CELEX: 51981PC0790
Language: en
Date: 1981-12-09
Title: PROPOSAL FOR A COUNCIL DECISION applying for the first time decision EEC empowering the Commission to contract loans for the purpose of promoting investment within the Community (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 790
Vol. 1981/0222
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(81)790 final
                                                          Brussels - 9th December 1981
                            (
                              PROPOSAL FOR A COUNCIL DECISION
                     applying for the first time decision EEC empowering
                     the Commission to contract loans for the purpose of
                     promoting investment within the - Community
                                     t
                                     fe V                  ■■v'    , Y?.
                                                                      lJ
                        ( presented by the Commissionv to the Council )
                                     •<*                • VS.
                                                                        /
                                         V",         s>             / 7
                                           < C / • t r*-      V \ v
COM ( 81 ) 790 final
 ---pagebreak---                           EXPLANATORY MEMORANDUM
       On 19 October 1981 , the Council accepted the principle of continuing
 the operation of the New Community Instrument .
       The Commission considers it a matter of urgency therefore that a
 decision be taken at an early date so that a tranche can be activated
 under the renewed instrument , particularly since projects have been iden­
 tified in sufficient numbers for the ceiling authorized by the Decision
 of 16 October 1978 to be fully committed within a short time .
       A decision is all the more necessary in that the Community must use
 its every endeavour to sustain investment .   In view of the acute problems
 facing Member States' economies today, investment is of paramount importance ,
.firstly , because it strengthens our fundamental structures and facilitates
 their adaptation , and secondly because it helps sustain economic activity
 and employment .
       In its experimental stage the NCI has already shown the contribution
 it can make to this end .   Over a three-year period , the total sum of
 1 000 million ECU was allocated for projects in the infrastructure and
energy sectors .
      The Commission believes that its assistance in these two areas could
 have an even greater impact if the tranches were allocated for more narrow­
 ly defined purposes , so that they could be used , within the broad fields
 selected , to serve priority objectives of the Community .
       In the energy sector there is a crying need for a higher level of
 investment to promote the efficient use of energy and the replacement of
oil by other sources of energy .    It is still highly necessary to reduce
our consumption of oil products , and the means of doing so depend very
heavily on investment , not only in energy generation ( nuclear energy , coal ) -
 on which a start has already been made - but also in the adaptation of
 ---pagebreak---                                     - 2 -
methods of utilization , whether in industrial processes , the services or
household sectors or transport .    The Commission is aware of the difficulty
of stimulating this type of investment , its stagnation being partly attri­
butable to the general economic situation .     Community financing in this
context has already been granted by the EIB , and by the ECSC in its own
sectors .   This assistance must continue .   The need to lessen our depen­
dency on imported energy and the contribution which the investment required
for this purpose can make to the economy in general ( clearly set out in
the fifth programme ) together prompt the Commission to propose that this
area - covered with others by previous NCI tranches - should be given
explicit priority for the next NCI tranche .
       The role of the NCI in stimulating investment in infrastructure is
equally clear .   It is highly desirable that the NCI should continue to
operate    in this area , but it would also be preferable to focus on more
narrowly specified objectives .    The Commission suggests that priority be
given to infrastructure investment projects which contribute to regional
development - as a continuation of the effort to improve basic structures ,
particularly in less privileged areas of the Community - and to projects
of Community interest ( such as priority transport projects ).
       The NCI basic decision also provides that the instrument may be used
for investment in the productive sector , where there is clearly a major
need .   As a first step , the Commission believes that the NCI should be
empowered to respond to the financing requirements of small and medium-
sized enterprises .    It considers these requirements merit priority consi­
deration on account of the contribution which these companies can make in
creating permanent jobs and in innovation .     The Commission accordingly
suggests that this tranche of the NCI should be opened up , as a third
category of operations , to economically sound investment projects of
enterprises of moderate size in the productive sector .
       The difficulties which small firms in particular face in contracting
 loans with non-national bodies could be ironed out by using the tried and
 tested machinery of global loans administered through national financial
 intermediaries , in certain cases backed by national arrangements for
 guaranteeing against exchange-rate risks .
 ---pagebreak---                                 - 3 -
     This new tranche will therefore cover three priority areas of activity :
the efficient use of energy; infrastructure contributing to regional devel­
opment and / or of Community interest ; and small and medium-sized enterprises .
     Although not everything can be known at this stage about either the
general trend of investment or the actual financing terms which could be
accorded to the recipients of loans , the Commission believes that these
three areas necessitate a single tranche of 1 000 million ECU .
       *
 ---pagebreak---                            COUNCIL DECISION
applying for the first time Decision             / EEC empowering the Commission
to contract loans for the purpose of promoting investment within the
Communi ty .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Decision            / EEC of 19 October 1981 empowering
the Commission to contract loans for the purpose of promoting investment
                      (1 )
within the Community,       and in particular Article          thereof ,
                                                       (2)
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament , ^
Whereas the purpose of the Community 's action is to implement structural
investment projects that help attain Community priority objectives in the
energy , industry and infrastructure sectors ;
Whereas the Community has set itself the objective of stimulating the
recovery of economic activity and of supporting common policies by Community
measures - notably by making optimum use of the Community 's financial
instruments - which aim to realise investment projects contributing to
greater convergence of the economic policies of the Member States , an
CDjective reaffirmed by the European Council in Luxembourg on 30 June 1981 ;
(1 )  0J No
(2)   0J No
(3)   0J No
 ---pagebreak--- Whereas particular attention should be directed to investment which con­
tributes to the more efficient use of energy , to investment which contri­
butes to the development of regional infrastructures and / or which is of
Community interest , and to investment by small and medium-sized enter­
prises ;
Whereas the New Community Instrument is designed to facilitate investment
by providing access to the Community 's financial sources in specific high
priority sectors ;
Whereas Community action in those areas will , in particular , serve the
Community 's objectives of reducing unemployment and regional disparities ;
HAS DECIDED AS   FOLLOWS :
           t
Article 1
A tranche of borrowings is hereby authorized for an amount which shall not
exceed the equivalent of 1 000 million ECU in principal .
Article 2
The proceeds of these borrowings shall be lent to finance investment projects
which are carried out on Community territory and which help attain the •
priority Community 's objectives in the energy and infrastructure sectors
and for the promotion of small and medium-sized enterprises .
For the purposes of this tranche the investment shall cover in particular :
(a)  the efficient use of energy, the replacement of oil by other sources
     of energy in all sectors and infrastructure projects facilitating
      such replacement ;
(b)  infrastructure projects contributing to regional development and / or
     of Community interest , including transport , telecommunications and
     information technology, the transmission of energy , water supply
     infrastructure and environmental protection ;
 ---pagebreak--- (c)  projects of small and medium-sized enterprises for their promotion
     or for employment or innovation purposes .
Article 3
The Commission shall decide whether or not projects are eligible in accor­
dance with :
     Article 2 above and in the light of the Community 's principal
     economic problems :
     the provisions of the EEC Treaty and secondary legislation , in
     particular those relating to competition and Community policies
     in the fields in question .
Done at Brussels .
                                                For the Counci l
                                                 The President