02 (AC, END, INT - Direct research) 

Other budget lines (assigned revenue) 

TOTAL 

11 

11 

11 

11 

11 

11 

9 

9 

9 

9 

9 

9 

9 

9 

DG ECFIN, COMP and BUDG are 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. Additional external staff will be solely financed from assigned revenues. 

Description of tasks to be carried out: 

Officials and temporary staff 

– 

External staff 

Front  office  (development  of  policy  documents,  preparation  and  negotiation  of 
guarantee  agreement,  operational  follow  up  and  reporting,  management  of  advisory 
and technical assistance); 

Back  office  (monitoring  and  follow  up  of  the  programme,  including  guarantee  calls, 
operational  and  financial  reporting  and  other  guarantee  management  activities; 
monitoring and reporting on advisory services and technical assistance); 

Risk (monitoring credit risk profile of portfolios of operations under the EU guarantee, 
assessment and reporting); 

20 

21 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

31 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  X  The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

 

 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative22 

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) 

22 

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 

32 

  EN