CELEX: 51978PC0201
Language: en
Date: 1978-05-08
Title: AMENDED PROPOSAL FOR A COUNCIL DECISION empowering the Commission to issue loans for the purpose of promoting investment within the Community (presented under the second paragraph of Article 149 of the EEC Treaty; see Doc. COM (78) 26 final)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 201
Vol. 1978/0067
 ---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
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p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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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,
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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,
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 ---pagebreak--- O /AMl SSION OF THE EUROPEAN COMMUNITIES
                                                         COM ( 78 ) 201 final
                                                         Brussels , 10 Kay 1978
                        PRO rCS * L ^    CO T T T C T L DECISION"
      empowering the Commission to issue loans for the purpose of
               promoting investment within the Community
      ( presented under the second paragraph of Article 149 of the
       EEC Treaty ; see Doc . COM ( 78 ) 26 final )
C0K ( 78 ) 201 final
 ---pagebreak---                                                                                                                        Il / 5£j / 75 - EN
                                                                                                                       Orig . FR
           MENDED PROPOSAL     P A" V-.'-TnTf *j I^TO^HKO T>H rc:rf :Y- Tc.?? TO              ix ,  ?o :- TCK PURK>SS OF
                                             PPO ! :ORI I TJG I 1    *T WNINIJ THK COI^KITY
1 . Text adopted by Parliament                                  2 . The Comm ission 's new proposal                               3•   Remarks
       (The text ha3 been underlined whero it differs from the Commission 's original proposal )
THE COUNCIL OF THIS EUROPEAN COI^l.TTISS ,                       HIE COUNCIL OF TOE EUROPEAN COMMUNITIES ,
Havinf regard to the Treaty establishing the                    Having regard to the Treaty establishing the
European Economic Community , and in particular                  European Economic Community , and in particular
Article 235 thereof ,       ,                                    Article 235 thereof ,
Having regard .to the proponal from the Commission ,             Havinf refard to the proposal from the Commission ,
Ilavinf regard to the opinion of the European                    Having refard to the opinion of the European
 Parliament ,                                                     Parliament ,
 Having regard to the opinion of the Economic and                Havinf regard to the opinion of the Economic and
 Social Committee ,                                               Social Committee ,
 Whereas economic activity , employment and                       Whereas economic activity , employment and                       Parliament 's text
 investment are all too low and unevenly distri ¬                 investment are all too low and unevenly distri­                 used .
 buted in the Community ;                                         buted in the Community ;
 Whereas , in addition to the existing financial                  Whereas , in addition to the existing financial
  instruments of the Community whose scope should                 instruments of the Community whoso scope should
 be widened , a new instrument i3 needed to                       bo widened , a new instrument is needed to
  increase investment within the Community so as                   increase investment within the Community so as
  to stimulate an economic upturn and support                     to stimulate an economic upturn and support
  common pol i ci ea ;                                            common policies ;
  Whereas a Community action to thi r: r** . 1 would              Whereas a Community action to this end would
  have a real follow- through of foot       1 : .a . j.eial       have a real f<•«! If'.:- through effect and financial
   impact far beyor.d its apparant sii'.e ;                        impact far beyond its apparent sizo ;
 ---pagebreak--- ntioroJiM thin Coi;::::unity action should aim to                             l.horoac thiB Community action should aim to
rc-tli /.rj r; tmctur.il investment projects v.h i ch                         realize- structural investment projects v.h i ch
ro : t I D M' O to j mlor nonvor , nnnn and int o ,- ration                   r o n t r i bw t o to gro^.t or r o nwtrrnn nn nr f - in t o ; r a t ion Pari iament's text
of™ -\To~~T 7>Vo yvnn, po i ic i                       i-irvi r.or.i'nri to   ol' »V : t ion'-l or u;io:.)ic r.olirno :: and f:orii'on to              used
pnoriTy "coiajiiiuuty objective :;, especially in tho                         priority Coanuni t.v objectives , especially in tho
energy , industry and infrastructure sectors ;                                energy , industry and infrastructure sectors ;
'Whereas plentiful finance can bo found on tho capital                        V.^iereas plentiful finance can be found on the capital
Markets which can bo tapped to financo investment                             markets which can be tapped to finance investment
within tho Community ;                                                        within the Community ;
V.ljereas the Community haG a creditworthiness in ita                         Whereas the Community has a creditworthiness in its
 ov.n right which must be used to the best advantage ,                         own rirht v.hich must be used to the best advantage ,
 to reinforce European support for tho said invest-                            to reinforce European support for the said invest­
 mentis and to support policies decided at Community                           ments and to support policies decided at Community
 level ;                                                                    •  level ;
 Whereas borrowings of one thousand million EUA in                             Vihercaa borrowing of one thousand million EUA in                        Parliament 's text
 c'.r; i t>-i 1 scorn right in tho present circumstances to                    capital seen right in the present circumstances to                      used
 h e ? 7 to c chic ve tho desired result ;                                     heln to achievo the desired result ;
 '■■'h ".r        [h      E 1 C 1 n financial a ? t ivities sh ould bo                                                                                  The Commission
 (ic' r_ i               r " r - 1 l ol to ar.d •-• lihin t'r.o frar.ov:ork                                                                             cannot accept this
  o :' y.) .• •. • " r■ • ^oh ^-            sr. o\; 1 c": be subject to                                                                                 recital , at least
  thi 't          ■•< t::rv - uihoritv 's control ;                                                                                                     in this form .
                                                                                                                                                        See remarks at
                                                                                                                                                        Article 2 .
  .'.hflroas , tho European Investment Bank has stated                          Whereas the European Investment Bonk has stated
  th-.it it is v.illing to take part in putting thia                            that it is willing to take part in putting thia
  present Decision into effect ;                                                present Decision into effect ;
  HA.I DECIDED AS FOLLOWS :                                                     HAS DECIDED AS EOLLOUS :
 ---pagebreak---                Article 1                                        Article 1
                                                The Commission is empowered to issue loans on
The Commission is empowered "to issue loans on  behalf of the European Economic Community , the
behalf- of the European Economic Community, the proceeds of which w.ill be lent to finance in­
proceeds of which will be lent to finance in­   vestments which ccntriuute to greater convergence
vestments vrhioh contribute to greater conver­  of the economic policies of the Member States
gence of the economic policies of the Kembeg    and conform to the Community 's priority
States and conform to the Community's priority  objectives in the energy , industrial and in­
'^j^-hives in the energy, industr^jMj-iSZ       frastructure sectors , taking account of their
                                                                                                  Parliament 's text used
frastructure sectors , taking account of their  regional impact as well as in other sectors
regional impact as well as in other sectors     to be defined by the Council in accordance
to be defined by the Council in accordance      with the proc edure laid down in Article 2 .
with the procedure laid down in Article 2.      The projects , because of their size or
These projects , because of their size or       nature , are those which need greater finance     This new text , which uses
nature , are those which need greater _ finance than is already available from existing in­       the wording proposed by
than is already available from existing in­     stitutions and organs of the Community .          Parliament , indicates the
stitutions and organs of the Community.         This present mechanism can be used either on      theoretically independent
                                                its onw or together with other Community          nature of the instrument .
                                                financial instruments
                Article 2                                       Article 2
 The loans and their entry in the budget -       Loans limited by this Decision to one thousand   To meet Parliament * s
 which is required if they are to be guaranteed million EUA, will be activated tranche by         wishes , the Commission
 by the Community - shall be approved by the     tranche .  The Council acting by a qualified     has introduced consultatioi
 budgetary authority acting on a proposal from  majority on a proposal of the Commission,         with it .
 the Commission , in accordance with normal      having consulted Parliament , shall activate
 budgetary procedure .                           each tranche and fix general guidelines for
                                                 its use for each tranche .                       The Commission accepts the
 At the same time the decision fixing the                                                         principal of budgetising
 general guidelines for the use of the loans     The Commission will specify rules by which it    loans but believes this
 shall be adopted by majority vote of the        will determine the eligibility of projects .     question ought to be
 Council on a proposal from the Commission and                                                    settled in the new
 after consulting Parliament in accordance with                                                   financial regulation .
 the legislative conciliation procedure .
 ---pagebreak--- On t1:<> 1 • i r? o f -1. • > > s_ <ì p fjnion , t ) ;o Corrnission           Tho Commisn ion v: i 1 1 borrow on the capital
77 i • r;                    nler' 1 ;- ■..■M i ci ; il -. ili ilo t o mino   markets within tho limits of tho tranches
th " ai i.' 1 t . i l 1 l       Ot                                            activated . A sin / lo borrowing can be used
                                                                              to finance projects with different objec–
3>.s ri n <■ 1 ho f i r" \ ■ ■ mr in '..hir-h t ) -t j r; fl orinion is       tiveo .
i:r.:>l (' ■ .o;; t • • ; , lo -:.:; f.hn ll not oxceod ono thousand
million :. 'A ) ;i r'pital .
The Commission s h 1 1 borrow on tho capital mai^~
kets within the~Tl;.iitn of the amoun ts auth orized .
A single borro'..inc can be used to finance pro­
 jects with different objectives .
                                    Arliclo 3                                                       Article 3
                                                                                                                                Whether loans resulting
 £orrov;inr and lending transactions shall bo                                  Sorrowinf and lending; transactions shall be     from this new instrument
 expressed in the same currency . Lending; terms                               expressed in the same currency . Ler.dinf terms  can or cannot benefit
  for rcii:.V.urecnent of capital and the rate and                             for reimbursement of capital and the rate and    from aid financed by the
 payment of interest shall be fixed taking                                     payment of interest shall bo fixed taking        Community Budget is a
 account of the coyts and expenses of both the                                 account of the costs and expenses of both the    separate subject from
 borro 1.. in ; and lcnuinf aide of each transaction ,                         borrowing and lendinr side of each transaction . the decision to create thi
  an •..■ oil :•:? o 11 or conditions to which , by virtue                                                                      new instrument , like all
  of c o : •:>) : \ j- o 1 i_-_\ .■* r , trie i r-'r.tin .- of th'-;..o loans                                                   other financial instru­
  can or                  t t          iect .                                                                                   ments of the EEC , may
                                                                                                                                benefit from interest
                                                                                                                                subsidies and grants so
                                                                                                                                far as they are
                                                                                                                                justified .
 ---pagebreak---                                                                                                                                                                                                 ' ->&
                                  Article 4                                                                                         Article 4
•Ihe tcir.s of loans to bo itnrued shall bo nc f o-                                                          Th»j torn.') of loans to bo irsuod chal 1 bo ne / O-
 liated b.y tho Commission in the V;?; t intcrcs ta                                                          tiatod by tho Commission in tho boot interests!
of tho Community , ha / in/ ' ro / ird to tho conditions                                                     of tho Community , havinr re ,- ard to tho conditions
on capital markets and in .moord 'ir.co with tho                                                             on capital markets and in accordance with tho
 co.nr. train is intoned by tho duration and other                                                           constraints imposed by the duration and other
 financial aspects of tho loans to he granted .                                                              financial aspects of tho loans to bo fronted .
 Founds borrowed will bo dopo::itod with the ICuropean                                                       Funds borrowed will be deposited with the European
 Invos tmont lank to bo invented on a temporary                                                              Investment Bank to bo invested on a temporary
 basiG if necessary#                                                                                         basis if necessary .
                                  Article 5                                                                                          Article 5
 Loans r.ado urdcr this Boc.ision ah?»H bo rented                                                             Tho Commission hereby rives the bank a foneral         ITio Commission believes
 b"' 1.;Te"Tio?.: -. ir. r: i on '.n ;'CCOr:';---nco                             tho I'ol lo',.'-             mandate on behalf of the Community to make loans       it neconsary to keep to
  i ;; - procedure :                                                                                          under this present Decision .                          its original text hero .
                                                                                                                                                                     In the coverinr letter
  - roruostn fc-r Igan-S ShaU be. r-.iVr.i 4. te l to thc .                                                   Loans under this r.mndate will bo made by tho bark     to tho President of tho
      ^ o::::^:Ton'T.'-vi~'h . tf it i ir.                                      ol i .'-il lo .               for and at the risk of the Community . In accor­     V Parliament , which is
      civ.il i'or.:r;r.: thorn to ihu . .uro *                                   Investment                   dance with procedures laid co-.m by its statute ,      attached to this docu­
                                                                                                              and following: its usual criteria , the bank will :    ment , ar.d also in the
  – the 51TB shall examine tho ronucsts fron tho                                                                                                                      debates , the Commission
                                                                                                              – receive loan requests ( either directly or else       expressed the belief ,
       •wiiu <> i' view of t.'.nir ; '. r.a n <■ i a i r our.' In e s s ar.d                                     through the intermediation of either tho
      chsli communicate its opinio:: t o ~ho Oo.:j.gf : sion ;                                                                                                        which it holds to , that
                                                                                                                 Commission or a Komber State ) ,                     the solution it proposes
  – ihe Commissi on s hall d eci de whether to make the
                                                                                                              – examine these requests ( after the Commission         is rirht : it keeps ade­
        1 omr.s_ rr.i , i'.' r:o , or. whn t terms ;                                                             has decided on the eligibility of each loan ),       quate Commission control,
   - the ••:!? shal l bo ros ro'-.r: LVlc for admin istering                                                                                                          over operations while
                                                                                                              – decide whether to make the loans and if so on
        ~ : iO lo.'.r. or. t. o '.;":lf oi' ~. ''to Community .                                                                                                       makin;; best use of ex­
                                                                                                                 what terns , and to administer the loan3 .           pert knowledge avail-
   Th® FIB 's mandate fron tho Commission re ; .". relink*                                                                                                                    0 within Community
                                                                                                               Ihe bank' a mandate will be embodied in a cooper­       ...    . , . * ^ . 4   •
                      . " ?' " 1 y      t " '.O' - 0       I r. '\y ' * .    \ . . T; :        . '.i'. 1 ion                                                          \J i i • U 1 J. o c*» V X  1*3 »
                                                                                                   ^r
                                                                                                               ation r.r re em on t with th.o Commission .
   o:      T' -' . '         • or ior- . -.s   a :- vi                  \ r.        . ratio
   le-.:- sUl| t« s«-t ©wt v;: " '"r :;• * i o:i ro > r:.on t
                     U\Ç C-itS axJl HUL Ç0ktn-J_. s io.-. .
   r/.'.t'ild Iho VZP. V o u^Vlo io                                          '*V.iw 1 n 55 • it
    L " '• - •            rvu--. oul                 ::: o_r                            r'v.:-".rt-
    r.o.'its o ; - r.o <: cm..isr:ion .
 ---pagebreak---                                                                                                                                                       »
                                                                                                                                                   6.
                            Art i rlfi 6
'iho Corn;:! if; :j ion :; h'.l I y;cri oil ionl Iv infor:n tho     Hi o Co:nn l n n i on rshall period icallv inform tho
Council and Pari i anon t of rnooi                   ai:d cxpcr.sco Council ar.d Pari iar.cnt of rece iptn and expenses
 result in /* from l;orro::inca end lcmUn ; n . i>.ch               result inr fron borro'.riw s ar.d lendin / s . Ivach
.year it aha LI attach to itrj oatin-'.toa a roviow                 year it chall attach to ito ecti ;:.. ten a roviow
of its borrowing and lend in " policy , i.'h i ch r:hall            of its borro'.inr <uid lend in ,' • policy , \:h_i£h__r:hall
b <» conr; idcrod ar: an i n 1 n - rvl r>- rt of the' r~nv\T~       be nor ", i " c ro d an an i ntegral p " rt of the annual
l.un / et .                       *'*                             ~ b'j'lyot .                                                   Parliament 's text uuod .
Financial control e.r.d nud it will bo carried out                  Financial control and audit v.*i 1 1 bo carried out
 in accordr.nco with iho Financial Population of                    in accordance Kith tho Financial Pefulation of
 the fcncral budyo I of the Iluropoan Corr^iunities .               the general budget of the European Co;.munitiea .