CELEX: 51983PC0015
Language: en
Date: 1983-01-13
Title: Amended Proposal for a COUNCIL_DECISION empowering the Commission to borrow under the New Community Instrument for the purpose of promoting investment within the Community (submitted to the Council by the Commission in accordance with Article 149(2) of the EEC Treaty)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 015
Vol. 1983/0008
 ---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--- C O M M I S S I O N OF THE E U R O P E A N COMMUNITIES
                                                        COM(83)    15  final
                                                        Brussels,     13 J a n u a r y 1983
                                         Amended P r o p o s a l for    a
                                               COUNCIL_DECISION
      empowering the       Commission to         borrow      under the    New Community      Instrument
           for   t h e p u r p o s e of  promoting        investment    within       the Community
             (submitted         to   the  C o u n c i l by t h e  Commission i n accordance
                             with A r t i c l e  149(2)     of   the  EEC T r e a t y )
     COM(83)  15     final
 ---pagebreak--- Explanatory          Memorandum
On 19 O c t o b e r       1982     the      Commission sent               to   the    C o u n c i l and P a r l i a m e n t
a proposal         for     a C o u n c i l D e c i s i o n empowering               the      Commission to            con­
tract        loans under         the     New Community             Instrument          for       the   puroose       of
                                                                             (1)
promoting        investment            within        the    Community                  This       proposal        was    well
r e c e i v e d by P a r l i a m e n t ,      which     accepted the             principle          while       requesting
certain        amendments, recorded in the o p i n i o n                          that       it   adopted        on
                   (2)
16 D e c e m b e r             D i s c u s s i o n of t h i s o p i n i o n       h a s shown t h e          Commission
that       its  own v i e w s      were b r o a d l y       the    same a s P a r l i a m e n t ' s         on some o f
the     amendments         requested.              C o n s e q u e n t l y , the    Commission i s             now    present­
ing     a revised proposal                  for    a Decision,             incorporating            the     relevant      changes.
This       explanatory         memorandum            supplements            that    accompanying the                 original
proposal,        p r e s e n t e d on 19          October.
This      proposal        for    a Decision differs                   from      the   earlier        proposal         in  the
following         ways.
  (i)      There   is     no    longer        any r e f e r e n c e     to   a ceiling,            although       the mecha­
           nism of      tranches          has b e e n m a i n t a i n e d .       Removing the              ceiling      ensures
           that   use of        the     instrument          c a n be u n i n t e r r u p t e d ;         in   the   Commission's
           opinion      this      is    necessary (it            made a s i m i l a r           proposal       the    first    time
           the  NCI was r e n e w e d ) ,          and c o n f o r m s      to   the    logic       of     its   use.     As   the
          mechanism of           tranches          has been m a i n t a i n e d ,          the     Council w i l l       stilt    be
           in  control       of     the     volume of         borrowing          : a Council decision is                    required
           to  define       the     amount       and p u r p o s e of        each t r a n c h e .         To t h i s    end,   the
           proposal       provides          for    an i n i t i a l     tranche       of     3 000 m i l l i o n      ECU i n
           principal.
(ii)       The i n s t r u m e n t ' s    implementation              procedure         is      stated      to   be   provisio­
           nal  until       such time           as the      question of           budgetising             Community        borrow­
           ing  has been s e t t l e d .             Parliament            confirmed         that     it    still      regarded
           budgetisation            a s an i m p o r t a n t     principal          but      that     it    was a l s o   advis­
           able   that      the     New Community             Instrument          should continue                to   operate,
           but  using       a procedure            which      w o u l d be p r o v i s i o n a l      until      such    time
           as a s o l u t i o n     was f o u n d      for    the wider          q u e s t i o n of       budgetising
           borrowing        and      lending        transactions             generally.
                                                                                                                                 ./.
 (1)     OJ No 282 o f          2 7 . 1 0 . 1 9 8 2 , p.     5.
 (2)     OJ No
 ---pagebreak---                                                                                                         2.
The C o m m i s s i o n d i d   not follow       the  suggestion    in Parliament's           opinion
that   there       s h o u l d be a c h a n g e  in  the   allocation    of    responsibilities
between      the     EIB and t h e    Commission for         the  practical      aspects of       the
mechanism.           On t h i s  point,      the  original    proposal    has been       maintained,
for  the     Commission f e e l s        that    the  adjustments     it  has p r o p o s e d   enable
it  to   continue         playing   to     the   full   its  specific    role    in   contributing
and d e f i n i n g   borrowing     and      lending   policy    at Community       level.
The a t t a c h e d   amended p r o p o s a l    for  a Decision,    which      replaces      the  pro­
posal   presented            on 19 O c t o b e r 1982,   takes   account    of   these     amendments.
 ---pagebreak---                                        Amended p r o p o s a l           for a
                                               COUNCIL DECISION
               empowering t h e Commission t o borrow under t h e
               New Community I n s t r u m e n t f o r t h e p u r p o s e o f p r o m o t i n g
                                  i n v e s t m e n t w i t h i n t h e Community
            (presented         under          Article       149(2)-               o f t h e EEC T r e a t y )
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
H a v i n g r e g a r d t o t h e T r e a t y e s t a b l i s h i n g t h e E u r o p e a n Economic C o m m u n i t y ,
and i n p a r t i c u l a r        A r t i c l e 235       thereof,
Having r e g a r d t o t h e p r o p o s a l from t h e Commission                            (1),
Having        r e g a r d to the o p i n i o n o f t h e European P a r l i a m e n t                   (2),
 H a v i n g r e g a r d t o t h e o p i n i o n o f t h e Economic and S o c i a l                    Committee ( 3 ) ,
Whereas, given the v i t a l                     r o l e of investment            i n r a i s i n g growth        rates,
adjusting           production            structures          and       providing     a l a s t i n g s o l u t i o n t o the unemploy­
ment p r o b l e m , t h e       Community's             lending          instruments       s h o u l d be s t r e n g t h e n e d
to    support            " investment,             e s p e c i a l l y i n the growth          sectors of the
 future;
Whereas,          in order         to stimulate             economic a c t i v i t y      and support          common p o l i ­
cies,        the f i n a n c i n g     facility         e s t a b l i s h e d by C o u n c i l
Decisions          78/870/EEC            (4)     and 8 2 / 1 6 9 / E E C     (5) empowering the
Commission to c o n t r a c t                 loans f o r the purpose of promoting                        investment         within
the      Community s h o u l d be renewed a n d s t r e n g t h e n e d a l o n g s i d e e x i s t i n g Commu­
nity       financial        institutions               and b o d i e s ,      the scope o f which            s h o u l d be w i d e n e d ;
Whereas t h i s           Community f a c i l i t y           makes an a d d i t i o n a l      contribution          to    invest­
ment p r o m o t i o n      i n t h e Community a n d has a r e a l                   follow-through            e f f e c t and
financial           impact      f a r beyond i t s apparent                   size,   thus promoting            the conver­
g e n c e o f Member S t a t e s ' e c o n o m i c              trends;
                                                                                                                                 ./.
(1)     OJ N o .
(2)     OJ N o .
(3)     OJ N o .
(4)     OJ N o . L 2 9 8 , 2 5 . 1 0 . 1 9 7 8 , p . 9
(5)     OJ N o . L 7 8 , 2 4 . 0 3 . 1 9 8 2 , p . 19
 ---pagebreak---                                                                                                                                    2.
 Whereas p l e n t i f u l           f i n a n c e c a n be f o u n d on t h e c a p i t a l         markets       which
 c o u l d be t a p p e d t o           finance      investments w i t h i n the              Community;
 Whereas t h e           Community has                  creditworthiness               in  its    own r i g h t    which      must
 be u s e d t o        best     advantage to              reinforce        European support              for    the    said
 i n v e s t m e n t s and to           support      p o l i c i e s d e c i d e d on a t     Community          level;
 Whereas t h e           European Investment                    Bank h a s s t a t e d t h a t      it   is willing          to
 contribute            to    the     implementation              of    the    facility,
 HAS DECIDED AS FOLLOWS                         :
                                                     Article         1
 The C o m m i s s i o n i s         h e r e b y empowered t o            borrow          on b e h a l f   of   the    European
 Economic          Community             under the         New C o m m u n i t y      Instrument.
 The p r o c e e d s                                    s h a l l be l e n t     to    finance      investment         projects
which c o n t r i b u t e       to greater           c o n v e r g e n c e and i n t e g r a t i o n   of    the   economic
policies          of    t h e Member S t a t e s a n d , t h r o u g h             the d i s s e m i n a t i o n of    technology
and i n n o v a t i o n       or    by o t h e r    means, to            reinforcing        the c o m p e t i t i v e n e s s   of
the      Community e c o n o m y .
These p r o j e c t s         s h a l l be s u c h t h a t         they    serve the        Community's p r i o r i t y          objec
 tives       i n the      e n e r g y and i n f r a s t r u c t u r e      s e c t o r s , and i n     the p r o d u c t i v e    sec­
tor,       taking       account           inter    a l i a of      their     regional       impact       and t h e n e e d      to
combat          unemployment.
This       facility         may be u s e d on i t s              own o r     in conjunction            with other         Community
financing             instruments.
 ---pagebreak---                                                                                                                                        3.
                                            Article          2
Borrowings             shall      be c a l l e d by          tranches.
 After        consulting           the    European P a r l i a m e n t          about      the      tranches         to     be    autho­
 rized        and t h e       policies        and e c o n o m i c      sectors         for    which borrowings                 may be     con­
 tracted,          the      Council,        acting         on a p r o p o s a l      from the         Commission,             shall
by q u a l i f i e d       majority         authorize            the            tranches          and l a y down            guide­
 lines        for    the      eligibility            of     projects.'
 The C o m m i s s i o n s h a l l        d e c i d e whether          or    not     projects         are e l i g i b l e       in
 accordance with                 the    guidelines             thus     laid     down.
 The C o m m i s s i o n s h a l l        borrow          on t h e    capital        markets        w i t h i n the       limits      of
the      tranches           authorized.
 The p r o c e d u r e        shall     be p r o v i s i o n a l      pending         a d e c i s i o n on t h e        budgetiza-
 tion      of    Community            borrowing           operations.
 Within         the     framework         of    this        provisional          procedure,           the      C o u n c i l hereby      decides that
 the f i r s t borrowing                tranche           shall     amount       to     3 000 m i l l i o n       ECU i n       principal.
                                               Article          3
 Associated borrowing                    and l e n d i n g        operations          shall     be e x p r e s s e d i n       the   same
 c u r r e n c y un i t s .
 Lending         terms       as   regards         the     reimbursement            of    the p r i n c i p a l     and t h e       rate
 and payment             of    interest        shall        be f i x e d    in   such a way t h a t ,            overall,          they
 cover       the     c o s t s and e x p e n s e s i n c u r r e d       i n c o n c l u d i n g and p e r f o r m i n g        both    the
 borrowing           and t h e       lending        s i d e s of    the     operations.
                                               Article A
The t e r m s       of    the     borrowings            shall      be n e g o t i a t e d  by t h e      Commission in              the
best       interests          of    the    Community, h a v i n g            regard to         the c o n d i t i o n s      on    capi­
tal     markets          and i n a c c o r d a n c e w i t h        the c o n s t r a i n t s    i m p o s e d by t h e        duration
and o t h e r       financial          a s p e c t s of      the a s s o c i a t e d loans to            be g r a n t e d .       Funds
borrowed          shall       be d e p o s i t e d w i t h       the   European Investment                   Bank, which            shall
invest         them on a t e m p o r a r y           basis if        necessary.
Where t h e          funds       borrowed         are denominated,                payable or           reimbursable              in   the
currency          of    a Member S t a t e ,            they    may be c o n t r a c t e d      only      with      the     agreement
of    the     competent          authorities             of    that    State.
 ---pagebreak---                                                                                                                                4.
                                             Article         5
  A mandate         shall       be g i v e n     to     the    Bank t o       grant     and a d m i n i s t e r    loans
  i n p u r s u a n c e of      this      D e c i s i o n . To t h i s       end, a co-operation                 agreement
  shall      be d r a w n up b e t w e e n t h e           Bank and t h e          C o m m i s s i o n . The Bank        shall
  carry      out    operations            under       this     mandate        i n the     name, for           the   account
  and at       the     risk      of    the     Community.
 The C o m m i s s i o n s h a l l        decide,         in accordance            with
  Article        2,                 whether         projects        are e l i g i b l e .      Where t h e      Commission
 gives      a favourable             d e c i s i o n , the      Sank s h a l l      d e c i d e whether         and on       what
 terms      to    grant      the      loans,        in   accordance with               its     usual      criteria     and     with
 the     procedures           l a i d down i n          its    Statute.
 Loan       procedure           s h a l l be a s f o l l o w s         :
                       -    loan a p p l i c a t i o n s       shall       be t r a n s m i t t e d   simultaneously           to
                           the      C o m m i s s i o n and t o       t h e Bank e i t h e r        direct      or  through
                             a Member          State.
                       -   the      C o m m i s s i o n and t h e        Bank s h a l l     s i g n the      loan   contracts.
                                            Article         6
The C o m m i s s i o n s h a l l        inform        the    C o u n c i l and P a r l i a m e n t      at   regular        inter­
vals      of   the     rate      of    utilization            of   the      tranches         and n o t i f y     them,     no
 later     than      the     date      on w h i c h      total     l o a n s s i g n e d amount          to   two t h i r d s   of
the      current         tranche,             of     the    purpose         and amount           it        intends          to
propose        for     the     next       tranche.
                                            Article         7
The C o m m i s s i o n s h a l l        inform        the    C o u n c i l and P a r l i a m e n t     annually      of     re­
v e n u e and e x p e n d i t u r e       arising         from b o r r o w i n g     and l e n d i n g      operations.
 ---pagebreak---                                                                                                    5.
                                   Article 8
Financial          control   and t h e a u d i t of the Commission's accounts           sh..!.l be
c a r r i e d out     i n accordance w i t h the    Financial R vjulation applicable             c
the     G e n e r a l Budget  of the   European      Communities.
Done a t        Brussels,
                                                                 For t h e Council
                                                                  The P r e s i d e n t