CELEX: 51980PC0020
Language: en
Date: 1980-01-24
Title: PROPOSAL FOR A COUNCIL DECISION APPLYING FOR THE SECOND TIME DECISION 78/870/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 (80) 20
Vol. 1980/0011
 ---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
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM(80)20 final
                                            Brussels, 24th January 1980
                       PROPOSAL FOR A COUNCIL DECISION
             APPLYING FOR THE SECOND TIME DECISION 78 / 870 / EEC
           EMPOWERING THE COMMISSION TO CONTRACT LOANS FOR THE
          PURPOSE OF PROMOTING INVESTMENT WITHIN THE COMMUNITY
                <présented byp)the Commission to the Council)
            h-ï           cb ■.
               i     '        '                                 .
  C0M(80 ) 20 final
 ---pagebreak---                                EXPLANATORY MEMORANDUM
        By its Decision of 16 October 1978, the Council established the New
 t .immunity Instrument ( NCI ), through which the Community is able to borrow
 funds on its own account and thus has greater scope for promoting investment
 in the Community with a view to stimulating an economic upturn and supporting
common policies .     The purpose of the NCI is to help implement investment
projects which contribute to the greater integration of Member States' economic
policies and which are in line with priority Community objectives .
                                              - '■      ^                      V
        The Council Decision provides for the raising of loans not exceeding          .
1 000 million EUA and to be activated tranche by tranche , each tranche being
used to finance investments in accordance with guidelines laid down when the -
tranche is authorized .         '                             '
        On 14 May 1979 , the Council authorized a first tranche of 500 million EUA
to be used for financing projects in the energy and infrastructure sectors .
Nine projects have since been signed - total ling 277 million EUA in the form of    "
NCI loans .    A number of other projects have reached an advanced stage of prepa­
ration and will bring total commitments to 498 million EUA , leaving a balance
of only 2 million EUA from the first tranche . .                   ^
       Experience with the first tranche has demonstrated the usefulness of the new
instrument .    The first series of projects alone represents a total investment
cost of 3 372 million EUA , with Energy projects accounting for 60% of that figure .
The Community 's borrowing capacity has added significantly to the incentive to
investment in the sectors chosen for priority attention by the Commission .      The
projects are helping to attain the general objectives laid down in the Council
Decision , and the investment impact on regional development , employment and energy
supplies is contributing to the convergence of economic policies .
 ---pagebreak---        Since the borrowings authorized under the first tranche are soon to be
used up and in view of the success of the operation to date , the Commission
feels that a second tranche should now be authorized . Priority will , of course ,
continue to be given to the sectors already singled out by the Council . Their
financing requirements are still considerable , and the Community must therefore
provide the most extensive support possible . Accordingly, the Commission proposes
that the second tranche be equivalent to the balance of total authorized borrowings
i.e. 500 million EUA , and that the loans again be allocated to the energy and
infrastructure sectors .
       The C^rwission feels that , within these existing priority areas , there
should be some move towards a broader interpretation of the concept of infra­
structure in the case of certain projects to be carried out in priority regions
or in areas hard-hit by the crisis .
       For instance , as part of the integrated operations now being set up , the
second tranche could, among other things , make a start on meeting the financing
requirements of urban renewal projects .
       There are two possible areas of priority financing here :   housing and
advance factories . As housing is such a potentially vast field, consideration
should be given only to those projects submitted by the national authrorities
which , in their content and financing, form part of the programmes coordinated
by the public authorities and which contribute to establishing production sect,ors
or improving general economic productivity in the area in question .
       In accordance with the Oefcision of 16 October 1978, the Commission will
inform the Council and the European Parliament annually of receipts and expense :;
resulting from NCI transactions and, as soon as the amount of loans taken up
reaches the equivalent of 800 million EUA, and not later than 16 October 1980, it
will submit a report to both institutions on the experience gained during the
operation of that Decision .
       The Commission proposes therefore that , after consulting Parliament , the
                      /                                       .          .
Council adopt the proposal for a Decision attached hereto .
                                                                    • ••/ • • •
 ---pagebreak---                                      Proposal for a         –~
      -                           COUNCIL DECISION
                                T             ■                 "               '
 applying for the second time Decision 78 / 870 / EEC empowering the Commission
 to contract loans for the-purpose of promoting investment within the Community .
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,          '
                     x               -•                 . -
 Having regard to the Treaty establishing the European Economic Community,
 Having regard to Council Decision 78 / 780 / EEC of 16 October 1978 empowering
 zhe Commission to contract loans for the purpose of promoting investment
within the Community C1 ), and in particular Article 2 thereof ,
Having regard to the proposal from the Commission ( 2 ),
Having regard to the Opinion of the European Parliament ( 3 ),
Wnereas the Commission has already contracted a large proportion of the first
tranche of borrowing authorized by Council Decision 79 / 486 / EEC of 14 May 1979
applying Decision 78 / 870 / EEC ; whereas that tranche will soon be used up ;
WKereas investment in the infrastructure and energy sectors is still of paramount
importance for the economies of the Member States , notably on account of its-
impact on regional development and ,employment , and continues to make the Community
less dependent on imported energy and to guarantee greater security of supplies ;
 01 )   OJ N° L 298, 25.10.1978, p. 9
•' ?>   OJ N°
(3)     OJ N°
 ---pagebreak---                                     - 2 «■
  Wner'jos a second tranche of borrowings for on-lending should therefore be
  authorized in pursuance of Decision 78 / 870 / EEC ; whereas the same sectors
  as those stipulated in Decision 79M86 / EEC should be covered by this operation ;
  Whereas it must be possible to grant loans in priority regions or areas more
  part icularly affected by restructuring or conversion problems of , notably in
   connection with integrated operations , for the purpose of financing advance
   factories or housing projects th*t are submitted by the national administrations
  and form part of programmes coordinated by the public authorities with regard to
                                                                           \
  their content and financing and that help to establish production sectors or to
   improve general economic productivity in those priority regions or areas ;
  Whereas borrowings of an amount equivalent to a capital sum of 500 million Euro­
  pean units of account should now be authorized ,
  HAS DECIDED AS FOLLOWS t
  Article !                           .
  A second tranche of borrowings is hereby authorized for an amount not exceeding
  the equivalent of a capital sum ot 500 million European units of account .
'          •                               *
  Article 2
  The product of these borrowings shall be used for loans to finance investment
  projects which are carried out on Community territory and which are consistent
  with priority Community objectives in the infrastructure and energy sectors .
  For the purposes of this tranche ;
                                                              /
  infrastructure investment shall cover in particular transport , telecommunication
  agricultural improvements , water supply works , environmental protection , housing
  and advance factories .                                                             '
 ---pagebreak---                             i
                          – 3 -
                                               /                         '   '
energy investment shall contribute to greater self-sufficiency , security
and diversification of Community energy supplies ; investment shall ensure
the development , exploitation , transportation and storage of energy resources ;
particular attention shall be paid to energy conservation and to the development
of alternative energy sources .                   , . "
Article 3
The Commission shall decide -whether or not projects are eligible in accordance
                            »
with the guidelines laid down in Article 3 of Decision 79/ 486 / EEC . '
                                           Done at Brussels ,
                                           For the Council ,
                                           The President ,
                                                                                  -< - • *
                              i