CELEX: 51995PC0546
Language: sv
Date: 1995-11-14
Title: Proposal for a COUNCIL DECISION establishing a European Guarantee Fund to promote cinema and television production

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                    EUROPEISKA GEMENSKAPERNAS KOMMISSION
ii           ir
     ***

                                                            Bryssel den 14.11.1995
                                                            KOM(95) 546 slutlig

                                                            95/0281 (CNS)

                                          Förslag till

                                      RÅDETS BESLUT
                  om inrättande av en europeisk garantifond för att uppmuntra
                               biograf- och televisionsproduktion

                                  (framlagt av kommissionen)
 ---pagebreak---  ---pagebreak---                             EXPLANATORY MEMORANDUM

A. INTRODUCTION

I Chapter 5 of the White Paper on Growth, Competitiveness, Employment adopted by the
  European Council at its meeting in Brussels in December 1993 emphasizes the economic
  importance of the audiovisual sector for the industrial development of the European
  Union and its Member States. (COM(93) 70 final, 5.12.1993)

    In June 1994 the Corfu European Council, on the basis of the Bangemann Group's report
    on "Europe and the global information society - Recommendations to the European
    Council", acknowledged the sector's strategic priority in terms of the production of
    content in the context of the information society. (CD-84-94-299, 26 5.1994)

    The Commission is currently considering financing requirements and possibilities for new
    services in connection with the Information Society and will set out its ideas in the Green
    Paper on new audiovisual services that is being drafted.

    In April 1994 the Commission published a Green Paper on strategy options to strengthen
    the European programme industry, analysing the prerequisites for boosting the
    industry's growth and competitiveness. It identified a number of major structural
    weaknesses - the main ones being partitioning of the markets, fragmentation and under-
    capitalization - which have trapped the industry in a spiral of deficit, in contrast with its
    competitors outside the Community. (COM (94) 96 final, 6.4.1994)

-   There was wide-ranging consultation on the ideas put forward in the Green Paper, in
    particular at a "European Audiovisual Conference" attended by more than 400 industry
    representatives in June/July 1994.

    The Conference helped to confirm two priority objectives of Community policy:

    -   strengthening existing support measures, especially under the MEDIA programme;

    -   introducing additional market-based mechanisms to mobilize new resources for the
        programme industry.
 ---pagebreak--- 2. As far as support measures are concerned, the Commission has sent the Council two
   proposed decisions extending the MEDIA programme, aimed at enhancing its impact by
   increasing the funds available and concentrating on a limited number of priorities. The
   first proposal, relating to the development and distribution of European cinema and
   television films, was adopted by the Council on 10 July 1995 (95/0027 (CNS)); the
   second, which concerns training for professionals in the audiovisual industry and on which
   the Council has already adopted a common position (95/0026 (SYN)), should be adopted
   by the end of the year.

-   The MEDIA programme serves to complement national support schemes, offering
    valuable incentives for the Community programme industry. However, it is now clear that
    this effort needs to be augmented further by raising additional resources directly in the
    market-place. Public-sector incentives are no longer sufficient to mobilize the critical
    mass of investment needed to make the audiovisual industry more competitive. A
    truly massive increase in investment, especially with an eye to the emerging information
    society, calls for financial incentive mechanisms operating on market principles to
    encourage significant involvement from private-sector finance.

3 At the request of the Council the Commission has consulted the financial sector on what
  type of mechanism promises to be most effective in stimulating activity by banks and
  investors in the audiovisual field. The consultation exercise ended with a "Round Table
  on Audiovisual Financing" held at the beginning of June 1995 in Brussels, which was
  attended by 70 representatives from financial institutions in nearly all the Member States
  of the Union.

-   Its conclusions were incorporated in a feasibility study for a Community financial
    instrument, carried out at the Commission's request by a group of independent
    consultants. The study confirmed the interest of the financial sector in such an
    instrument and the willingness of operators to broaden their activities in the
    audiovisual sector in view of the incentives it would offer them

-   On 21 June 1995 the Audiovisual/Cultural Affairs Council called on the Commission to
    draw up a proposal for a decision, and on 26-27 June the Cannes European Council took
    note that the Commission intended to present its proposal before the end of the year.

B. TYPE OF INSTRUMENT

1. The consultations and studies carried out showed that substantial financial resources are
   potentially available in the market-place to help develop the audiovisual programme
   industry in the face of rapidly growing demand. However, it is often seen by financial
   operators as a high-risk sector and they are wary of large-scale involvement on a regular
   basis.
 ---pagebreak---  Their reluctance could be overcome by setting up a mechanism (o spread the risk, in
the form of a guarantee instrument specifically tailored for the audiovisual sector
This instrument, linking public and private finance in partnership, would reduce the risks
for both sides through diversification. It would guarantee a portion of the investment by
banks and financial institutions that is being sought by audiovisual professionals, making
it easier for them to obtain credit and loans to finance production projects and enterprises

The audiovisual industry, especiallyfilm-making,largely involves small and medium-sized
firms and they often have difficulty obtaining outside funding on the financial market.
Because their capital is limited and their output is something intangible, they are not
always able to offer the securities demanded by banks and investment companies. The
guarantee instrument would help to ease these difficulties by acting as an insurer. In
return for the payment of premiums it would offer financial intermediaries guarantees
covering part of the credit and loans they grant to audiovisual producers, undertaking to
step in for any defaulting debtors.

By spreading risk in this way, the guarantee instrument would make it much easier to
finance portfolios of projects, helping firms to attain a critical mass of production that
would enable them to offset failures against successes on the market. It would also help
lower the costs (currently prohibitive for many firms) of big budget productions, which
as a rule are what bring the greatest commercial rewards.

The guarantee instrument would act as a catalyst, boosting the confidence of private
operators by creating an environment favourable to their interests, not only spreading the
financial risks but also making this risk-sharing available on attractive terms.

In addition the mechanism would amplify the financial impact of the capital
contributed by the public and private partners involved, since the resources released by
its involvement would amount to several times the size of that capital in terms of the
volume of production and investment in the audiovisual sector.

In two Member States of the Union, France and Spain, experience has shown that the
existence of this kind of guarantee instrument can do a great deal to encourage the
financial sector, which exerts powerful leverage for investment in the programme
industry. However, these funds are essentially national in scope and promote few
audiovisual products with cross-frontier potential.

A Community guarantee fund, by contrast, would make it possible to mobilize resources
on a large scale for cinema and television films intended for the European and
international markets. Its leverage could release considerable financial resources for the
programme industry.
 ---pagebreak---     In line with the principle of subsidiarity, it would operate in conjunction with existing
    instruments and in cooperation with other national mechanisms for audiovisual financing
    such as:

    -   in the public sector: the support funds set up by the Member States of the Union;

    -   in the private sector, the insurance schemes specifically geared to the audiovisual
        industry that are operating successfully in some countries.

C. TASKS OF THE EUROPEAN GUARANTEE FUND TO PROMOTE CINEMA AND
   TELEVISION PRODUCTION

1    fhe Community Guarantee Fund would have to focus primarily on the production of
    European cinema and television films, both for television and the cinema. In this sense
    it would closely complement the MEDIA programme, which does not provide production
    aid as such.

    By stepping in to assist production schemes and enterprises, the Fund would provide
    valuable back-up for MEDIA. However, its task has to be interpreted broadly: it would
    assist not only European producers but also other European operators involved in
    financing cinema and television productions, in particular distributors and broadcasters
    who invest, buy up rights or offer producers guaranteed minimum revenues.

    As far as production projects are concerned, priority must be given to European works
    of fiction, whether for cinema or television (including animated cartoons), as this is where
    Europe faces the biggest deficit in terms of original programmes with wide audience
    potential. It is also an area where production costs are rising fastest, making the risks for
    investors higher.

2 For producers/distributors to be eligible for assistance from the Fund via intermediary
  financial institutions, projects will have to show considerable European and
  international market potential. The principle of subsidiarity means that the Fund will
  not be able to assist productions targeted solely at national markets: its task will be to
  stimulate production schemes aimed at trans-national audiences so as to enable the
  audiovisual industry to exploit the dimension of the single market and markets outside the
  Union.
 ---pagebreak--- D. OPERATING METHODS

I The Fund will operate by the rules of the market. By covering risks through the
  payment of premiums, it will not distort competition.

2. It will provide support for European production companies and European
   distribution/broadcasting companies which help to finance production

    However, the Fund will not operate in direct contact with them It will work through
    financial intermediaries, principally banks and insurance companies which propose to
    share the risks associated with financial operations in the audiovisual field.

-   In any event, the Fund will not cover more than 50 % of credits and individual loans
    (sharing the risk with the financial intermediaries). Spreading the risk in this way will
    ensure that they come forward to the Fund with high-quality projects that have real
    potential on the audiovisual market, since they themselves will have a financial stake in
    them.

    The Fund will provide guarantees under contracts with the financial intermediaries, the
    amount of the premiums being determined according to the type of risk. The level of the
    premiums will be set so as to enable the Fund to be self-financing.

3 Financial support from the Guarantee Fund may cover individual production projects and
  the constitution of production catalogues. Support may also be given to promote structural
  strengthening of production companies and distribution companies that help to finance
  production.

-   Assistance will take the following forms:

    -   guarantees for short-term credit operations for production projects;

        guarantees for medium and long-term loans for production projects, the constitution
        of production catalogues and strengthening companies financially.

    Guarantees may cover first-rank loans and subordinated loans (quasi own funds).

-   The Fund will exercise the usual prudence with regard to risk management. Its leverage
    will gradually increase as it gains experience in the audiovisual sector.

E. IMPLEMENTATION

1 Implementation of the Guarantee Fund to promote cinema and television production
  should draw on the arrangements and practices developed at Community level in
  terms of methods and expertise.
 ---pagebreak--- -   To concentrate and so optimize the effectiveness of Community initiatives, the
    Commission proposes that the guarantee instrument should come under the management
    structures of the European Investment Fund (EIF) under a special mandate.

2. The decision to create the EIF was taken by the Edinburgh European Council in
   December 1992 as part of Community policy on growth, competitiveness and
   employment. Set up in 1994 by the European Investment Bank (EIB), the European
   Community and 58 financial institutions (now 76), the initial authorized capital of the
   Fund was ECU 2 billion, of which 30% was contributed by the Community budget, 40%
   by the EIB and 30% by the other financial institutions. This capital allows the Fund to
   cover guarantee operations up to a total of ECU 16 billion.

    The task of the EIF is to contribute to the pursuit of Community objectives, in particular
    by supporting the development of trans-European networks and small and medium-sized
    firms. Its activities help to ensure the smooth functioning of the internal market and to
    boost job creation. The EIF is also involved in specific operations of Community interest,
    especially operations to promote investment aimed at protecting the small business
    environment.

3. There are a number of reasons for proposing to involve the European Investment Fund
   in the creation and implementation of the Guarantee Fund to promote cinema and
   television production:

    -   the EIF operates as a guarantee instrument for credits and loans to finance projects;

    -   one of the priority areas of EIF activity is small and medium-sized firms; the fabric
        of the audiovisual industry is very largely made up of such firms;

        a number of the financial institutions that are members of the EIF are already active
        in the audiovisual field; with their knowledge of the industry's requirements, they are
        likely to have a special interest in this area of activity under the Fund;

    -   the EIF has experience of handling guarantee operations at Community level and could
        adapt it to the audiovisual sector under a special mandate;

    -   the EIF could act not only as manager of the Fund but also as co-guarantor of
        individual operations, wherever it deems this appropriate and compatible with its
        operating criteria;

    -   Article 32 of the EIF's Statutes allow it to accept the task of administering special
        resources entrusted to it by third parties; the authorities of the Fund have indicated
        their willingness in principle to administer the resources made available for the
        proposed Guarantee Fund under this Article. The EIF would be remunerated for this
        activity.
 ---pagebreak--- 4 A cooperation agreement between the Commission and the I uiope;m Investment
  Fund would spell out the precise arrangements for administering the Guarantee Fund to
  promote cinema and television production:

    In particular it would cover:

    -   general guidelines for the Fund and its objectives;

    -   eligibility rules for projects;

    -   selection mechanisms (proposed decisions to grant individual guarantees would be
        taken by the appropriate decision-making bodies of the EIF in accordance with its own
        management criteria),

        arrangements for financial operations;

        charges applied by the Fund;

        limits on financial commitments;

        remuneration paid to the EIF for its administration of the Fund.

5 To enhance the impact of its operations, the Fund would have to seek to share with the
  EIF the risks it guarantees by concluding joint guarantee agreements (except for
  operations that do not meet the EIF's eligibility criteria).

    It could also make reinsurance agreements with other guarantee and/or insurance
    institutions and seek other forms of cooperation with institutions that share the same
    objectives (in particular, national funds to support the audiovisual industry).

    Finally, it could subcontract some of its operations to other guarantee or insurance
    institutions.

6    fhe overall resources entrusted to the EIF will comprise the contiibutions made by the
    Commission and by the financial sector, both public and private These funds will serve
    as guarantee capital and should ultimately reach a total of ECU 200 million. It is
    proposed that the Union should contribute ECU 90 million.

    To ensure the financial viability and credibility of the Fund, it will have to be of a
    certain minimum size in terms of capital. The proposed contribution reflects this
    requirement, bearing in mind that there will be further contributions from the financial
    sector.

    With the joint guarantees offered by the EIF and the operations mounted by insurance
    companies, the volume of guarantees generated in favour of cinema and television
    production could reach ECU 1 billion.
 ---pagebreak--- 7 The Commission will regularly consult professionals in the audiovisual industry about
  the general strategy and operating arrangements of the Guarantee Fund and will send their
  comments to the EIF.
 ---pagebreak---                                         Förslag till

                                    RÅDETS BESLUT
                         om inrättande av en europeisk garanti fond
                   för att uppmuntra biograf- och televisionsproduktion

EUROPEISKA UNIONENS RÅD HAR BESLUTAT FÖLJANDE

med beaktande av Fördraget om upprättandet av Europeiska gemenskapen, särskilt artikel 130
i detta,

med beaktande av kommissionens förslag(1)

med beaktande av Europaparlamentets yttrande(?),

med beaktande av Ekonomiska och sociala kommitténs yttrande(<), och

med beaktande av följande:

Vid sitt möte i Bryssel den 10 -11 december 1993 antog Europeiska rådet vitboken om
"Tillväxt, konkurrenskraft och sysselsättning" som gemensam referensram för verksamheten
inom gemenskapen och dess medlemsstater. Vitboken rekommenderar en strategi för
industriell utveckling som lägger tonvikten på den övergripande konkurrenskraften i syfte att
främja tillväxt och sysselsättning. Den audiovisuella sektorns ekonomiska betydelse
understryks i vitboken, särskilt i kapitel 5 C.

Vid sitt möte på Korfu den 24 - 25 juni 1994 noterade Europeiska rådet "Bangemann-
gruppens" rapport med titeln "Europa och det globala informationssamhället -
Rekommendationer till Europeiska rådet", som erkänner den audiovisuella program industrin s
strategiska betydelse.

Den 17 juni 1994 tog rådet notis om grönboken om "Strategiska möjligheter för utvecklingen
av den audiovisuella programindustrin".

Kommissionen har samrått med företrädare för den berörda branschen angående de
möjligheter som föreslås i grönboken, särskilt under "Europakonferensen om den audiovisuella
sektorn", som hölls i Bryssel den 30 juni - 2 juli 1994.

(,)
      EGT nr
(2)
      EGT nr
(3)
      EGT nr

                                              10
 ---pagebreak--- Vid sitt kombinerade möte för industri- och telekommunikationsfrågor den 28 september 1994
välkomnade rådet kommissionens meddelande av den 19 juli 1994 under rubriken "På väg
mot informationssamhället i Europa: en handlingsplan" och underströk även nödvändigheten
av att förbättra den europeiska audiovisuella industrins konkurrenskraft.

Vid sitt möte för kultur- och audiovisuella frågor i Luxemburg den 3 - 4 april 1995 riktade
rådet en uppmaning till kommissionen att utarbeta ett förslag till inrättande av ett
finansieringsorgan som komplement till Media Il-programmet och fastslog att detta organ,
som är avsett att uppmuntra till investeringar till förmån för europeiska audiovisuella
produktioner, skulle följa de traditionella stödsystemen och fungera i överensstämmelse med
marknadens villkor.

Vid sitt möte den 10 juli 1995 antog rådet den första delen av Media Il-programmet om
utveckling och distribution av europeiska audiovisuella verk och den andra delen om
utbildning av de yrkesmässigt verksamma inom den audiovisuella sektorn antogs av rådet vid
dess möte den 20 november 1995.

Vid sitt möte i Luxemburg den 21 juni 1995 noterade rådet resultaten av det förberedande
arbetet angående det nya finansieringsorganet.

Vid sitt möte i Cannes den 26 - 27 juni 1995 noterade Europeiska rådet kommissionens avsikt
att före årets slut överlämna ett förslag till rådet för beslut angående inrättandet av ett
finansiellt garanti instrument för den europeiska audiovisuella produktionen inom ramen för
gällande budgetplan.

I förlängningen av Europakonferensen om audiovisuella frågor har kommissionen genomfört
ett brett samråd med företrädare för den audiovisuella och den finansiella sektorn, särskilt vid
en rundabordskonferens som ägde rum i juni 1995 om finansieringen av den audiovisuella
sektorn. Vid dessa samråd bekräftades behovet av ettfinansieringsorgani syfte att minska de
risker som är förknippade med finansieringen av europeisk spelfilmsproduktion.

Det är absolut nödvändigt att minska dessa risker för att göra det möjligt för de europeiska
produktions- och distributionsbolagen att få tillgång till de krediter och lån som de behöver
för finansieringen av företagens produktions- och utvecklingsprojekt Ytterligare medel
behövs, i första hand för finansieringen av produktioner avsedda för de europeiska och
internationella marknaderna liksom för utvecklingen av bolag som kan tänkas producera eller
bidra till produktionen av verk som är avsedda för dessa marknader.

En undersökning av de finansieringssystem som finns att tillgå för den audiovisuella
programindustrin har klart visat att ett garanti-instrument inom gemenskapen som täcker en
del av de risker som är förknippade med lån skulle vara det lämpligaste medlet för att
tillgodose behovet av ytterligare resurser. Inrättandet av en europeisk garantifond i syfte att
minska de risker som är förknippade med finansieringen av produktioner inom sektorn
"fiction" kommer att stimulera och stödja utvecklingen av den europeiska program industrin

                                              11
 ---pagebreak--- Inrättandet av en Europeisk garantifond för att uppmuntra biograf- och televisionsproduktion
kommer att få en betydande hävstångseffekt eftersom den finansieringsvolym som frigörs
kommer att vida överskrida fondens kapital. Fondens insatser kommer att omfatta
lånetransaktioner.

Fonden kommer att driva sin verksamhet på så sätt att den utgör ett komplement till och
samtidigt är förenlig med marknadens regler och normer och den kommer inte att skapa
någon snedvridning av konkurrensen inom den audiovisuella sektorn, i enlighet med artikel
130.3 i fördraget. Den skall se till att stimulera och underlätta finansieringen av den
audiovisuella produktionen utan att själv stå för denna finansiering.

Fondens medverkan i enskilda finansieringsinsatser skall alltid ske i samarbete med andra
finansaktörer, både privata och offentliga (banker, försäkringsbolag, finansbolag osv.), som
är verksamma inom den audiovisuella sektorn. Fonden bör undvika att imitera eller inkräkta
på verksamhetsområden som handhas av befintliga institutioner eller organ.

Ett antal offentliga och privata inrättningar, bland annat för finansiering, har samma
målsättningar och intressen som gemenskapen när det gäller finansiering av europeiska
audiovisuella produktioner. Europeiska garantifonden bör etablera partnerskap eller andra
former av samarbete med dessa insitutioner för att stärka effekten av fondens verksamhet.

Europeiska investeringsfonden (EIF) inrättades i juni 1994 för att bidra till att uppfylla
gemenskapens målsättningar genom att främja investeringar i de tränseuropeiska näten och
i små och medelstora företag, särskilt genom att erbjuda lånegarantier. Gemenskapen blev
deltagare i fonden genom rådets beslut nr 94/375/EG(4).

I artikel 32 i Europeiska investeringsfondens stadgar anges att fonden kan påta sig uppgiften
att förvalta särskilda medel som anförtros den av tredje man. Europeiska investeringsfonden
har förklarat sig beredd att förvalta en garantifbnd med särskild inriktning på den
audiovisuella sektorn.

Fonden kommer att ha samma mål för sin verksamhet som vissa andra gemenskapsprogram,
i synnerhet Media Il-programmet.

Uppbyggnaden av en europeisk audi ovisuell marknad kräver att det produceras europeiska
verk, dvs. produktioner med ursprung i gemenskapens medlemsstater, som detta definieras i
artikel 6 i rådets direktiv nr 89/552/EEG(5).

I enlighet med artikel 128.4 i fördraget skall gemenskapen beakta de kulturella aspekterna då
den handlar enligt andra bestämmelser i fördraget.

(4)
      EGT nr L 173, 7.7.1994, s. 12.
(5)
      EGT nr L 298, 17.10.1989, s. 27.

                                             12
 ---pagebreak--- Utan att det påverkar bestämmelserna i de avtal och konventioner som gemenskapen
undertecknat, skall de företag som gynnas av fonden kontrolleras och fortsätta att kontrolleras,
antingen direkt eller genom majoritetsintressen, av medlemsstater eller av medborgare i
medlemsstaterna.

Fonden bör vara öppen för samarbete med sådana tredje länder som ingått avtal som
innefattar bestämmelser på det audiovisuella området, och de närmare villkoren för detta
samarbete bör vid lämplig tidpunkt fastställas av de berörda parterna

I överensstämmelse med subsidiaritetsprincipen skall Europeiska unionens insats stödja och
komplettera den insats som görs av myndigheterna i medlemsstaterna

Gemenskapens bidrag skall garantera den finansiella trovärdigheten hos Europeiska
garantifonden för att uppmuntra biograf- och televisionsproduktion och bidragen skall också
fastställas med hänsyn till gällande budgetplan och årliga budgetramar.

Fondens resultat- och balansräkning skall läggas till gemenskapernas resultat- och
balansräkning. Fondens räkenskaper skall granskas av kommissionen och revisionsrätten i
enlighet med artikel 188c i fördraget samt med bestämmelserna i budgetförordningen av den
21 december 1977(6) i dess lydelse efter den senaste ändringen genom förordning (EG,
Euratom, EKSG) nr 2335/95(7).

HÄRIGENOM FÖRESKRIVS FÖLJANDE.

                                            Artikel l
                                        Fondens inrättande

Härmed inrättas Europeiska garantifonden                för   att   uppmuntra    biograf-   och
televisionsproduktion, nedan kallad "fonden".

                                            Artikel 2
                                              Mål

1. Fondens uppdrag skall vara att underlätta finansieringen av produktionen av europeiska
   audiovisuella verk genom att ställa garantier av alla de slag som medges enligt gällande
   lag.

(6)
      EGT nr L 356, 31.12.1977, s. 1.
(7)
      EGT nr L 240, 7.10.1995, s. 12.

                                                13
 ---pagebreak--- 2. Fondens verksamhet skall ha följande målsättningar:

       Främja produktionen av europeiska biograf- och TV-filmei avsedda for den europeiska
       och den internationella marknaden.

       Främja europeiska bolag för produktion av sådana verk samt europeiska
       distributionsbolag som bidrar till finansieringen av produktionen av dessa verk. Dessa
       bolag skall kontrolleras och fortsätta att kontrolleras, antingen genom direkt ägande
       eller genom aktiemajoritet, av medlemsstaterna eller av medborgare i medlemsstaterna

3. Fonden skall vara öppen för samarbete med sådana tredje länder som ingått avtal med
   gemenskapen som innefattar bestämmelser på det audiovisuella området.

                                           Artikel 3
                                         Insatsformer

1 För att uppfylla de målsättningar som anges i artikel 2 ställer fonden garantier för
  kortfristiga kredittransaktioner samt för lån på medellång och lång sikt. Både lån med hög
  och låg prioritet kan komma i fråga.

2 Fondens verksamhet omfattar också varje annan typ av insats som faller inom ramen för
  dess uppdrag och som bidrar till att dess målsättningar uppfylls. När det är lämpligt

   -   kan förslag ställas till andra garantiinrättningar, särskilt Europeiska Investeringsfonden,
       att medverka som medgarant både för enskilda insatser och för paketprojekt,

   -   kan återförsäkringsavtal ingås med andra garanti- eller försäkringsinrättningar, särskilt
       Europeiska investeringsfonden, i syfte att begränsa och sprida fondens risktagande,

   -   kan andra garanti- eller försäkringsinrättningar anlitas som undergaranti för en del av
       insatserna mot betalning av kostnader och premier som detta medför,

   -   kan andra former för samarbete och riskdelning arrangeras till sammans med finansiella
       institut.

3. Avtal om partnerskap och andra former av samarbete kan ingås med institutioner som
   delar de målsättningar som anges i artikel 2.

                                               14
 ---pagebreak---                                          Artikel 4
                            Allmänna riktlinjer för verksamheten

    För att öka insatsernas samlade verkan skall de risker som fonden garanterar i möjligaste
    mån delas med Europeiska investeringsfonden, utom i de fall då insatserna inte uppfyller
    Europeiska investeringsfondens kriterier.

    Generellt sett far de garantier som fonden beviljar inte överstiga hälften av de enskilda
    låne- och kreditbeloppen. I de fall där garantier ställs gemensamt med Europeiska
    investeringsfonden skall fondens ansvar begränsas i motsvarande grad.

    Fasta tak skall fastställas för fondens riskexponering i enskilda transaktioner

                                          Artikel 5
                                     Kapital och intäkter

1. Gemenskapen skall bidra till fondens kapital förutsatt att det finns disponibla anslag i
   budgeten. Gemenskapens bidrag samt bidrag från tredje part skall insättas på ett särskilt
   konto som skall öppnas vid Europeiska investeringsfonden.

2. Räntorna från det särskilda konto, till vilket inbetalningarna till kapitalet skall göras,
   intäkterna som härrör från premier, honorar och provisioner samt alla andra former av
   intäkter skall läggas till kapitalet.

3. De premier och provisioner som skall betalas av garanti form ån stagarna skall fastställas
   på så sätt att inkomsterna balanserar utgifterna.

                                          Artikel 6
                                          Uppdrag

1. Fonden skall förvaltas av Europeiska investeringsfonden. Förvaltningsföreskrifterna skall
   fastställas i ett samarbetsavtal som skall ingås mellan kommissionen och Europeiska
   investeringsfonden och vars innehåll skall godkännas enligt det förfarande som anges i
   artikel 7.2.

2   Europeiska investeringsfonden skall utföra denna uppgift med samma omsorg som iakttas
    vid transaktioner med dess egna medel. Enskilda garantitransaktioner skall godkännas
    enligt de förfaranden som gäller för Europeiska investeringsfondens egna transaktioner.

3   Europeiska investeringsfonden skall på fondens risk ingå de avtal med tredje part som är
    nödvändiga för den förvaltning som anges i punkt 1.

                                              15
 ---pagebreak--- 4 Samarbetsavtalet skall särskilt omfatta följande:

   -   Allmänna riktlinjer för fonden och dess målsättningar.
       Urvalskriterier för enskilda projekt.
       Finansiella föreskrifter och handlingsregler för fondens insatser
       Fondens premiepolitik i förhållande till risken vid enskilda projekt.
   -   Maximalt tak för åtaganden och andra begränsningar som följer av tillsynsregler på
       området.
   -   Regelbundet återkommande utvärdering av fondens storlek.
       Europeiska investeringsfondens ersättning för förvaltningen av fonden
   -   Föreskrifter för den regelbundet återkommande översynen av avtalet.

5. Europeiska investeringsfonden skall överlämna alla garantiförslag till kommissionen för
   yttrande. Om kommissionen meddelar sitt samtycke till Europeiska investeringsfonden så
   kan garantin beviljas.

                                        Artikel 7
                                        Kommitté

Kommissionen skall biträdas av en rådgivande kommitté. Den skall bestå av företrädare för
medlemsstaterna och ha en företrädare för kommissionen som ordförande.

Kommissionens företrädare skall förelägga kommittén ett förslag till åtgärder. Kommittén
skall yttra sig över förslaget inom den tid som ordföranden bestämmer med hänsyn till hur
brådskande frågan är, om nödvändigt genom omröstning.

Yttrandet skall protokollföras och dessutom har varje medlemsstat rätt att begära att få sin
uppfattning tagen till protokollet.

Kommissionen skall ta största hänsyn till det yttrande som kommittén avgett. Den skall
underrätta kommittén om det sätt på vilket dess yttrande har beaktats.

                                         Artikel 8
                                        Utvärdering

När fonden varit verksam i tre år, och därefter vart femte år, skall kommissionen till
Europaparlamentet, rådet och Ekonomiska och sociala kommittén överlämna en oberoende
utvärderingsrapport om de resultat som uppnåtts vilken i förekommande fall skall åtföljas av
lämpliga förslag.

                                             16
 ---pagebreak---                                          Artikel 9
                                      Finansrapporter

Senast den 30 april varje år skall en rapport sammanställd av Europeiska investeringsfondens
finanskommitté överlämnas till Europeiska investeringsfondens övervakningsråd för
godkännande. Den skall särskilt omfatta fondens räkenskaper efter avslut vid föregående års
utgång samt en förteckning över de insatser som fonden genomfört. Kommissionen skall efter
godkännande överlämna rapporten till Europaparlamentet och rådet.

Utfärdat i Bryssel den

                                               På rådets vägnar

                                               Ordförande

                                             17
 ---pagebreak--- FINANCIAL STATEMENT

1. TITLE OF OPERATION

      European Guarantee Fund to promote cinema and television production

2. BUDGET HEADING INVOLVED

      Section III (Commission), Part B (operating appropriations)

      B 3-2015

3. LEGAL BASIS

      To be constituted by the proposed Decision, based on Article 130 of the EC Treaty

4. DESCRIPTION OF OPERATION

4.1      General objective

      This initiative is in response to the call by the European Council and the Commission for
      action to accompany measures to boost the European cinema and television industry
      Besides the effort under way through the Media II programme (mainly geared towards
      training, project development and distribution), the need has become apparent for an
      instrument to make it easier for production companies to obtain funding from the banks

42       Period covered and arrangements for renewal or extension

      The gradual build-up of the Guarantee Fund to promote cinema and television production
      will allow the Community contributions to the Fund's capital to be spread over at least
      four years (1997-2000). Once it has reached its planned size, the Fund will be
      self-financing. The Fund's capital will also be open to non-Community contributions
      (public and private investors with an interest in the industry's development). What forms
      these take will have to be defined by the parties involved.

5. CLASSIFICATION OF EXPENDITURE OR REVENUE

5.1      Non-compulsory expenditure

52       Differentiated appropriations

5.3      Type of revenue involved: N/A

                                               18
 ---pagebreak--- 6. TYPE OF EXPENDITURE OR REVENUE

      The Community contribution will take the form of a subscription to the capital of the
      Guarantee Fund, an instrument that will not have legal personality and which will be
      administered under mandate by the European Investment Fund.

      The operation will not generate any revenue for the Community budget since the
      premiums received and any financial proceeds (investment of capital) will be added to the
      Fund's capital.

7. FINANCIAL IMPACT

71       Method of calculating cost of operation (link between unit costs and total cost)

-     This proposal to establish a Guarantee Fund to promote cinema and television production
      is compatible with the financial programming for the audiovisual sector (MEDIA II), for
      which the Commission proposed an overall allocation of ECU 400 million (1996-2000)
      The proposed contribution to the Guarantee Fund's capital would be deducted from the
      programmed amount To ensure the Fund's viability and financial credibility, the
      Commission takes the view that it must attain a certain minimum size in terms of capital
      The proposed contribution (ECU 90 million between 1996 and 2000) will meet this
      requirement.

-     The Community contribution of ECU 90 million will be made in at least four annual
      payments, in line with the schedule below. The payments will be made to the EIF, which
      will administer the Fund.

7.2      Itemized breakdown
                commitment appropriations (ecu million)

                             1996       1997      1998        1999      2000       TOTAL
                            budget
        Capital              p.m.        10        25         25         30         90
        subscription

7.3 Schedule
                                                   commitment appropriations (ecu million)

                              1996       1997          1998     1999       2000      TOTAL
                             budget
        Commitments           p.m.         10           25         25         30         90
        Payments              p.m.         10           25         25         30         90

                                                  19
 ---pagebreak--- 8.    FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN

      The EIF, having the appropriate expertise, will administer the guarantees and monitor
      and evaluate the mechanism. In particular the EIF will be responsible for assessing
      projects, ensuring compliance with the eligibility criteria and the financial soundness of
      the set-up. In the event of losses, it will carry out all necessary investigations. Any fraud
      or false declaration discovered will constitute a breach of contract.

      The cooperation agreement to be concluded between the Community and the EIF will
      spell out the detailed arrangements for controls and will specify the information that has
      to be supplied regularly to the Commission.

      The EIF's activities under the mandate will also be subject to the same internal and
      external controls as its own activities.

      An annual report drawn up by the EIF Financial Committee will be submitted to the
      Supervisory Board of the EIF for approval by 30 April of each year. In particular the
      report will contain the accounts closed at the end of the preceding year, as certified by
      outside auditors, and a list of the operations carried out by the Fund The Commission
      will forward the approved report to Parliament and the Council.

9.    ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

9.1   Specific and quantifiable objectives: target population

      The specific objective is to make it easier for production companies to obtain bank
      funding. These companies have always had difficulty obtaining access to sources of
      outside finance, especially to tie up the financing plan for their films. Being poorly
      capitalized and producing only intangibles, the industry is usually unable to offer the
      securities demanded by financial institutions.

      The Guarantee Fund will cover up to 50% of loans and individual credits (sharing the
      risk equally with other financial institutions), so helping to ease the difficulties
      encountered by professionals in the industry. The EIF will also be asked to share the risk
      associated with individual projects, provided they meet the EIF's criteria.

      The target population, in other words the direct beneficiaries of the Fund's operations,
      will be European production companies and distribution companies (in respect of
      activities in direct support of production, such as the minimum guarantees they give to
      producers). For every guarantee granted there will always be a guarantee and risk-sharing
      contract between the financial institution concerned and the Guarantee Fund.

                                                20
 ---pagebreak--- 92   Grounds for the operation

      The Community's aim is to help strengthen the European audiovisual industry. This
     follows on from the ideas put forward in the White Paper on Growth, Competitiveness
     and Employment, the report by the Bangemann Group and the Green Paper on strategy
     options to strengthen the European cinema and television programme industry.

     On 3-4 April 1994 the Council requested the Commission to draw up a proposal for the
     creation of a specific financial instrument to complement the MEDIA II programme and
     stimulate investment in cinema and television production in Europe. The two successive
     MEDIA programmes did not involve any measures aimed at production companies
     However, it has become apparent that production companies are faced with numerous
     obstacles when seeking bank funding and that national mechanisms offer only a partial
     answer. Community action appears especially appropriate since the Fund's selection
     criteria will make it possible to promote the financing of works with major (European
     and international) audience potential.

     The mechanism chosen has the advantage that it will not distort competition, since it will
     operate by the rules of the market (reducing risks and payment of premiums). Once the
     capital of the Fund is constituted, its operation will not require recurrent contributions
     from the Community budget. In addition, sharing the risks with financial institutions will
     make it possible to streamline the procedure for examining applications considerably and
     will ensure that the institutions refer commercially viable projects to the Fund. The
     mechanism also makes it possible to take full advantage of the existence and expertise
     of the European Investment Fund.

     The proposed mechanism will substantially amplify the financial impact of the
     Community contribution, as the guarantee given by the Fund will give production
     companies access to resources several times greater than the Fund's own capital (initially
     constituted by the Community's contributions).

     The main area of uncertainty liable to affect the specific performance of the Fund is the
     level of the premiums which it charges (which will depend on the risk). The Fund will
     therefore be authorized to vary its premiums, subject to the general principle that it
     should be financially self-sufficient.

                                              21
 ---pagebreak--- 9.3   Monitoring and evaluation of the operation

      When the Fund has been in operation for three years, and every live years after that, the
      Commission will send Parliament, the Council and the Economic and Social Committee
      an independent evaluation report on the Fund's performance, together with appropriate
      proposals if necessary.

      The effectiveness of the operation will be measured by a range of indicators such as:

          the Fund's profit and loss account and its general financial situation;
          number of productions made with the Fund's assistance, distinguishing between
          assistance given to production companies and assistance given to distribution
          companies that contribute towards financing production;
          number of production companies, distribution companies and financial institutions
          that have made use of the instrument;
          number and volume of investments generated and the breakdown between works for
          the cinema and television;
          the impact of the Fund's activities on European production as a whole (in particular
          the proportion of European production that has received assistance from the Fund).
          etc

10.   ADMINISTRATIVE EXPENDITURE (part A of the budget)

      The proposed scheme does not involve any increase in Commission staff or
      administrative expenditure. The Guarantee Fund to promote cinema and television
      production will be administered by the European Investment Fund, which will be paid
      a commission on the outstanding amount of guarantees granted as defined in the
      cooperation agreement.

                                              22
 ---pagebreak---                                                                     ISSN 1024-4506

                                                        KOM(95) 546 slutlig

                                                DOKUMENT

SV                                                                        16 10

                                     Katalognummer : CB-CO-95-604-SV-C

                                                               ISBN 92-77-96231-3

Byrån för Europeiska gemenskapernas officiella publikationer
L-2985 Luxemburg
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