EUROPEAN PARLIAMENT 2014 - 2019

Plenary sitting

A8-9999/2015

22.4.2015

***IREPORTon the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Committee on BudgetsCommittee on Economic and Monetary Affairs

Rapporteurs: José Manuel Fernandes, Udo Bullmann

(Joint Committee meetings – Rule 55 of the Rules of Procedure)

Rapporteurs for the opinions (*):Kathleen Van Brempt, Committee on Industry, Research and EnergyInés Ayala Sender, Dominique Riquet, Committee on Transport and Tourism

(*) Associated committees – Rule 54 of the Rules of Procedure

RR\551765EN.doc PE551.765v03-00

EN United in diversity EN

PR_COD_1consamCom

Symbols for procedures

* Consultation procedure*** Consent procedure

***I Ordinary legislative procedure (first reading)***II Ordinary legislative procedure (second reading)

***III Ordinary legislative procedure (third reading)

(The type of procedure depends on the legal basis proposed by the draft act.)

Amendments to a draft act

Amendments by Parliament set out in two columns

Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.

The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.

Amendments by Parliament in the form of a consolidated text

New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced. By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.

PE551.765v03-00 2/354 RR\551765EN.doc

EN

CONTENTS

Page

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION.................................5

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY(*)........38

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM(*)........................102

OPINION OF THE COMMITTEE ON BUDGETARY CONTROL....................................137

OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS..........188

OPINION OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY......................................................................................................................223

OPINION OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMER PROTECTION........................................................................................................................261

OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT..............................281

OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT.................................................................................................................................................305

OPINION OF THE COMMITTEE ON CULTURE AND EDUCATION............................325

OPINION OF THE COMMITTEE ON CONSTITUTIONAL AFFAIRS.............................337

PROCEDURE.........................................................................................................................365

(*) Associated committees – Rule 54 of the Rules of Procedure

RR\551765EN.doc 3/354 PE551.765v03-00

EN

PE551.765v03-00 4/354 RR\551765EN.doc

EN

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2015)0010),

– having regard to Article 294(2) and Articles 172, 173, 175(3) and 182(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0007/2015),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to Rule 59 of its Rules of Procedure,

– having regard to the joint deliberations of the Committee on Budgets and the Committee on Economic and Monetary Affairs under Rule 55 of the Rules of Procedure,

– having regard to the report of the Committee on Budgets and the Committee on Economic and Monetary Affairs and the opinions of the Committee on Industry, Research and Energy, the Committee on Transport and Tourism, the Committee on Budgetary Control, the Committee on Employment and Social Affairs, the Committee on Environment, Public Health and Food Safety, the Committee on Internal Market and Consumer Protection, the Committee on Regional Development, the Committee on Agriculture and Rural Development, the Committee on Culture and Education and the Committee on Constitutional Affairs (A8-0000/2015),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

RR\551765EN.doc 5/354 PE551.765v03-00

EN

Amendment 1

AMENDMENTS BY THE EUROPEAN PARLIAMENT*

to the Commission proposal

---------------------------------------------------------

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Fund for Strategic Investments ▌

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 172, 173, and Article 175(3) and Article 182(1) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinions of the European Economic and Social Committee and the Committee of the Regions,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of fiscal constraints on Member States and sluggish growth, thereby resulting in market uncertainty regarding the economic future ▌. This lack of investment, which has been particularly severe in those Member States most affected by the crisis, slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness, potentially preventing the attainment of the Europe 2020 targets and objectives for smart, sustainable and inclusive growth. There is a need to strengthen the attractiveness of investing in Europe and in the infrastructure of a modern knowledge economy.

* Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.

PE551.765v03-00 6/354 RR\551765EN.doc

EN

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment and ever-increasing disparities between regions, and to reinforce confidence in the Union economy, while incentives for creating an investment-inducing environment in Member States could boost economic recovery. Along with a renewed impetus towards investment financing, structural reforms that are effective and economically and socially sustainable and fiscal responsibility constitute a means of ▌establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained reduction of the output gap as well as to an increase in growth potential. The EFSI, strengthened by Member State contributions, must be a complement to an overall strategy to improve Union competitiveness and attract investment.

(2a) In order to maximise the employment impact of the EFSI, Member States should continue to undertake structural reforms that are effective and economically and socially sustainable, as well as other initiatives such as training programmes and active labour market policies, the support of conditions for the creation of quality and sustainable jobs, and investment in targeted social policies in line with the 2013 Social Investment Package. In addition, Member States should undertake additional activities such as customised training programmes to match the skills of workers to the needs of sectors benefiting from EFSI, tailor-made business services for enterprises to prepare them to expand and create more jobs, as well as support for start-ups and self-employed individuals.

(3) The G20, through the Global Infrastructure Initiative, has recognised the importance of investment in boosting demand and lifting productivity and growth and has committed to creating a climate that facilitates higher levels of investment.

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 Strategy that put in place an approach for smart, sustainable and inclusive growth and through the European Semester for economic policy coordination. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment and macro-economic needs of the Union are addressed adequately and that the liquidity available on the market is used efficiently and its channelling towards the funding of viable investment projects is encouraged.

(5) On 15 July 2014, the then President-elect of the European Commission presented a set of Political Guidelines for the European Commission to the European Parliament. These Political Guidelines called for the mobilisation of "up to EUR 300 billion in additional public and private investment in the real economy over the next three years" to stimulate investment for the purpose of job creation.

(6) On 26 November 2014, the Commission presented a communication entitled "An Investment Plan for Europe"1 that envisaged the creation of a European Fund for

1 Communication to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and European Investment

RR\551765EN.doc 7/354 PE551.765v03-00

EN

Strategic Investments ('EFSI'), a transparent directory of investment projects at European level, the creation of an advisory hub (European Investment Advisory Hub – 'EIAH') and emphasised an ▌agenda to remove obstacles to investment and complete the Single Market.

(7) The European Council on 18 December 2014 concluded that "fostering investment and addressing market failure in Europe is a key policy challenge" and that "The new focus on investment, coupled with Member States' commitment to intensifying structural reforms and to pursuing growth-friendly fiscal consolidation, will provide the foundation for growth and jobs in Europe and calls for setting up a European Fund for Strategic Investments (EFSI) in the EIB Group with the aim to mobilise 315 billion euro in new investments between 2015 and 2017".

(7a) On 13 January 2015, the European Commission issued a communication entitled “Making the best use of the flexibility within the existing rules of the Stability and Growth Pact” in order to strengthen the link between investment, structural reform and fiscal responsibility.

(8) The EFSI should be part of a comprehensive approach to address uncertainty surrounding public and private investments and to reduce the investment gaps in the Union. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union. The strategy should boost competitiveness and economic recovery and should be complementary to the objective of economic, social and territorial cohesion across the Union. It must be seen as a complement to all other actions needed to reduce the investment gaps in the Union and – by acting as a guarantee fund - as a stimulus for new investments.

(9) The investment environment within the Union should be improved by removing barriers to investment, ensuring that there is no discrimination based on whether the management of the projects is private or public, reinforcing the Single Market and ▌enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing transformative, productive and strategic investments in the Union that provide an immediate boost to its economy and to ensure increased access to financing, with the aim of reducing unemployment levels and boosting growth in the Union. It is intended that increased access to financing should be of particular benefit to small and medium-sized enterprises, including for the creation of start-ups and spin-offs from universities, and social and solidarity enterprises. It is also appropriate to extend the benefit of such increased access to financing to small mid-cap companies, as well as to non-profit organisations and social economy enterprises. Overcoming Europe's current investment difficulties and reducing regional disparities should seek to contribute to strengthening the Union's competitiveness, research and innovation potential, economic, social and territorial cohesion,

Bank entitled "An Investment Plan for Europe". COM(2014) 903 final

PE551.765v03-00 8/354 RR\551765EN.doc

EN

and to supporting an energy- and resource-efficient transition towards a sustainable, renewable-based circular economy, through the creation of stable and fairly remunerated jobs.

(11) The EFSI should support strategic investments with high economic added value contributing to achieving Union policy objectives in synergy with, and ensuring additionality to, existing Union operations such as, but not limited to, projects of common interest of any size which aim to complete the single market in the sectors of transport, telecommunications, infrastructure transition and energy efficiency, and including the Union's energy, climate and efficiency targets laid down in the Europe 2020 Strategy and in the 2030 Framework for climate and energy policies and which aim to meet the objectives of the Europe 2020 Strategy for smart, sustainable and inclusive growth. To ensure additionality over existing operations, the EFSI should target projects with a higher risk profile than existing EIB and Union instrument operations and that are oriented on the goals set out in this Regulation. Overcoming the Union's current investment difficulties will contribute to strengthening its economic, social and territorial cohesion. The EFSI should improve access to finance and the competitiveness of enterprises and other entities, with special emphasis on SMEs and mid-cap companies.

(11a) EFSI support to transport infrastructure should contribute to the objectives of Regulations (EU) No 1315/2013 (CEF) and (EU) No 1316/2013 (TEN-T) by creating new or missing infrastructure and also by modernising and rehabilitating existing facilities while allowing the financing of research and innovation operations in this sector. Particular attention should be paid to synergy projects strengthening the connections between transport, telecommunications and energy sectors and also to smart and sustainable transport projects.

(11b) The CAP, being the only fully “Communitised” field of policy, is of territorial application and is therefore very well suited to carrying out projects comprehensively in conjunction with the EFSI. Many of the existing instruments of the CAP can be used to make targeted investments successfully.

(11c) In its communication entitled “A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy”, the Commission stressed the importance of energy efficiency as an energy source in its own right and stated clearly that EFSI "provides an opportunity to leverage major investments in renovating buildings". Investments in energy efficiency are acknowledged to create up to two million jobs by 2020 and possibly another two million jobs by 2030. In order to ensure that the EFSI fulfils its purpose of leveraging private investments, delivering jobs, fostering resilient economic developments, and reducing macro-economic imbalances, a special focus on energy efficiency is needed. Therefore, technical assistance under the EIAH should be provided for the establishment of dedicated investment platforms for aggregated energy efficiency projects.

(12) Many small and medium-sized enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. The EFSI should help these businesses to overcome

RR\551765EN.doc 9/354 PE551.765v03-00

EN

capital shortages and market failures and financial fragmentation resulting in an uneven playing field across the Union by allowing the EIB and the European Investment Fund ('EIF') and national promotional banks or institutions, investment platforms or funds to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI.

(13) ▌ The provision of EFSI funding to small and medium-sized enterprises and small mid-cap companies may be channelled through the European Investment Fund ('EIF')▌.

(14) The EFSI should target projects delivering high societal, economic and environmental value. In particular, the EFSI should target projects that promote quality job creation, short-, medium- and long-term sustainable growth and competitiveness, research, education from an early age and training, infrastructure and energy transition and efficiency, notably where such projects have the highest incremental value, thereby contributing to achieving the Union's political objectives in accordance with Article 3 TFEU and Article 9 TEU.

(14a) The investments supported under EFSI should contribute to achieve existing Union programmes and policies and the targets and objectives of the Europe 2020 Strategy for smart, sustainable and inclusive growth. They should support the implementation of the conclusions of the European Council of 17 June 2010. For the purpose of reaching the general objectives set out in Article 5(2)(b) and c), they should contribute to achieve the objectives set out in Articles 170, 173 and 179 TFEU and Article 194(1) TFEU.

(14b) With the aim of better protecting and reaping commercial and economic benefits from Union co-funded initiatives, a set of rules established in Horizon 2020 concerning the exploitation and dissemination of project results, including their protection through intellectual property, should be respected by the participants of EFSI projects.

(14c) The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in projects. The EFSI should not be a substitute for private market finance or products provided by regional and national promotional banks but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money and as a means of further enhancing cohesion across the Union.

(14d) The impact of the EFSI on employment should be systematically monitored and further encouraged, especially with a view to achieving prolonged societal gains in the form of sustainable and quality employment, and as a result benefiting both investors and workers.

(15) The EFSI should target projects with a higher risk-return profile than existing EIB Group and Union instruments to ensure additionality over existing operations. The

PE551.765v03-00 10/354 RR\551765EN.doc

EN

EFSI should aim at financing projects across the whole of the Union▌. The EFSI should only be used where financing is not available from other sources including from private or public banks, from regional or national promotional banks, or from the EIB.

(16) The EFSI should target investments ▌which may entail a degree of appropriate risk higher than that of existing EIB Group activities, whilst still complying with Union principles and values in the field of social and environmental rules, encouraging the transition to a low-carbon circular economy, and in relation to territorial cohesion, and meeting the particular requirements for EFSI financing. The EFSI should not seek simply to reduce the cost of capital for investments that would find private financing even in absence of an EU guarantee. Average project risk under EFSI should be higher than under any other available investment portfolio in the Union. EU guarantee pricing policies should have due regard to the need to address investment gaps and financial fragmentation in the Union.

(16a) The EFSI should also support projects in the fields of education, training and research, the development of ICT skills and digital education, as well as projects in the cultural and creative sector. Investment in these fields should adopt a holistic approach which in each case displays appropriate respect for the intrinsic value of education and culture.

(17) Decisions on the use of the EU guarantee for potential projects and on the eligibility of national promotional banks or investment platforms to use the designation of “European Fund for Strategic Investments” should be made in a transparent and independent manner, by an Investment Committee in accordance with the investment guidelines adopted by the Steering Board pursuant to this Regulation. The Investment Committee should be composed of eight independent experts representing a broad range of expertise as outlined in this Regulation, and who should be approved by the European Parliament.

(18) In order to enable the EFSI to support investments, the Union should grant a guarantee of an amount equal to EUR 16 000 000 000. When provided on a portfolio basis, the guarantee coverage should be capped depending upon the type of instrument, such as debt, equity or guarantees, as a percentage of the volume of the portfolio of outstanding commitments. It is expected that when the guarantee is combined with EUR 5 000 000 000 to be provided by the EIB, that the EFSI support should generate EUR 60 800 000 000 additional investment by the EIB and EIF. This EUR 60 800 000 000 supported by the EFSI is expected to generate a total of EUR 315 000 000 000 in investment in the Union within a period of three years starting from the date of entry into force of this Regulation. Additional significant Member State contributions to the EFSI's capital are necessary to bring the Fund's capacity closer to actual needs and are essential to ensure an impact. Guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations.

RR\551765EN.doc 11/354 PE551.765v03-00

EN

(18a) The European Central Bank has expressed its readiness to purchase in the secondary market bonds issued by the EFSI, if the EFSI should issue such bonds itself, or if the EIB should do so on its behalf.

(19) In order to allow for the much needed further increase in its resources, participation in the EFSI should be open to third parties, including Member States, regional governments with fiscal and legislative powers, national and regional promotional banks, regional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI. A Member State’s participation in the EFSI through multiple public economic bodies or structures should not give the Member States and the third parties concerned an additional stake in the EFSI governance structure.

(19a) The EFSI should also have the possibility of supporting private fund structures, such as European Long-Term Investment Funds (ELTIFs) set up by private investors or national promotional banks, that could also play a role in providing a complementary vehicle for delivering public or private/public investments in the real economy. As provided for in Regulation XX/XXXX, the Commission should prioritise and streamline its processes for all applications by ELTIFs for financing from the EIB. The Commission and the EIB should also explore all types of possible cooperation between the EFSI and ELTIFs.

(20) At the level of projects, third parties may co-finance together with EFSI on a project-by-project basis or through investment platforms ▌.

(20a) In order to unleash investments at both the national and regional level, the EU guarantee should be able to be granted to national or regional promotional banks or institutions, investment platforms or funds, where possible seeking to achieve capital relief. Such operations should be considered EFSI operations.

(20b) A Member State's financial contribution in the form of one-off measures to the EFSI, dedicated investment platforms and to national promotional banks which benefit from the EU guarantee should be covered by the full range of the existing rules of the SGP.

(20c) Considering that infrastructure assets have a strong default and recovery record and considering that infrastructure project finance can be seen as a means of diversifying institutional investors’ asset portfolios, infrastructure projects benefiting from EFSI support should be treated as Type 1 exposures for the calculation of the Solvency Capital Requirement as set out in Title I Chapter V Section 6 of Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II). This approach should be examined as part of the Commission review of the methods, assumptions and standard parameters used when calculating the Solvency Capital Requirement with the standard formula, as referred to in recital 150 of that Delegated Regulation.

PE551.765v03-00 12/354 RR\551765EN.doc

EN

(21) The EFSI should complement, and be additional to, ongoing regional, national and Union programmes as well as existing EIB activities. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee, and to invest in the capital of the promotional banks or institutions, investment platforms or funds. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI.

(21a) Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee, in accordance with the objectives, principles and rules under the legal framework applicable to those funds, and in particular Regulation (EU) No 1303/2013 of the European Parliament and of the Council (the "Common Provisions Regulation"), and with Partnership Agreements and relevant programmes. The flexibility of that approach should foster synergies between Union instruments, ensure maximum added value and enhance the potential to attract investors to the areas of investment targeted by the EFSI. Full complementarity between instruments and investments, without replacement of financial instruments developed under the European Structural and Investment Funds, should be ensured, so that the crowding-out effect between them is avoided to the greatest extent possible.

(22) Infrastructure and project investments supported under the EFSI, when cofinanced by Member States, should be consistent with State aid rules in accordance with the Treaty on the Functioning of the European Union ▌and for the purposes of legal certainty. To that end, the Commission has announced that within a reasonable time (and in any case before the entry into force of this Regulation) it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project, regardless of its economic sector, meets these criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). The Commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds and the full respect of the principle of legitimate expectations.

(23) Given the need for urgent action within the Union, the EIB and the EIF may have financed additional projects, outside of their usual profile, in the course of 2015 before the entry into force of this Regulation. In order to maximise the benefit of the measures provided for in this Regulation, it should be possible for such additional projects to be included within the EU guarantee coverage in the event that they fulfil the substantive criteria set out in this Regulation.

(24) EIB financing and investment operations supported by the EFSI should be managed in accordance with Regulation (EU, Euratom) No 966/2012 of the European

RR\551765EN.doc 13/354 PE551.765v03-00

EN

Parliament and of the Council1, including appropriate control measures and measures taken to avoid tax evasion, as well as with the relevant rules and procedures concerning the European Anti-Fraud Office (OLAF) and the Court of Auditors, including the Tripartite agreement between the European Commission, the European Court of Auditors and the European Investment Bank.

(25) The EIB and the Investment Committee should regularly evaluate and report on activities supported by the EFSI with a view to assessing their relevance, performance, impact, additionality, added value as well as their coordination and coherence with other Union policies, in particular with regard to financial support from the European Structural and Investment Funds, and to identifying aspects that could improve future activities. Such evaluations and reporting should be made public and contribute to accountability and analysis of sustainability.

(25a) EFSI policies should take into account gender equality and support the integration of gender perspectives, as well as the prevention of any kind of discrimination, especially as regards accessibility for persons with disabilities.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union. The EIAH should provide free expertise in order to ensure fair access to EFSI financing across the Union. The EIAH should work closely with similar structures at national level, in order to ensure decentralised assistance on the ground, fostered by a multilingual approach, and to facilitate effective dissemination of information.

(26a) The EIAH shall in particular build upon good practices in existing programmes, such as European Local ENergy Assistance (ELENA), European Efficiency Industrial Fund (EEIF), JEREMIE (Joint European Resources for Micro to Medium Enterprises), JASPERS (Joint Assistance to Support Projects in European Regions), JESSICA (Joint European Support for Sustainable Investment in City Areas) and JASMINE (Joint Action to Support Micro-finance Institutions in Europe).

(27) In order to cover the risks related to the EU guarantee to the EIB, a guarantee fund should be established. The guarantee fund should be constituted by a gradual contribution from the Union budget. The guarantee fund should subsequently also receive revenues and repayments from projects that benefit from EFSI support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the EIB. Any surplus in the guarantee fund

1 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

PE551.765v03-00 14/354 RR\551765EN.doc

EN

resulting from an adjustment of the target amount or any remaining remunerations after restoring the target amount should be returned to the general budget of the Union as assigned revenue, in order to replenish any lines which may have been used as a source of redeployment to the EU guarantee fund.

(28) The guarantee fund is intended to provide a liquidity cushion for the Union budget against losses incurred by the EFSI in pursuit of its objectives. Experience on the nature of investments to be supported by the EFSI indicates that the level of resources in the guarantee fund should represent a ratio of 50% of the Union's total guarantee obligations▌.

(29) The contribution from the Union budget ▌ should be progressively authorised by the European Parliament and ▌the Council in the framework of the annual budgetary procedures up to and including 2022. For this purpose, the budgetary authority should make use, where appropriate, of all means available under Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the Multiannual Financial Framework 2014-2020, with particular recourse to the Global Margin for Commitments, the Global Margin for Payments, and the Flexibility Instrument.

(30) Given their assimilation to Union financial instruments, ▌the EU guarantee to the EIB and the guarantee fund should comply with the principles of sound financial management, transparency, proportionality, non-discrimination, equal treatment and subsidiarity as referred to in Article 140 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council1 and, where appropriate, should comply with Article 139 of that Regulation.

(31) Within the Union, there is a significant number of potential economically and technically viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB ▌should promote the creation of a transparent directory of current and future investment projects in the Union suitable for investment. This 'project directory' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable and transparent information on which to base their investment decisions. In connection with the directory, value will be attached to the protection of essential business secrets.

(32) Member States, in cooperation with regional and local authorities, should be able to contribute to the European investment project directory by providing, inter alia, information on investment projects in their territory.

1 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

RR\551765EN.doc 15/354 PE551.765v03-00

EN

(33) The project directory should include projects across the Union for visibility to investors and for information purposes only. This ▌may include projects that are capable of being fully financed by the private sector or with the assistance of other instruments provided at European or national level. The EFSI should be able to support financing and environmentally sustainable investment to projects identified by the project directory, but there should be no automaticity between inclusion on the list and access to EFSI support and the EFSI, the EIB and the Investment Committee should be conferred with full discretion to select and support projects that are not included on the list.

(34) To ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress and impact of the EFSI, in particular as regards the additionality of operations conducted under the EFSI compared to normal EIB operations, including special operations. At the request of the European Parliament, the Chairperson of the Steering Group and the Managing Director should participate in hearings and reply to questions within a fixed period.

(35) In order to ensure an appropriate coverage of the EU guarantee obligations and to ensure the continued availability of the EU guarantee, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission with respect to the adjustment of the amounts to be paid in from the general budget of the Union. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

(36) Since the objectives of this Regulation, namely to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, cannot be sufficiently achieved by the Member States by reason of the disparities in their fiscal capacity to act but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

CHAPTER I -European Fund for Strategic Investments

Article 1European Fund for Strategic Investments

1. The Commission shall negotiate a draft agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI') in line with the requirements of this Regulation.

PE551.765v03-00 16/354 RR\551765EN.doc

EN

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, giving priority to small and medium enterprises and small mid-cap companies, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

2. The EFSI Agreement shall be open to accession by Member States and third parties, including national and regional promotional banks or public agencies owned or controlled by Member States, regional authorities, dedicated investments platforms, and private sector entities. Neither Member States nor third parties shall be entitled to be a member of the Steering Board.

2a. The Commission shall be empowered to enter into the EFSI Agreement on behalf of the Union by means of a delegated act in accordance with Article 17, provided that the EFSI Agreement meets the requirements of this Regulation.

2b. The Commission shall be empowered to accept later amendments of the EFSI Agreement by means of delegated acts in accordance with Article 17, provided that the amendments to the EFSI Agreement meet the requirements of this Regulation.

Article 1aDefinitions

For the purposes of this Regulation, the following definitions apply:

a) 'EFSI Agreement´ means the legal instrument whereby the Commission and the EIB further specify the conditions laid down in this Regulation for the management of the EFSI;

b) ´national promotional bank or institution´ means a legal entity carrying out a financial activity on a professional basis which is given a public mandate by a Member State, whether at central, regional or local level, to carry out development or promotional activities;

c) ´investment platforms´ means special purpose vehicles, managed accounts, contract-based co-financing or risk sharing arrangements or arrangements established by any other means by which investors channel a financial contribution in order to finance a number of investment projects and which may include national platforms that regroup several investment projects on the territory of a given Member State, multi-country or regional platforms that regroup partners from several Member States or third countries interested in large projects in a given geographic area, and thematic platforms that could gather investment projects in a given sector;

d) 'small and medium-sized enterprises' or ‘SMEs’ means micro, small and medium-sized enterprises, as defined in Article 2 of the Annex to Commission Recommendation 2003/361/EC1;

1 Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

RR\551765EN.doc 17/354 PE551.765v03-00

EN

e) ´small mid-cap companies´ means legal entities having up to 499 employees and that are not SMEs;

f) ´mid-cap companies´ means legal entities having up to 3000 employees and that are not SMEs or small mid-cap companies;

g) 'additionality' means the support by the EFSI of operations which address market failures or investment gaps and which could not have been carried out in that period under normal EIB instruments, including special operations, without EFSI support or to the same extent during that period under EIF and EU instruments. Projects supported by the EFSI, while striving to create jobs and growth, shall typically have a higher risk profile than projects supported by normal EIB operations, including special operations.

Article 2Terms of the EFSI Agreement

1. The EFSI Agreement shall contain, in particular, the following:

(a) provisions governing the establishment of the EFSI as a distinct, clearly identifiable and transparent guarantee facility and separate account managed by the EIB;

(b) the amount and terms of the financial contribution which shall be provided by the EIB through the EFSI;

(c) the terms of the funding which shall be provided by the EIB through the EFSI to the European Investment Fund ('EIF');

(d) the governance arrangements concerning the EFSI, in accordance with Article 3, without prejudice to the Statute of the European Investment Bank;

(da) detailed requirements for EIB financing and investment operations and EIB funding to the EIF which are eligible for the EU guarantee, in accordance with Article 5(2a) and Article 5a;

(db) a scoreboard of the key performance indicators to be used for assessing the macroeconomic impact of EFSI investments, including on jobs and growth, energy efficiency, TEN-T, urban mobility, the fulfilment of Union objectives, including those of the Europe 2020 Strategy, and on the mobilisation of private capital and its effect on supporting investment;

(e) detailed rules on the provision of the EU guarantee, in accordance with Article 7, including its capped coverage of portfolios of specific types of instruments, calls on the EU guarantee, that – with the exception of possible losses on equity - shall only occur once a year after profits and losses from operations have been netted, and its remuneration and the requirement that remuneration for risk-taking be allocated amongst contributors in proportion with their respective risk share;

PE551.765v03-00 18/354 RR\551765EN.doc

EN

(f) provisions and procedures relating to recovery of claims;

(fa) the procedure for project selection, including the role of the EIB in the initial assessment of project proposals and their transmission to the Investment Committee;

(g) requirements governing the use of the EU guarantee, including within specific time frames and key performance indicators;

(ga) detailed arrangements for ensuring that financing and investment operations signed by the EIB during the transitional period laid down in Article 20 benefit from the EU guarantee;

(h) provisions on ▌financing ▌the EIAH in accordance with Article 8a (new);

(i) provisions governing the manner in which third parties may co-invest with EIB financing and investment operations supported by the EFSI;

(j) the modalities of the EU guarantee coverage;

(ja) provisions on the intellectual property of the funded projects as provided for in Regulation (EU) No 1291/2013 of the European Parliament and of the Council1.

The EFSI Agreement shall provide that there is a clear distinction between operations carried out with the EFSI support and other operations of the EIB. Therefore, the EIB shall ensure that EFSI activities are subject to a separate financial statement.

The EFSI Agreement shall provide that EFSI activities conducted by the EIF are to be governed by the EIF governing bodies. However, they shall be included in the overall EFSI reporting.

The EFSI Agreement shall provide that remuneration attributable to the Union from EFSI supported operations shall be provided following the deduction of payments due to calls on the EU guarantee and, subsequently, costs in accordance with Article 8a (new)and with Article 5(3).

▌▌▌3. Member States that become parties to the EFSI Agreement shall be able to provide their contribution, in particular, in the form of cash or a guarantee acceptable to the EIB. Other third parties shall be able to provide their contribution only in cash.

Article 2aFinancial rules

1 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

RR\551765EN.doc 19/354 PE551.765v03-00

EN

The financial rules applicable to the EFSI and the EIAH shall be adopted by the Steering Board. They shall not deviate from Regulation (EC, Euratom) No 966/2012.

In the framework of the negotiations to the EFSI Agreement prior to the setup of the EFSI or after a formal request of the Steering Committee, the Commission shall be empowered to allow in duly justified cases for derogations in the form of transitional financial rules by means of a delegated act in accordance with Article 290 TFEU and Article 17 of this Regulation. Such transitional rules shall be valid for a maximum of three years or until Parliament and Council amend Regulation (EC, Euratom) No 966/2012 to incorporate the special requirements of the EFSI.

Article 3Governance of the EFSI

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation in line with the Europe 2020 objectives and giving particular regard to where the impact on growth and jobs is highest, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in order to maximise growth, job and investment, in conformity with the objectives under Article 5(2) and Article 5(2)(a) and to the effect of ensuring the additionality of the investments supported by the EFSI guarantee. The Steering Board shall also specify the investment policy regarding eligible investment platforms. The Steering Board shall determine the EU guarantee pricing policies having due regard to the need to address investment gaps and financial fragmentation in the Union. The Steering Board shall adopt investment guidelines for the use of the EU guarantee to be implemented by the Investment Committee.

1a. The priorities to be pursued by the Commission for the investment guidelines of the EFSI shall mirror the Union objectives and be in line with Article 5(2a) of this Regulation. They shall be specified before the EFSI Agreement enters into force and revised if appropriate. The priorities shall be made public. The Commission shall be empowered to adopt delegated acts in accordance with Article 17 for this purpose.

When exercising its mandate within the Steering Board of the EFSI, the Commission shall promote, and vote consistently with, the priorities as specified and revised in accordance with the first subparagraph.

2. The Steering Board shall comprise four ▌members: three appointed by the Commission and one by the EIB. The Steering Board shall elect a Chairperson from among its members for a fixed term of three years, renewable once.

The Steering Board shall take decisions by consensus.

3. ▌The Steering Board shall ▌make decisions by consensus. ▌

PE551.765v03-00 20/354 RR\551765EN.doc

EN

▌Member States and third parties shall be allowed to contribute to the EFSI in form of guarantees or cash respectively but shall not be granted membership of the Steering Board.

The minutes of Steering Board meetings shall be published as soon as they have been approved by the Board.

4. The EFSI Agreement shall provide that the EFSI shall have a Managing Director, who shall be responsible for the day-to-day management of the EFSI and the preparation and chairing of meetings of the Investment Committee referred to in paragraph 5. The Managing Director shall be assisted by a Deputy Managing Director.

The Managing Director shall report every quarter on the activities of the EFSI to the Steering Board. The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of the Commission and the EIB for a once renewable fixed term of three years. On the basis of an open selection process the Commission shall, upon receiving the consent of the EIB, provide the European Parliament with a separate shortlist of candidates for each of the positions of Managing Director and Deputy Managing Director.

The Commission shall, upon receiving the consent of the EIB, submit to the European Parliament for approval a proposal for the appointment of the Managing Director and the Deputy Managing Director. Following the approval of that proposal, the Steering Board shall appoint the Managing Director and the Deputy Managing Director.

5. The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential projects in line with the EFSI investment policies and approving the support of the EU guarantee for projects in line with Article 5, irrespective of their geographic location. Furthermore, the Investment Committee shall be the competent body for approving the eligibility of investment platforms and national promotional banks and permitting them to use the designation of 'EFSI' or 'European Fund for Strategic Investments'. The request for approval shall be renewed if the investment platform amends its basic investment policies in a substantial manner.

The Investment Committee shall be composed of eight independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project structuring and project financing, as well as macroeconomic expertise. The Investment Committee shall have a pluridisciplinary composition encompassing a broad range of expertise in various sectors and of geographic markets within the Union. This shall include expertise in investments related to the general objectives of the EFSI, such as research and development, transport and SMEs, environmental objectives, social affairs including the social and solidarity economy, public and public-led project investment experience, territorial cohesion and in education and training. The Investment Committee shall be appointed by the Steering Board for a renewable fixed term of three years and not exceeding six years in total.

RR\551765EN.doc 21/354 PE551.765v03-00

EN

On the basis of an open selection process, the Commission shall, upon receiving the consent of the EIB, provide the European Parliament with a shortlist of candidates for the positions of the eight experts of the Investment Committee.

The Commission shall, upon receiving the consent of the EIB, submit to the European Parliament for approval a gender-balanced proposal for the appointment of the experts. Following the approval of that proposal, the Steering Board shall appoint the experts for a renewable fixed term of three years.

When carrying out their duties, the members of the Investment Committee shall be independent and shall not take instructions from the EIB, the Union institutions, Member States or any other public or private body. EIB staff may assist with analytical, logistical, and administrative support. However, any project assessment conducted by EIB staff shall not be binding on the Investment Committee.

CVs and declarations of interest of each member of the Investment Committee shall be made public, constantly updated and be subject to thorough validity checks by the Commission and the EIB. Decisions of the Investment Committee shall be taken by simple majority and shall be public and accessible.

CHAPTER II -EU Guarantee and EU Guarantee Fund

Article 4EU Guarantee

The Union shall provide an irrevocable and unconditional guarantee to the EIB for financing or investment operations covered by this Regulation and the EFSI Agreement ('EU guarantee') and carried out within the Union, including operations between partners from several Member States and a third country falling within the scope of the European Neighbourhood Policy including the Strategic Partnership, the Enlargement Policy, and the European Economic Area or the European Free Trade Association, or between a Member State and an Overseas Country or Territory, as set out in Annex II of the TFEU. The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6. It shall seek to achieve capital relief in the event that it is granted to a promotional bank or an investment platform.

Article 5Requirements for use of the EU guarantee

1. The granting of the EU guarantee shall be subject to the entry into force of the EFSI Agreement and to the adoption of investment guidelines by the Steering Board.

2. The EU guarantee shall be granted for EIB financing and investment operations or EIB funding to the EIF at the level of investment in funds in order to conduct EIB financing and investment operations in accordance with Article 7(2) and approved by the Investment Committee.

PE551.765v03-00 22/354 RR\551765EN.doc

EN

The operations concerned shall be consistent with Union policies and support any of the following general objectives:

(a) development of new, existing or missing transport infrastructure and innovative technologies, in accordance with Regulations (EU)  1316/2013  (CEF) and  1315/2013 (TEN-T Guidelines) as far as both core and comprehensive networks as well as horizontal priorities are concerned;

(aa) development of smart and sustainable urban mobility projects that include targets for accessibility, reduction of greenhouse gases, energy and accidents;

(b) development and modernisation of energy infrastructure in accordance with the Energy Union priorities and the 2020, 2030 and 2050 Climate and Energy frameworks, in particular interconnections, smart grids at distribution level, energy storage and the synchronisation of markets;

(c) expansion of renewable energy, ▌resource efficiency, energy efficiency and energy savings, with a particular focus on reducing demand through demand-side management and the refurbishment of buildings;

(d) development of information and communication technologies, of digital and telecom infrastructures and of broadband networks across the entire Union;

(e) investment in innovation, research and development, including research infrastructure, pilot and demonstration projects, collaborations between the academia and industry, and knowledge and technology transfer;

(ea) investment in education, training, entrepreneurial skills;

(eb) investment in innovative health solutions, such as eHealth and new effective medicines, and in the social sector;

(ec) investment in cultural and creative industries;

(ed) investment in projects and infrastructure in the field of environmental protection and management, strengthening of eco-system services and sustainable urban development;

(ee) financial support, including the provision of working capital risk financing for SMEs, start-ups, spin-offs and small mid-cap companies through the EIF, and for mid-cap companies, in order to ensure technology leadership in innovative and sustainable sectors;

(ef) financing of projects which are in line with the objectives of Horizon 2020 and the Connecting Europe Facility.

In addition, the EU guarantee shall be granted through the EIB for support of dedicated investment platforms or funds and national and regional promotional banks or other institutions that invest in operations meeting the requirements of this

RR\551765EN.doc 23/354 PE551.765v03-00

EN

Regulation after approval by the Investment Committee. In that case, the Steering Board shall specify policies, in accordance with Article 3(1), regarding eligible vehicles mentioned leaving to them the approval of the individual investment decisions. Such operations and the contributions thereto, shall be considered EFSI operations. Investment platforms can bring together co-investors, public authorities, experts, education, training and research institutions, the relevant social partners and representatives of the civil society and other relevant actors at EU, national and regional levels.

2a. The EFSI shall target projects with a higher risk profile than existing EIB and Union instruments so as to ensure additionality over existing operations. The EFSI shall support projects which orient on the following goals:

a) are viable from an economic perspective, according to a cost benefit analysis following European standards and further where cofinancing by a public partner or by a financial intermediary such as an investment platform or a promotional bank provides support to close a possible financial gap;

b) are in pursuit of the Union objective of smart, sustainable and inclusive growth as well as quality job creation, enhance economic, social and territorial cohesion, and which provide high societal and economic progress as an EU added value;

c) focus on operations that could not have been carried out using the Union budget or the ordinary activity of the EIB including special operations, and which are, furthermore, not financed by the market;

d) have a higher risk profile than projects supported under existing EIB activity, taking account of the fact that the highest level of additionality can only be ensured when financial resources are concentrated on projects not financed otherwise; the design of the appropriate measures is to be elaborated under the procedures of Article 3(1).

2b. Acknowledging that projects of any size can bring the European economy forward, there shall be no restrictions on the size of projects to be targeted by the EFSI.

3. In accordance with Article 17 of the Statute of the European Investment Bank, the EIB shall charge the beneficiaries of the financing operations to cover its expenses related to the EFSI. Without prejudice to sub-paragraph 2 and 3, no administrative expenditure or any other fees of the EIB for financing and investment activities conducted by the EIB under this Regulation shall be covered from the Union budget.

The EIB may call the EU guarantee, in accordance with Article 2(1)(e), within a cumulated maximum limit corresponding to 1% of the total outstanding EU guarantee obligations to cover expenses that whilst charged to beneficiaries of the financing operations, have not been recovered. 

PE551.765v03-00 24/354 RR\551765EN.doc

EN

Fees of the EIB should the EIB provide funding to the EIF on behalf of the EFSI which is backed by the EU guarantee in accordance with Article 7(2) may be covered from the Union budget.

4. ▌Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee, in accordance with the objectives, principles and rules under the legal framework applicable to those funds, and with the Partnership Agreements and relevant programmes. Coordination, complementarity, additionality, coherence and synergies shall be ensured.

4a. The Commission shall be empowered to adopt delegated acts in accordance with Article 17 laying down additional specific arrangements on combining the support of the European Structural and Investment Funds to projects financed by the EIB with the support of the EU guarantee, including arrangements for the participation of the European Structural and Investment Funds under Investment Platforms.

Article 6Eligible Instruments

For the purposes of Article 5(2), the EIB shall use the EU Guarantee towards risk coverage for instruments as a rule on a portfolio basis.

Instruments eligible for coverage under the EU guarantee or portfolios may be composed of the following Instruments:

(a) EIB loans, guarantees, counter-guarantees, capital market instruments, any other form of funding or credit enhancement instrument, equity or quasi-equity participations, including through national promotional banks or institutions, investment platforms or funds. These Instruments shall be granted, acquired or issued for the benefit of operations carried out in the Union, including cross-border operations between a Member State and a third country, in compliance with this Regulation and where EIB financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled;

(b) EIB funding to the EIF enabling it to undertake loans, guarantees, counter-guarantees, any other form of credit enhancement instrument, capital market instruments and equity or quasi-equity participations, including through national promotional banks or institutions, investment platforms or funds. These Instruments shall be granted, acquired or issued for the benefit of operations carried out in the Union, in compliance with this Regulation and where EIF financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled.

(ba) EIB guarantee to national promotional banks or institutions, investment platforms or funds under a counter-guarantee of the Union.

RR\551765EN.doc 25/354 PE551.765v03-00

EN

Article 7Coverage and terms of the EU guarantee

1. The EU guarantee to the EIB shall be of an amount equal to EUR 16 000 000 000, of which a maximum amount of EUR 2 500 000 000 may be allocated for EIB funding to the EIF in accordance with paragraph 2. Without prejudice to Article 8(9), aggregate payments from the Union under the guarantee to the EIB shall not exceed the amount of the guarantee.

2. The coverage of the guarantee over a particular type of instrument portfolio, referred to in Article 6, shall be determined by the risk of that portfolio. The EU guarantee shall be eligible to provide either first loss guarantees on a portfolio basis or a full guarantee. The EU guarantee may be granted on a pari passu basis with other contributors.

Where the EIB provides funding to the EIF through the EFSI in order to conduct EIB financing and investment operations, the EU guarantee shall provide for a full guarantee on funding by the EIB provided that an equal amount of funding is provided by the EIB without EU guarantee. The amount covered by the EU guarantee shall not exceed EUR 2 500 000 000.

3. Where the EIB calls the EU guarantee in accordance with the EFSI Agreement, the Union shall pay on demand in accordance with the terms of that Agreement.

4. When the Union makes a payment to the EIB upon a call on the guarantee, the Union shall subrogate the relevant rights of the EIB relating to any financing operation under the EU guarantee and the EIB shall, on behalf of the Union, pursue the recovery of claims for the amounts paid and reimburse the Union from the sums recovered in accordance with the provisions and procedures referred to in Article 2(1)(f).

Article 8EU guarantee fund

1. An EU guarantee fund ('guarantee fund') shall be established which shall constitute a liquidity cushion from which the EIB shall be paid in the event of a call on the EU guarantee.

2. The guarantee fund shall be endowed by:

(a) contributions from the general budget of the Union,

(b) returns on guarantee fund resources invested,

(c) amounts recovered from defaulting debtors in accordance with the recovery procedure laid down in the EFSI Agreement as provided for in Article 2(1)(f),

(d) revenues and any other payments received by the Union in accordance with the EFSI Agreement.

PE551.765v03-00 26/354 RR\551765EN.doc

EN

3. Endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall constitute internal assigned revenues in accordance with Article 21(4) of Regulation (EU) No 966/2012.

4. The resources of the guarantee fund provided to it under paragraph 2 shall be directly managed by the Commission and invested in accordance with the principle of sound financial management and follow appropriate prudential rules.

5. Endowments to the guarantee fund referred to in paragraph 2 shall be used to reach an appropriate level to reflect the total EU guarantee obligations ('target amount'). The target amount shall be set at 50% of the Union's total guarantee obligations.

The target amount shall initially be met by 2022 at the latest through the gradual payment of resources referred to in paragraph 2(a) as well as endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2.

5a. The necessary appropriations to meet the initial target amount shall be gradually authorised by the European Parliament and the Council in the framework of the annual budgetary procedure, taking due account of all means available under the Council Regulation No 1311/2013 of 2 December 2013 laying down the Multiannual Financial Framework (MFF) 2014-2020, with particular recourse to the Global Margin for Commitments, the Global Margin for Payments and the Flexibility Instrument.

In this context, the European Parliament and the Council shall explore ways to finance the EU Guarantee Fund using any unforeseen revenue arising during the course of each financial year, including revenue resulting from fines, and to amend the applicable legal framework in order to allow for the use of the annual surplus of the general budget of the Union.

The financing of the guarantee fund, both in respect of commitment and payment appropriations, shall be reviewed by the European Parliament and the Council in the context of the post-electoral review/revision of the Multiannual Financial Framework 2014-2020, to be launched by the end of 2016 at the latest, as provided for in Article 2 of Council Regulation (EU, Euratom) No 1311/2013.

In the event that redeployments from EU programmes were agreed in the framework of the annual budgetary procedure as source of financing for the EU guarantee in the years preceding the MFF review/revision, the European Parliament and the Council shall, on that occasion, explore ways to compensate them to the greatest extent possible.

6. By 31 December 2018, and every year thereafter, the Commission shall review the adequacy of the level of the guarantee fund taking into account any reduction of resources resulting from the activation of the guarantee and the EIB's assessment submitted in accordance with Article 10(3).

RR\551765EN.doc 27/354 PE551.765v03-00

EN

The Commission shall be empowered to adopt delegated acts in accordance with Article 17 adjusting downwards the target level provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the EU guarantee being called.

7. Following an adjustment in year n of the target level or an assessment on the adequacy of resources available in the guarantee fund in accordance with the review provided for in paragraph 6:

(a) any surplus in the guarantee fund shall be paid to the general budget as assigned revenue in accordance with Article 21(4) of Regulation (EU, Euratom) No 966/2012 for any lines which may have been used as a source of redeployment to the EFSI guarantee fund,

(b) any replenishment of the guarantee fund shall be paid in annual tranches during a maximum period of three years starting on year n+1.

8. If as a result of calls on the guarantee, the resources of the guarantee fund falls below 50% of the liabilities that have been incurred at the given moment, the Commission shall submit a report on exceptional measures that may be required to replenish it.

9. Subsequent to a call on the EU guarantee, endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 ▌ shall be used to restore the EU guarantee up to its target amount. Any remaining remuneration shall be paid to the general budget as assigned revenue in accordance with Article 21(4) of Regulation (EU, Euratom) No 966/2012 for any lines which may have been used as a source of redeployment to the EFSI guarantee fund.

9a. In the event that additional surplus remains, after the requirements of points 7(a) and 9 have been fully met, the Commission shall present a proposal on an increase of the overall level of the EU guarantee, leading to a reinforcement of the investment plan.

CHAPTER III- European investment advisory hub and project directory

Article 8aEuropean Investment Advisory Hub

1. The EFSI Agreement shall provide for the creation of the EIAH within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development, and to act as a single technical advisory hub for project financing within the Union. This shall include providing support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of Union legislation, taking into account the specificities and needs of Member States with less developed financial markets.

To meet the objective referred to in the first subparagraph, the EIAH shall engage the

PE551.765v03-00 28/354 RR\551765EN.doc

EN

expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds.

2. The EIAH shall have a specific technical assistance service dedicated to the establishment of investment platforms aggregating energy efficiency, TEN-T and urban mobility projects.

In order to ensure the best possible regional and territorial reach across the Union for such advisory services and support, the EIAH shall closely network with similar structures at national level, such as those provided by national promotional banks or national agencies. Technical assistance to project promoters at sub-national level shall be enhanced.

3. The EIAH shall be partially financed by the Union up to a maximum amount of EUR 20 000 000 per year during the period ending on 31 December 2020 for the additional services provided for by the EIAH over existing EIB technical assistance. For the years after 2020 the financial contribution from the Union shall be directly linked to the provisions included in the future multi-annual financial frameworks.

Access to expertise from the EIAH shall be free of charge.

Article 9European investment project directory

1. The Commission and the EIB shall create a transparent directory of current and potential future investment projects in the Union. It shall constitute a publicly accessible and user-friendly project database, providing relevant information for each project. The directory shall be for visibility to investors and information purposes only and shall be without prejudice to the final projects selected for support according to Article 3(5).

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future projects.

▌

CHAPTER IV- Reporting, accountability and evaluation

Article 10Reporting and accounting

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the Commission on EIB financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.

RR\551765EN.doc 29/354 PE551.765v03-00

EN

2. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the European Parliament and to the Council on EIB financing and investment operations. The report shall be made public and include:

(a) an assessment of EIB financing and investment operations at operation, sector, country and regional levels and their compliance with this Regulation, in particular with the additionality principle, together with an assessment of the allocation of EIB financing and investment operations between the objectives in Article 5(2) and 5(2a);

(b) an assessment of the added value, the mobilisation of private sector resources, the estimated and achieved outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis, including the impact on employment creation;

(ba) an assessment of the extent to which operations covered by the EU guarantee under this Regulation contribute to the achievement of the objectives of Articles 5(2) and 5(2a), including an assessment of the level of EFSI investments in the areas of research, development and innovation and transport (including TEN-T and urban mobility), telecommunications and energy infrastructure, including energy efficiency;

(bb) assessment of compliance with the requirements concerning the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g);

(bc) an assessment of the leverage effect achieved by EFSI- financed projects:

(bd) a description of the projects where the support of the European Structural and Investment Funds is combined with the support of the EFSI, and the total amount of the contributions from each source;

(c) an assessment of the financial benefit transferred to beneficiaries of EIB financing and investment operations on an aggregated basis;

(d) an assessment of the quality of EIB financing and investment operations, and the risks associated with these operations;

(e) detailed information on calls on the EU guarantee, losses, returns, amounts recovered and any other payments received;

(f) the financial statements of the EFSI, accompanied by an opinion of an independent external auditor.

3. For the purposes of the Commission's accounting and reporting of the risks covered by the EU guarantee and management of the guarantee fund, the EIB, in cooperation with the EIF as appropriate, shall provide the Commission and the European Court of Auditors every year:

PE551.765v03-00 30/354 RR\551765EN.doc

EN

(a) the EIB's and EIF's risk assessment and grading information concerning EIB financing and investment operations under this Regulation;

(b) the outstanding financial obligation for the EU concerning the guarantees provided towards EIB financing and investment operations broken down by the individual operations under this Regulation;

(c) the total profits or losses deriving from the EIB financing and investment operations within the portfolios provided by the EFSI Agreement pursuant to Article 2(1)(e).

4. The EIB in cooperation with the EIF as appropriate shall provide to the Commission upon request any additional information necessary to fulfil the Commission's obligations in relation to this Regulation.

5. The EIB, and EIF as appropriate, shall provide the information referred to in paragraphs 1 to 4 at their own expense.

6. The Commission shall, by 31 March of each year, send to the European Parliament, the Council and the Court of Auditors an annual report on the situation of the guarantee fund and the management thereof in the previous calendar year. The report shall assess the adequacy of the level of the guarantee fund and the need to adjust the target amount.

6a. The Commission shall send to the European Parliament and the Council a report on the realisation of the investment priorities as specified in the delegated act under Article 3(1a) on the same date as the EIB reports under paragraphs 1 and 2. The report shall be accompanied by a proposal with necessary amendments of the delegated act under Article 3(1a).

Article 11Accountability

1. At the request of the European Parliament, the Chairperson of the Steering Board and the Managing Director shall participate in a hearing of the European Parliament on the performance of the EFSI.

2. The Chairperson of the Steering Board and the Managing Director shall reply orally or in writing to questions addressed to the EFSI by the European Parliament, in any event within five weeks of receipt of a question.

3. At the request of the European Parliament, the Commission shall report to the European Parliament on the application of this Regulation.

3a. At the request of the European Parliament, the President of the EIB shall participate in a hearing of the European Parliament that concerns EIB financing and investment operations under this Regulation. The President of the EIB shall, within five weeks of receipt, reply orally or in writing to questions addressed to the

RR\551765EN.doc 31/354 PE551.765v03-00

EN

EIB by the European Parliament concerning EIB financing and investment operations under this Regulation.

3b. An agreement shall be concluded between the European Parliament and the EIB on the detailed arrangements for the exchange of information between the European Parliament and the EIB on financing and investment operations conducted by the EIB under this Regulation.

Article 12Evaluation and Review

1. At the latest [PO insert date: 18 months after the entry into force of this Regulation] the EIB shall evaluate the functioning of the EFSI. The EIB shall submit its evaluation to the European Parliament, the Council and the Commission;

At the latest [PO insert date: 18 months after the entry into force of this Regulation] the Commission shall evaluate the use of the EU guarantee and the functioning of the guarantee fund, including the use of endowments according to Article 8(9). The Commission shall submit its evaluation to the European Parliament and the Council. This evaluation shall be accompanied by an opinion of the Court of Auditors.

2. By 30 June 2018 and every three years thereafter:

(a) the EIB shall publish a comprehensive report on the functioning of the EFSI;

(b) the Commission shall publish a comprehensive report on the use of the EU guarantee and the functioning of the guarantee fund. This report shall include an evaluation of the impact of the EFSI on the investments in the Union, employment creation and access to financing for mid-cap companies and SMEs.

3. The EIB, in cooperation with the EIF as appropriate, shall contribute to and provide the necessary information for the Commission evaluation and report under paragraph 1 and 2 respectively.

4. The EIB and EIF shall on a regular basis provide the European Parliament, the Council and the Commission with all their independent evaluation reports which assess the impact and practical results achieved by the specific activities of the EIB and EIF under this Regulation.

5. At the latest [PO insert date three years after the entry into force of this Regulation] and every three years thereafter, the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation accompanied by any relevant proposal. In case possible adjustments to EFSI are deemed necessary, this report shall be accompanied by a legislative proposal to amend this Regulation accordingly.

PE551.765v03-00 32/354 RR\551765EN.doc

EN

CHAPTER V-General provisions

Article 13Transparency and public disclosure of information

In accordance with its own transparency policies and Union principles on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations under this Regulation, including those financed through financial intermediaries, and how they contribute to the general objectives referred to in Article 5(2) and 5(2a).

Article 14Auditing by the Court of Auditors

The external audit of the activities undertaken in accordance with this Regulation is carried out by the European Court of Auditors in accordance with Article 287 TFEU and is thus subject to the EP discharge procedure according to Article 319 TFEU.

The Commission shall ensure that the Court of Auditors is able to exert its right as provided for in the first subparagraph of Article 287(3) TFEU and has full access to all information it needs to carry out its audits.

The EIB, the EIF, all financial intermediaries involved in the activities undertaken in accordance with the EFSI Regulation and final recipients shall afford the Court of Auditors all the facilities and give it all the information which the Court of Auditors considers necessary for the performance of its tasks, pursuant to Article 161 of Regulation (EU) No 966/2012.

Article 15Anti-fraud measures

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of fraud, corruption, money laundering or other illegal activity that may affect the financial interests of the Union.

2. OLAF shall carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(1), Council Regulation (Euratom, EC) No 2185/96(2) and Council Regulation (EC, Euratom) No

1 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).2 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

RR\551765EN.doc 33/354 PE551.765v03-00

EN

2988/95 (3) in order to protect the financial interests of the Union, with a view to establishing whether there has been fraud, corruption, money laundering, financing of terrorism, tax fraud, organised crime or any other illegal activity affecting the financial interests of the Union in connection with any operations under this Regulation. OLAF may transmit to the competent authorities of the Member States concerned information obtained in the course of investigations.

Where such illegal activities are proven, the EIB shall undertake recovery efforts with respect to its operations supported by the EU guarantee.

3. Financing agreements signed in relation to operations supported under this Regulation shall include clauses allowing exclusion from EIB financing and investment operations and, if necessary, appropriate recovery measures in cases of fraud, corruption or other illegal activity in accordance with the EFSI Agreement, EIB policies and applicable regulatory requirements. The decision whether to apply an exclusion from the EIB financing and investment operation shall be taken in accordance with the relevant financing or investment agreement..

Article 16Excluded activities and non-cooperative jurisdictions

1. In its financing and investment operations under this Regulation, the EIB, the EIF and all financial intermediaries shall not support any activities carried out for illegal purposes, including money laundering, financing of terrorism, organised crime, tax fraud and tax evasion, corruption, or fraud affecting the financial interests of the Union. In particular the EIB shall not participate in any financing or investment operation through a vehicle located in a non-cooperative jurisdiction, in line with its policy towards weakly regulated or non-cooperative jurisdictions based on policies of the Union, the Organisation for Economic Cooperation and Development or the Financial Action Task Force.

2. In its financing and investment operations under this Regulation, the EIB shall apply the principles and standards set out in Union law on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing. In particular, the EIB shall make both direct funding or funding via intermediaries under this Regulation contingent upon the disclosure of beneficial ownership information in accordance with Directive (EU) 2015/... (the EU Anti-Money Laundering Directive).

Article 17Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

3 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).

PE551.765v03-00 34/354 RR\551765EN.doc

EN

1a. The power to adopt delegated acts referred to in Article 1(2a) shall be conferred on the Commission for a period of one year from the entry into force of this Regulation.

1b. The power to adopt delegated acts referred in Article 1(2b) shall be conferred on the Commission for an unlimited period of time.

2. The power to adopt delegated acts referred to in Article 8(6) shall be conferred on the Commission for a period of three years from the entry into force of this Regulation. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the three-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3. The delegation of power referred to in Articles 3(1a) and 8(6) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

4a. A delegated act adopted pursuant to Articles 1(2a) and 1(2b) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

5. A delegated act adopted pursuant to Articles 3(1a) and 8(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 17a

Financial contributions in the form of one-off measures from Member States to the EFSI to dedicated investment platforms and to national promotional banks referred to in Article 5(2) and which benefit from the EU guarantee are covered by the full range of the existing rules of the Stability and Growth Pact.

RR\551765EN.doc 35/354 PE551.765v03-00

EN

▌

CHAPTER VII-Transitional and final provisions

Article 20Transitional provision

Financing and investment operations signed by the EIB or EIF, during the period from 1 January 2015 to the conclusion of the EFSI Agreement, may be submitted by the EIB or the EIF to the Commission for coverage under the EU guarantee. The Commission shall assess those operations and, where they comply with the substantive requirements set out in Article 5 and in the EFSI Agreement, decide that the EU guarantee coverage extends to them.

Article 21Entry into force

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg,

For the European Parliament For the CouncilThe President The President

PE551.765v03-00 36/354 RR\551765EN.doc

EN

▌

RR\551765EN.doc 37/354 PE551.765v03-00

EN

16.4.2015

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY(*)

for the Committee on Economic and Monetary Affairs and the Committee on Budgets

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2103(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur(*): Kathleen Van Brempt

(*) Associated committee – Rule 54 of the Rules of Procedure

SHORT JUSTIFICATION

Introduction

For many years, influential voices from the political and academic world and from the civil society have been advocating a boost of investments in the EU to overcome the investment gap that has been shaped as a consequence of the economic and financial crisis. This investment gap has created a downward spiral of decreasing expenditure, increasing joblessness and a loss of trust in the future progress. Therefore, the Commission's proposal on the European Fund for Strategic Investments (EFSI) should be warmly welcomed.

New incentives to boost investments - by backing them with EU guarantees - can create trust again amongst investors, public authorities and industries in tomorrow's growth. By unlocking new investments, EFSI can become the flywheel of a new investment cycle that creates new jobs and opportunities. These new investments are not only needed to relaunch the EU economy, but also to transform it into a resilient, innovative, inclusive, low carbon and circular economy.

Instead of paving the old cow paths by investing in simple replacements and maintenance, we'll have to invest in real transformative projects, services and infrastructures, which are capable of tackling the "new" challenges that threaten our welfare and prosperity. These challenges include our loss of competitiveness, the dangerous change of our climate, our dependency on scarce and critical natural resources from outside the Union, and the volatility and unpredictability of energy and resource prices that go along with it.

PE551.765v03-00 38/354 RR\551765EN.doc

EN

To deal with these challenges, the EU has given form to ambitious policies on employment, innovation, education, social inclusion, climate and energy. Europe 2020 was formulated as the EU's growth strategy for this decade with the aim to become a "smart, sustainable and inclusive economy". The 20/20/20 climate and energy strategy, the Commission's Energy Roadmap 2050, the 7th Environmental Action Plan and the Council's conclusions of 28 October 2014 on the reduction of greenhouse gases after 2020, ask for a decarbonised and more circular economy and for a real transformation of our transport and energy sectors. The recently launched strategy for the Energy Union focusses on a more interconnected energy market - able to integrate and exchange ever larger amounts of renewable sources - and stresses the importance of energy efficiency as an energy source in its own right. Horizon 2020 was established as the biggest EU Research and Innovation program ever, promising to drive innovation by taking great ideas from lab to the market. Through the direct link it sets between research and innovation, Horizon 2020 aims to secure Europe's global competitiveness, through an emphasis on excellent science, industrial leadership and tackling societal challenges.

It's in our utmost interest that EFSI strengthens and helps materialize these policies by focusing on the transformative investments needed in sustainable and low carbon transport infrastructure, in the digital and research infrastructures, in renewable energy, energy efficiency and energy storage and in bringing innovative products, services and technologies to the market.

At the same time, a weakening of the Union's policies, by making unrepairable cuts in funds that help to achieve these ambitions or by supporting sub-optimal investments or investments with a high risk of being stranded before the end of their lifetime (because of their incompatibility with the long term targets), should be avoided.

Therefore, the rapporteur will formulate amendments to the proposed regulation aimed at:

1. Introducing an alternative to the financing of the EU guarantee fund to preserve the funds available under Horizon 2020 and the Connecting Europe Facility (CEF).

2. Bringing EFSI support under the framework of the Union's strategy for a "smart, sustainable and inclusive growth", and help realize the energy and climate goals by focusing on transformative investments in the transport and energy sector and avoiding lock-in investments.

3. Contributing to the ambitions of the Energy Union on energy efficiency.

The main attention of this opinion is naturally given to the exclusive competences of the ITRE Committee.

1. Alternative to the financing of the EU guarantee fund

It has to be stressed that it is not the intention of the rapporteur to touch on the general philosophy of the EU guarantee financed by the EU budget. The availability of the EU Guarantee to the EIB is ensured legally and financially as soon as the EFSI Regulation enters into force, and as soon as the EFSI agreement is signed between the EIB and the EC.

RR\551765EN.doc 39/354 PE551.765v03-00

EN

What the rapporteur challenges is the way in which the EU guarantee fund is established and financed. In the proposal for the EFSI regulation, financing is found by making cuts in the Horizon 2020 and Connection Europe Facility, in budget lines that cover grants. The cuts made will touch the integrity of these programs especially for these strategic investments - such as fundamental research - where co-financing in the market is difficult. The proposed cuts in Horizon 2020 will hit the "open calls" the hardest - thus hitting research in areas where it is particularly needed. Cutting on these budget lines will ultimately weaken the additional potential of EFSI.

The alternative proposed in this report is to skip the cuts made upfront in Horizon 2020 and CEF, as it not necessary to decide a priori on the funding scheme of the Guarantee Fund.

Its funding can be met by gradual budgetary commitment appropriations to be decided in the frame of the annual budgetary procedure. For this purpose, the budgetary authority should make use, where appropriate, of all available mechanisms of flexibility and relevant provisions under the 2014-2020 MFF Regulation that would lead only as a last resort to cuts in the envelope for programmes under heading 1A.

2. Aligning EFSI investments with the Union's strategy for smart, sustainable and inclusive growth and improving coherency with Union's environmental policy

The investments supported under EFSI should contribute to the Union's strategy for smart, sustainable and inclusive growth adopted in the conclusions of the European Council of 17 June 2010. In order to improve coordination of the Unions investment policies, Regulation 1303/2013 was established with a Common Strategic Framework ('CSF') in order to promote the harmonious, balanced and sustainable development of the Union. This integrated approach should accordingly be applied to operations and projects supported by EFSI. EFSI should contribute to the meeting of the approved climate targets for 2020, 2030 and 2050 and should therefore focus on transformative investments in decarbonising our transport and energy sectors and in closing our material loops. Meanwhile, investments in long term high carbon infrastructures - at risk of being stranded before the end of their lifetime if the medium and long term climate objectives have to be met - should be avoided.

3. Materialize the Energy Union and addressing the "epic failure" of current energy policies

The Commission Communication (COM(2015/80)) on the Energy Union has stressed the importance of energy efficiency as an energy source in its own right, and states clearly that EFSI "provides an opportunity to leverage major investments in renovating building". To grasp that opportunity, a special focus on energy efficiency is needed in the EFSI regulation by earmarking a share of the granted guarantees for energy efficiency, by providing technical assistance to the establishment of dedicated investment platforms for aggregated energy efficiency projects and by broadening the "investment clause" for energy efficiency investments.

The earmarking (at least 20 % of the granted guarantees has to be reserved for energy efficiency investments) is absolutely necessary to meet the Energy Union's ambitions on energy efficiency as "first fuel". Past experience shows that over the last decade energy efficiency got much less support (8 % of the total energy support) than all other energy supply options (renewables, fossil fuels, nuclear). Without earmarking, this won't change. The

PE551.765v03-00 40/354 RR\551765EN.doc

EN

analysis made by E3G1 of the Member States proposals for the European Investment Plan, shows that only 5 % of the projects listed by Member States include energy efficiency measures, smart cities or demand side management. Instead of being the "first energy source", energy efficiency in reality stays the last option. Chief economist Fatih Birol of the IEA stated that "energy efficiency remains an “epic failure” in most nations’ energy policies", with two-thirds of the world’s economic potential to improve energy efficiency to remain unrealized. Energy efficiency operations often entail a combination of several smaller investments, whose management is cumbersome. If they are treated separately, in a non-coordinated way, energy efficiency measures are facing a lot of administrative and transaction costs and are often difficult to finance.

Therefore a special facility under the EIAH should be created to offer technical assistance for the establishment of dedicated investment platforms all over Europe for the bundling of small projects in particular in the refurbishment of the building stock. That facility can make use of the experience already achieved by the EIB (JESSICA) and learn from the good examples of successful national refurbishing programmes. These programmes prove the multiple benefits of a massive refurbishment: high job creation, excellent cost effectiveness, increased energy security, SME support, and reduced energy poverty. Benefits that can be upscaled and multiplied by making use of EFSI.

4. Miscellaneous

The rapporteur has also included some amendments that deal with the governance issues of the EFSI. No doubt, as a committee with exclusive competences on the eligibility criteria for the projects to be supported, the rapporteur also wants to make sure that the projects supported actually comply with the criteria and objectives proposed. Notably, this is taken along in amendments on the composition of the investment committee, as that committee will be responsible for the day to day decision making on which projects to be supported. Moreover, the rapporteur believes that, for the EFSI to function according to the conditions stipulated in the Regulation, provisions must be included to ensure that these conditions are correctly translated into the agreement the Commission shall conclude with the European Investment Bank on the establishment of the EFSI.

Finally, some definitions are stated on small and medium enterprises (SMEs), small mid-caps and innovative mid-caps, which should benefit particularly from EFSI support. The reasoning behind this is the rapporteur's belief in the special ability of these companies to create the true innovative changes that generate economic and societal added value, improve the health, and day-to-day living conditions of EU citizens, and stimulate the EU's competitiveness.

AMENDMENTS

The Committee on Industry, Research and Energy calls on the Committee on Economic and 1 Luca Bergamaschi, Louia Casson, Jonathan Gaventa, ERG, "Europe's choice: low-carbon growth or high-carbon risks? Analysis of Member State Proposals for the European Investment Plan", 28 January 2015.

RR\551765EN.doc 41/354 PE551.765v03-00

EN

Monetary Affairs, as the committee responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationRecital 1

Text proposed by the Commission Amendment

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on Member States. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness.

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of policies which have depressed aggregate demand and market uncertainty regarding the economic future and the fiscal constraints on Member States. This lack of investment, in particular in those regions more effected by the crisis, slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness, potentially preventing a realization of the Europe 2020 targets and objectives for smart, sustainable and inclusive growth.

Amendment 2

Proposal for a regulationRecital 2

Text proposed by the Commission Amendment

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for stimulating investment. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained increase in growth potential.

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for stimulating investment, bearing in mind social and regional cohesion. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a

PE551.765v03-00 42/354 RR\551765EN.doc

EN

sustained increase in growth potential, without which the restoration of public accounts will not be possible. European banks can provide liquidity, market making and loans to finance investments needed.

Amendment 3

Proposal for a regulationRecital 3

Text proposed by the Commission Amendment

(3) The G20, through the Global Infrastructure Initiative, has recognised the importance of investment in boosting demand and lifting productivity and growth and has committed to creating a climate that facilitates higher levels of investment.

(3) The G20, through the Global Infrastructure Initiative, has recognised the importance of investment in boosting demand and lifting productivity and growth and has committed to creating a climate that facilitates higher levels of investment. The EFSI should complement to an overall strategy to improve investments in the Union, not replacing other investments and financial structures and not undermining the Union's investments in science, research and development.

Amendment 4

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to coordinate policies and instruments and to ensure that the investment needs of the Union are addressed and that the liquidity

RR\551765EN.doc 43/354 PE551.765v03-00

EN

and channelled towards the funding of viable investment projects.

available on the market is used efficiently and channelled towards the funding of viable investment projects, from an economic, environmental and social point of view, which will enable the creation of quality jobs and the broadening and improvement of the productive base of Member States, especially those most affected by the crisis.

Amendment 5

Proposal for a regulationRecital 5

Text proposed by the Commission Amendment

(5) On 15 July 2014, the then President-elect of the European Commission presented a set of Political Guidelines for the European Commission to the European Parliament. These Political Guidelines called for the mobilisation of ‘up to EUR 300 billion in additional public and private investment in the real economy over the next three years’ to stimulate investment for the purpose of job creation.

(5) On 15 July 2014, the then President-elect of the European Commission presented a set of Political Guidelines for the European Commission to the European Parliament. These Political Guidelines called for an Energy Union, a connected Digital single market, and the mobilisation of ‘up to EUR 300 000 000 000 in additional public and private investment in the real economy over the next three years’ to stimulate investment for the purpose of job creation.

Amendment 6

Proposal for a regulationRecital 9

Text proposed by the Commission Amendment

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market by establishing truly functional capital, digital and energy markets and by reducing red tape and enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this

PE551.765v03-00 44/354 RR\551765EN.doc

EN

accompanying work.

Amendment 7

Proposal for a regulationRecital 10

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

(10) The purpose of the EFSI should be twofold: to help resolve the difficulties in financing and implement long-term productive strategic and transformative investments in the Union that provide an immediate boost to Europe's economy, and to ensure increased access to financing for companies up to 3000 employees with particular focus on start-ups, spin-offs, micro-enterprises, small and medium enterprises and cooperatives. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's competitiveness, innovation potential, economic, social and territorial cohesion and energy and resource efficiency by transitioning into a sustainable and circular economy.

Amendment 8

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high economic, social and environmental value added contributing to achieving Union policy objectives, and to the Union's social and territorial cohesion. These investments should be in line with the objectives and criteria set out in this Regulation in the sectors of transport, telecommunications and energy, to develop and modernize the energy infrastructure, increase competitiveness and enhance the security of the Union's energy system, by

RR\551765EN.doc 45/354 PE551.765v03-00

EN

promoting energy interconnections and synchronisation of power systems with the rest of the Union, expanding renewable energy and energy and resource efficiency, contributing to sustainable development; by developing broadband and digital service networks; as well as sustainable transport networks and by exploiting potential synergies between those sectors; and which strengthen the European scientific and technological base, support scientific collaboration between academia and industry, improve exploitation and market-uptake of research results, facilitate patenting and technology transfer, and foster benefits for society as well as better exploitation of the economic and industrial potential of policies of innovation, research and technological development, including research infrastructure, pilot and demonstration facilities. The EFSI should improve access to finance and the competitiveness of enterprises and other entities, with special emphasis on SMEs. The EFSI should contribute to the transformation to a sustainable, circular and resource efficient economy, boosting innovation, skills and sustainable local job creation.

Amendment 9

Proposal for a regulationRecital 11 a (new)

Text proposed by the Commission Amendment

(11a) Taking into account that small mid-cap companies with up to 499 employees and mid-cap companies with up to 3000 employees represent the most innovative segment of companies in the private sector, generating on average a higher number of patents, process innovations and product innovations as well as higher

PE551.765v03-00 46/354 RR\551765EN.doc

EN

returns on investment, while still facing similar problems as SMEs regarding access to finance, the EFSI should tailor some of its financial products towards small mid-caps and mid-cap companies in particular.

Justification

For certain types of projects - particularly research and innovation activities - the lack of access to risk finance represents a problem experienced by all types of companies, irrespective of their size. However, economic fall-out is highest when so called mid-caps don't have access to finance, since they regularly come out as the most innovative company segment in EU R&D monitoring reports. The EFSI portfolio should take their financing needs into particular account.

Amendment 10

Proposal for a regulationRecital 11 b (new)

Text proposed by the Commission Amendment

(11b) The investments supported under EFSI should contribute to achieve existing Union programmes, policies and Union's strategy for smart sustainable and inclusive growth adopted in the conclusions of the European Council of 17 June 2010. For this purpose they should contribute to achieve objectives set out in Article 170 TFEU, Article 173 TFEU, Article 179 TFEU and Article 194(1) TFEU.

Amendment 11

Proposal for a regulationRecital 11 c (new)

Text proposed by the Commission Amendment

(11c) In order to improve the coordination and integration of the Union's investment policies, Regulation 1303/2013 was established with a Common Strategic Framework ('CSF'); this integrated

RR\551765EN.doc 47/354 PE551.765v03-00

EN

approach should accordingly be applied to operations and projects supported by the EFSI;

Amendment 12

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(11d) The Commission Communication on the Energy Union (COM(2015)0080) has stressed the importance of energy efficiency as an energy source in its own right and states clearly that EFSI provides an opportunity to leverage major investments in renovating buildings. Investments in energy efficiency are acknowledged to create up to 2 million jobs by 2020 and possibly another 2 million jobs by 2030. In order to ensure that the EFSI fulfils its purpose of leveraging private investments, delivering jobs, fostering resilient economic developments, and reducing macro-economic imbalances, a special focus on energy efficiency is needed. Therefore technical assistance under the EIAH has to be provided for the establishment of dedicated investment platforms for aggregated energy efficiency projects.

Amendment 13

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(11e) Taking into account the need for an instant boost of the European economy, guaranties under the EFSI should only be committed by the Investment Committee to operations and projects that shall be contractually agreed and signed within three years after the commitment. If the

PE551.765v03-00 48/354 RR\551765EN.doc

EN

projects or operations are not signed within three years after the commitment, the commitment has to expire. By doing so, the EFSI will focus on activities that create both an immediate impact and sustainable economic growth, while providing European added value.

Amendment 14

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(11f) In order to ensure that the EFSI fulfils its purpose it is imperative that an amount of at least EUR 5 000 000 000 from the EFSI is allocated for EIB funding to the EIF to be used specifically for the benefit of Small and Medium Enterprises and small mid-cap companies.

Amendment 15

Proposal for a regulationRecital 11 g (new)

Text proposed by the Commission Amendment

(11g) In order to ensure that the EFSI fulfils its purpose it is imperative that an amount of at least EUR 5 000 000 000 from the EFSI is allocated for EIB funding to the EIF to be used specifically for the benefit of Small and Medium Enterprises and small mid-cap companies as well as innovative SMEs and innovative mid-caps.

Justification

There is no need for EFSI to reinvent the wheel. Over the past couple of years, a number of innovative financial instruments to benefit SMEs and small mid-caps have been put in place under H2020 and COSME, and are currently being implemented by the EIF. They see multiplier effects between 1:18 and 1:28 and face double the amount of eligible demand for

RR\551765EN.doc 49/354 PE551.765v03-00

EN

finance than they can supply. A part of the guarantee should therefore be used to top-up and complement successful existing instruments.

Amendment 16

Proposal for a regulationRecital 11 h (new)

Text proposed by the Commission Amendment

(11h) The Commission Communication on the European Energy Security Strategy (COM(2014)0330) has stressed that in order to improve energy security, Member States should complete the transposition of internal energy market legislation, notably unbundling rules, including a provision that transmission system operators controlled by non-EU entities comply with the same obligations as those controlled by EU entities; however the recent experience of certain non-EU operators seeking to avoid compliance with EU legislation on EU territory requires a stricter application and a reinforcement of the applicable rules at EU and Member State level: it can be facilitated by provision that only those projects concerning gas that are carried out in gas infrastructure sectors in Member States where the effective ownership unbundling is implemented, shall be eligible for the EU guarantee.

Justification

To improve energy security, it is essential to implement the Third Energy Liberalisation Package, especially with regard to gas market, and to ensure that gas production and supply activities are separated and the existing monopoly networks are unbundled. The recent experience of certain non-EU operators seeking to avoid compliance with EU legislation on EU territory requires a stricter application and a possible reinforcement of the applicable rules at EU and Member State level. This can be facilitated by provision that only those gas infrastructure projects that are carried out in gas infrastructure sectors in Member States where the effective ownership unbundling is implemented, shall be eligible for the EU guarantee.

PE551.765v03-00 50/354 RR\551765EN.doc

EN

Amendment 17

Proposal for a regulationRecital 12

Text proposed by the Commission Amendment

(12) Many small and medium enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. The EFSI should help these businesses to overcome capital shortages by allowing the EIB and the European Investment Fund ('EIF') to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI.

(12) Many small and medium enterprises, as well as small mid-cap companies, including start-ups and spin-offs, across the entire Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. The EFSI should help these businesses to overcome capital shortages and market failures by allowing the EIB and the EIF, where relevant, to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI

Amendment 18

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible. The work of the EFSI on providing finance to small and medium enterprises and small mid-cap companies should be channelled through the European Investment Fund ('EIF') to benefit from its experience in these activities.

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible. The provision of EFSI funding to small and medium enterprises and small mid-cap companies, start-ups and spin-offs should be channeled through the EIF to benefit from its experience in these activities.

RR\551765EN.doc 51/354 PE551.765v03-00

EN

Amendment 19

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote job creation, long-term growth and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

(14) The EFSI should target projects delivering high social, environmental and economic added value. The EFSI should support projects that comply to the criteria and objectives set out in this Regulation, that promote sustainable high quality job creation, long-term sustainable growth and competitiveness and which help to achieve the EU’s research and development, innovation, climate and energy and digital goals. The EFSI should support a wide range of financial products, including equity, quasi-equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for, or crowd-out, private market finance or products provided by regional and national promotional banks, but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

Amendment 20

Proposal for a regulationRecital 14 a (new)

Text proposed by the Commission Amendment

(14a) When selecting the projects eligible under EFSI support, specific attention should be given to energy efficiency; when deciding on projects for energy generation or energy transport, it should

PE551.765v03-00 52/354 RR\551765EN.doc

EN

be assessed whether the goals in terms of security of supply cannot be reached instead in a more sustainable and cost-effective way by reducing energy demand, through raising energy efficiency or through demand response; this to ensure that energy efficiency projects are competing on equal terms, including equal cost-benefit analysis terms, with projects that are aimed at increasing energy supply or developing new infrastructures;

Justification

The Communication of 25.2.2015 on the Energy Union, COM(2015) 80 ‘A Framework Strategy for a Resilient Energy Union with a Forward Looking Climate Change Policy’, stresses that it is ‘necessary to fundamentally rethink energy efficiency and treat it as an energy source in its own right, representing the value of energy saved. As part of the market design review, the Commission will ensure that energy efficiency and demand side response can compete on equal terms with generation capacity.’

Amendment 21

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality and complementarity over existing operations. An even higher risk profile should be accepted for research, development and innovation projects. The EFSI should finance projects across the entire Union, avoiding geographical concentration and facilitating investment in regions where capital markets are less developed, including in the countries most affected by the financial crisis and where investment in percentage of GDP has substantially declined. The EFSI should only be used where financing is not available from other sources on reasonable terms.

RR\551765EN.doc 53/354 PE551.765v03-00

EN

Amendment 22

Proposal for a regulation</Article>

Text proposed by the Commission Amendment

(15a) Market based incentives and the additionality provided by the EFSI should ensure that the EFSI targets socially and economically viable projects, without any regional pre-allocation, in particular to address high investment needs or market failures. For Member States where financial markets are less developed, appropriate technical assistance should be provided to ensure that the general objectives of this Regulation can be achieved. At the same time, the EFSI should be able to support environmentally sound projects and benefit industries and technologies with high growth potential.

Amendment 23

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically and technically viable, and bankable under conditions offered by the EFSI product portfolio, but which face barriers for market uptake. In addition, average project risk under EFSI should be higher than under any other available investment portfolio in the EU and it should target close-to market innovations where further support is needed to bridge the 'valley-of- death'.

PE551.765v03-00 54/354 RR\551765EN.doc

EN

Amendment 24

Proposal for a regulationRecital 16 a (new)

Text proposed by the Commission Amendment

(16a) The EFSI should be endowed with an appropriate governance structure whose function should be commensurate with the sole purposes of ensuring the appropriate use of the EU guarantee. That governance structure should be composed of a Steering Board, a Managing Director and an Investment Committee. It should not encroach upon or interfere with the decision making of the EIB, or be a substitute of the governing bodies of the latter. The Steering Board should set up the investment guidelines according to which the Investment Committee should decide on the use of the EU guarantee. These guidelines should be in addition to, but not in conflict with, those set out in this Regulation for the use of the EU guarantee. The Commission shall be empowered to adopt delegated acts concerning the investment guidelines. The Managing Director should be responsible for the daily management of the EFSI and carry out the preparatory work of the meetings of the Investment Committee.

Amendment 25

Proposal for a regulationRecital 17

Text proposed by the Commission Amendment

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of

RR\551765EN.doc 55/354 PE551.765v03-00

EN

independent experts who are knowledgeable and experienced in the areas of investment projects. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

independent experts who are knowledgeable and experienced in the areas of project structuring and project financing, and investment projects in the sectorial domains specified in this Regulation as well as in geographic markets within the Union. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies. The decisions made by the Investment Committee should be free from any undue interference so as to ensure its full independence, which is the key to maintain the investor trust.

Amendment 26

Proposal for a regulationRecital 17 a (new)

Text proposed by the Commission Amendment

(17a) For the purpose of transparency, accountability and independence of the Steering board and the Investment committee, a system of prevention of conflict of interest should be adopted and implemented.

Amendment 27

Proposal for a regulationRecital 17 b (new)

Text proposed by the Commission Amendment

(17b) The investment committee shall safeguard that the general investment strategy of the EIF, for the investments granted by the EU guarantee, is in

PE551.765v03-00 56/354 RR\551765EN.doc

EN

compliance with the objectives and criteria under this regulation. The daily management, project selection and follow-up, should, however, be the competence of the EIF.

Amendment 28

Proposal for a regulationRecital 17 c (new)

Text proposed by the Commission Amendment

(17c) In order to ensure that the goals laid down in this Regulation are met and a wide geographical scope of the projects within the Union is achieved, technical assistance to Member States, where capital markets are less developed in comparison to other Member States, should be provided.

Amendment 29

Proposal for a regulationRecital 18

Text proposed by the Commission Amendment

(18) In order to enable the EFSI to support investments, the Union should grant a guarantee of an amount equal to EUR 16 000 000 000. When provided on a portfolio basis, the guarantee coverage should be capped depending upon the type of instrument, such as debt, equity or guarantees, as a percentage of the volume of the portfolio of outstanding commitments. It is expected that when the guarantee is combined with EUR 5 000 000 000 to be provided by the EIB, that the EFSI support should generate EUR 60 800 000 000 additional investment by the EIB and EIF. This EUR 60 800 000 000

(18) In order to enable the EFSI to support investments, the Union should grant a guarantee of an amount equal to EUR 16 000 000 000. When provided on a portfolio basis, the guarantee coverage should be capped depending upon the type of instrument, such as debt, equity or guarantees, as a percentage of the volume of the portfolio of outstanding commitments. It is expected that when the guarantee is combined with EUR 5 000 000 000 to be provided by the EIB, that the EFSI support should generate EUR 60 800 000 000 additional investment by the EIB and EIF. This EUR 60 800 000 000

RR\551765EN.doc 57/354 PE551.765v03-00

EN

supported by the EFSI is expected to generate a total of EUR 315 000 000 000 in investment in the Union within the period 2015 to 2017. Guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations.

supported by the EFSI is expected to generate a total of at least EUR 315 000 000 000 in investment in the Union within a period of three years starting from the entry into force of this Regulation. Guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations within the availability period of the guarantee.

Justification

With a view to the need for an immediate boost to Europe's investment climate, signing contracts under EFSI should not be delayed. Of course, only truly eligible projects should be selected for support.

Amendment 30

Proposal for a regulationRecital 18 a (new)

Text proposed by the Commission Amendment

(18a) On 13 January 2015, the European Commission presented a Communication on how it will apply the existing rules of the Stability and Growth Pact. National co-financing of operations supported by the EFSI, including in the transition period, are eligible to the flexibility within the existing rules of the Stability and Growth Pact, provided for by the Commission Communication of 13 January 2015, in accordance with the conditions and limits there included.

Amendment 31

Proposal for a regulationRecital 18 b (new)

Text proposed by the Commission Amendment

(18b) In order to ensure that the EFSI fulfils its twofold purpose it is imperative that an amount equivalent to EUR 5 000 000 000 from the EFSI is

PE551.765v03-00 58/354 RR\551765EN.doc

EN

allocated for EIB funding to the EIF to be used specifically for the benefit of Small and Medium Enterprises and small mid-cap companies as well as innovative SMEs and innovative mid-caps.

Justification

In order for EFSI to be able to fulfil its twofold purpose it is important to clarify that part of the guarantee has to be reserved for access to risk finance for the benefit of SMEs and small mid-caps. Linked to AM on Article 1, Article 5,2 (e) and Article 7.

Amendment 32

Proposal for a regulationRecital 18 c (new)

Text proposed by the Commission Amendment

(18c) In order to ensure that the EFSI fulfils its objective it is imperative that an amount equivalent to EUR 5 000 000 000 from the EFSI is allocated for EIB funding to the EIF to be used specifically for the benefit of Small and Medium Enterprises and small mid-cap companies as well as innovative SMEs;

Amendment 33

Proposal for a regulationRecital 19

Text proposed by the Commission Amendment

(19) In order to allow for further increase in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI and take part in the

(19) In order to reach the target of EUR 315 000 000 000 within the shortest possible time, national promotional banks or institutions and investment platforms and funds, with support of the EFSI guarantee, should play a prominent role in identifying viable projects, developing and, where appropriate, bundling projects, and attracting potential investors. In that context, it should be

RR\551765EN.doc 59/354 PE551.765v03-00

EN

EFSI governance structure. possible to establish macro-regional platforms to promote cross-border projects or a group of projects across Member States in a regional perspective.

Amendment 34

Proposal for a regulationRecital 20

Text proposed by the Commission Amendment

(20) At the level of projects, third parties may co-finance together with EFSI on a project-by-project basis or in investment platforms related to specific geographic or thematic sectors.

(20) At the level of projects, third parties may co-finance together with EFSI on a project-by-project basis or in investment platforms related to specific geographic or thematic sectors. Special attention should be given to investment platforms that focus on transformative sectors with high economic and societal added value, and investment platforms that aggregate small scale sustainable and innovative projects, notably driven by regions, cities and SMEs; for example energy efficiency projects such as the refurbishment of building stock, smart grids projects and new citizen services based on digital innovative tools.

Amendment 35

Proposal for a regulationRecital 21

Text proposed by the Commission Amendment

(21) Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI.

(21) The EFSI should complement and be additional to ongoing regional, national and EU programmes as well as traditional EIB activities. Provided that all relevant eligibility criteria are fulfilled, third parties may co-finance together with EFSI on a project-by-project basis or in investment platforms related to geographic or thematic sectors and Member States may use any type of Union financing, including European Structural Investment Funds, to contribute to the financing of

PE551.765v03-00 60/354 RR\551765EN.doc

EN

eligible projects that are supported by the EU guarantee. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI and to involve social partners and public authorities.

Amendment 36

Proposal for a regulationRecital 22

Text proposed by the Commission Amendment

(22) In accordance with the Treaty on the Functioning of the European Union, Infrastructure and project investments supported under EFSI should be consistent with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project meets these criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). The Commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds.

(22) In accordance with the Treaty on the Functioning of the European Union, Infrastructure and project investments supported under EFSI should be consistent with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project meets these criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). With a view to ensuring an efficient use of public funds, the Commission should provide further guidelines to guarantee full consistency with sector specific State aid rules. The requirement for consistency with state aid principles should contribute to the effective use of EFSI resources.

Amendment 37

Proposal for a regulationRecital 25

RR\551765EN.doc 61/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(25) The EIB should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance and impact and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

(25) The EIB and the Commission should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance, impact as well as their coordination and consistency with other Union policies and instruments, and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

Justification

Given the needs to ensure transparency and an adequate level of scrutiny by the legislator, evaluation and subsequent reporting is key to ensure a smooth implementation of the EFSI.

Amendment 38

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development, preparation and aggregation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks, the managing authorities of the European Structural and Investment Funds and best practices from projects such as ELENA (European Local Energy Assistance), InnovFin (EU Finance for Innovators) and the EEIF (European Energy Efficiency Fund). This should establish a single point of entry for questions related to technical assistance for investments within the Union where possible providing technical assistance on a decentralised

PE551.765v03-00 62/354 RR\551765EN.doc

EN

basis. The setting up of the EIAH as a single entry point and the new services provided by it shall in no way alter the objective of existing technical assistance programmes or affect the quality or capacity of these in carrying out their dedicated tasks.

Amendment 39

Proposal for a regulationRecital 26 a (new)

Text proposed by the Commission Amendment

(26a) The EIAH shall especially build upon the good practices in existing programmes, such as ELENA , EEIF , JEREMIE (Joint European Resources for Micro to Medium Enterprises), JASPERS (Joint Assistance to Support Projects in European Regions), JESSICA (Joint European Support for Sustainable Investment in City Areas) and JASMINE (Joint Action to Support Micro-finance Institutions in Europe); The EIAH shall, when relevant, redirect project promoters to these entities and channel the delivery of technical assistance through them.

Amendment 40

Proposal for a regulationRecital 27

Text proposed by the Commission Amendment

(27) In order to cover the risks related to the EU guarantee to the EIB, a guarantee fund should be established. The guarantee fund should be constituted by a gradual payment from the Union budget. The guarantee fund should subsequently also receive revenues and repayments from projects that benefit from EFSI support and amounts recovered from defaulting debtors

(27) In order to cover the risks related to the EU guarantee to the EIB, a guarantee fund should be established. The guarantee fund should be constituted by a gradual payment from the Union budget. The guarantee fund should subsequently also receive revenues and repayments from projects that benefit from EFSI support and amounts recovered from defaulting debtors

RR\551765EN.doc 63/354 PE551.765v03-00

EN

where the guarantee fund has already honoured the guarantee to the EIB.

where the guarantee fund has already honoured the guarantee to the EIB. Any remuneration that arises from EFSI operations which surmounts the target amount/needs of the guarantee fund shall be transferred to the respective EU budget lines which were reduced in order to establish the EFSI guarantee fund.

Justification

Surplus reflows and revenues that exceed the target amount of the EU guarantee should be re-entered into the general budget of the Union and reassigned to the budget lines that initially contributed to the guarantee fund.

Amendment 41

Proposal for a regulationRecital 29

Text proposed by the Commission Amendment

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3 , should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and

(29) The contribution from the Union budget to the EU budget Guarantee Fund will be progressively authorised by the European Parliament and the Council in the framework of the annual budgetary procedures up to 2020. For this purpose, the budgetary authority should make use, where appropriate, of all available mechanisms of flexibility and relevant provisions under the 2014-2020 MFF Regulation ensuring a maximum linearity and securing the functioning and viability of the funding according to the budget provided for in the MFF of the multiannual commitments characterising some current EU programmes such as Horizon 2020 and Connecting Europe Facility. The financing of the Guarantee Fund, should be revised in the frame of the mid-term review of the Multiannual Financial Framework due to be launched by the end of 2016 at the latest, as foreseen in Article 2 of Council Regulation (EU) No 1311/2013 of 2 December 2013 laying down the Multiannual Financial Framework for

PE551.765v03-00 64/354 RR\551765EN.doc

EN

Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

the years 2014 -2020. Given the soaring need for policy action and spending programmes at Union level to incentivise economic growth and job-creation in Europe, the revision should increase the available margins and commitment appropriations under heading 1a.

__________________2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

Amendment 42

Proposal for a regulationRecital 32 a (new)

Text proposed by the Commission Amendment

(32a) Member States should be able to participate in the creation of the European investment directory including by providing information on investment projects in their territory to the Commission and the EIB. Before launching the directory, the Commission and the EIB should carry out appropriate consultations with Member States, experts and stakeholders, regarding the principles and guidelines for projects to be listed in the directory, and regarding the template for publishing information about

RR\551765EN.doc 65/354 PE551.765v03-00

EN

individual projects.

Amendment 43

Proposal for a regulationRecital 34

Text proposed by the Commission Amendment

(34) To ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress and impact of the EFSI.

(34) To ensure accountability to European citizens, from the entry into force of this Regulation, the Commission should submit to the European Parliament and to the Council annual report containing an evaluation of the use of the EU guarantee and of the fulfilment of the general objectives and criteria laid down in this Regulation, including the mobilisation of private capital, the additionality and the economic and societal added value. If appropriate, the report should be accompanied by a proposal to the European Parliament and to the Council to amend this Regulation. The EIB in cooperation with the EIF, should report semi-annually to the European Commission, to the European Parliament and to the Council on EIB and EIF financing and investment operations, including which projects have been financed, the financial instruments used and the state of implementation of funded projects and losses incurred under EFSI. In case of failed projects, the Report shall include a thorough analysis of the situation, highlighting possible repercussion on the Guarantee fund.

Amendment 44

Proposal for a regulationRecital 36

Text proposed by the Commission Amendment

(36) Since the objectives of this Regulation, namely to support investments in the Union and to ensure increased access

(36) Since the objectives of this Regulation, namely to support investments in the Union and to ensure increased access

PE551.765v03-00 66/354 RR\551765EN.doc

EN

to financing for companies having up to 3000 employees, cannot be sufficiently achieved by the Member States by reason of the disparities in their fiscal capacity to act but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

to financing for companies having up to 3 000 employees cannot be sufficiently achieved by the Member States alone but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

Amendment 45

Proposal for a regulationRecital 36 a (new)

Text proposed by the Commission Amendment

(36a) The Commission and the EIB should conclude an Agreement that specifies the conditions laid down in this Regulation for their management of the EFSI. That Agreement should not encroach upon the competences of the Union legislator, of the budgetary authority, and of the EIB, as laid down in the Treaties and should, therefore, be confined to elements which are mainly technical and administrative in nature and which, whilst not being essential, are necessary for the effective implementation of the EFSI. This Agreement, together with the Investment Guidelines, should be adopted by the Commission by means of a delegated act.

Justification

The EFSI agreements should be of a solely administrative nature, leaving crucial elements of the initiative to the legislator. The agreement should implement these decisions. The EFSI agreement should be adopted through a delegated act to allow adequate scrutiny of the legislator.

RR\551765EN.doc 67/354 PE551.765v03-00

EN

Amendment 46

Proposal for a regulationArticle 1

Text proposed by the Commission Amendment

1. The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI').

1. This Regulation establishes a European Fund for Strategic Investments (EFSI), an EU guarantee and an EU guarantee fund.

2. To that effect, this Regulation provides for the Commission to negotiate a draft agreement with the European Investment Bank (EIB) for the management of the European Fund for Strategic Investments ('EFSI'). This agreement shall solely contain technical and administrative elements, and shall be in full compliance with the requirements set-out in this Regulation.

3. The Commission shall be empowered to enter into the EFSI Agreement on behalf of the Union, and to accept later amendments to it, by means of a delegated act in accordance with Article 17, provided that the EFSI Agreement meets the requirements of this Regulation.

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

4. The purpose of the EFSI shall be to support investments in the Union conducive to competitive and sustainable growth with a view to overcome the investment gap among its Member States. Through the supply of risk bearing capacity to the EIB the EFSI shall:

- support long term, productive and strategic investments;

- ensure increased access to financing for companies having up to 3000 employees, with a particular focus on start-ups, micro-enterprises, small, and medium-sized enterprises, small mid-caps.

2. The EFSI Agreement shall be open to 5. The EFSI Agreement shall be open to

PE551.765v03-00 68/354 RR\551765EN.doc

EN

accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

accession by Member States under the terms laid out in the EFSI Agreement. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

6. Guarantees under this Regulation shall only be committed by the Investment Committee to operations and projects that shall be contractually agreed and signed within three years after the commitment. If the operations and projects are not singed within three years after the commitment, the commitment has to expire.

Amendment 47

Proposal for a regulationArticle 1 a (new)

Text proposed by the Commission Amendment

Article 1a

Definitions

For the purposes of this Regulation the following definitions apply:

(a) 'national promotional banks' or 'national promotional institutions' means legal entities carrying out financial activities on a professional basis which are conferred a mandate by a Member State, whether at central, regional or local level, to carry out public development or promotional activities seeking to address market failures or sub-optimal investment situations;

(b) 'investment platforms' means special purpose vehicles, managed accounts, contract-based co-financing or risk sharing arrangements or arrangements established by any other means via which entities channel a financial contribution

RR\551765EN.doc 69/354 PE551.765v03-00

EN

in order to finance a number of investment projects in the Union;

(c) 'small and medium-sized enterprises' or 'SMEs' means micro, small and medium-sized enterprises as defined in Recommendation 2003/361/EC.

(d) 'small mid-cap companies' means legal entities having up to 499 employees as defined by Commission Guidelines C(2014) 34/2; 1a

(g) 'additionality’ means the support by the EFSI of operations which address market failures, investment gaps or sub-optimal investment situations and which could not have been carried out without EFSI support during that period, or to the same extent, or under reasonable conditions, through normal EIB instruments, through the EIF, through EU Instruments or through instruments offered by regional promotional banks, national promotional banks and commercial banks. Consequently, the EU guarantee can be combined with, or can be used to complement, accelerate or strengthen existing EU financial instruments.

(h) 'EFSI Agreement' means the legal instrument whereby the Commission and the EIB specify the conditions laid down in this Regulation for the management of the EFSI.

(i) 'EIAH Agreement' means the legal instrument whereby the Commission and the EIB specify the conditions laid down in this Regulation for the implementation of EIAH.

_____________1a Guidelines on State aid to promote risk finance investments

PE551.765v03-00 70/354 RR\551765EN.doc

EN

Amendment 48

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point a

Text proposed by the Commission Amendment

(a) provisions governing the establishment of the EFSI as a distinct, clearly identifiable and transparent guarantee facility and separate account managed by the EIB;

(a) arrangements concerning the establishment of the EFSI as well as the amount and terms of the financial contribution to be provided by the EIB, including the terms of the funding or guarantees which shall be provided by the EIB through the EFSI to the European Investment Fund ('EIF') which shall be at least EUR 5 000 000 000.

Amendment 49

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point c

Text proposed by the Commission Amendment

(c) the terms of the funding which shall be provided by the EIB through the EFSI to the European Investment Fund ('EIF');

(c) The arrangements concerning the EU guarantee, that shall be an unconditional, irrevocable, first demand guarantee in favour of the EIB, including:

(i) detailed rules on the provision of the EU guarantee, in accordance with Article 7, among which its modalities of coverage, its defined coverage of portfolios of specific types of instruments;

(ii) requirements that remuneration for risk-taking be allocated amongst contributors in proportion with their respective risk share in risk taking;

(iii) requirements that remuneration to the Union and payments on the EU guarantee shall be made in timely manner and only occur once a year after remuneration and losses from operations have been netted;

(iv) requirements governing the use of the EU guarantee in accordance with Article

RR\551765EN.doc 71/354 PE551.765v03-00

EN

5, among which payment conditions, such as specific time frames, interest on due amounts and the necessary liquidity arrangements;

(v) provisions and procedures relating to recovery of claims that shall be entrusted to the EIB, in line with Article 7(4);

Justification

The EFSI agreements should be of a solely administrative nature, leaving crucial elements of the initiative to the legislator. Therefore relevant provisions should be part of the regulation rather than the EFSI agreement. Detailed provisions have been put in place accordingly.

Amendment 50

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point d

Text proposed by the Commission Amendment

(d) the governance arrangements concerning the EFSI, in accordance with Article 3, without prejudice to the Statute of the European Investment Bank;

(d) The modalities for the approval by the Investment Committee of the use of the EU guarantee for individual projects in line with this Regulation and in particular with Article 2a;

Justification

The EFSI agreements should be of a solely administrative nature, leaving crucial elements of the initiative to the legislator. Therefore relevant provisions should be part of the regulation rather than the EFSI agreement. Detailed provisions have been put in place accordingly.

Amendment 51

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point e

Text proposed by the Commission Amendment

(e) detailed rules on the provision of the EU guarantee, in accordance with Article 7, including its capped coverage of portfolios of specific types of instruments, calls on the EU guarantee, that – with the exception of possible losses on equity -

(e) The procedures for the submission of investment proposals and approval of proposals for the use of the EU guarantee, including:

PE551.765v03-00 72/354 RR\551765EN.doc

EN

shall only occur once a year after profits and losses from operations have been netted, and its remuneration and the requirement that remuneration for risk-taking be allocated amongst contributors in proportion with their respective risk share;

(i) the procedure for the transmission to the Investment Committee of projects;

(ii) the requirement that the procedure for submission and approval of proposals for the use of the EU guarantee is without prejudice to the EIB decision making rules laid down under the Statute of the European Investment Bank;

(iii) rules further detailing the transitional provisions under Article 20, and in particular the manner how operations signed by the EIB during the period referred to in Article 20 will be included under the EU guarantee coverage.

Justification

The EFSI agreements should be of a solely administrative nature, leaving crucial elements of the initiative to the legislator. Therefore relevant provisions should be part of the regulation rather than the EFSI agreement. Detailed provisions have been put in place accordingly.

Amendment 52

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point f

Text proposed by the Commission Amendment

(f) provisions and procedures relating to recovery of claims;

(f) The procedures for the submission of investment proposals and approval of proposals for the use of the EU guarantee, including:

(i) the procedure for the transmission to the Investment Committee of projects;

(ii) the requirement that the procedure for submission and approval of proposals for the use of the EU guarantee is without prejudice to the EIB decision making

RR\551765EN.doc 73/354 PE551.765v03-00

EN

rules laid down under the Statute of the European Investment Bank;

(iii) rules further detailing the transitional provisions under Article 20, and in particular the manner how operations signed by the EIB during the period referred to in Article 20 will be included under the EU guarantee coverage.

Justification

The EFSI agreements should be of a solely administrative nature, leaving crucial elements of the initiative to the legislator. Therefore relevant provisions should be part of the regulation rather than the EFSI agreement. Detailed provisions have been put in place accordingly.

Amendment 53

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point g

Text proposed by the Commission Amendment

(g) requirements governing the use of the EU guarantee, including within specific time frames and key performance indicators;

(g) requirements governing the use of the EU guarantee, such as the compliance with the objectives and criteria set out in Article 5.2, as well as specific time frames and key performance indicators, including job creation and SME participation.

Amendment 54

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point j

Text proposed by the Commission Amendment

(j) the modalities of the EU guarantee coverage.

deleted

Justification

Detailed provisions covering this aspect have been inserted above.

PE551.765v03-00 74/354 RR\551765EN.doc

EN

Amendment 55

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point j a (new)

Text proposed by the Commission Amendment

(ja) any other conditions of an administrative or organisational nature necessary for the management of the EFSI.

Amendment 56

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The EFSI Agreement shall provide that there is a clear distinction between operations carried out with the EFSI support and other operations of the EIB.

The EFSI Agreement shall provide that there is a clear distinction between operations carried out with the EFSI support and other operations of the EIB. However, the investment guidelines and criteria adopted by the EIB on 23 July 2013 shall apply.

Amendment 57

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB, which shall deliver advisory support for investment projects in line with the objectives and criteria set out in Article 5(2) of this Regulation.

RR\551765EN.doc 75/354 PE551.765v03-00

EN

structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

The EIAH shall build upon existing EIB and Commission advisory services, where possible in a decentralised way, and shall:

(a) act as a technical advisory hub and provide support for investment project identification, preparation and development; as well as provide support on the use of technical assistance for project structuring, innovative financial instruments, public-private partnerships and advice, as appropriate, on relevant issues of EU legislation, taking into account differences of Member States, especially for those with less developed capital markets;

(b) give special support to investment platforms that focus on sectors with high economic and societal added value or that aggregate smaller projects, notably driven by regions, cities and SMEs, into larger bankable projects; award particular focus to information and support of innovative entrepreneurs;

(c) create a specific facility for technical assistance for the establishment of investment platforms for aggregated energy efficiency projects at decentralized level;

(d) provide technical and financial support on the use of EFSI to decentralized institutions that implement similar technical assistance schemes at local level; leverage local knowledge to facilitate EFSI support in the whole Union;

(e) act as a single point of contact for authorities and project promoters or redirect them to the institutions mentioned in point 4;

(f) provide for a structural exchange of information and best practices between all

PE551.765v03-00 76/354 RR\551765EN.doc

EN

the stakeholders involved in the EFSI, namely on project development.

(g) provide decentralised technical assistance platforms for supporting development of SMEs, including start-ups and spin-offs, and their collaboration with universities and research organisations.

Amendment 58

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds.

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds. The EIAH shall especially build upon the good practices from existing technical assistance programmes.

Amendment 59

Proposal for a regulationArticle 2 – paragraph 3 – subparagraph 1 a (new)

Text proposed by the Commission Amendment

National contributions to the EFSI shall follow the same rules as other public spending and investing, must be a priority of budget policy and not undermine the rules of the stability pact.

RR\551765EN.doc 77/354 PE551.765v03-00

EN

Amendment 60

Proposal for a regulationArticle 3

Text proposed by the Commission Amendment

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2). The Steering Board shall elect one of its members to be Chairperson.

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board. The Steering Board shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with this Regulation and set up investment guidelines in addition to but not in conflict with those of Article 5(2) for the use of the EU guarantee to be implemented by the Investment Committee. The Commission shall be empowered to adopt delegated acts in accordance with Article 17 concerning the investment guidelines.

2. For as long as the only contributors to the EFSI are the Union and the EIB, the number of members and votes within the Steering Board shall be allocated based on the respective size of contributions in the form of cash or guarantees.

2. For as long as the only contributors to the EFSI are the Union and the EIB, the number of members and votes within the Steering Board shall be allocated based on the respective size of contributions in the form of cash or guarantees.

The Steering Board shall take decisions by consensus.

The Steering Board shall take decisions by consensus.

3. When other parties accede to the EFSI Agreement in accordance with Article 1(2), the number of members and votes within the Steering Board shall be allocated based on the respective size of contributions from contributors in the form of cash or guarantees. The number of members and votes of the Commission and the EIB, according to paragraph 2, shall be recalculated accordingly.

3. When other parties accede to the EFSI Agreement in accordance with Article 1(2), the number of members and votes within the Steering Board shall be allocated based on the respective size of contributions from contributors in the form of cash or guarantees. The number of members and votes of the Commission and the EIB, according to paragraph 2, shall be recalculated accordingly.

The Steering Board shall strive to make decisions by consensus. If the Steering Board is not able to decide by consensus within a deadline set by the Chairperson,

The Steering Board shall strive to make decisions by consensus. If the Steering Board is not able to decide by consensus within a deadline set by the Chairperson,

PE551.765v03-00 78/354 RR\551765EN.doc

EN

the Steering Board shall take a decision by simple majority.

the Steering Board shall take a decision by simple majority.

No decision of the Steering Board shall be adopted if the Commission or the EIB votes against it.

No decision of the Steering Board shall be adopted if the Commission or the EIB votes against it.

4 The EFSI Agreement shall provide that the EFSI shall have a Managing Director, who shall be responsible for the day-to-day management of the EFSI and the preparation and chairing of meetings of the Investment Committee referred to in paragraph 5. The Managing Director shall be assisted by a Deputy Managing Director..

4 The EFSI Agreement shall provide that the EFSI shall have a Managing Director, who shall be responsible for the day-to-day management of the EFSI and the preparation and chairing of meetings of the Investment Committee referred to in paragraph 5. The Managing Director shall be assisted by a Deputy Managing Director.

The Managing Director shall report every quarter on the activities of the EFSI to the Steering Board.

The Managing Director shall report every quarter on the activities of the EFSI to the Steering Board.

The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of the Commission and the EIB for a renewable fixed term of three years.

The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of the Commission and the EIB for a renewable fixed term of three years.

5. The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5, irrespective of their geographic location.

5. The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations that are fully in line with objectives and criteria established in Article 5 of this Regulation and irrespective of their geographic location.

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

The Investment Committee shall be composed of at least six independent experts and the Managing Director. In appointing the experts to the Investment Committee, the Steering Board shall ensure that the composition of the Investment Committee is diversified and that these experts have a high level of relevant market experience in project structuring and project financing in the areas of investment projects as listed in Article 5.2.

The Investment Committee shall be appointed by the Steering Board for a

RR\551765EN.doc 79/354 PE551.765v03-00

EN

renewable fixed term of up to three years The experts shall be appointed in an open and transparent selection procedure.

Decisions of the Investment Committee shall be taken by simple majority.

Decisions of the Investment Committee shall be taken by simple majority.

Amendment 61

Proposal for a regulationArticle 4

Text proposed by the Commission Amendment

The Union shall provide a guarantee to the EIB for financing or investment operations carried out within the Union covered by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6.

The Union shall provide an irrevocable, and unconditional guarantee for financing or investment operations carried out within the Union, covered by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6.

Amendment 62

Proposal for a regulationArticle 5 – paragraph 2

Text proposed by the Commission Amendment

The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and support any of the following general objectives:

The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or for funding to the EIF in accordance with Article 7(2) in order to conduct EIB financing and investment operations approved by that Investment Committee. The operations concerned shall be consistent with Union policies and shall support one or more of the following general objectives:

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of transport infrastructure, particularly in industrial centres;

(b) investment in education and training, (b) development and modernisation of

PE551.765v03-00 80/354 RR\551765EN.doc

EN

health, research and development, information and communications technology and innovation;

energy infrastructure in accordance with the Energy Union priorities and the 2020, 2030 and 2050 Climate and Energy frameworks, in particular interconnections, smart grids at distribution level, energy storage and the synchronisation of markets;

(c) expansion of renewable energy and energy and resource efficiency;

(c) expansion of renewable energy, resource efficiency, energy efficiency and energy savings, with a particular focus on reducing demand through demand-side management and the refurbishment of buildings;

(d) infrastructure projects in the environmental, natural resources, urban development and social fields;

(d) development of information and communication technologies, of digital and telecom infrastructures and of broadband networks across the entire Union;

(e) providing financial support for the companies referred to in Article 1(1), including working capital risk financing.

(e) investment in innovation, research and development, including research infrastructure, pilot and demonstration projects, collaborations between the academia and industry, and knowledge and technology transfer;

(f) investment in education, training, entrepreneurial skills;

(g) investment in innovative health solutions, such as eHealth and new effective medicines, and in the social sector; 

(h) investment in the cultural and creative industries;

(i) investment in projects and infrastructure in the field of environmental protection and management; strengthening of eco-system services and sustainable urban development;

(j) financial support, including the provision of working capital risk financing, for SMEs, start-ups, spin-offs and small mid-cap companies through the EIF, and for mid-cap companies, in order to ensure technology leadership in

RR\551765EN.doc 81/354 PE551.765v03-00

EN

innovative and sustainable sectors;

(k) financing of projects which are in line with the objectives of Horizon 2020 and the Connecting Europe Facility;

The EFSI shall support only projects and operations that:

(a) are consistent with Union policies and create smart, sustainable and inclusive growth; that comply with the objectives of Article 9 and that are in line with Article 10 and Annex I of Regulation (EU) No 1303/2013;

(b) are economically and technically viable;

(c) ensure additionality;

(d) maximise the mobilisation of private sector capital;

(e) have a net societal benefit, including the creation of sustainable jobs, taking into account the costs and benefits of the project throughout its expected lifetime;

In addition, the EU guarantee shall be granted for support of dedicated investment platforms and national promotional banks, via the EIB, that invest in operations meeting the requirements of this Regulation. In that case, the Steering Board shall specify policies regarding eligible investment platforms.

In addition, the EU guarantee shall be granted, through the EIB, for financing and investment operations conducted by dedicated investment platforms and national promotional banks, after approval by the Investment Committee referred to in Article 3(5). The operations concerned shall be consistent with Union policies and shall comply with the eligibility criteria laid down in Article 5(2). The Steering Board shall specify policies regarding eligible investment platforms.

Amendment 63

Proposal for a regulationArticle 5 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. The EFSI shall offer privileged access

PE551.765v03-00 82/354 RR\551765EN.doc

EN

to guarantees for small projects and small actors, following a de-risking strategy. Such guarantees shall be granted inter alia for the establishment of:

(a) a dedicated Energy Efficiency Fund covering an amount of guarantees of at least EUR 5 000 000 000 notably to support projects promoted by cities and local governments;

(b) a dedicated SME Fund covering an amount of at least EUR 5 000 000 000 which shall be implemented by the EIF, as defined in Article 7.

Amendment 64

Proposal for a regulationArticle 5 – paragraph 2 b (new)

Text proposed by the Commission Amendment

2b. Investments shall comply with the investment guidelines and criteria adopted by the EIB on 23 July 2013.

Amendment 65

Proposal for a regulationArticle 5 – paragraph 4

Text proposed by the Commission Amendment

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee.

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use any type of Union financing, including European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee

Justification

It should made be clear that any type of Union financing can be used to co-finance operations and projects backed by the EU guarantee, not only the financing made available by the European Structural and Investment Funds

RR\551765EN.doc 83/354 PE551.765v03-00

EN

Amendment 66

Proposal for a regulationArticle 5 – paragraph 4 a (new)

Text proposed by the Commission Amendment

4a. The Commission, the EIB and the Member States shall ensure that all the investments with the support of the EFSI take into consideration their impact by sector at local and regional level on economic, social and territorial cohesion, increasing demand without affecting supply, and foster synergies and effective coordination between the EFSI and the European Structural and Investment Funds, in order to ensure that they contribute to the achievement of the Union’s economic, social and territorial cohesion and to reduce unemployment.

Amendment 67

Proposal for a regulationArticle 6 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) EIB loans, guarantees, counter-guarantees, capital market instruments, any other form of funding or credit enhancement instrument, equity or quasi-equity participations. These Instruments shall be granted, acquired or issued for the benefit of operations carried out in the Union, including cross-border operations between a Member State and a third country, in compliance with this Regulation and where EIB financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled;

(a) EIB loans, guarantees, counter-guarantees, capital market instruments, any other form of funding or credit enhancement instrument, equity or quasi-equity participations, including through national promotional banks or institutions or investment platforms. These Instruments shall be granted, acquired or issued for the benefit of operations carried out in the Union, including cross-border operations between a Member State and a third country, in compliance with this Regulation and where EIB financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled;

PE551.765v03-00 84/354 RR\551765EN.doc

EN

Amendment 68

Proposal for a regulationArticle 6 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) EIB funding to the EIF enabling it to undertake loans, guarantees, counter-guarantees, any other form of credit enhancement instrument, capital market instruments and equity or quasi-equity participations. These Instruments shall be granted, acquired or issued for the benefit of operations carried out in the Union, in compliance with this Regulation and where EIF financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled.

(b) EIB funding to the EIF enabling it to undertake loans, guarantees, counter-guarantees, any other form of credit enhancement instrument, capital market instruments and equity or quasi-equity participations, including through national promotional banks or institutions or investment platforms. These Instruments shall be granted, acquired or issued for the benefit of operations carried out in the Union, in compliance with this Regulation and where EIF financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled.

Amendment 69

Proposal for a regulationArticle 7

Text proposed by the Commission Amendment

1. The EU guarantee to the EIB shall be of an amount equal to EUR 16 000 000 000, of which a maximum amount of EUR 2 500 000 000 may be allocated for EIB funding to the EIF in accordance with paragraph 2. Without prejudice to Article 8(9), aggregate payments from the Union under the guarantee to the EIB shall not exceed the amount of the guarantee.

1. The EU guarantee to the EIB shall be of an amount equal to EUR 16 000 000 000, of which at least EUR 5 000 000 000 shall be allocated for EIB funding to the EIF in accordance with paragraph 2, for the purposes set out in Article 1. Without prejudice to Article 8(9), aggregate payments from the Union under the guarantee to the EIB shall not exceed the amount of the guarantee. An amount of at least EUR 5 000 000 000 shall be allocated for EIB funding to the Dedicated Energy Efficiency Fund in accordance with Article 5(2)..

1a. The EU guarantee shall be granted for support of alternative Investment Fund Managers (AIFM), which manage alternative investment funds (AIFs)

RR\551765EN.doc 85/354 PE551.765v03-00

EN

authorised in accordance with Directive 2011/61/EU, managers of collective investment undertakings authorised in accordance with Regulation 2013/345/EU, and managers of collective investment undertakings in accordance with Regulation 2013/346/EC, based on an agreement with the EIB or the EIF in accordance with paragraph 2 and provided that these activities comply with the objectives and eligibility criteria set out in Article 5.2.

2. The coverage of the guarantee over a particular type of instrument portfolio, referred to in Article 6, shall be determined by the risk of that portfolio. The EU guarantee shall be eligible to provide either first loss guarantees on a portfolio basis or a full guarantee. The EU guarantee may be granted on a pari passu basis with other contributors.

2. The coverage of the guarantee over a particular type of instrument portfolio, referred to in Article 6, shall be determined by the risk of that portfolio. The EU guarantee shall be eligible to provide either first loss guarantees on a portfolio basis or a full guarantee. The EU guarantee may be granted on a pari passu basis with other contributors.

Where the EIB provides funding to the EIF in order to conduct EIB financing and investment operations, the EU guarantee shall provide for a full guarantee on funding by the EIB provided that an equal amount of funding is provided by the EIB without EU guarantee. The amount covered by the EU guarantee shall not exceed EUR 2 500 000 000.

Where the EIB provides funding to the EIF in order to conduct EIB financing and investment operations, the EU guarantee shall provide for a full guarantee on funding by the EIB provided that an equal amount of funding is provided by the EIB without EU guarantee. The amount covered by the EU guarantee shall be at least EUR 5 000 000 000. This funding shall be used to support SMEs, start-ups, spin-offs and small mid-caps.

3. Where the EIB calls the EU guarantee in accordance with the EFSI Agreement, the Union shall pay on demand in accordance with the terms of that Agreement.

3. Where the EIB calls the EU guarantee in accordance with the EFSI Agreement, the Union shall pay on demand in accordance with the terms of that Agreement.

4. Where the Union makes any payment under the EU guarantee, the EIB shall pursue the recovery of claims for the amounts paid and reimburse the Union from the sums recovered.

4. Where the Union makes any payment under the EU guarantee, the EIB shall pursue the recovery of claims for the amounts paid and reimburse the Union from the sums recovered.

PE551.765v03-00 86/354 RR\551765EN.doc

EN

Amendment 70

Proposal for a regulationArticle 8

Text proposed by the Commission Amendment

1. An EU guarantee fund ('guarantee fund') shall be established from which the EIB may be paid in the event of a call on the EU guarantee.

1. An EU guarantee fund ('guarantee fund') shall be established which shall constitute a liquidity cushion from which the EIB shall be paid in the event of a call on the EU guarantee.

2. The guarantee fund shall be endowed by:

2. The guarantee fund shall be endowed by:

(a) payments from the general budget of the Union,

(a) contributions from the general budget of the Union;

(b) returns on guarantee fund resources invested,

(b) returns on guarantee fund resources invested;

(c) amounts recovered from defaulting debtors in accordance with the recovery procedure laid down in the EFSI Agreement as provided for in Article 2(1)(f),

(c) amounts recovered from defaulting debtors in accordance with the recovery procedure laid down in the EFSI Agreement as provided for in point (f) of Article 2(1);

(d) any other payments received by the Union in accordance with the EFSI Agreement.

(d) revenues and any other payments received by the Union in accordance with the EFSI Agreement.

3. Endowments to the guarantee fund provided for in points (c) and (d) of paragraph 2 shall constitute internal assigned revenues in accordance with Article 21(4) of Regulation (EU) No 966/2012.

3. Endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall constitute internal assigned revenues in accordance with Article 21(4) of Regulation (EU) No 966/2012.

4. The resources of the guarantee fund provided to it under paragraph 2 shall be directly managed by the Commission and invested in accordance with the principle of sound financial management and follow appropriate prudential rules.

4. The resources of the guarantee fund provided to it under paragraph 2 shall be directly managed by the Commission and invested in accordance with the principle of sound financial management and follow appropriate prudential rules.

RR\551765EN.doc 87/354 PE551.765v03-00

EN

5. Endowments to the guarantee fund referred to in paragraph 2 shall be used to reach an appropriate level to reflect the total EU guarantee obligations ('target amount'). The target amount shall be set at 50% of the Union's total guarantee obligations.

5. Endowments to the guarantee fund referred to in paragraph 2 shall be used to reach an appropriate level to reflect the total EU guarantee obligations ('target amount'). The target amount shall be set at 50% of the Union's total guarantee obligations.

The target amount shall initially be met by the gradual payment of resources referred to in paragraph 2(a). If there have been calls on the guarantee during the initial constitution of the guarantee fund, endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall also contribute to meet the target amount up to an amount equal to the calls on the guarantee.

The target amount shall initially be met by 2022 at the latest through the gradual payment of resources referred to in point (a) of paragraph 2 as well as endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2.

5a. The necessary appropriations to meet the initial target amount shall be gradually authorised by the European Parliament and the Council in the framework of the annual budgetary procedure, taking due account of all means available under the Council Regulation No 1311/2013 of 2 December 2013 laying down the Multiannual Financial Framework (MFF) 2014-2020, with particular recourse to the Global Margin for Commitments and the Flexibility Instrument.

The financing of the guarantee fund, both in respect of commitment and payment appropriations, shall be reviewed by the European Parliament and the Council in the context of the post-electoral review / revision of the Multiannual Financial Framework 2014-2020, to be launched by the end of 2016 at the latest, as foreseen in Article 2 of Council Regulation (EU, Euratom) No 1311/2013.

In the event that redeployments from EU programmes were agreed in the framework of the annual budgetary procedure as source of financing for the EU guarantee in the years preceding the MFF review /revision, the European

PE551.765v03-00 88/354 RR\551765EN.doc

EN

Parliament and the Council shall restore their initial budgets.

6. By 31 December 2018, and every year thereafter, the Commission shall review the adequacy of the level of the guarantee fund taking into account any reduction of resources resulting from the activation of the guarantee and the EIB's assessment submitted in accordance with Article 10(3).

6. By 31 December 2018, and every year thereafter, the Commission shall review the adequacy of the level of the guarantee fund taking into account any reduction of resources resulting from the activation of the guarantee and the EIB's assessment submitted in accordance with Article 10(3).

The Commission shall be empowered to adopt delegated acts in accordance with Article 17 adjusting the target amount provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the EU guarantee being called.

The Commission shall be empowered to adopt delegated acts in accordance with Article 17 adjusting downwards the target level provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the EU guarantee being called.

7. Following an adjustment in year n of the target amount or an assessment on the adequacy of the level of the guarantee fund in accordance with the review provided for in paragraph 6:

7. Following an adjustment in year n of the target level or an assessment on the adequacy of the resources available in the guarantee fund in accordance with the review provided for in paragraph 6:

(e) any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the European Union of the year n+1,

(a) any surplus in the guarantee fund shall constitute internal assigned revenue in accordance with Article 21(4) of Regulation (EU, Euratom) No 966/2012 for any lines which may have been used as a source of redeployment to the EFSI guarantee fund,

(f) any replenishment of the guarantee fund shall be paid in annual tranches during a maximum period of three years starting on year n+1.

(b) any replenishment of the guarantee fund shall be paid in annual tranches during a maximum period of three years starting on year n+1.

8. From 1 January 2019, if as a result of calls on the guarantee, the level of the guarantee fund falls below 50% of the target amount, the Commission shall submit a report on exceptional measures that may be required to replenish it.

8. If as a result of calls on the guarantee, the resources of the guarantee fund fall below 50% of the liabilities that have been incurred at the given moment the Commission shall submit a report on exceptional measures that may be required to replenish it.

9. Subsequent to a call on the EU guarantee, endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 over and above the target amount shall be used to restore the EU guarantee up to its initial amount.

9. Subsequent to a call on the EU guarantee, endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall be used to restore the EU guarantee up to its target amount. Any remaining remuneration shall constitute

RR\551765EN.doc 89/354 PE551.765v03-00

EN

internal assigned revenue in accordance with Article 21(4) of Regulation (EU, Euratom) No 966/2012 for any lines which may have been used as a source of redeployment to the EFSI guarantee fund.

9a. In the event that additional surplus remains, after requirements under paragraphs 7(a) and 9 have been fully met, the Commission shall present a proposal on an increase of the overall level of the EU guarantee, leading to a reinforcement of the investment plan.

Amendment 71

Proposal for a regulationArticle 9 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States, involving regional and local authorities and economic and social partners, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5) but should state the compliance of the proposed projects to the objectives and eligibility criteria laid down in Article 5.

Amendment 72

Proposal for a regulationArticle 9 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which significantly contribute to achieving EU

2. The Commission and the EIB shall develop, update and disseminate, on a regular, structured and transparent basis, information on current and future investments which significantly contribute

PE551.765v03-00 90/354 RR\551765EN.doc

EN

policy objectives. to achieving EU policy objectives, specifically information concerning energy and the environment for 2020, 2030 so as to accelerate the transition to a low-carbon, circular and sharing economy.

Amendment 73

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States and regional and local authorities shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

Amendment 74

Proposal for a regulationArticle 10

Text proposed by the Commission Amendment

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the Commission on EIB financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the Commission on EIB financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis. The report shall be set up in a transparent, independent way and shall be made public.

2. The EIB, in cooperation with the EIF as appropriate, shall report annually to the European Parliament and to the Council on

2. The EIB, in cooperation with the EIF as appropriate, shall report annually to the European Parliament and to the Council on

RR\551765EN.doc 91/354 PE551.765v03-00

EN

EIB financing and investment operations. The report shall be made public and include:

EIB financing and investment operations under this Regulation. The report shall be made public and include:

(a) an assessment of EIB financing and investment operations at operation, sector, country and regional levels and their compliance with this Regulation, together with an assessment of the allocation of EIB financing and investment operations between the objectives in Article 5(2);

(a) an assessment of EIB financing and investment operations at operation, sector, country and regional levels, their level of additionality and their compliance with this Regulation, together with an assessment of the allocation of EIB financing and investment operations between the objectives in Article 5(2) with a specific mentioning of guarantees granted to energy efficiency projects;

(b) an assessment of the added value, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

(b) an assessment of the economic and societal added value, the territorial cohesion, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis, and by project level, where disclosure of data is allowed; this assessment should specify how and to what extent the objectives and criteria set out in Article 5(2) have been achieved, such as the impact on the creation of future-oriented, sustainable and local jobs, with special attention to SMEs, the sustainable transition of the EU's economy, the further development of digital technologies, the preservation and increase of the viability of ecosystem services, the diminishing of EU's dependency on imported energy and on natural resources, the increase of the competiveness and the innovation potential of the Union's economy and the EU's leadership in new technologies and markets;

(c) an assessment of the financial benefit transferred to beneficiaries of EIB financing and investment operations on an aggregated basis;

(c) an assessment of the financial benefit transferred to beneficiaries of EIB financing and investment operations on an aggregated basis;

(d) an assessment of the quality of EIB financing and investment operations;

(d) an assessment of the quality of EIB financing and investment operations;

PE551.765v03-00 92/354 RR\551765EN.doc

EN

(e) detailed information on calls on the EU guarantee;

(e) detailed information on calls on the EU guarantee;

(f) the financial statements of the EFSI. (f) the financial statements of the EFSI.

3. For the purposes of the Commission's accounting and reporting of the risks covered by the EU guarantee and management of the guarantee fund, the EIB, in cooperation with the EIF as appropriate, shall provide the Commission every year:

3. For the purposes of the Commission's accounting and reporting of the risks covered by the EU guarantee and management of the guarantee fund, the EIB, in cooperation with the EIF as appropriate, shall provide the Commission, the European Parliament and the Council semi-annually with:

(a) the EIB's and EIF's risk assessment and grading information concerning EIB financing and investment operations;

(a) the EIB's and EIF's risk assessment and grading information concerning EIB financing and investment operations under this Regulation;

(b) the outstanding financial obligation for the EU concerning the guarantees provided towards EIB financing and investment operations broken down by the individual operations;

(b) the outstanding financial obligation for the EU concerning the guarantees provided towards EIB financing and investment operations under this Regulation broken down by the individual operations;

(c) the total profits or losses deriving from the EIB financing and investment operations within the portfolios provided by the EFSI Agreement pursuant to Article 2(1)(e).

(c) the total profits or losses deriving from the EIB financing and investment operations within the portfolios provided by the EFSI Agreement pursuant to Article 2(1)(e).

4. The EIB shall provide to the Commission upon request any additional information necessary to fulfil the Commission's obligations in relation to this Regulation.

4. The EIB shall provide to the Commission upon request any additional information necessary to fulfil the Commission's obligations in relation to this Regulation.

5. The EIB, and EIF as appropriate, shall provide the information referred to in paragraphs 1 to 4 at their own expense.

5. The EIB, and EIF as appropriate, shall provide the information referred to in paragraphs 1 to 4 at their own expense.

6. The Commission shall, by 30 June of each year, send to the European Parliament, the Council and the Court of Auditors an annual report on the situation of the guarantee fund and the management thereof in the previous calendar year.

6. The Commission shall, by 30 June of each year, send to the European Parliament, the Council and the Court of Auditors an annual report on the situation of the guarantee fund and the management thereof in the previous calendar year.

RR\551765EN.doc 93/354 PE551.765v03-00

EN

Amendment 75

Proposal for a regulationArticle 11 – paragraph 1

Text proposed by the Commission Amendment

1. At the request of the European Parliament, the Managing Director shall participate in a hearing of the European Parliament on the performance of the EFSI.

1. On a quarterly basis or upon specific request of the European Parliament, the Managing Director shall participate in a hearing of the European Parliament on the performance of the EFSI and the decisions taken by the investment committee.

Amendment 76

Proposal for a regulationArticle 12

Text proposed by the Commission Amendment

Article 12 Article 12

Evaluation and Review Evaluation

1. At the latest [PO insert date: 18 months after the entry into force of this Regulation] the EIB shall evaluate the functioning of the EFSI. The EIB shall submit its evaluation to the European Parliament, the Council and the Commission;

1. At the latest [PO insert date: 12 months after the entry into force of this Regulation] the EIB shall submit an evaluation on the functioning of the EFSI to the European Parliament, the Council and the Commission;

At the latest [PO insert date: 18 months after the entry into force of this Regulation] the Commission shall evaluate the use of the EU guarantee and the functioning of the guarantee fund, including the use of endowments according to Article 8(9). The Commission shall submit its evaluation to the European Parliament and the Council.

At the latest [PO insert date: 12 months after the entry into force of this Regulation] the Commission shall evaluate the use of the EU guarantee and the functioning of the guarantee fund, including the use of endowments according to Article 8(9). The Commission shall annually submit its evaluation to the European Parliament and the Council.

2. By 30 June 2018 and every three years thereafter:

2. Annually, and 6 months after the date of termination of the agreement of EFSI:

(a) the EIB shall publish a comprehensive report on the functioning of the EFSI;

(a) the EIB shall publish a comprehensive report on the functioning of the EFSI;

(b) the Commission shall publish a comprehensive report on the use of the EU guarantee and the functioning of the

(b) the Commission shall publish a comprehensive report on the use of the EU guarantee and the functioning of the

PE551.765v03-00 94/354 RR\551765EN.doc

EN

guarantee fund. guarantee fund.

3. The EIB, in cooperation with the EIF as appropriate, shall contribute to and provide the necessary information for the Commission evaluation and report under paragraph 1 and 2 respectively.

3. The EIB, in cooperation with the EIF as appropriate, shall contribute to and provide the necessary information for the Commission evaluation and report under paragraph 1 and 2 respectively.

4. The EIB and EIF shall on a regular basis provide the European Parliament, the Council and the Commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the EIB and EIF under this Regulation.

4. The EIB and EIF shall on a regular basis provide the European Parliament, the Council and the Commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the EIB and EIF under this Regulation.

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation accompanied by any relevant proposal.

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation and the evaluation of the eligibility criteria applied by the investment committee and defined in Article 5, accompanied by any relevant proposal.

Amendment 77

Proposal for a regulationArticle 13

Text proposed by the Commission Amendment

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives referred to in Article 5(2).

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations under this Regulation and specify how they contribute to the general objectives and eligibility criteria referred to in Article 5(2), to ensure a transparent communication to the public.

RR\551765EN.doc 95/354 PE551.765v03-00

EN

Amendment 78

Proposal for a regulationArticle 15 – paragraph 1

Text proposed by the Commission Amendment

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of fraud, corruption, money laundering or other illegal activity that may affect the financial interests of the Union.

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of conflict of interests, fraud, corruption, money laundering or other illegal activity that may affect the financial interests of the Union.

Amendment 79

Proposal for a regulationArticle 16 – paragraph 1

Text proposed by the Commission Amendment

1. In its financing and investment operations, the EIB shall not support any activities carried out for illegal purposes, including money laundering, financing of terrorism, tax fraud and tax evasion, corruption, or fraud affecting the financial interests of the Union. In particular the EIB shall not participate in any financing or investment operation through a vehicle located in a non-cooperative jurisdiction, in line with its policy towards weakly regulated or non-cooperative jurisdictions based on policies of the Union, the Organisation for Economic Cooperation and Development or the Financial Action Task Force.

1. In its financing and investment operations under this Regulation, the EIB shall not support any activities carried out for illegal purposes, including money laundering, financing of terrorism, tax fraud and tax evasion, corruption, or fraud affecting the financial interests of the Union. In particular the EIB shall not participate in any financing or investment operation through a vehicle located in a non-cooperative jurisdiction, in line with its policy towards weakly regulated or non-cooperative jurisdictions based on policies of the Union, the Organisation for Economic Cooperation and Development or the Financial Action Task Force.

Amendment 80

Proposal for a regulation

PE551.765v03-00 96/354 RR\551765EN.doc

EN

Article 16 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. In its financing and investment operations, the EIB shall not support activities that hamper the Union on its path towards sustainable economic, scientific and social progress; in that regard, the EIB shall not participate in any projects that create a lock-in into technologies, production processes or infrastructures that are at the risk of stranding as they are not in line with the EU’s digital, energy and climate objectives for 2020, 2030 and 2050

Amendment 81

Proposal for a regulationArticle 16 – paragraph 2

Text proposed by the Commission Amendment

2. In its financing and investment operations, the EIB shall apply the principles and standards set out in Union law on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, including a requirement to take reasonable measures to identify the beneficial owners where applicable.

2. In its financing and investment operations under this Regulation, the EIB shall apply the principles and standards set out in Union law on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, including a requirement to take reasonable measures to identify the beneficial owners where applicable.

Amendment 82

Proposal for a regulationArticle 17 – paragraph 4 a (new)

Text proposed by the Commission Amendment

4a. A delegated act adopted pursuant to Article 2(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of

RR\551765EN.doc 97/354 PE551.765v03-00

EN

notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

Justification

The delegated act containing the EFSI agreement should be adopted in a swift manner, hence the response time by Parliament and Council has been reduced to one month.

Amendment 83

Proposal for a regulationArticle 18Regulation (EU) No 1291/2014Article 6

Text proposed by the Commission Amendment

[...] deleted

Justification

Linked to amendment on Article 8. The funding of the GF does not have to be fixed at the time of the adoption of the EFSI Regulation. It can be left to the annual budgetary procedure. Horizon 2020 already contributes greatly, to investment in R&D and Innovation with a great leverage effect. It has been adopted through a lengthy legislative process that carefully identified the priority areas, the different instruments and the recipients, reaching a delicate balance.

Amendment 84

Proposal for a regulationArticle 19Regulation (EU) No 1316/2013Article 5

Text proposed by the Commission Amendment

[...] deleted

Justification

Linked to amendment on Article 8. The funding of the GF does not have to be fixed at the time

PE551.765v03-00 98/354 RR\551765EN.doc

EN

of the adoption of the EFSI Regulation. It can be left to the annual budgetary procedure. CEF already contributes greatly, to investment in energy, telecom and transport infrastructures, with a high leverage effect. It has been adopted through a lengthy legislative process that carefully identified the projects of common interest and the different instruments to be used.

Amendment 85

Proposal for a regulationAnnex IRegulation (EU) No 1291/2014Annex II

Text proposed by the Commission Amendment

[...] deleted

Justification

Linked to amendment on Article 8. The funding of the GF does not have to be fixed at the time of the adoption of the EFSI Regulation. It can be left to the annual budgetary procedure. Horizon 2020 already contributes greatly, to investment in R&D and Innovation with a great leverage effect. It has been adopted through a lengthy legislative process that carefully identified the priority areas, the different instruments and the recipients– reaching a delicate balance.

RR\551765EN.doc 99/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

ITRE28.1.2015

Associated committees - date announced in plenary

9.3.2015

Rapporteur       Date appointed

Kathleen Van Brempt10.2.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 9.3.2015 24.3.2015

Date adopted 14.4.2015

Result of final vote +:–:0:

5356

Members present for the final vote Zigmantas Balčytis, Bendt Bendtsen, Jerzy Buzek, Soledad Cabezón Ruiz, Philippe De Backer, Pilar del Castillo Vera, Christian Ehler, Peter Eriksson, Fredrick Federley, Ashley Fox, Adam Gierek, Theresa Griffin, András Gyürk, Roger Helmer, Hans-Olaf Henkel, Dawid Bohdan Jackiewicz, Kaja Kallas, Barbara Kappel, Seán Kelly, Jeppe Kofod, Miapetra Kumpula-Natri, Janusz Lewandowski, Paloma López Bermejo, Ernest Maragall, Edouard Martin, Angelika Mlinar, Csaba Molnár, Nadine Morano, Dan Nica, Aldo Patriciello, Morten Helveg Petersen, Miroslav Poche, Miloslav Ransdorf, Michel Reimon, Herbert Reul, Paul Rübig, Algirdas Saudargas, Jean-Luc Schaffhauser, Neoklis Sylikiotis, Antonio Tajani, Dario Tamburrano, Patrizia Toia, Evžen Tošenovský, Claude Turmes, Miguel Urbán Crespo, Vladimir Urutchev, Adina-Ioana Vălean, Kathleen Van Brempt, Henna Virkkunen, Martina Werner, Hermann Winkler, Anna Záborská, Flavio Zanonato

Substitutes present for the final vote José Blanco López, Simona Bonafè, Lefteris Christoforou, Eugen Freund, Werner Langen, Michèle Rivasi, Marco Zullo

Substitutes under Rule 200(2) present for the final vote

Daniela Aiuto, Enrique Calvet Chambon, Stanisław Ożóg, Helga Stevens

PE551.765v03-00 100/354 RR\551765EN.doc

EN

15.4.2015

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM(*)

for the Committee on Economic and Monetary Affairs and the Committee of the Budgets

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteurs(*): Inés Ayala Sender and Dominique Riquet

(*) Associated committee – Rule 54 of the Rules of Procedure

SHORT JUSTIFICATION

I. General remarks

Europe has been suffering from a lack of investment since the financial and economic crisis. The absolutely needed decision to recapitalise the banking system has increased public debt levels - and in most cases this came on top of already tensed budgets - which reduced the amount of public money available for investment. At the same time, there are significant amounts of liquid assets held by the private sector, notably as a result of quantitative easing policies led by central banks, which are not redirected into the real economy. The consequences of this under-investment have been disastrous for competitiveness, growth and jobs. While other regions of the world have started overcoming the crisis by investing in their industrial equipment, some European countries are still lagging behind.

In this context, your rapporteurs welcome the Commission proposal of a European Fund for Strategic Investments aimed at boosting economic activity and thus job creation through a common effort at EU level. They support the resort to innovative financial instruments which will allow, through the association of public and private partners and if carried in an efficient, sure and centralised way, the optimisation of the use of resources. Your rapporteurs also agree with the idea that the EFSI should be based on a list of projects with European added value, which are potentially viable and can foster growth. The areas targeted by the fund, namely infrastructures, in the field of transport, energy and telecommunications, as well as research, development, education, sustainable use of resources and SMEs, also seem very relevant.However, while they support the principle of creating this fund, your rapporteurs have a number of concerns, especially on its concrete implementation.

RR\551765EN.doc 101/354 PE551.765v03-00

EN

II. Size and origin of the funds supporting the EU guarantee fund

First of all, your rapporteurs have some doubts about the size of the fund which appears rather modest given the investment needs. An EU budget contribution of 8 billion for a 16-billion guarantee will necessitate a very high leverage effect given the risk profile of the projects concerned in order to reach the target of 315 billion of euros of investment. Moreover, this target is only a small part of estimated investment needs which amount to 1000 billion of euros for the achievement of trans-European networks in the field of transport and energy and for the deployment of broadband alone. As a comparison, the United States have injected 800 billion euros in their economy since 2009.

The origin of the appropriations to be used to support this fund and its guarantee besides the unallocated margins, namely Horizon 2020 and the Connecting Europe Facility (CEF), cannot be accepted by your rapporteurs as a first resource. It is most unfortunate to jeopardise the two major programmes under the EU budget heading related to competiveness and growth which benefited from a large consultation and an overwhelming support from all stakeholders, are in line with Union policies and priorities, and already operational.

Your rapporteurs believe that transport should be an essential component of any EU investment plan as it boost all others economic sectors. Transport infrastructures projects generate jobs at three levels: during the building phase, during the exploitation process (services and industries) and through the increased competitiveness of the area concerned and beyond. Unfortunately, this sector suffers dramatically from the lack of investment.

This situation has led the European institutions to the creation of the CEF which entered into force on the 1st of January 2014. Based on a far-reaching consultation and democratically approved, this fund already targets projects with a European added value. These projects have to be viable and mature and have a clear economic and social impact while contributing to the achievement of the internal market. Additionally, it foresees the possibility of using innovative financial instruments for certain projects, therefore creating a leverage effect when possible. Finally, the CEF has already launched the first call for proposals of 12,2 billion. The proposed reduction of the CEF budget might lead to reducing the total amount available for the next 5 years of 2,2 billion, which is an average of only 400 million euros per year, very far away from the investment needs of the EU.

Horizon 2020 also plays an essential role for transport. By supporting the development of new technologies aimed at making aircraft, vehicles and vessels cleaner, this programme contributes to reduce the transport impact on the environment. Moreover, new mobility concepts developed under Horizon 2020 should help improve road safety and reduce congestion. Potential gains in terms of efficiency are of the upmost importance for the competitiveness of European transport industries and related services.

Under these circumstances, the decrease of the Horizon 2020 and CEF envelopes to finance the guarantee of the EFSI does not seem appropriate to your rapporteurs. While they do not question the principle of a 16-billion guarantee supported by the EU budget, your rapporteurs propose to alleviate its impact on these programmes by funding the EFSI in priority through non-allocated resources within the EU budget. Only as a last resort, the guarantee fund may

PE551.765v03-00 102/354 RR\551765EN.doc

EN

call for commitments from the non-used funds from programmes under heading 1A of the Multiannual Financial Framework.

III. Governance and criteria for the selection of projects

The necessity to act quickly has led to the creation of a mechanism which is fully integrated to the European Investment Bank (EIB) given its experience and its capability to start working immediately.

This might hamper the participation of major institutional actors and private capital holders. Moreover, the necessity to stay in line with the Union policies and to apply strategic choices made by the European institutions must be ensured and therefore the governance should not be only financial. Your rapporteurs therefore suggest to rebalance the system by replacing the Commission within the game, in particular when it comes to the investment committee’s decisions, and to reaffirm the importance to follow, in the transport sector, the guidelines for the development of the trans-European network which were agreed two years ago. This is all the more necessary that the democratic control will only be ex post and not on the day-to-day operating of the fund.

While they agree that the EFSI should finance projects that are potentially viable, mature and which can be implemented in the short term, your rapporteurs would like to recall the difficulties of the transport infrastructure projects to be financed under market conditions, even if these are improved through financial instruments. To avoid that the EIB concentrates on the business-as-usual type of transport projects which might not be totally aligned with the EU priorities, the draft report includes a series of amendments to incentivise the EIB to focus on priorities projects that the EU legislators have previously identified and that also have a strong socio- economic impact, including environmental sustainability.

In order to align EFSI with the EU policy on this field, this draft report introduces as eligible projects for EFSI support the pipeline pre-identified in the two regulations which set up the framework of EU policy on transport infrastructure in the medium term. Member States, the Commission, the Parliament, regions and stakeholders did this exercise when approving the TEN-T and CEF regulations at the end of 2013. CEF provides not only a comprehensive list of projects and priorities that both Member States are ready to implement in the next few years but it also identifies areas that could ensure a quick economical return and be potentially viable. Projects for instance in urban nodes where the high density of population can ensure enough revenues, intermodal stations, high-speed connexions with airports, urban and suburban rail systems are also just some examples of projects that could be of interest for investors. The draft opinion also conditions the EFSI support for projects that meet the standards of the trans-European transport guidelines which will avoid undesired problems of interoperability and network coherence.

IV. Incentives for public and private participation to the Juncker Plan

In order to make this investment plan successful, more work is needed on the regulatory adjustments so that the fund is more attractive to both the public and the private sector.

RR\551765EN.doc 103/354 PE551.765v03-00

EN

As regards Member States' participation, the new guidelines presented by the Commission1 on the fiscal treatment that EFSI investments will have vis-à-vis the Stability and Growth Pact is a crucial point. It represents one of the main novelties of the investment package which paradoxically is not included in the EFSI regulation.

The European Parliament already proposed back in 2010 to grant to long-term investments in transport infrastructure a differentiated treatment when calculating the public deficit in the framework of the Pact2. In this sense your rapporteurs welcome the new interpretation by the Commission, but in order to provide legal certainty, they suggest introducing this important change into the present legal proposal.

Furthermore, Member States under the excessive deficit procedure (EDP) should also be able to benefit from the application of the so-called "investment clause" (application to indirect national contributions) as it is precisely here where there is an urgent need to boost investments.

The fact that these projects have been approved by the EFSI governing bodies, the EIB and the Commission qualify them as genuinely projects of European Added Value which deserves a differentiated treatment. This will allow help Member States, in particular those with more difficulties to invest and to contribute to the EFSI.

As concerns the private sector' participation, and in order to restore investors' confidence, your rapporteurs consider that the regulatory environment should be significantly improved.

Action is needed to reduce the risk profile of projects targeted by the fund, which will require efforts in the field of taxation, public procurement and market opening. Particular attention should be paid to the supply side in order to boost European industry competitiveness, for example as regards energy prices. Finally, your rapporteurs think that a slight change to the Solvency II rules would be appropriate in order to attract more funds from the private sector. To put it in a nutshell, our regulatory environment must become more stable, readable and attractive to investment, which should have been a pre-condition to any EU investment plan.

AMENDMENTS

The Committee on Transport and Tourism calls on the Committee on Economic and Monetary Affairs and the Committee of the Budgets, as the committees responsible, to take into account the following amendments:

1 COM(2015)12 "Making the best use of the flexibility within the existing rules of the stability and growth pact"2European Parliament resolution of 6 July 2010 on a sustainable future for transport P7_TA(2010)0260 paragraph 32

PE551.765v03-00 104/354 RR\551765EN.doc

EN

Amendment 1

Proposal for a regulationRecital 1

Text proposed by the Commission Amendment

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on Member States. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness.

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future, of the fiscal constraints on Member States and of the absence of a business-friendly regulatory environment. This lack of investment, which has been particularly severe in Member States most affected by the crisis, slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness. According to the Commission, the investment needs for the trans-European networks in the fields of transport, energy and telecommunications for the period up to 2020 is EUR 970 billion.

Amendment 2

Proposal for a regulationRecital 8

Text proposed by the Commission Amendment

(8) The EFSI is part of a comprehensive approach to address uncertainty surrounding public and private investments. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union.

(8) The EFSI is part of a comprehensive approach to address uncertainty surrounding public and private investments. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union. The strategy must complement the Union's economic, social, environmental and territorial cohesion objectives, as well as the EU 2020

RR\551765EN.doc 105/354 PE551.765v03-00

EN

Strategy.

Amendment 3

Proposal for a regulationRecital 9

Text proposed by the Commission Amendment

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(9) The investment environment within the Union should be improved by removing barriers to investment such as administrative burdens, reinforcing the Single Market and by enhancing the regulatory framework in order to make it more attractive in terms of simplicity, flexibility and stability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

Amendment 4

Proposal for a regulationRecital 10

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased and fair access to financing for projects at all levels. It is intended that increased access to financing should be of particular benefit to small and medium-sized enterprises as well as innovative start-ups. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

PE551.765v03-00 106/354 RR\551765EN.doc

EN

Amendment 5

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives in line with the Europe 2020 strategy. All operations under EFSI should be consistent with Union's policies including cohesion policy, and complementary to other relevant EU financial instruments. The investments should guarantee a high economic and social added value, promoting sustainable growth, innovation and high quality employment and skills, integrating and completing the single market and boosting the competitiveness of the Union. The EFSI should help to overcome Europe's current investment difficulties and thus should contribute to strengthening the Union's economic, social and territorial cohesion.

EFSI support to transport infrastructure should contribute to the objectives of Regulations (EU) 1315/2013 (CEF) and 1316/2013 (TEN-T) by creating new or missing infrastructure but also modernising and rehabilitating existing facilities while allowing financing operations of research and innovation in this sector. Particular attention should be given to synergy projects strengthening the connections between transport, telecommunications and energy sectors and smart and sustainable transport projects.

Amendment 6

Proposal for a regulationRecital 15

RR\551765EN.doc 107/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

(15) The EFSI should target projects with a higher risk-return profile than those targeted by existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, especially in the countries most affected by the economic and financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

Amendment 7

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically and technically viable and sustainable when they have an environmental impact, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

Amendment 8

Proposal for a regulationRecital 17

Text proposed by the Commission Amendment

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects. The Investment Committee should be

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects as well as in the investment areas concerned by the

PE551.765v03-00 108/354 RR\551765EN.doc

EN

accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

EFSI as defined in article 2a, paragraph 2, and a representative of the European Commission. This representative should co-operate closely with the respective Directorates-General of the Commission depending on the investment areas of the projects and ensure and confirm the consistency of potential operations with Union policies. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

Amendment 9

Proposal for a regulationRecital 20

Text proposed by the Commission Amendment

(20) At the level of projects, third parties may co-finance together with EFSI on a project-by-project basis or in investment platforms related to specific geographic or thematic sectors.

(20) At the level of projects, third parties may co-finance together with EFSI on a project-by-project basis or in investment platforms which can relate to specific geographic or thematic sectors.

Amendment 10

Proposal for a regulationRecital 21 a (new)

Text proposed by the Commission Amendment

(21 a)The Commission Communication ("Making the best use of the flexibility within the existing rules of the Stability and Growth Pact") of 13 January 2015 sets out the specific considerations applicable to contributions to the EFSI in the context of its assessment of public finances according to Article 126 of the Treaty on the Functioning of the

RR\551765EN.doc 109/354 PE551.765v03-00

EN

European Union. Projects that have been approved by the EFSI governing bodies and according to the EU’s policies, qualify as genuinely projects of European Added Value which deserve a differentiated treatment vis à vis the Stability and Growth Pact. In order to promote Member States, national promotional banks and investment platforms to contribute to EFSI and its operations, these contributions and participations in EFSI projects should be considered as one-off measures within the meaning of Regulation (EU) No1467/97. And 1466/97.

Amendment 11

Proposal for a regulationRecital 21 b (new)

Text proposed by the Commission Amendment

(21 b) The financial contributions to the EFSI or to the dedicated investment platforms by Member States or by national promotional banks shall not be taken into account by the European Commission when defining the fiscal adjustment under either the preventive or the corrective arm of the Stability and Growth Pact. In addition, making the best use of the flexibility of the Pact, the financial contributions on behalf of the State for individual operations which are supported by the EFSI shall not be taken into account by the European Commission when defining the fiscal adjustment under either the preventive or the corrective arm of the Pact.

Amendment 12

Proposal for a regulationRecital 23

PE551.765v03-00 110/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(23) Given the need for urgent action within the Union, the EIB and the EIF may have financed additional projects, outside of their usual profile, in the course of 2015 before the entry into force of this Regulation. In order to maximise the benefit of the measures provided for in this Regulation, it should be possible for such additional projects to be included within the EU guarantee coverage in the event that they fulfil the substantive criteria set out in this Regulation.

(23) Given the need for urgent action within the Union, the EIB and the EIF may have financed additional projects, outside of their usual profile, in the course of 2015 before the entry into force of this Regulation. In order to maximise the benefit of the measures provided for in this Regulation, it should be possible for such additional projects to be included ex post within the EU guarantee coverage in the event that they fulfil the substantive criteria set out in this Regulation and that they present a higher risk-return profile than those targeted by the EIB to ensure additionality over existing operation.

Amendment 13

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support to Member States and their authorities, private investors and investment platforms at all levels for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union where possible in a decentralised manner and without altering the objective of existing technical assistance programmes or affect the quality or capacity of these in carrying out their dedicated tasks. In order to

RR\551765EN.doc 111/354 PE551.765v03-00

EN

ensure sectorial diversification of beneficiaries of financial instruments as well as to encourage geographical diversification across the Member States, the Steering Board through the EIAH should provide support to Member States and project promoter in developing an appropriate pipeline of projects that could be considered for project financing. In the transport sector, the EIAH should closely work with the Commission with the support of the Innovation and Networks Executive Agency, in particular as regards compliance with the EU policy on transport infrastructure. In this perspective, the EIAH should have sectorial knowledge.

Amendment 14

Proposal for a regulationRecital 27

Text proposed by the Commission Amendment

(27) In order to cover the risks related to the EU guarantee to the EIB, a guarantee fund should be established. The guarantee fund should be constituted by a gradual payment from the Union budget. The guarantee fund should subsequently also receive revenues and repayments from projects that benefit from EFSI support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the EIB.

(27) In order to cover the risks related to the EU guarantee to the EIB, a guarantee fund should be established. The guarantee fund should be constituted by a gradual payment from the Union budget. The guarantee fund should subsequently also receive revenues and repayments from projects that benefit from EFSI support, returns on guarantee fund resources invested and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the EIB.

Amendment 15

Proposal for a regulationRecital 29

Text proposed by the Commission Amendment

(29) To partially finance the contribution (29) The guarantee fund should be

PE551.765v03-00 112/354 RR\551765EN.doc

EN

from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2

, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3 , should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

partially financed by the Union budget, using in priority unallocated resources, budget surpluses, the flexibility mechanisms and all available budgetary resources and mechanisms under the regulation laying down the Multiannual Financial Framework. The guarantee should avoid affecting programmes that already serve the purpose of investment and that aim to foster competitiveness and growth, that are operational and foresee the possibility to use innovative financial instruments. Therefore, only if demonstrated by actual demand, available envelopes of programmes under heading 1A of the Multiannual Financial Framework for the years 2014-2020 should be reduced. In line with the Treaties, it should be up to the budgetary authority to allow annually the budgetary lines to be used for financing the guarantee fund. The financing of the guarantee fund for both commitments and payments should be reassessed at the end of 2016 as part of the mid-term review of the Multiannual Financial Framework (under Article 2 of Council Regulation (EU, Euratom) No 1311/2013). Only if proven by actual demand and based on the analysis of the performance and execution rates of the different programmes, alternative funding options should be identified to avoid redeployment of funds from heading 1A for the 2016-2020 period.

__________________2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the

RR\551765EN.doc 113/354 PE551.765v03-00

EN

Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

Amendment 16

Proposal for a regulationRecital 33

Text proposed by the Commission Amendment

(33) Although the projects identified under the project pipeline may be used by the EIB in the identification and selection of EFSI supported projects, the project pipeline should have a broader scope of identifying projects across the Union. This scope may include projects that are capable of being fully financed by the private sector or with the assistance of other instruments provided at European or national level. The EFSI should be able to support financing and investment to projects identified by the project pipeline, but there should be no automaticity between inclusion on the list and access to EFSI support and the EFSI be conferred with discretion to select and support projects that are not included on the list.

(33) Although the projects identified under the project pipeline may be used in the identification and selection of EFSI supported projects, the project pipeline should ensure sectorial and geographical diversification and have a broader scope of identifying projects across the Union. This scope may include projects that are capable of being fully financed by the private sector or with the assistance of other instruments provided at European or national level. The EFSI should be able to support financing and investment to projects identified by the project pipeline, but there should be no automaticity between inclusion on the list and access to EFSI support and the EFSI be conferred with discretion to select and support projects that are not included on the list.

Amendment 17

Proposal for a regulationRecital 34

Text proposed by the Commission Amendment

(34) To ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress and impact of the EFSI.

(34) To ensure accountability to European citizens, the Commission and the EIB, the Chairperson of the EFSI Steering Group and the Managing Director of the EFSI Investment Committee should regularly report to the European Parliament and the

PE551.765v03-00 114/354 RR\551765EN.doc

EN

Council on the progress and impact of the EFSI.

Amendment 18

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 1

Text proposed by the Commission Amendment

The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI').

The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI') for the period 2015-2020.

Amendment 19

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

The purpose of the EFSI shall be to support investments that are strategic for the Union and to ensure increased and fair access to financing for companies having up to 3000 employees, with a particular focus on small and medium-sized enterprises as well as innovative start-ups, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

Amendment 20

Proposal for a regulationArticle 1 a (new)

Text proposed by the Commission Amendment

Article 1 a

Definition

For the purposes of this Regulation, the following definition shall apply:

RR\551765EN.doc 115/354 PE551.765v03-00

EN

(1) "investment platform" means special purpose vehicles managed accounts, contract-based co-financing or risk-sharing arrangements allowing the gathering of several investors' resources. They can target a specific geographic area or sector and be managed either by a public or a private body;

(2) 'national promotional banks or institutions' means legal entities carrying out financial activities on a professional basis which are conferred a mandate by a Member State, whether at central, regional or local level, to carry out public development or promotional activities.

Amendment 21

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point b

Text proposed by the Commission Amendment

(b) the amount and terms of the financial contribution which shall be provided by the EIB through the EFSI;

(b) the amount and terms of the financial contribution which shall be provided by the EIB through the EFSI and which shall not be inferior to 5 000 000 000 euros of guarantee;

Amendment 22

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon and complement existing EIB and Commission advisory services where possible in a decentralised manner in order to provide advisory support to Member States and their authorities,

PE551.765v03-00 116/354 RR\551765EN.doc

EN

advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

private investors and investment platforms at all levels for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate on relevant issues of EU legislation.

Amendment 23

Proposal for a regulationArticle 3 – paragraph 1 a (new)

Text proposed by the Commission Amendment

(1a) The Commission shall be empowered to adopt the EFSI Agreement by means of a delegated act in accordance with Article 17 of this Regulation.

Amendment 24

Proposal for a regulationArticle 3 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

For as long as the only contributors to the EFSI are the Union and the EIB, the number of members and votes within the Steering Board shall be allocated based on the respective size of contributions in the form of cash or guarantees.

For as long as the only contributors to the EFSI are the Union and the EIB, the Steering committee shall consist of five members of which four should be appointed by the European Commission and one by the EIB . The Steering Board shall elect one of its members to be the Chairperson for a renewable fixed term of three years. The number of members and votes for the Union shall reflect the sectorial contributions from the Union Budget in accordance with the different policy sectors of Article 5(2).

RR\551765EN.doc 117/354 PE551.765v03-00

EN

Amendment 25

Proposal for a regulationArticle 3 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

The Steering Board shall take decisions by consensus.

The Steering Board shall meet at least once per quarter and shall take decisions by consensus. When determining the policy of projects and the strategic orientation foreseen in paragraph 1 and in order to avoid excessive exposure, the Steering Board should ensure sectoral and geographical diversification of beneficiaries.

Amendment 26

Proposal for a regulationArticle 3 – paragraph 5

Text proposed by the Commission Amendment

The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5, irrespective of their geographic location.

The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5, irrespective of their geographic location.

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

The Investment Committee shall be composed of eight independent experts, and the Managing Director and a representative of the Commission. Independent experts shall have a high level of relevant market experience in project finance as well as in the investment areas concerned by the EFSI as defined in article 5, paragraph 2, and be selected by the Steering Board for a renewable fixed term of three years not exceeding six years in total. Their recruitment follows a transparent procedure and their declaration of financial interests is

PE551.765v03-00 118/354 RR\551765EN.doc

EN

transmitted to the Commission, the European Parliament and the Council. The representative of the Commission shall have no voting power but shall confirm the consistency of potential operations with Union policies. He/she shall co-operate closely with the respective Directorates-General of the Commission depending on the investment areas of the projects. In the transport sector, the Investment Committee shall take into account recommendations expressed by respective Directorate-General of the Commission.

Decisions of the Investment Committee shall be taken by simple majority.

Decisions of the Investment Committee shall be taken by simple majority and approved by the Steering Board.

Amendment 27

Proposal for a regulationArticle 4 – paragraph 1

Text proposed by the Commission Amendment

The Union shall provide a guarantee to the EIB for financing or investment operations carried out within the Union covered by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6.

The Union shall provide an irrevocable and unconditional guarantee to the EIB via the EFSI for financing or investment operations carried out within the Union covered by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6. The guarantee shall be available for projects in third countries provided that these projects involve cross-border cooperation with a Member State and that there is a written agreement between the countries concerned by the project.

Amendment 28

Proposal for a regulationArticle 5

RR\551765EN.doc 119/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

Article 5 Article 5

Requirements for use of the EU guarantee Requirements for use of the EU guarantee

1. The granting of the EU guarantee shall be subject to the entry into force of the EFSI Agreement.

1. The granting of the EU guarantee shall be subject to the entry into force of the EFSI Agreement.

2. The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and support any of the following general objectives:

2. The EU guarantee shall be granted, provided that the Steering Board approves it for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in accordance with Article 7(2) in order to conduct EIB financing and investment operations approved by the same Investment Committee. The operations concerned shall be consistent with Union policies and support any of the following general objectives:

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of new, existing or missing transport infrastructure and innovative technologies, in accordance with Regulations (EU)  1316/2013  (CEF) and  1315/2013 (TEN-T Guidelines) as far as both core and comprehensive networks as well as horizontal priorities are concerned;

(b) investment in education and training, health, research and development, information and communications technology and innovation;

(b) development of smart and sustainable urban mobility projects that include targets for accessibility, reduction of greenhouse gases, energy and accidents;

(c) expansion of renewable energy and energy and resource efficiency;

(c) development and modernisation of the energy infrastructure, in line with the Energy Union priorities and the 2020, 2030 and 2050 Climate and Energy framework, in particular interconnections, smart grids at distribution level, energy storage and synchronisation of markets;

(d) infrastructure projects in the environmental, natural resources, urban development and social fields;

(d) expansion of renewable energy; resource efficiency; energy efficiency and energy savings, with a particular focus on reducing demand through demand-side

PE551.765v03-00 120/354 RR\551765EN.doc

EN

management and refurbishment of buildings;

(e) providing financial support for the companies referred to in Article 1(1), including working capital risk financing.

(e) development of information and communication technologies; digital and telecom infrastructures and broadband networks across the entire Union;

(f) development of synergy projects between transport, telecommunication and energy trans-European Networks, as defined in CEF Regulation 1315/2013;

(g) investment in innovation, research and development including research infrastructure, pilot and demonstration projects, collaborations between the academia and industry, and knowledge and technology transfer;

(h) investments in education, training, entrepreneurial skills;

(i) investments in innovative health solutions, such as eHealth and new effective medicines, and in the social sector;

(j) investments in the cultural and creative industries;

(k) investments in projects and infrastructure in the field of environmental protection and management; strengthening of eco-system services and sustainable urban development;

(l) providing financial support, including working capital risk financing, for SMEs, start-ups, spin-offs and small mid-caps through the EIF and for mid-caps to ensure technology leadership in innovative and sustainable sectors;

(m) financing of projects which are in line with the objectives of Horizon 2020 and the Connecting Europe Facility;

The EFSI is to support only projects and operations which:

a) have European added value and are consistent with Union policies, in

RR\551765EN.doc 121/354 PE551.765v03-00

EN

accordance with the Europe 2020 strategy and create smart, sustainable and inclusive growth; they shall comply with the objectives of Article 9 and are in line with Article 10 and Annex I of Regulation (EU) No 1303/2013;

b) are economically and technically viable;

c) ensure additionality, as they could not have been otherwise carried out with existing EU funding instruments;

d) maximise, where possible, the mobilisation of private sector capital;

e) are sustainable with a proven net societal benefit and added value, as regards sustainable job creation, investments and competitiveness, taking into account the costs and benefits of the project throughout its expected lifetime;

The EFSI shall offer privileged access to guarantees for small projects and small actors, following a de-risking strategy. For this purpose, the EU guarantee shall be granted, inter alia to the establishment of:

- a Dedicated Energy Efficiency Fund covering an amount of guarantees of at least 5 billion Euros notably to support projects promoted by cities and local governments,

- a Dedicated SME Fund covering an amount of at least 5 billion Euros and implemented by the EIF as defined in Article 7.

Investments shall be in line with the investment guidelines and criteria adopted by the EIB on 23 July 2013.

In addition, the EU guarantee shall be granted for support of dedicated investment platforms and national promotional banks, via the EIB, that invest in operations meeting the requirements of this Regulation. In that case, the Steering Board shall specify policies regarding eligible

In addition, the EU guarantee shall be granted for support of dedicated investment platforms and national promotional banks, via the EIB, that invest in operations meeting the requirements of this Regulation. In that case, the Steering Board shall specify policies regarding eligible

PE551.765v03-00 122/354 RR\551765EN.doc

EN

investment platforms. investment platforms.

3. In accordance with Article 17 of the Statute of the European Investment Bank, the EIB shall charge the beneficiaries of the financing operations to cover its expenses related to the EFSI. Without prejudice to sub-paragraph 2 and 3, no administrative expenditure or any other fees of the EIB for financing and investment activities conducted by the EIB under this Regulation shall be covered from the Union budget.

3. In accordance with Article 17 of the Statute of the European Investment Bank, the EIB shall charge the beneficiaries of the financing operations to cover its expenses related to the EFSI. Without prejudice to sub-paragraph 2 and 3, no administrative expenditure or any other fees of the EIB for financing and investment activities conducted by the EIB under this Regulation shall be covered from the Union budget.

The EIB may call the EU guarantee, in accordance with Article 2(1)(e), within a cumulated maximum limit corresponding to 1% of the total outstanding EU guarantee obligations to cover expenses that whilst charged to beneficiaries of the financing operations, have not been recovered

The EIB may call the EU guarantee, in accordance with Article 2(1)(e), within a cumulated maximum limit corresponding to 1% of the total outstanding EU guarantee obligations to cover expenses that whilst charged to beneficiaries of the financing operations, have not been recovered.

Fees of the EIB should the EIB provide funding to the EIF on behalf of the EFSI which is backed by the EU guarantee in accordance with Article 7(2) may be covered from the Union budget.

Fees of the EIB should the EIB provide funding to the EIF on behalf of the EFSI which is backed by the EU guarantee in accordance with Article 7(2) may be covered from the Union budget.

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee.

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use any type of Union financing, including European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee.

The Commission, the EIB and the Member States shall ensure that all the investments with the support of the EFSI take into consideration their impact by sector at local and regional level on economic, social and territorial cohesion, increasing demand without affecting supply, and foster synergies and effective coordination between the EFSI and the European Structural and Investment Funds, in order to ensure that they contribute to the achievement of the Union’s economic, social and territorial

RR\551765EN.doc 123/354 PE551.765v03-00

EN

cohesion and to reduce unemployment.

Amendment 29

Proposal for a regulationArticle 8 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) payments from the general budget of the Union,

(a) contributions from the general budget of the Union,

Amendment 30

Proposal for a regulationArticle 8 – paragraph 2 – point d

Text proposed by the Commission Amendment

(d) any other payments received by the Union in accordance with the EFSI Agreement.

(d) any other contributions received by the Union in accordance with the EFSI Agreement.

Amendment 31

Proposal for a regulationArticle 8 – paragraph 3

Text proposed by the Commission Amendment

3. Endowments to the guarantee fund provided for in points (c) and (d) of paragraph 2 shall constitute internal assigned revenues in accordance with Article 21(4) of Regulation (EU) No 966/2012.

3. Endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall constitute internal assigned revenues in accordance with Article 21(4) of Regulation (EU) No 966/2012.

Amendment 32

Proposal for a regulationArticle 8 – paragraph 5 – subparagraph 2

Text proposed by the Commission Amendment

The target amount shall initially be met by the gradual payment of resources referred to in paragraph 2(a). If there have been calls on the guarantee during the initial

The target amount shall initially be met by the gradual mobilisation of resources referred to in paragraph 2(a). If there have been calls on the guarantee during the

PE551.765v03-00 124/354 RR\551765EN.doc

EN

constitution of the guarantee fund, endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall also contribute to meet the target amount up to an amount equal to the calls on the guarantee.

initial constitution of the guarantee fund, endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall also contribute to meet the target amount up to an amount equal to the calls on the guarantee.

Amendment 33

Proposal for a regulationArticle 8 – paragraph 5 a (new)

Text proposed by the Commission Amendment

5a . Without prejudice to Article 8(5), the target amount shall be met by gradual budgetary commitments to the guarantee fund to be decided in the frame of the annual budgetary procedure, using any budgetary surplus entered in the general budget of the European Union and all budgetary resources available as well as taking due account of all means available under Council Regulation 1311/2013 of 2 December 2013 laying down the Multiannual Financial Framework 2014-2020, in particular:

(i) Global margin for payments

(ii) Global margin for commitments

(iii) Flexibility Instrument

(iv) Contingency Margin

If demonstrated by actual demand and as a last resort solution - in full respect of point 17 and 18 of the IIA of 2 December 2013 - funds from multiannual programs under heading 1A if these programs prove to be under committed may be redeployed.

Amendment 34

Proposal for a regulationArticle 8 – paragraph 5 b (new)

RR\551765EN.doc 125/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

5b . The financing of the guarantee Fund, both in respect of commitment and payment appropriations shall be reviewed in the frame of the mid-term review of the MFF 2014-2020 due to be launched by the end of 2016 at the latest as foreseen in Article 2 of Council Regulation 1311/2013 of 2 December 2013 laying down the MFF 2014-2020. If proven by actual demand and based on the analysis of the performance and execution rates of the different programmes, alternative funding options shall be identified to avoid redeployment of funds from heading 1A for the 2016-2020 period.

In the event that redeployments from EU programmes were agreed in the framework of the annual budgetary procedure as source of financing for the EU guarantee in the years preceding the MFF mid-term review, the European Parliament and the Council shall, on that occasion, explore ways to compensate them to the largest possible extent.

Amendment 35

Proposal for a regulationArticle 8 – paragraph 7 – point a

Text proposed by the Commission Amendment

(a) any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the European Union of the year n+1,

(a) any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the European Union of the year n+1, and shall be reallocated to programmes whose envelopes have been reduced to finance the guarantee fund, if any and as referred to in paragraph 5a (new), in order to compensate these losses

PE551.765v03-00 126/354 RR\551765EN.doc

EN

Amendment 36

Proposal for a regulationArticle 9

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States, shall create a transparent pipeline of current and potential investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5). In the transport sector, the pipeline should take as a basis the priorities and projects identified in regulations TEN-T 1515/2013 and CEF 1316/2013.

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

2. The Commission and the EIB shall develop, update and disseminate, on a regular, transparent and structured basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States shall develop, update and disseminate, on a regular, transparent and structured basis, information on current and future investment projects in their territory.

Amendment 37

Proposal for a regulationArticle 10 – paragraph 2 – point aa (new)

Text proposed by the Commission Amendment

(aa) an assessment of the socio-economic and environmental impact of projects financed under the EFSI, based on a list of performance indicators. For transport operations, the assessment shall be based on the list of indicators set up in paragraph 2 of article 4 of Regulation 1316/2013(CEF);

RR\551765EN.doc 127/354 PE551.765v03-00

EN

Amendment 38

Proposal for a regulationArticle 10 – paragraph 2 – point e a (new)

Text proposed by the Commission Amendment

(e a) an assessment of the activities carried by the EIAH;

Amendment 39

Proposal for a regulationArticle 11

Text proposed by the Commission Amendment

Article 11 Article 11

Accountability Accountability

1. At the request of the European Parliament, the Managing Director shall participate in a hearing of the European Parliament on the performance of the EFSI.

1. At the request of the European Parliament and at least once a year, the Chairperson and the Managing Director shall participate in a joint hearing of the relevant committees within the European Parliament on the performance of the EFSI.

2. The Managing Director shall reply orally or in writing to questions addressed to the EFSI by the European Parliament, in any event within five weeks of receipt of a question.

2. The Managing Director shall reply orally or in writing to questions addressed to the EFSI by the European Parliament, in any event within five weeks of receipt of a question.

3. At the request of the European Parliament, the Commission shall report to the European Parliament on the application of this Regulation.

3. At the request of the European Parliament and at least once a year, the Commission shall report to the European Parliament on the application of this Regulation.

Amendment 40

Proposal for a regulationArticle 12 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By 30 June 2018 and every three years 2. By 30 June 2018, and every two years

PE551.765v03-00 128/354 RR\551765EN.doc

EN

thereafter: thereafter and by 6 months from the date of termination of the agreement on EFSI:

Amendment 41

Proposal for a regulationArticle 13 – paragraph 1

Text proposed by the Commission Amendment

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives referred to in Article 5(2).

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives and other eligibility criteria referred to in Article 5. A regular exchange of information will be organised between the European Parliament and the EIB on the financing and investment operations conducted by the EIB under this Regulation.

Amendment 42

Proposal for a regulationArticle 17 a (new)

Text proposed by the Commission Amendment

Article 17 a

Investment clause

With regard to Article 5(1) of Regulation (EC) No 1466/97 and Article 3(4) of Regulation (EC) No1467/97, the following contributions are considered to be one-off measures:

(a) financial contributions to the EFSI by Member States or by national promotional banks;

(b) financial contributions to dedicated investment platforms that are eligible

RR\551765EN.doc 129/354 PE551.765v03-00

EN

under this regulation by Member States or by national promotional banks;

(c) financial contributions on behalf of the State for individual operations which are supported by the EFSI.

All of the financial contributions mentioned in paragraph 1 help towards the achievement of the Union's policy goals and are considered to be a relevant factor with regard to Article 2(3) of Regulation (EC) No 1467/97, so that they cannot result in an excess beyond the reference value, as referred to in Article 126(2) TFEU.

Amendment 43

Proposal for a regulationArticle 18

Text proposed by the Commission Amendment

Article 18 deleted

Amendments to Regulation (EU) No 1291/2013

Regulation (EU) No 1291/2013 is hereby amended as follows:

(1) In Article 6, paragraphs 1, 2 and 3 are replaced by the following:

'1. The financial envelope for the implementation of Horizon 2020 is set at EUR 74 328,3 million in current prices, of which a maximum of EUR 71 966,9 million shall be allocated to activities under Title XIX TFEU.

The annual appropriations shall be authorised by the European Parliament and by the Council within the limits of the multiannual financial framework.

2. The amount for activities under Title XIX TFEU shall be distributed among the priorities set out in Article 5(2) of this Regulation as follows:

PE551.765v03-00 130/354 RR\551765EN.doc

EN

(a) Excellent science, EUR 23 897,0 million in current prices;

(b) Industrial leadership, EUR 16 430,5 million in current prices;

(c) Societal challenges, EUR 28 560,7 million in current prices.

The maximum overall amount for the Union financial contribution from Horizon 2020 to the specific objectives set out in Article 5(3) and to the non-nuclear direct actions of the JRC shall be as follows:

(i) Spreading excellence and widening participation, EUR 782,3 million in current prices;

(ii) Science with and for society, EUR 443,8 million in current prices;

(iii) Non-nuclear direct actions of the JRC, EUR 1 852,6 million in current prices.

The indicative breakdown for the priorities and specific objectives set out in Article 5(2) and (3) is set out in Annex II.

3. The EIT shall be financed through a maximum contribution from Horizon 2020 of EUR 2 361,4 million in current prices as set out in Annex II.'

(2) Annex II is replaced by the text set out in Annex I to this Regulation.

Amendment 44

Proposal for a regulationArticle 19

Text proposed by the Commission Amendment

Article 19 deleted

Amendment to Regulation (EU) No 1316/2013

In Article 5 of Regulation (EU) No 1316/2013, paragraph 1 is replaced by the following:

RR\551765EN.doc 131/354 PE551.765v03-00

EN

'1. The financial envelope for the implementation of the CEF for the period 2014 to 2020 is set at EUR 29 942 259 000 (*) in current prices. That amount shall be distributed as follows:

(a) transport sector: EUR 23 550 582 000, of which EUR 11 305 500 000 shall be transferred from the Cohesion Fund to be spent in line with this Regulation exclusively in Member States eligible for funding from the Cohesion Fund;

(b) telecommunications sector: EUR 1 041 602 000;

(c) energy sector: EUR 5 350 075 000.

These amounts are without prejudice to the application of the flexibility mechanism provided for under Council Regulation (EU, Euratom) No 1311/2013(*).

(*) Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-20 (OJ L 347, 20.12.2013, p. 884).'

Amendment 45

Proposal for a regulationAnnex 1

Text proposed by the Commission Amendment

[...] deleted

PE551.765v03-00 132/354 RR\551765EN.doc

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

TRAN28.1.2015

Associated committees - date announced in plenary

9.3.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Date adopted 14.4.2015

Result of final vote +:–:0:

4330

Members present for the final vote Daniela Aiuto, Lucy Anderson, Inés Ayala Sender, Georges Bach, Izaskun Bilbao Barandica, Deirdre Clune, Michael Cramer, Luis de Grandes Pascual, Andor Deli, Karima Delli, Isabella De Monte, Ismail Ertug, Jacqueline Foster, Bruno Gollnisch, Tania González Peñas, Dieter-Lebrecht Koch, Stelios Kouloglou, Merja Kyllönen, Miltiadis Kyrkos, Bogusław Liberadzki, Peter Lundgren, Georg Mayer, Gesine Meissner, Cláudia Monteiro de Aguiar, Renaud Muselier, Jens Nilsson, Markus Pieper, Salvatore Domenico Pogliese, Tomasz Piotr Poręba, Gabriele Preuß, Christine Revault D’Allonnes Bonnefoy, Dominique Riquet, Massimiliano Salini, David-Maria Sassoli, Claudia Schmidt, Keith Taylor, Pavel Telička, István Ujhelyi, Wim van de Camp, Janusz Zemke, Kosma Złotowski

Substitutes present for the final vote Rosa D’Amato, Markus Ferber, Olga Sehnalová, Patricija Šulin

Substitutes under Rule 200(2) present for the final vote

Elżbieta Katarzyna Łukacijewska

RR\551765EN.doc 133/354 PE551.765v03-00

EN

14.4.2015

OPINION OF THE COMMITTEE ON BUDGETARY CONTROL

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Michael Theurer

SHORT JUSTIFICATION

CONT opinion focuses on sound financial management issues and, in particular, on Article 14 of the draft Regulation: Auditing by the Court of Auditors.

The Court of Auditors should be entitled to perform audits concerning the activities undertaken in accordance with this Regulation as all these activities are activities in managing Union expenditure and revenue as meant in Article 287 TFEU. It has to be stressed in particular that:

1. The EFSI is defined as a clearly identifiable and transparent guarantee facility and that the guarantee is mainly supported by the Union budget.

2. The members of the Investment Committee are designated under proposal of the Commission.

3. The Commission will be represented in the EFSI Steering Board.

4. The Commission is a member of the EIB Board of Directors and is consulted before the EIB approves each financing and investment operation.

5. The European Investment Advisory Hub will be built partly on existing Commission advisory services.

6. The resources of the guarantee fund shall be managed by the Commission.

7. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the

PE551.765v03-00 134/354 RR\551765EN.doc

EN

Union.

AMENDMENTS

The Committee on Budgetary Control calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationCitation 4

Text proposed by the Commission Amendment

Having regard to the opinions of the European Economic and Social Committee and the Committee of the Regions,

Having regard to the opinions of the European Economic and Social Committee, the Committee of the Regions and the European Court of Auditors,

Amendment 2

Proposal for a regulationRecital 7 a (new)

Text proposed by the Commission Amendment

(7a) On 12 March 2015, the Court of Auditors adopted Opinion No 4/2015, pursuant to Article 287(4) of the Treaty on the Functioning of the European Union (TFEU), concerning the proposal for a Regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013, in which it outlines its remarks to the Commission proposal and presents suggestions for the improvement of the Regulation.

RR\551765EN.doc 135/354 PE551.765v03-00

EN

Amendment 3

Proposal for a regulationRecital 9 a (new)

Text proposed by the Commission Amendment

(9a) The expediency of an investment should also be judged by the extent to which it can persuade private investors to move towards long-term financing of the economy, bearing in mind that, at present, a high proportion of European private savings (approximately EUR 16 000 billion) is invested mainly on a short-term basis, often outside the Union.

Amendment 4

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high economic value added contributing to achieving the objectives of Europe 2020 strategy. In this regard, EFSI support to infrastructure networks should contribute to the objectives of Regulation (EU) No 1315/2013 for transport, Regulation (EU) No 347/2013 for energy networks and Regulation (EU) No 283/2014 for telecommunications infrastructure. Projects with synergies between the transport, telecommunications and energy sectors should be given particular attention.

Amendment 5

Proposal for a regulationRecital 15

PE551.765v03-00 136/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, especially in the countries most affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

Amendment 6

Proposal for a regulationRecital 19 a (new)

Text proposed by the Commission Amendment

(19a) Payments into the guarantee fund should have a target amount of EUR 200 million in 2016, EUR 300 million in 2017, EUR 1 billion in 2018, EUR 2 billion in 2019, to be gradually authorised by the European Parliament and the Council in the framework of the annual budgetary procedure, taking into account the effective use of the EU guarantee and the assessment of the additionality of operation conducted under EFSI compared to normal EIB operations.

Amendment 7

Proposal for a regulationRecital 21 a (new)

Text proposed by the Commission Amendment

(21a) The EFSI implementation and oversight arrangements, as well as the formal commitment of Member States, will have a decisive bearing on its success, and it will be necessary to ensure in

RR\551765EN.doc 137/354 PE551.765v03-00

EN

particular that the best projects are selected on the basis of objective criteria, regardless of their nationality.

Amendment 8Proposal for a regulationRecital 24

Text proposed by the Commission Amendment

(24) EIB financing and investment operations supported by the EFSI should be managed in accordance with the EIB’s own rules and procedures, including appropriate control measures and measures taken to avoid tax evasion, as well as with the relevant rules and procedures concerning the European Anti-Fraud Office (OLAF) and the Court of Auditors, including the Tripartite agreement between the European Commission, the European Court of Auditors and the European Investment Bank.

(24) EIB financing and investment operations supported by the EFSI should be managed in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council1a, including appropriate control measures and measures taken to avoid tax evasion, as well as with the relevant rules and procedures concerning the European Anti-Fraud Office (OLAF) and the Court of Auditors. Therefore, it should be established without delay that the new transparency policies adopted recently by the EIB have not been watered down in any way.

________________1a Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

Justification

Superfluous.

Amendment 9

Proposal for a regulationRecital 25

PE551.765v03-00 138/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(25) The EIB should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance and impact and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

(25) The EIB and the Investment Committee should regularly evaluate and report on activities supported by the EFSI with a view to assessing their added value to existing Union funded activities, relevance, performance and impact and to identifying aspects that could improve future activities. Such evaluations should contribute to public accountability, sound financial management, transparency and analysis of economic, environmental and social sustainability.

Amendment 10

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union. The EIAH should cooperate with the existing advisory entities involving the EIB, the Commission and the Member States, such as the 'European PPP Expertise Centre' (EPEC) and the 'Financial Instruments - Technical Advisory Platform (FI-TAP) for EFSI'. The EIAH should enable Member States and regions across the Union to benefit from free expertise so as

RR\551765EN.doc 139/354 PE551.765v03-00

EN

to ensure fair access to EFSI financing.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 29, 30 and 31

Amendment 11

Proposal for a regulationRecital 27 a (new)

Text proposed by the Commission Amendment

(27a) In order to ensure that the Union budget will not be exposed to contingent liabilities beyond the committed funds, there should be a general immunity and waiver against legal claims by EFSI beneficiaries.

Amendment 12

Proposal for a regulationRecital 30

Text proposed by the Commission Amendment

(30) Given the nature of their constitution, neither the EU guarantee to the EIB nor the guarantee fund are 'financial instruments' within the meaning of Regulation (EU) No 966/2012 of the European Parliament and of the Council4 .

(30) Given their assimilation to Union financial instruments, the EU guarantee to the EIB and the guarantee fund should comply with the principles of sound financial management, transparency, proportionality, non-discrimination, equal treatment and subsidiarity referred to in Article 140 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council4 and, where appropriate, with Article 139 of Regulation (EU, Euratom ) No 966/2012.

__________________ __________________4 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general

4 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general

PE551.765v03-00 140/354 RR\551765EN.doc

EN

budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

Amendment 13

Proposal for a regulationRecital 31

Text proposed by the Commission Amendment

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for investment. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable information on which to base their investment decisions.

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent directory of current and future investment projects in the Union suitable for investment. This 'project directory' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable information on which to base their investment decisions.

Amendment 14

Proposal for a regulationRecital 32

RR\551765EN.doc 141/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(32) Member States have also begun work at national level on establishing and promoting project pipelines for projects of national significance. The information prepared by the Commission and the EIB should provide links to the accompanying national project pipelines.

(32) Member States have also begun work at national level on establishing and promoting project directories for projects of national significance. The information prepared by the Commission and the EIB should provide links to the accompanying national project directories.

Amendment 15

Proposal for a regulationRecital 33

Text proposed by the Commission Amendment

(33) Although the projects identified under the project pipeline may be used by the EIB in the identification and selection of EFSI supported projects, the project pipeline should have a broader scope of identifying projects across the Union. This scope may include projects that are capable of being fully financed by the private sector or with the assistance of other instruments provided at European or national level. The EFSI should be able to support financing and investment to projects identified by the project pipeline, but there should be no automaticity between inclusion on the list and access to EFSI support and the EFSI be conferred with discretion to select and support projects that are not included on the list.

(33) Although the projects identified under the project directory may be used by the EIB in the identification and selection of EFSI supported projects, the project directory should have a broader scope of identifying projects across the Union. This scope may include projects that are capable of being fully financed by the private sector or with the assistance of other instruments provided at European or national level. The EFSI should be able to support financing and investment to projects identified by the project directory, but there should be no automaticity between inclusion on the list and access to EFSI support and the EFSI be conferred with discretion to select and support projects that are not included on the list.

Amendment 16

Proposal for a regulationRecital 34

Text proposed by the Commission Amendment

(34) To ensure accountability to European citizens, the EIB should regularly report to

(34) To ensure accountability to Union citizens, the EIB, the Chairperson of the

PE551.765v03-00 142/354 RR\551765EN.doc

EN

the European Parliament and the Council on the progress and impact of the EFSI.

Steering Group and the Managing Director of the Investment Committee should regularly report to the European Parliament and the Council on the progress and impact of the EFSI, in particular as regards the additionality of operations conducted under EFSI compared to normal EIB operations.

Amendment 17

Proposal for a regulationRecital 35 a (new)

Text proposed by the Commission Amendment

(35a) Since the Guarantee Fund will be composed of significant reallocations from the Union budget, Parliament shall have the right to call the Commissioner responsible for the Union Budget before it in order to exercise scrutiny over the use of the Union budget, especially with regard to performance and spending outcomes. 

Justification

The Budget Commissioner and the Court of Auditors have called for a culture change in how the EU institutions deal with the EU Budget - in particular, the need for an increased emphasis on accountability and a focus on performance and spending outcomes. It is therefore important that the Parliament exercises scrutiny over these elements and holds the Commissioner to account. The right of scrutiny should only extend to the Commissioner in order to safeguard the independence of EFSI governance.

Amendment 18

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees,

The purpose of the EFSI shall be to support investments in the Union, including projects between Member States and third countries, and to ensure increased access

RR\551765EN.doc 143/354 PE551.765v03-00

EN

with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement'), in accordance with the principles of sound financial management, transparency, proportionality, non-discrimination, equal treatment and subsidiarity.

Amendment 19

Proposal for a regulationArticle 1 a (new)

Text proposed by the Commission Amendment

Article 1 a

Definitions

For the purposes of this Regulation, the following definitions apply:

a) ´EFSI Agreement´ means the legal instrument whereby the Commission and the EIB specify the conditions laid down in this Regulation for the management of the EFSI;

b) ´national promotional banks or institutions´ means the legal entities   carrying out a financial activity on a professional basis and upon whom a public mandate has been conferred by a Member State, whether at central, regional or local level, to carry out public development or promotional activities on a principally on a non-commercial basis;

c) ´investment platforms´ means special purpose vehicles, managed accounts, contract-based co-financing or risk sharing arrangements or arrangements established by any other means by which investors channel a financial contribution in order to finance a number of investment projects and which may include national platforms that regroup several investment projects on the

PE551.765v03-00 144/354 RR\551765EN.doc

EN

territory of a given Member State, multi-country or regional platforms that regroup several Member States interested in large projects in a given geographic area, or thematic platforms, which could gather investment projects in a given sector;

d) 'small and medium-sized enterprises (SMEs)' means micro, small and   medium-sized enterprises as defined in Commission Recommendation 2003/361/EC1a;

e) ´mid-cap companies´ means legal entities having up to 3000 employees and that are not SMEs;

f) ‘EFSI-beneficiaries’ means all borrowers of EU guaranteed financial instruments implemented by the EIB under the EFSI Agreement;

g) ‘risk bearing capacity’ means that the EFSI assumes an ex ante limited part of the possible credit risk associated with the financing of a specific investment project through a financial instrument managed by the EIB in such a manner that the aggregated credit risk in a portfolio maximally equals the share of the portfolio secured by the EU guarantee;

______________1a Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

Amendment 20

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point a

Text proposed by the Commission Amendment

(a) provisions governing the establishment of the EFSI as a distinct, clearly

(a) provisions governing the establishment of the EFSI as a distinct, clearly

RR\551765EN.doc 145/354 PE551.765v03-00

EN

identifiable and transparent guarantee facility and separate account managed by the EIB;

identifiable and transparent guarantee facility and separate account managed by the EIB for which the EIB and the Commission are subject to an annual discharge decision by Parliament and Council in accordance with Article 319 TFEU and Articles 164, 165 and 166 of Regulation (EU, Euratom) No 996/2012;

Amendment 21

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point a a (new)

Text proposed by the Commission Amendment

(aa) provisions on how the Commission will assume full responsibility for the actual use of Union funds managed by the EFSI, as provided by Article 17(1) of the Treaty on European Union (TEU) and Article 317 of the Treaty on Functioning of the European Union (TFEU), and prevent the diffusion of accountability;

Amendment 22

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point d

Text proposed by the Commission Amendment

(d) the governance arrangements concerning the EFSI, in accordance with Article 3, without prejudice to the Statute of the European Investment Bank;

(d) the governance arrangements concerning the EFSI, in accordance with Article 3, without prejudice to the Statute of the European Investment Bank, including a cap on managing costs of the EIB and with respect to the Commission responsibilities provided for by Article 17(1) TEU, Article 317 TFEU and Regulation (EU, Euratom) No 966/2012;

Amendment 23Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point g

PE551.765v03-00 146/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(g) requirements governing the use of the EU guarantee, including within specific time frames and key performance indicators;

(g) requirements governing the use of the EU guarantee, including within specific time frames and key performance indicators aimed at measuring the achievement of the objectives pursued by the EFSI as expressed by this Regulation in terms of growth and employment, impact on the internal market and promotion of SMEs; those requirements shall be adapted if needed by the Steering Board;

Justification

Performance assessment should be linked to the achievement of the political objectives of the EFSI as defined in particular by recitals 9 to 14.

Amendment 24

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point g a (new)

Text proposed by the Commission Amendment

(ga) provisions ensuring that SMEs and micro-enterprises get priority access to EFSI support;

Amendment 25

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point h

Text proposed by the Commission Amendment

(h) provisions on the financing necessary for the EIAH in accordance with the third subparagraph of paragraph 2;

(h) provisions on the legal form, the operational structure and the financing of the EIAH in accordance with the third subparagraph of paragraph 2;

RR\551765EN.doc 147/354 PE551.765v03-00

EN

Amendment 26

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point h a (new)

Text proposed by the Commission Amendment

(ha) provisions on an unconditional capping of expenses incurred by the EIB on behalf of the EFSI;

Amendment 27

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point j a (new)

Text proposed by the Commission Amendment

(ja) provisions ensuring the external audit by the Court of Auditors of all projects funded under the EFSI.

Amendment 28

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 4

Text proposed by the Commission Amendment

The EFSI Agreement shall provide that remuneration attributable to the Union from EFSI supported operations shall be provided following the deduction of payments due to calls on the EU guarantee and, subsequently, costs in accordance with the third subparagraph of paragraph 2 and with Article 5(3).

The EFSI Agreement shall provide that remuneration attributable to the Union from EFSI supported operations shall be provided up to an unconditional cap following the deduction of payments due to calls on the EU guarantee and, subsequently, costs in accordance with the third subparagraph of paragraph 2 of this Article and with Article 5(3).

Amendment 29

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 3

PE551.765v03-00 148/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

The EIAH shall be partially financed by the Union up to a maximum amount of EUR 20 000 000 per year during the period ending on 31 December 2020 for the additional services provided for by the EIAH over existing EIB technical assistance. For the years after 2020 the financial contribution from the Union shall be directly linked to the provisions included in the future multi-annual financial frameworks.

The EIAH shall be partially financed by the Union up to a maximum amount of EUR 20 000 000 per year during the period ending on 31 December 2018 for the additional services provided for by the EIAH over existing EIB technical assistance. A review shall be conducted before the end of 2018 to assess the success and added value of the EIAH before initiating a second funding period from 1 January 2019 to 31 December 2020. For the years after 2020 the financial contribution from the Union shall be directly linked to the provisions included in the future multi-annual financial frameworks.

Amendment 30

Proposal for a regulationArticle 3 – paragraph 1

Text proposed by the Commission Amendment

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2). The Steering Board shall elect one of its members to be Chairperson.

1. The EFSI Agreement shall provide that the Commission and the EIB are directly responsible and accountable to Parliament and the Council for the management of all funds and guarantees handled by the EFSI. For this purpose the EFSI is to be governed by a Steering Board, which, for the use of the EU guarantee, is to determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2).

The Steering Board shall elect one of its members as its Chairperson.

RR\551765EN.doc 149/354 PE551.765v03-00

EN

Amendment 31

Proposal for a regulationArticle 3 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

The Chairperson, together with the Managing Director of the Investment Committee referred to in paragraph 4, shall be present at least once a year in a joint hearing of the responsible committees of the European Parliament to report on the progress of the EFSI activities.

Amendment 32

Proposal for a regulationArticle 3 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

The Steering Board shall take decisions by consensus.

The Steering Board shall take its decisions by consensus. Those decisions shal be publicly accessible.

Amendment 33

Proposal for a regulationArticle 3 – paragraph 3 a (new)

Text proposed by the Commission Amendment

3 a. The EFSI Agreement shall provide for the creation of an advisory group. The advisory group shall be composed of representatives of all banks, including national promotional banks, participating in projects at national and local level covered by the EU guarantee in accordance with Article 4.

The advisory group shall meet once a year in Luxembourg, in the premises of the EIB. Its meetings shall be organised by the EIB. All other communication and

PE551.765v03-00 150/354 RR\551765EN.doc

EN

exchange among the advisory group members shall be conducted in writing and published after one year. The advisory group may provide the Steering Board, the Investment Committee and the Managing Director with research in order to constantly improve the operations of the EFSI. All costs and travel expenses related to the advisory group shall be borne by the entities that wish to be represented in it.

Amendment 34

Proposal for a regulationArticle 3 – paragraph 4 – subparagraph 3

Text proposed by the Commission Amendment

The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of the Commission and the EIB for a renewable fixed term of three years.

The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of the Commission and the EIB, subject to prior approval by the European Parliament, for a once renewable fixed term of three years.

Amendment 35

Proposal for a regulationArticle 3 – paragraph 4 a (new)

Text proposed by the Commission Amendment

4a. After hearing the Steering Board, the Commission shall, upon receiving the consent of the EIB, provide the European Parliament with a shortlist of candidates for the positions of Managing Director and Deputy Managing Director.

The Commission shall, upon receiving the consent of the EIB, submit to the European Parliament for approval a proposal for the appointment of the Managing Director and the Deputy

RR\551765EN.doc 151/354 PE551.765v03-00

EN

Managing Director. Following the approval of that proposal, the Steering Board shall appoint the Managing Director and the Deputy Managing Director for a once renewable fixed term of three years.

Amendment 36

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 1

Text proposed by the Commission Amendment

The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5, irrespective of their geographic location.

The EFSI Agreement shall provide that the EFSI shall have an Investment Committee. The Investment Committee shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations:

(a) in line with Article 5;

(b) in line with the overall objectives of Regulation (EU) No 1316/2013 and Regulation (EU) No 1315/2013 as well as the TEN-T annual work programmes;

(c) with a proven economic, societal and sustainable added value regarding the promotion of jobs, skills, innovation and competiveness in the Union, and which would not have been possible to carry out with the existing Union funds and instruments;

(d) irrespective of their geographic location within the Union.

Amendment 37

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2

PE551.765v03-00 152/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

The Investment Committee shall be composed of eight independent experts and the Managing Director. Those experts shall have a high level of market experience in project structuring and project financing, as well as macroeconomic expertise. The members of the Investment Committee shall be appointed by the Steering Board for a renewable fixed term of three years, through an open and transparent selection procedure.

For these purposes, the Steering Board shall draw up a list of at least 16 experts (eight men and eight women) and submit it to the European Parliament. After having heard all the experts from this list, the European Parliament shall adopt a decision proposing eight of them to the Steering Board for appointment.

Amendment 38

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2a (new)

Text proposed by the Commission Amendment

2a. The CVs and declarations of interests of the members of the Investment Committee shall be made public, frequently updated and subject to thorough validity checks by the Commission and the EIB.

Amendment 39

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 3

Text proposed by the Commission Amendment

Decisions of the Investment Committee The decisions of the Investment

RR\551765EN.doc 153/354 PE551.765v03-00

EN

shall be taken by simple majority. Committee shall be taken by simple majority. They shall be independent, free from any undue interference, and publicly accessible.

Amendment 40

Proposal for a regulationArticle 3 a (new)

Text proposed by the Commission Amendment

Article 3a

Financial rules of the EFSI and the EIAH

The financial rules applicable to the EFSI and the EIAH shall be adopted by the Steering Board. They shall not deviate from Regulation (EU, Euratom) No 966/2012.

In the framework of the negotiations on the EFSI Agreement prior to the setup of the EFSI or upon a formal request of the Steering Board, the Commission may be empowered to allow, in duly justified cases, for derogations in the form of transitional financial rules by means of a delegated act in accordance with Article 290 TFEU and Article 17 of this Regulation. Such transitional rules shall be valid for a maximum of three years or until Parliament and Council amend Regulation (EU, Euratom) No 966/2012 to incorporate the special requirements of the EFSI.

Amendment 41

Proposal for a regulationArticle 4

PE551.765v03-00 154/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

The Union shall provide a guarantee to the EIB for financing or investment operations carried out within the Union covered by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6.

1. The Union shall provide a guarantee to the EIB for financing or investment operations carried out within the Union covered by this Regulation ('EU guarantee'). The EU guarantee shall also be provided to national promotional banks or institutions, in accordance with Article 58(c) of Regulation (EU, Euratom) No 966/2012, and investment platforms. The EU guarantee shall be granted as a guarantee on demand in respect of the eligible instruments referred to in Article 6 of this Regulation.

2. Contingent legal claims against the Commission by EFSI beneficiaries shall be limited to the EU guarantee.

Amendment 42

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – introductory part

Text proposed by the Commission Amendment

2. The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and support any of the following general objectives:

2. The EU guarantee shall only be granted for EIB financing and investment operations approved by the Investment Committee or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2) and approved by the Investment Committee.

The operations referred to in the first subparagraph shall be consistent with Union policies, economically and technically viable, and shall provide additionality, maximise where possible the mobilisation of private sector capital, be complementary to existing Union funds or aid schemes, provide European added value, contribute to achieving the Europe

RR\551765EN.doc 155/354 PE551.765v03-00

EN

2020 targets and support any of the following general objectives:

Amendment 43

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point a

Text proposed by the Commission Amendment

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of infrastructure, including in the areas of transport, particularly for clean urban transport and projects along the trans-European network for transport, as defined by Regulation (EU) No 1315/2013; energy, in particular energy interconnections; and digital infrastructure;

Amendment 44

Proposal for a regulationArticle 5 – paragraph 3 – subparagraph 1

Text proposed by the Commission Amendment

3. In accordance with Article 17 of the Statute of the European Investment Bank, the EIB shall charge the beneficiaries of the financing operations to cover its expenses related to the EFSI. Without prejudice to sub-paragraph 2 and 3, no administrative expenditure or any other fees of the EIB for financing and investment activities conducted by the EIB under this Regulation shall be covered from the Union budget.

3. In accordance with Article 17 of the Statute of the European Investment Bank, the EIB shall charge the beneficiaries of the financing operations to cover its expenses related to the EFSI up to an unconditional cap provided for in the EFSI agreement. The risk of non-recoverable EIB expenses shall be borne entirely by the EIB. Without prejudice to subparagraphs 2 and 3 of this paragraph, no administrative expenditure or any other fees of the EIB for financing and investment activities conducted by the EIB under this Regulation shall be covered from the Union budget.

Amendment 45

Proposal for a regulation

PE551.765v03-00 156/354 RR\551765EN.doc

EN

Article 5 – paragraph 3 – subparagraph 2

Text proposed by the Commission Amendment

The EIB may call the EU guarantee, in accordance with Article 2(1)(e), within a cumulated maximum limit corresponding to 1% of the total outstanding EU guarantee obligations to cover expenses that whilst charged to beneficiaries of the financing operations, have not been recovered. 

The EIB may call the EU guarantee, in accordance with Article 2(1)(e), up to an unconditional cap provided for in the EFSI agreement, to cover expenses that whilst charged to beneficiaries of the financing operations, have not been recovered. 

Amendment 46

Proposal for a regulationArticle 5 – paragraph 3 – subparagraph 3

Text proposed by the Commission Amendment

Fees of the EIB should the EIB provide funding to the EIF on behalf of the EFSI which is backed by the EU guarantee in accordance with Article 7(2) may be covered from the Union budget.

Fees of the EIB should the EIB provide funding to the EIF on behalf of the EFSI which is backed by the EU guarantee in accordance with Article 7(2) may be covered from the Union budget. Such fees shall be unconditionally capped in the EFSI Agreement.

Amendment 47

Proposal for a regulationArticle 5 – paragraph 4

Text proposed by the Commission Amendment

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee.

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee. Where, in such cases, several legal frameworks of the Union are applicable to the management and control of such eligible projects, Regulation (EU, Euratom) No 966/2012 and the relevant

RR\551765EN.doc 157/354 PE551.765v03-00

EN

sectoral funding legislation shall prevail.

Amendment 48

Proposal for a regulationArticle 6 – paragraph 1

Text proposed by the Commission Amendment

For the purposes of Article 5(2), the EIB shall use the EU Guarantee towards risk coverage for instruments as a rule on a portfolio basis.

For the purposes of Article 5(2), the EIB shall use the EU guarantee only for the coverage of credit risk of eligible instruments. As a rule, the EU guarantee shall only be used on the basis of the portfolio of eligible instruments used to fund projects approved by the Investment Committee.

Amendment 49

Proposal for a regulationArticle 7 – paragraph 1

Text proposed by the Commission Amendment

1. The EU guarantee to the EIB shall be of an amount equal to EUR 16 000 000 000, of which a maximum amount of EUR 2 500 000 000 may be allocated for EIB funding to the EIF in accordance with paragraph 2. Without prejudice to Article 8(9), aggregate payments from the Union under the guarantee to the EIB shall not exceed the amount of the guarantee.

1. The EU guarantee to the EIB shall be of an amount equal to EUR 16 000 000 000, of which a maximum amount of EUR 2 500 000 000 may be allocated for EIB funding to the EIF in accordance with paragraph 2. Without prejudice to Article 8(9), aggregate payments from the Union under the guarantee to the EIB shall not exceed the amount of the guarantee, thus excluding contingent liabilities for the Union budget. Legal claims of final beneficiaries against the Union above and beyond this guarantee shall be excluded.

Amendment 50

Proposal for a regulationArticle 7 – paragraph 2 a (new)

PE551.765v03-00 158/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

2a. The Managing Director shall make the risk measures of the portfolios covered by the EU guarantee easily accessible to the public, as well as the methodology and the data with which the risk of a particular instrument portfolio is determined, and update that information regularly.

Amendment 51

Proposal for a regulationArticle 7 – paragraph 3

Text proposed by the Commission Amendment

3. Where the EIB calls the EU guarantee in accordance with the EFSI Agreement, the Union shall pay on demand in accordance with the terms of that Agreement.

3. Where the EIB calls the EU guarantee in accordance with the EFSI Agreement, the Union shall pay on demand in accordance with the terms of that Agreement. Such a payment is limited to the amount of the funds not yet called by the EIB from the EU guarantee. All further losses and risks are borne by the other contributors to the portfolio and the stakeholders of the projects. The Union assumes no contingent liabilities exceeding the EU guarantee.

Amendment 52

Proposal for a regulationArticle 7 – paragraph 3 a (new)

Text proposed by the Commission Amendment

3a. The EFSI Agreement shall incorporate a general immunity of the Union and waivers against legal claims by EFSI beneficiaries against the Commission that go beyond the EU guarantee.

RR\551765EN.doc 159/354 PE551.765v03-00

EN

Amendment 53

Proposal for a regulationArticle 8 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) payments from the general budget of the Union,

(a) contributions from the general budget of the Union,

Amendment 54

Proposal for a regulationArticle 8 – paragraph 5 – subparagraph 2

Text proposed by the Commission Amendment

The target amount shall initially be met by the gradual payment of resources referred to in paragraph 2(a). If there have been calls on the guarantee during the initial constitution of the guarantee fund, endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2 shall also contribute to meet the target amount up to an amount equal to the calls on the guarantee.

The target amount shall initially be met by the gradual payment of resources referred to in paragraph 2(a) and shall be accompanied by endowments to the guarantee fund provided for in points (b), (c) and (d) of paragraph 2.

Amendment 55

Proposal for a regulationArticle 8 – paragraph 6 – subparagraph 2

Text proposed by the Commission Amendment

The Commission shall be empowered to adopt delegated acts in accordance with Article 17 adjusting the target amount provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the EU guarantee being called.

The Commission shall be empowered to adopt delegated acts in accordance with Article 17 adjusting the target level provided for in paragraph 5 of this Article by a maximum of 10 % to better reflect the potential risk of the EU guarantee being called. If a situation arises in which 50 % payment of the guarantee obligations were insufficient, the Commission shall

PE551.765v03-00 160/354 RR\551765EN.doc

EN

propose an increase in the liquidity cushion, indicating the origin of additional payment appropriations, while leaving the final decision to the Parliament and the Council.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 37

Amendment 56

Proposal for a regulationArticle 8 – paragraph 8

Text proposed by the Commission Amendment

8. From 1 January 2019, if as a result of calls on the guarantee, the level of the guarantee fund falls below 50% of the target amount, the Commission shall submit a report on exceptional measures that may be required to replenish it.

8. From 1 January 2018, if as a result of calls on the guarantee, the resources of the guarantee fund falls below 50 % of the target amount, the Commission shall submit a report on exceptional measures that may be required to replenish it. If the Commission deems this to be necessary, it shall present recommendations on adjusting the level of the guarantee.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 37

Amendment 57

Proposal for a regulationArticle 8 – paragraph 9 a (new)

Text proposed by the Commission Amendment

9a. The budgetary expenditure linked to the EFSI and the financial liability of the Union shall in no case exceed the amount of the relevant budgetary commitment made for it, thus excluding contingent liabilities for the Union budget.

RR\551765EN.doc 161/354 PE551.765v03-00

EN

Justification

The EFSI text should explicitly state that the EU budget will not, under any circumstances, cover more than the budgetary contribution to the guarantee laid down in the regulation proper.

Amendment 58

Proposal for a regulationArticle 9 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent  pipeline of current and potential future investment projects in the Union. The pipeline shall be for visibility to investors and information purposes only, and shall be without prejudice to the final projects selected for support according to Article 3(5).

Amendment 59

Proposal for a regulationArticle 9 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on all current and future investments in a publicly accessible project database.

Amendment 60

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and 3. Member States shall develop, update and

PE551.765v03-00 162/354 RR\551765EN.doc

EN

disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

disseminate, together with the EIB, on a regular and structured basis, information on all current and future investment projects in their territory.

Amendment 61

Proposal for a regulationArticle 10 – paragraph 1

Text proposed by the Commission Amendment

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the Commission on EIB financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the European Parliament, the Council and the Commission on EIB financing and investment operations under this Regulation. One of the two reports shall be completed in due time, so that the Commission can incorporate the relevant information in the annual accounts, and shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 40

Amendment 62

Proposal for a regulationArticle 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. The EIB, in cooperation with the EIF as appropriate, shall report annually to the European Parliament and to the Council on EIB financing and investment operations. The report shall be made public and

2. The EIB, in cooperation with the EIF as appropriate, shall report annually to the European Parliament, to the Council and to the Court of Auditors on EIB financing and investment operations under this

RR\551765EN.doc 163/354 PE551.765v03-00

EN

include: Regulation. The annual report shall be made public and include:

Amendment 63

Proposal for a regulationArticle 10 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) an assessment of EIB financing and investment operations at operation, sector, country and regional levels and their compliance with this Regulation, together with an assessment of the allocation of EIB financing and investment operations between the objectives in Article 5(2);

(a) an assessment of EIB financing and investment operations at operation, sector, country and regional levels and their compliance with this Regulation and Regulation (EU, Euratom) No 966/2012, together with an assessment of the allocation of EIB financing and investment operations between the objectives:

Amendment 64

Proposal for a regulationArticle 10 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) an assessment of the added value, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

(b) an assessment of the added value and the performance of projects in terms of estimated and realised return on investment at project maturity, the additionality of operations conducted under EFSI compared to normal EIB operations, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

Amendment 65

Proposal for a regulationArticle 10 – paragraph 2 – point b a (new)

PE551.765v03-00 164/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(ba) the targeted leverage effect, and the achieved leverage effect of EIB financing and investment operations;

Amendment 66

Proposal for a regulationArticle 10 – paragraph 2 – point b b (new)

Text proposed by the Commission Amendment

(bb) an assessment of the contribution to the objectives of Regulation (EU) No 1315/2013 for transport, Regulation (EU) No 347/2013 for energy networks and Regulation (EU) No 283/2014 for telecommunications infrastructure;

Amendment 67

Proposal for a regulationArticle 10 – paragraph 2 – point c

Text proposed by the Commission Amendment

(c) an assessment of the financial benefit transferred to beneficiaries of EIB financing and investment operations on an aggregated basis;

(c) an assessment of the financial amount transferred to beneficiaries and an assessment of EIB financing and investment operations on an aggregated basis;

Amendment 68

Proposal for a regulationArticle 10 – paragraph 2 – point d

Text proposed by the Commission Amendment

(d) an assessment of the quality of EIB financing and investment operations;

(d) an assessment of the added value of EIB financing and investment operations and the risks associated with those

RR\551765EN.doc 165/354 PE551.765v03-00

EN

operations;

Amendment 69

Proposal for a regulationArticle 10 – paragraph 2 – point d a (new)

Text proposed by the Commission Amendment

(da) a list of the financial intermediaries involved in the implementation of EIB financing and investment operations, including any issues relating to the application of Articles 14 and 15;

Amendment 70

Proposal for a regulationArticle 10 – paragraph 2 – point d b (new)

Text proposed by the Commission Amendment

(db) a list of EFSI beneficiaries, including borrowers of Union-guaranteed financial instruments implemented by the EIB under the EFSI agreement;

Amendment 71

Proposal for a regulationArticle 10 – paragraph 2 – point e

Text proposed by the Commission Amendment

(e) detailed information on calls on the EU guarantee;

(e) detailed information on calls on the EU guarantee, losses, returns, amounts recovered and any other payments received;

Amendment 72

Proposal for a regulationArticle 10 – paragraph 2 – point e a (new)

PE551.765v03-00 166/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(ea) the value of equity investments, with respect to previous years, and the accumulated figures for impairments of assets of equity;

Amendment 73Proposal for a regulationArticle 10 – paragraph 2 – point f

Text proposed by the Commission Amendment

(f) the financial statements of the EFSI. (f) the financial statements of the EFSI accompanied by an opinion of an independent external auditor;

Justification

Self-explanatory.

Amendment 74

Proposal for a regulationArticle 10 – paragraph 2 – point f a (new)

Text proposed by the Commission Amendment

(fa) detailed information on projects which received contributions from the European Structural and Investment Funds to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee, as provided for in Article 5(4);

Amendment 75

Proposal for a regulationArticle 10 – paragraph 2 – point f b (new)

Text proposed by the Commission Amendment

(fb) statistical, financial and accounting data on EIB financing and investment

RR\551765EN.doc 167/354 PE551.765v03-00

EN

operations on an aggregated basis.

Amendment 76

Proposal for a regulationArticle 10 – paragraph 3 – introductory part

Text proposed by the Commission Amendment

3. For the purposes of the Commission's accounting and reporting of the risks covered by the EU guarantee and management of the guarantee fund, the EIB, in cooperation with the EIF as appropriate, shall provide the Commission every year:

3. For the purposes of the Commission's accounting and reporting of the risks covered by the EU guarantee and management of the guarantee fund, the EIB, in cooperation with the EIF as appropriate, shall provide the Commission and the Court of Auditors every year:

Amendment 77

Proposal for a regulationArticle 10 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) the EIB's and EIF's risk assessment and grading information concerning EIB financing and investment operations;

(a) the EIB's and EIF's risk assessment and grading information concerning EIB financing and investment operations under this Regulation;

Amendment 78

Proposal for a regulationArticle 10 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) the outstanding financial obligation for the EU concerning the guarantees provided towards EIB financing and investment operations broken down by the individual operations;

(b) the outstanding financial obligation for the Union concerning the guarantees provided towards EIB financing and investment operations under this Regulation broken down by the individual operations;

PE551.765v03-00 168/354 RR\551765EN.doc

EN

Amendment 79

Proposal for a regulationArticle 10 – paragraph 3 – point c a (new)

Text proposed by the Commission Amendment

(ca) the development of the value at risk and other risk measures for all project portfolios held and for the portfolios of each type of eligible instruments.

Amendment 80

Proposal for a regulationArticle 10 – paragraph 6

Text proposed by the Commission Amendment

6. The Commission shall, by 30 June of each year, send to the European Parliament, the Council and the Court of Auditors an annual report on the situation of the guarantee fund and the management thereof in the previous calendar year.

6. The Commission shall, by 31 March of each year, send to the European Parliament, the Council and the Court of Auditors the annual accounts, the financial statement and an annual report in accordance with Regulation (EU, Euratom) No 996/2012 on the situation of the EFSI and the management thereof in the previous calendar year. This report shall also give information on the adequacy of the level of the EU guarantee and, if necessary, recommendations on adjusting its level.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 37 and 41

Amendment 81

Proposal for a regulationArticle 11 – paragraph 1

Text proposed by the Commission Amendment

1. At the request of the European Parliament, the Managing Director shall

1. At the request of the European Parliament, and at least twice a year, the

RR\551765EN.doc 169/354 PE551.765v03-00

EN

participate in a hearing of the European Parliament on the performance of the EFSI.

Managing Director, the Chairperson of the Steering Board, the Commissioner responsible for the Union Budget and the Chair of the EIB Board of Directors shall participate in annual discharge hearings of the European Parliament on the performance and financial management of the EFSI.

Amendment 82

Proposal for a regulationArticle 11 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. At the request of the European Parliament, the Commissioner responsible for the Union Budget shall participate in a hearing at the European Parliament on the use of Union funds in the guarantee fund.

Justification

Since Guarantee Fund will be composed of significant reallocations from the EU budget, Parliament should have the right to call the EU Budget Commissioner before Parliament in order to exercise scrutiny over the use of the EU budget, especially with regard to performance and spending outcomes.

Amendment 83Proposal for a regulationArticle 11 – paragraph 2

Text proposed by the Commission Amendment

2. The Managing Director shall reply orally on in writing to questions addressed to the EFSI by the European Parliament, in any event within five weeks of receipt of a question.

2. The Managing Director, the Chairperson of the Steering Board, the Commissioner responsible for the Union Budget and the Chair of the EIB Board of Directors shall reply orally or in writing to questions addressed to the EFSI by the European Parliament, in any event within four weeks of receipt of a question.

PE551.765v03-00 170/354 RR\551765EN.doc

EN

Amendment 84Proposal for a regulationArticle 11 – paragraph 3 a (new)

Text proposed by the Commission Amendment

3a. In cooperation with the EIB and the EIF as appropriate, the Commission shall report on the financial performance of the EFSI in the evaluation report referred to in Article 318 TFEU.

Justification

In its last resolutions on the Commission discharge the European Parliament requested that the evaluation report drafted by the Commission pursuant to Article 318 TFEU focuses in particular on the growth and jobs strategy. This request had been confirmed in the initiative report on the evaluation of the Union’s finances based on the results achieved: a new tool for the European Commission’s improved discharge procedure, see point 11(2013/2172(INI)).

Amendment 85

Proposal for a regulationArticle 11 – paragraph 3 b (new)

Text proposed by the Commission Amendment

3b. At the request of the European Parliament, the EIB shall submit to it any information during the discharge procedure.

Amendment 86

Proposal for a regulationArticle 12 – paragraph 1 – subparagraph 1

Text proposed by the Commission Amendment

At the latest [PO insert date: 18 months after the entry into force of this Regulation] the EIB shall evaluate the functioning of the EFSI. The EIB shall submit its evaluation to the European Parliament, the Council and the Commission;

At the latest [PO insert date: 12 months after the entry into force of this Regulation] the EIB shall evaluate the functioning of the EFSI, also with regard to the EFSI projects based on the sub-programmes, and evaluate the lifecycle of the targeted investments. The EIB shall submit its

RR\551765EN.doc 171/354 PE551.765v03-00

EN

evaluation to the European Parliament, the Council and the Commission. This evaluation shall be accompanied by an opinion of the Court of Auditors.

Amendment 87

Proposal for a regulationArticle 12 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

At the latest [PO insert date: 18 months after the entry into force of this Regulation] the Commission shall evaluate the use of the EU guarantee and the functioning of the guarantee fund, including the use of endowments according to Article 8(9). The Commission shall submit its evaluation to the European Parliament and the Council.

At the latest [PO insert date: 12 months after the entry into force of this Regulation] the Commission shall evaluate the use of the EU guarantee and the functioning of the guarantee fund, also with regard to the projects benefiting from the guarantees based on the sub-programmes, and evaluate the lifecycle of the targeted investments, including the use of endowments according to Article 8(9). The Commission shall submit its evaluation to the European Parliament and the Council. This evaluation shall be accompanied by an opinion of the Court of Auditors.

Amendment 88

Proposal for a regulationArticle 12 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

At the request of the European Parliament or the Council, independent external parties shall evaluate the functioning of the EFSI as well as the use of the EU guarantee and the functioning of the guarantee fund, including the use of endowments in accordance with Article 8(9).

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 42

PE551.765v03-00 172/354 RR\551765EN.doc

EN

Amendment 89

Proposal for a regulationArticle 12 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) the EIB shall publish a comprehensive report on the functioning of the EFSI;

(a) the EIB shall publish a comprehensive report on the functioning of the EFSI and on the EFSI projects based on the sub-programmes, in order to match the lifecycle of the targeted investments;

Amendment 90

Proposal for a regulationArticle 12 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) the Commission shall publish a comprehensive report on the use of the EU guarantee and the functioning of the guarantee fund.

(b) the Commission shall publish a comprehensive report on the use of the EU guarantee and the functioning of the guarantee fund and on the projects benefitting from the guarantee based on the sub-programmes, in order to match the lifecycle of the targeted investments.

Amendment 91

Proposal for a regulationArticle 12 – paragraph 4

Text proposed by the Commission Amendment

4. The EIB and EIF shall on a regular basis provide the European Parliament, the Council and the Commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the EIB and EIF under this Regulation.

4. The EIB and EIF shall on a regular basis provide the European Parliament, the Council and the Commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the EIB and EIF under this Regulation, focusing on outcomes and impacts.

RR\551765EN.doc 173/354 PE551.765v03-00

EN

Amendment 92

Proposal for a regulationArticle 12 – paragraph 5

Text proposed by the Commission Amendment

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation accompanied by any relevant proposal.

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation, including assessment of the added value of the EFSI and its additionality to existing Union funding instruments, accompanied by any relevant proposal for improvements.

Amendment 93

Proposal for a regulationArticle 13 – paragraph 1

Text proposed by the Commission Amendment

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives referred to in Article 5(2).

1. In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives and specific operations referred to in Article 5(2).

2. The EIB shall guarantee that any citizen of the Union and any natural and legal person residing or having its registered office in a Member State have access to documents related to the EFSI, in accordance with Regulation No 1049/2001 of the European Parliament and the Council1a.

3. In case of a detailed arrangement between the Commission and the EIB with regard to exchange and public disclosure of information, such

PE551.765v03-00 174/354 RR\551765EN.doc

EN

arrangement shall be made public.

_______________1a Regulation No 1049/2001 of the European Parliament and the Council, of 30 May 2001, regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43).

Amendment 94

Proposal for a regulationArticle 13 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. The EFSI Agreement shall be published.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 44

Amendment 95

Proposal for a regulationArticle 14 – paragraph 1

Text proposed by the Commission Amendment

The EU guarantee and the payments and recoveries under it that are attributable to the general budget of the Union shall be audited by the Court of Auditors.

1. The external audit of the activities undertaken in accordance with this Regulation shall be carried out by the Court of Auditors in accordance with Article 287 TFEU and is thus subject to the discharge procedure in accordance with Article 319 TFEU. The Commission shall ensure that the Court of Auditors is able to exercise its right as provided for in the first subparagraph of Article 287(3) TFEU and has full access to all the information it needs to carry out its audits. The Commission and the EIB shall ensure that all parties concerned by the activities undertaken in accordance

RR\551765EN.doc 175/354 PE551.765v03-00

EN

with this Regulation are made aware of the right of the Court of Auditors as provided for in the first subparagraph of Article 287(3) TFEU. The EIB, the EIF, all financial intermediaries involved in the activities undertaken in accordance with this Regulation and final recipients shall afford the Court of Auditors all the facilities and give it all the information it considers necessary for the performance of its task, pursuant to Article 161 of Regulation (EU, Euratom) No 966/2012. The Tripartite agreement between the European Commission, the European Court of Auditors and the European Investment Bank shall be revised in order to reflect the requirements of this Article.

Amendment 96

Proposal for a regulationArticle 14 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. The European Parliament and the Council may request that the Court of Auditors examine any other relevant matter falling within their competence set out in article 287(4) TFUE.

Amendment 97

Proposal for a regulationArticle 14 – paragraph 1 b(new)

Text proposed by the Commission Amendment

1b. The Court of Auditors shall produce a special report for each 12-month period starting on 1 April each year. Each special report shall examine whether:

(a) sufficient regard was had to efficiency and effectiveness in the use of the EFSI;

PE551.765v03-00 176/354 RR\551765EN.doc

EN

(b) the EFSI support contributed to the objectives of sustainable job creation, long-term growth and competitiveness;

(c) the EFSI activities were conducted in accordance with the principles of sound financial management, transparency, proportionality, non-discrimination, additionality, equal treatment and subsidiarity.

Each special report shall be produced within six months of the end of the period to which it relates.

The Court of Auditors shall send all the special reports to the governing bodies of the EFSI, the BEI, the European Parliament, the Council and the Commission, and shall make them public without delay.

The Court of Auditors shall have the power to obtain from the governing bodies of the EFSI, the BEI and the Commission any information relevant for performing the tasks conferred on it by this Article and shall provide any relevant information requested within such a timeframe as may be specified by the Court of Auditors.

Justification

This amendments mirrors the existing provisions in regulation of the Single Resolution Fund (Reg No 806/2014) as regards the mandate to the Court of Auditors to provide an annual special report on the performance of the EFSI and accordingly to the principles of sound financial management.

Amendment 98

Proposal for a regulationArticle 15 – paragraph 1

Text proposed by the Commission Amendment

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the

RR\551765EN.doc 177/354 PE551.765v03-00

EN

preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of fraud, corruption, money laundering or other illegal activity that may affect the financial interests of the Union.

preparation, implementation or closure of operations subject to the EFSI, it has grounds to suspect that there is a potential case of fraud, corruption, embezzlement, money laundering or other illegal activity that may affect the financial interests of the Union.

Amendment 99

Proposal for a regulationArticle 15 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

2. OLAF may carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(5 ), Council Regulation (Euratom, EC) No 2185/96(6 ) and Council Regulation (EC, Euratom) No 2988/95 (7 ) in order to protect the financial interests of the Union, with a view to establishing whether there has been fraud, corruption, money laundering or any other illegal activity affecting the financial interests of the Union in connection with any operations supported by the EU guarantee. OLAF may transmit to the competent authorities of the Member States concerned information obtained in the course of investigations.

2. OLAF shall carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(5 ), Council Regulation (Euratom, EC) No 2185/96(6 ) and Council Regulation (EC, Euratom) No 2988/95 (7 ) in order to protect the financial interests of the Union, with a view to establishing whether there has been fraud, corruption, money laundering, financing of terrorism, tax fraud and tax evasion, or any other illegal activity affecting the financial interests in connection with any operations under this Regulation. OLAF may transmit to the competent authorities of the Member States concerned information obtained in the course of investigations.

__________________ __________________5 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

5 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

PE551.765v03-00 178/354 RR\551765EN.doc

EN

6 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

6 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

7 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).

7 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).

Amendment 100

Proposal for a regulationArticle 15 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

Where such illegal activities are proven, the EIB shall undertake recovery efforts with respect to its operations supported by the EU guarantee.

Where OLAF recommends the recovery due to illegal activities, including money laundering, financing of terrorism, tax fraud and tax evasion, corruption, or fraud affecting the financial interests established during its investigations are proven, the EIB and the Commission shall undertake recovery with respect to its operations.

Amendment 101

Proposal for a regulationArticle 15 – paragraph 3

Text proposed by the Commission Amendment

3. Financing agreements signed in relation to operations supported under this Regulation shall include clauses allowing exclusion from EIB financing and investment operations and, if necessary, appropriate recovery measures in cases of fraud, corruption or other illegal activity in accordance with the EFSI Agreement, EIB

3. Financing agreements signed in relation to operations supported under this Regulation shall include clauses allowing exclusion from EIB financing and investment operations and, if necessary, appropriate recovery measures in cases of fraud, corruption or other illegal activity in accordance with the EFSI Agreement, EIB

RR\551765EN.doc 179/354 PE551.765v03-00

EN

policies and applicable regulatory requirements. The decision whether to apply an exclusion from the EIB financing and investment operation shall be taken in accordance with the relevant financing or investment agreement..

policies and applicable regulatory requirements. The decision whether to apply an exclusion from the EIB financing and investment operation shall be taken in accordance with the relevant financing or investment agreement. These agreements shall be notified to the European Parliament.

Amendment 102

Proposal for a regulationArticle 16 – paragraph 1

Text proposed by the Commission Amendment

1. In its financing and investment operations, the EIB shall not support any activities carried out for illegal purposes, including money laundering, financing of terrorism, tax fraud and tax evasion, corruption, or fraud affecting the financial interests of the Union. In particular the EIB shall not participate in any financing or investment operation through a vehicle located in a non-cooperative jurisdiction, in line with its policy towards weakly regulated or non-cooperative jurisdictions based on policies of the Union, the Organisation for Economic Cooperation and Development or the Financial Action Task Force.

1. In its financing and investment operations, the EIB, the EIF and all financial intermediaries shall not support any activities carried out for illegal purposes, including money laundering, financing of terrorism, tax fraud and tax evasion, corruption, or fraud affecting the financial interests of the Union. In particular the EIB shall not participate in any financing or investment operation through a vehicle located in a non-cooperative jurisdiction in relation to the application of the internationally agreed tax standard, in line with its policy towards weakly regulated or non-cooperative jurisdictions based on policies of the Union, the Organisation for Economic Cooperation and Development or the Financial Action Task Force. The EIB shall transpose such requirements to any third party contributing to the EFSI or any investment platform. 

Justification

This amendment takes the more specific wording of article 140. (4) of the financial regulation from which it seems to have been inspired.

PE551.765v03-00 180/354 RR\551765EN.doc

EN

Amendment 103

Proposal for a regulationArticle 20 – paragraph 1

Text proposed by the Commission Amendment

Financing and investment operations signed by the EIB or EIF, during the period from 1 January 2015 to the conclusion of the EFSI Agreement, may be submitted by the EIB or the EIF to the Commission for coverage under the EU guarantee.

1. Financing and investment operations signed by the EIB or EIF during the period from 1 January 2015 to the conclusion of the EFSI Agreement may be submitted by them to the Investment Committee for assessment. The Investment Committee may submit those operations to the Commission to propose that they be covered under the EU guarantee.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 45

Amendment 104

Proposal for a regulationArticle 20 – paragraph 2

Text proposed by the Commission Amendment

The Commission shall assess those operations and, where they comply with the substantive requirements set out in Article 5 and in the EFSI Agreement, decide that the EU guarantee coverage extends to them.

2. Taking into account the assessment of the Investment Committee, the Commission shall assess the operations and, where they comply with the substantive requirements set out in Article 5 and in the EFSI Agreement, decide that the EU guarantee coverage extends to them. It shall then inform the European Parliament of such decision.

Justification

Idea from the ECA Opinion 4/2015 on the EFSI - paragraph 45

RR\551765EN.doc 181/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

CONT9.3.2015

Rapporteur       Date appointed

Michael Theurer2.3.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 24.2.2015 23.3.2015

Date adopted 13.4.2015

Result of final vote +:–:0:

2023

Members present for the final vote Nedzhmi Ali, Louis Aliot, Inés Ayala Sender, Zigmantas Balčytis, Dennis de Jong, Martina Dlabajová, Jens Geier, Ingeborg Gräßle, Rina Ronja Kari, Bernd Kölmel, Verónica Lope Fontagné, Georgi Pirinski, Claudia Schmidt, Bart Staes, Marco Valli, Derek Vaughan, Tomáš Zdechovský, Joachim Zeller

Substitutes present for the final vote Benedek Jávor, Karin Kadenbach, Andrey Novakov, Julia Pitera, Czesław Adam Siekierski, Patricija Šulin

Substitutes under Rule 200(2) present for the final vote

Eugen Freund

PE551.765v03-00 182/354 RR\551765EN.doc

EN

1.4.2015

OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Danuta Jazłowiecka

SHORT JUSTIFICATION

As a consequence of the economic and financial crisis the level of investment in the EU dropped by 15% since its peak in 2007. Economic recovery, job creation, long-term growth and competitiveness are being hampered as a result. The investment gap poses additional risk to reaching the targets set by Europe 2020, especially the headline target of 75% employment in the population aged 24-64 by 2020. In the third quarter of 2014 the unemployment level in the EU-28 stood still at 9.7%. In addition too many young Europeans are approaching the edge of poverty. Member States however fail to make an effective use of the European funds, especially the Youth Employment Initiative.

Despite a positive impact of cohesion policy, current efforts to foster growth and boost employment have not been sufficiently successful. A new and complementary initiative aimed at growth and job-creation is thus urgently needed. In this context we should welcome the proposal to set up the European Fund for Strategic Investment that has the potential to provide, in correlation with other instruments, a rapid economic stimulus.

As empirical evidence shows, a strong correlation between unemployment and investment level, we should expect this Fund, if well-structured and managed, to boost much-needed medium to long-term employment. The Fund is expected to mobilise 315 billion EUR over three years' time and as a result generate 1.3 million additional direct and indirect job places. The potential employment impact of the Fund will depend on many factors, especially its possibility to support projects with job-creation potential, the extent to which private capital will be leveraged, its compatibility with other existing instruments as well as timely release of funds and additional measures addressed at labour markets.

Job creation potential

RR\551765EN.doc 183/354 PE551.765v03-00

EN

The main aim of projects financed under the EFSI should be to create growth and suitable, high-quality job places. This should be the main guiding principle throughout the regulation in question. In order to assess performance, a careful assessment of the number and quality of jobs generated by the Fund should be carried out, with a special focus on the respect of terms and conditions of employment in the generated job places. This assessment should also serve as a useful tool in case of future revision of EFSI.

In order for the job creation potential not to be hampered, Member States shall foster active labour market policies in order to guarantee their workforce skills' adaptability to the needs of sectors with high investment potential. The PES and EURES reforms are of high importance in this respect.

Support for SMEs and mid-cap companies

The EU-based small and medium-sized enterprises represent 99% of businesses in the EU, employ more than 90 million people and are responsible for 85% of recent net job growth. They have therefore a great job-creation potential that should be strengthened. The success of the EFSI will depend on the extent to which the private sector will be willing to invest, so incentives for private sector should be maximised. The Fund should be structured in such a way that avoids situations in which projects would be financed anyway. Therefore projects with relatively high-risk profile as well as with a potential to become economically viable due to EFSI funding should be prioritised.

Collection of additional funds

After the much needed period of fiscal consolidation it is time for European countries to invest. In order to maximise the investment potential of the Fund and, as a result, job creation, we need to establish incentives for Member States to participate financially in the EFSI. Therefore financial contribution to the EFSI by Member States, including possible participation in investment platforms, should not be taken into account by the Commission when defining the fiscal adjustment under either the preventive or the corrective arm of the Pact.

Correlation with other existing instruments

The success of the EFSI will depend also on its possibility to co-exist and reinforce already existing financial instruments in Europe, such as the European Structural and Investment Funds. In order to maximise the job creation potential of these financial instruments there should be a possibility on one hand to use European Structural Funds to contribute to the financing of projects under the EFSI and on the other to use EFSI to co-finance projects eligible under European structural policy interventions.

Additional measures

In order to make the EFSI work, the European Commission will also initiate and support additional measures to provide greater regulatory predictability and remove barriers to invest, making European a more attractive investment destination.

Moreover the selection method of investment projects should take into consideration different

PE551.765v03-00 184/354 RR\551765EN.doc

EN

development levels of national financial markets and their stability, which will have a direct impact on the ability to use the fund in Member States. This would secure a distribution of financial resources throughout the EU, including the countries most affected by the crisis.

AMENDMENTS

The Committee on Employment and Social Affairs calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationRecital 1

Text proposed by the Commission Amendment

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on Member States. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness.

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of targeted quality investment as a consequence of market uncertainty regarding the economic future, the fiscal constraints on Member States and/or regions, unsustainable debt and structural problems. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects, competitiveness and welfare systems.

Amendment 2

Proposal for a regulationRecital 1 a (new)

Text proposed by the Commission Amendment

(1a) The EFSI should pay special attention to projects in Member States and regions still suffering most from the crisis,

RR\551765EN.doc 185/354 PE551.765v03-00

EN

aiming to reduce divergences, especially in relation to unemployment and employment levels. The need to generate new quality employment at adequate levels should be specifically addressed in a European investment strategy, to which the EFSI should contribute.  

Amendment 3

Proposal for a regulationRecital 2

Text proposed by the Commission Amendment

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for stimulating investment. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained increase in growth potential.

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Socially responsible structural reforms and fiscal responsibility help to stimulate sound investments. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects support and generate medium to long-term quality and sustainable employment, increase demand, lead to a sustained increase in growth potential as well as to economic, social and territorial cohesion, social inclusion and generate added value for society.

Amendment 4

Proposal for a regulationRecital 2 a (new)

Text proposed by the Commission Amendment

(2a) The objective of strategic investments to foster sustainable growth should be pursued in parallel with the objective to generate medium to long-term quality jobs which comply with the legal terms and conditions of employment in Member

PE551.765v03-00 186/354 RR\551765EN.doc

EN

States.

Amendment 5

Proposal for a regulationRecital 2 b (new)

Text proposed by the Commission Amendment

(2b) A wide set of economic and social reforms should be undertaken at national level to generate major economic and social gains. Such reforms should for example aim at ensuring full and equal access to high quality education and training systems, to good childcare facilities and to properly financed health care systems, as well as at ensuring equal participation of women and men in the labour market, and at developing fair and effective tax policy systems which successfully eliminate tax fraud and evasion and tax avoidance practices.

Amendment 6

Proposal for a regulationRecital 2 c new

Text proposed by the Commission Amendment

(2c) In order to maximise the employment impact of the EFSI, Member States should continue to undertake socially responsible structural reforms and other initiatives such as training programmes and active labour market policies, support conditions for the creation of quality and sustainable jobs and invest in targeted social policies in line with the 2013 Social Investment Package. In addition, Member States should undertake additional activities such as customised training programmes to match the skills of workers to the needs of sectors benefiting from EFSI, tailor-made business services

RR\551765EN.doc 187/354 PE551.765v03-00

EN

for enterprises to prepare them to be ready to expand and create more jobs, as well as support for start-ups and self-employed individuals.

Amendment 7

Proposal for a regulationRecital 4

Text proposed by the Commission Amendment

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects.

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth, unfortunately with an insufficient impact on employment and poverty levels in many Member States. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further and complementary action is thus required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable and sustainable investment projects, with a strong focus on their potential to create growth and quality and sustainable jobs, and their benefit to society as a whole.

Amendment 8

Proposal for a regulationRecital 8

Text proposed by the Commission Amendment

(8) The EFSI is part of a comprehensive approach to address uncertainty

(8) The EFSI is part of a comprehensive approach to address uncertainty

PE551.765v03-00 188/354 RR\551765EN.doc

EN

surrounding public and private investments. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union.

surrounding public and private investments. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union. With no improvement in the investment environment, it will be difficult for the EFSI to achieve its purpose. In that regard, a genuine commitment to further consolidation of the Union's internal market is needed, with emphasis on the Digital Single Market. The EFSI should be operational as soon as possible so that investments can be activated in 2015.

Amendment 9

Proposal for a regulationRecital 9

Text proposed by the Commission Amendment

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(9) The investment environment within the Union should be improved by removing barriers to investment, reducing red tape, reinforcing the Single Market, keeping labour markets sufficiently flexible, ensuring labour costs, including wages, are in line with productivity, encouraging social protection systems that make work attractive, restructuring and capitalising banks, improving the efficiency of public administration and tax systems, and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

Amendment 10

Proposal for a regulationRecital 10

RR\551765EN.doc 189/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased and simplified access to financing with the aim of generating sustainable growth and quality and sustainable jobs. It is intended that increased access to financing should be of particular benefit to small and medium enterprises, which represent 99 % of businesses in the Union, employ more than 90 million workers and have recently generated more than 80 % of new jobs in the Union. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees as well as social and micro-enterprises. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social, and territorial cohesion.

Amendment 11

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high socio-economic value added and potential to create quality and sustainable jobs, contributing to achieving long-term Union policy objectives, especially regarding cohesion policy and employment, education and poverty reduction targets of the Europe 2020 strategy.

PE551.765v03-00 190/354 RR\551765EN.doc

EN

Amendment 12

Proposal for a regulationRecital 12

Text proposed by the Commission Amendment

(12) Many small and medium enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. The EFSI should help these businesses to overcome capital shortages by allowing the EIB and the European Investment Fund ('EIF') to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI.

(12) Many micro, small and medium enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. The EFSI should help these businesses to overcome capital shortages by allowing the EIB and the European Investment Fund ('EIF') to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI. It is important that the EFSI takes into account the specific investment conditions in countries with less developed financial markets.

Amendment 13

Proposal for a regulationRecital 13

Text proposed by the Commission Amendment

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible. The work of the EFSI on providing finance to small and medium enterprises and small mid-cap companies should be channelled through the European Investment Fund ('EIF') to benefit from its experience in these activities.

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible. The work of the EFSI on providing finance to small, medium and micro enterprises and small mid-cap companies should be channelled through the European Investment Fund ('EIF') to benefit from its experience in these activities.

RR\551765EN.doc 191/354 PE551.765v03-00

EN

Amendment 14

Proposal for a regulationRecital 14

Text proposed by the Commission Amendment

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote job creation, long-term growth and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

(14) The EFSI should target projects delivering high societal and economic value, which have a direct impact on the real economy. In particular, the EFSI should target projects that foster the creation of quality and sustainable jobs, sustainable and inclusive long-term growth, competitiveness as well as research and innovation and skills development. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

Amendment 15

Proposal for a regulationRecital 14 a (new)

Text proposed by the Commission Amendment

(14a) The impact of the EFSI on employment should be systematically monitored and further encouraged, especially with a view to achieving prolonged societal gains in the form of sustainable and quality employment, as a

PE551.765v03-00 192/354 RR\551765EN.doc

EN

result making both  investors and workers benefit from the EFSI.

Amendment 16

Proposal for a regulationRecital 15

Text proposed by the Commission Amendment

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

(15) The EFSI should be complementary to existing financial instruments of the Union and should target projects with difficulties in attracting private financing and with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most affected by the financial crisis and the areas affected by large pockets of unemployment. The EFSI should only be used where financing is not available from other sources on reasonable terms.

Amendment 17

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically and technically viable and offer significant potential for creating jobs. The level of risk entailed by those investments should be appropriate to the achievement of the EFSI’s objectives, in particular as regards job creation, provided that the particular requirements for EFSI financing are met.

RR\551765EN.doc 193/354 PE551.765v03-00

EN

Justification

As well as being viable, investments should offer significant potential for creating jobs. Classing the level of risk entailed by investments as ‘appropriate’ is extremely vague; it would be better to link it to the objectives that the EFSI is to achieve, in particular as regards job creation.

Amendment 18

Proposal for a regulationRecital 16 a (new)

Text proposed by the Commission Amendment

(16a) The EFSI should take into due account the labour market situations across Member States and regions, and include potential employment-enhancing outcomes achievable when assessing projects. 

Amendment 19

Proposal for a regulationRecital 16 b (new)

Text proposed by the Commission Amendment

(16b) The Steering Board of the EFSI should determine the investment policy of projects that can be supported and the risk profile. Given that the selection of projects will depend on that policy, the European Parliament should be involved in drawing up the criteria.

Justification

The Steering Board has a fundamental task within the EFSI, which is to determine the investment policy and consequently the criteria for selecting projects. It is essential to involve the European Parliament in drawing up those criteria.

Amendment 20

Proposal for a regulation

PE551.765v03-00 194/354 RR\551765EN.doc

EN

Recital 16 c (new)

Text proposed by the Commission Amendment

(16c) The EFSI should be focused on creating new investments in areas where investor appetite is subdued rather than on substituting investments that would have been produced elsewhere (crowding out), or on focusing on highly profitable investments that would have occurred in any event (deadweight). Social investments should be promoted that not only generate financial returns but promote positive social spillover effects, such as investments in human capital or investments with high impact in job creation or poverty reduction.

Amendment 21

Proposal for a regulationRecital 16 d (new)

Text proposed by the Commission Amendment

(16d) To boost the employment effect of the EFSI, the selection method of investment projects should take into consideration different levels of development of national financial markets as well as their stability, which will have a direct impact on the ability to use the EFSI in Member States. This will secure the distribution of financial resources throughout the Union, including the Member States most affected by the financial crisis.

Amendment 22

Proposal for a regulationRecital 17

RR\551765EN.doc 195/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects and have proven expertise in one of the five headline targets of the Europe 2020 Strategy. The Investment Committee should include expert(s) with relevant expertise enabling them to assess the employment and social effects of the projects. The Investment Committee should act in a transparent way. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

Amendment 23

Proposal for a regulationRecital 17 a (new)

Text proposed by the Commission Amendment

(17a) The Investment Committee experts should be approved by the European Parliament, in order to improve the Investment Committee's democratic governance and accountability.

Amendment 24

Proposal for a regulationRecital 18

PE551.765v03-00 196/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(18) In order to enable the EFSI to support investments, the Union should grant a guarantee of an amount equal to EUR 16 000 000 000. When provided on a portfolio basis, the guarantee coverage should be capped depending upon the type of instrument, such as debt, equity or guarantees, as a percentage of the volume of the portfolio of outstanding commitments. It is expected that when the guarantee is combined with EUR 5 000 000 000 to be provided by the EIB, that the EFSI support should generate EUR 60 800 000 000 additional investment by the EIB and EIF. This EUR 60 800 000 000 supported by the EFSI is expected to generate a total of EUR 315 000 000 000 in investment in the Union within the period 2015 to 2017. Guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations.

(18) In order to enable the EFSI to support investments, the Union should grant a guarantee of an amount equal to EUR 16 000 000 000. When provided on a portfolio basis, the guarantee coverage should be capped depending upon the type of instrument, such as debt, equity or guarantees, as a percentage of the volume of the portfolio of outstanding commitments. It is expected that when the guarantee is combined with EUR 5 000 000 000 to be provided by the EIB, that the EFSI support should generate EUR 60 800 000 000 additional investment by the EIB and EIF. This EUR 60 800 000 000 supported by the EFSI is expected to generate a total of EUR 315 000 000 000 in investment in the Union within the period 2015 to 2017, thus demonstrating the emergency nature of the fund and the need for it to have an immediate impact in the next three years. Guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations.

Justification

Of the two general approaches that could be taken by the European Fund for Strategic Investments (EFSI), it is vital to support the approach according to which it is an emergency instrument that will have a strong impact in the short term to combat unemployment, rather than promoting a modernising change of structure in Europe.

Amendment 25

Proposal for a regulationRecital 19

Text proposed by the Commission Amendment

(19) In order to allow for further increase in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional banks

(19) In order to allow for further increase in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional and

RR\551765EN.doc 197/354 PE551.765v03-00

EN

or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI and take part in the EFSI governance structure.

investment banks or public agencies owned or controlled by Member States or regional institutions, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI and take part in the EFSI governance structure, on condition that the Union’s overall interests are upheld in decision-making and the definition of policies and strategies.

Amendment 26

Proposal for a regulationRecital 20 a (new)

Text proposed by the Commission Amendment

(20a) The EIB should use available means and resources in order to support the development of geographic and thematic investment platforms, bringing together co-investors, public authorities, experts, education, training and research institutions, and other relevant actors at Union, national and regional levels, in order to foster innovation, skills development and the creation of quality and sustainable jobs in key areas where more investment is needed.

Amendment 27

Proposal for a regulationRecital 20 b (new)

Text proposed by the Commission Amendment

(20b) Financial contributions to the EFSI by Member States, including possible participation in investment platforms, should not be taken into account by the Commission when defining the fiscal adjustment under either the preventive or the corrective arm of the Pact. In the

PE551.765v03-00 198/354 RR\551765EN.doc

EN

event of an excess over the deficit reference value, the Commission should not launch an EDP if that excess is only due to the contribution and is small and expected to be temporary. Similarly no procedure should be launched when assessing an excess over the debt reference value in the event that this is due solely to contributions to the EFSI.

Justification

We need to encourage as many MSs as possible to participate in the EFSI in order to maximise positive effects on the European economy. In this respect MSs' financial contributions, including contributions to investment platforms, shall not trigger the EDP.

Amendment 28

Proposal for a regulationRecital 21

Text proposed by the Commission Amendment

(21) Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI.

(21) Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI. The EFSI may also be used for co-financing projects eligible under European Structural and Investment Funds.

Justification

EFSI should be treated as a complementary investment tool to already existing European Structural Funds. Therefore, in order to maximise effects of both tools, the co-financing of projects between EFSI and the ESIF should work in both ways. Especially the use of financial instruments available under EFSI such as loans may help to proceed with a number of significant projects under structural policy which have been blocked due to lack of public money.

RR\551765EN.doc 199/354 PE551.765v03-00

EN

Amendment 29

Proposal for a regulationRecital 25

Text proposed by the Commission Amendment

(25) The EIB should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance and impact and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

(25) The EIB should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance and impact, notably as regards their social and economic impact, paying particular attention to job creation, and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability. They should be forwarded in the form of a report to the European Parliament, at regular intervals, for its opinion.

Justification

It is essential to evaluate the activities supported by the EFSI, particularly as regards job creation.

Amendment 30

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds, SMEs' representatives as well as experts in employment and social policies. This should establish a single point of entry for questions related

PE551.765v03-00 200/354 RR\551765EN.doc

EN

to technical assistance for investments within the Union, access to which shall be fostered by a multilingual and further decentralised approach to support effective dissemination of information.

Amendment 31

Proposal for a regulationRecital 29

Text proposed by the Commission Amendment

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI, without sacrificing the initial objectives of those programmes.

__________________ __________________

RR\551765EN.doc 201/354 PE551.765v03-00

EN

2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

Amendment 32

Proposal for a regulationRecital 31

Text proposed by the Commission Amendment

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for investment. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable information on which to base their investment decisions.

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for investment. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable and transparent information on which to base their investment decisions. In connection with the pipeline, value will be attached to the protection of essential business secrets.

PE551.765v03-00 202/354 RR\551765EN.doc

EN

Amendment 33

Proposal for a regulationRecital 34

Text proposed by the Commission Amendment

(34) To ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress and impact of the EFSI.

(34) To ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress and real social and economic impact of the EFSI, paying particular attention to job creation. To that end the EIB should submit an annual report to the European Parliament and the Council for their opinion.

Justification

To specify the content of the EIB’s regular reports to the European Parliament and the Council. As has been pointed out, it is essential to assess whether the investments financed are having an impact on job creation.

Amendment 34

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 1

Text proposed by the Commission Amendment

1. The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI').

1. Based on a mandate from the European Council and the European Parliament the Commission may conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI'). The agreement shall be transmitted to the European Parliament and the Council and shall be made public.

Amendment 35

Proposal for a regulation

RR\551765EN.doc 203/354 PE551.765v03-00

EN

Article 1 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

The purpose of the EFSI shall be to support quality public and private investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium, as well as micro and social enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement'). The overall objective of the EFSI shall be to support the Europe 2020 objectives and promote sustainable, inclusive and long-term growth and job creation in the Union.

Amendment 36

Proposal for a regulationArticle 1 – paragraph 2

Text proposed by the Commission Amendment

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, regional and local authorities, and private sector entities.

Amendment 37

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

2. The EFSI Agreement shall provide for the creation of a European Investment

2. The EFSI Agreement shall provide for the creation of a European Investment

PE551.765v03-00 204/354 RR\551765EN.doc

EN

Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

Advisory Hub ('EIAH') within the EIB. The EIAH shall be transparent and independent.  The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships, and advice, as appropriate, on relevant issues of EU legislation. The EIAH, in cooperation with the Commission, shall introduce a communication strategy to inform the public of its activities.

Amendment 38

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds.

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds, experts in the employment and social affairs field as well as regularly consult with stakeholders concerned.

Amendment 39

Proposal for a regulationArticle 2 – paragraph 3

Text proposed by the Commission Amendment

3. Member States that become parties to the EFSI Agreement shall be able to provide their contribution, in particular, in

3. Member States that become parties to the EFSI Agreement shall be able to provide their contribution, in particular, in

RR\551765EN.doc 205/354 PE551.765v03-00

EN

the form of cash or a guarantee acceptable to the EIB. Other third parties shall be able to provide their contribution only in cash.

the form of cash or a guarantee acceptable to the EIB. Other third parties shall be able to provide their contribution only in cash. Financial contributions by Member States, including possible contributions to investment platforms, shall not be taken into account by the Commission when defining the fiscal adjustment under the preventive and corrective arm of the Stability and Growth Pact. In the event of an excess over the deficit reference value the Commission shall not launch an EDP if that excess is only due to the contribution and is small and expected to be temporary. Similarly, no procedure shall be launched when assessing an excess over the debt reference value in the event that this is due solely to contributions to the EFSI.

Justification

We need to encourage as many MSs as possible to participate in the EFSI in order to maximise its positive effects on the European Economy. In this respect MSs' financial contributions, including contributions to investment platforms, shall not trigger the EDP.

Amendment 40

Proposal for a regulationArticle 3 – paragraph 1

Text proposed by the Commission Amendment

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and risk profile of the EFSI, in conformity with the objectives under Article 5(2). The Steering Board shall elect one of its members to be Chairperson.

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and risk profile of the EFSI, in conformity with the objectives under Article 5(2). Steering Board members shall include representative(s) with proven expertise in employment and social policies capable to address major socio-economic problems in the Union. The Steering Board shall elect one of its

PE551.765v03-00 206/354 RR\551765EN.doc

EN

members to be Chairperson. The Steering Board shall act in a transparent and independent way.

Amendment 41

Proposal for a regulationArticle 3 – paragraph 3 – subparagraph 3

Text proposed by the Commission Amendment

No decision of the Steering Board shall be adopted if the Commission or the EIB votes against it.

No decision of the Steering Board shall be adopted if the Commission or the EIB votes against it. When this occurs, the reasons for the vote against shall be stated before the members of the Steering Board. The European Parliament shall be informed of any disputes in the annual report.

Amendment 42

Proposal for a regulationArticle 3 – paragraph 5- subparagraph 1

Text proposed by the Commission Amendment

The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations and in line with the EFSI investment policies and approving the support of the EU guarantee for operations and in line with Article 5, irrespective of their geographic location.

The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations (including investment platforms) in line with the EFSI investment policies and approving the support of the EU guarantee for operations (including investment platforms) in line with Article 5, irrespective of their geographic location.

Amendment 43

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2

RR\551765EN.doc 207/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

The Investment Committee shall be composed of eight independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance, knowledge of sectors concerned and their specificities and/ or macroeconomics. At least one expert shall possess relevant expertise to assess the employment and social effects of the projects. All experts shall be appointed by the Steering Board for a renewable fixed term of three years on the basis of their competencies following a transparent and independent procedure. All experts shall declare in a written form that they have no conflict of interest regarding investment operation.

Amendment 44

Proposal for a regulationArticle 3 – paragraph 5 a (new)

Text proposed by the Commission Amendment

5a. Directive (XXXX) of the European Parliament and of the Council on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures (2012/0299/COD) shall apply to any appointment, selection or recruitment procedure for EFSI bodies.

Justification

The Directive on improving gender balance is also of high relevance for the EFSI Board as a balanced gender distribution will have a positive impact on the investment structure.

Amendment 45

Proposal for a regulation

PE551.765v03-00 208/354 RR\551765EN.doc

EN

Article 5 – paragraph 2 – subparagraph 1 – introductory part

Text proposed by the Commission Amendment

2. The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and support any of the following general objectives:

2. The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). Any operations concerned shall be consistent with Union policies, contribute to achieving the objectives of the EU2020 Strategy and shall support any of the following general objectives:

Amendment 46

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point b

Text proposed by the Commission Amendment

(b) investment in education and training, health, research and development, information and communications technology and innovation;

(b) capital investment to support social policies including social services, education from an early age and training, the health and care sector, research and development, information and communications technology and innovation, the social economy and social enterprises;

Amendment 47

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point d

Text proposed by the Commission Amendment

(d) infrastructure projects in the environmental, natural resources, urban development and social fields;

(d) infrastructure projects in the environmental, natural resources, urban development, social fields and public services;

RR\551765EN.doc 209/354 PE551.765v03-00

EN

Amendment 48

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point e a (new)

Text proposed by the Commission Amendment

(ea) investments with high socio- economic returns supporting sustainable and long-term growth, employment creation as well as economic, social and territorial cohesion;

Amendment 49

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

To guide the selection of projects that the EFSI can support, the Steering Board shall include concern with employment and social impact in the strategic orientation, in the guidelines on the strategic asset allocation, and in the operating policies and procedures, including the investment policies.

Amendment 50

Proposal for a regulationArticle 5 – paragraph 4

Text proposed by the Commission Amendment

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee.

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee. The EFSI may also be used for co-financing projects eligible for

PE551.765v03-00 210/354 RR\551765EN.doc

EN

European Structural and Investment Funds.

Justification

EFSI should be treated as a complementary investment tool to already existing European Structural Funds. Therefore, in order to maximise effects of both tools, the co-financing of projects between EFSI and the ESIF should work in both ways. Especially the use of financial instruments available under EFSI such as loans may help to proceed with a number of significant projects under structural policy which have been blocked due to lack of public money.

Amendment 51

Proposal for a regulationArticle 9 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States and regional and local authorities, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

Amendment 52

Proposal for a regulationArticle 9 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

2. The Commission and the EIB shall develop, update and disseminate, on a regular, structured and transparent basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

RR\551765EN.doc 211/354 PE551.765v03-00

EN

Amendment 53

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States, regional and/or local authorities shall develop, update and disseminate, on a regular, transparent and structured basis, information on current and future investment projects in their territory.

Amendment 54

Proposal for a regulationArticle 10 – paragraph 1

Text proposed by the Commission Amendment

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the Commission on EIB financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.

1. The EIB and the EFSI Investment Committee, in cooperation with the EIF as appropriate, shall report semi-annually to the Commission, the Council and the European Parliament on EIB and EFSI financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis. The report should also include a detailed qualitative assessment of the operations concerned as defined in Article 5.

Amendment 55

Proposal for a regulationArticle 10 – paragraph 2 – point a a (new)

PE551.765v03-00 212/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(aa) an assessment of the contribution to the Union's objectives, in particular regarding the Europe 2020 Strategy targets for employment, education and poverty reduction;

Amendment 56

Proposal for a regulationArticle 10 – paragraph 2 – point a b (new)

Text proposed by the Commission Amendment

(ab) an assessment of the number, quality and sustainability of jobs created;

Amendment 57

Proposal for a regulationArticle 10 – paragraph 2 – point d

Text proposed by the Commission Amendment

(d) an assessment of the quality of EIB financing and investment operations;

(d) an assessment of the quality of EIB financing and investment operations and results achieved;

Amendment 58

Proposal for a regulationArticle 10 – paragraph 5 – subparagraph 1 a (new)

Text proposed by the Commission Amendment

The Commission shall include in the Joint Employment Report accompanying the Commission Communication on the Annual Growth Survey a detailed assessment of the direct impact on jobs creation of the investments financed by the EFSI, as well as an analysis of the spillover effects on employment of such

RR\551765EN.doc 213/354 PE551.765v03-00

EN

investments in Europe.

Amendment 59

Proposal for a regulationArticle 12 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) the EIB shall publish a comprehensive report on the functioning of the EFSI;

(a) the EIB shall publish a comprehensive report on the functioning of the EFSI and its results in terms of growth and jobs;

Amendment 60

Proposal for a regulationArticle 12 – paragraph 5

Text proposed by the Commission Amendment

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation accompanied by any relevant proposal.

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit to the European Parliament and the Council a comprehensive quality assessment to evaluate the true socio-economic effect of this special strategic plan on the application of this Regulation accompanied by any relevant proposal

Justification

The EFSI should be assessed as a whole after three years in order to be able to judge whether it has achieved its objectives as a short-term emergency instrument.

Amendment 61

Proposal for a regulationArticle 15 – paragraph 1

Text proposed by the Commission Amendment

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the

PE551.765v03-00 214/354 RR\551765EN.doc

EN

preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of fraud, corruption, money laundering or other illegal activity that may affect the financial interests of the Union.

preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of fraud, corruption, money laundering or any other illegal activity that may affect the financial interests of the Union.

RR\551765EN.doc 215/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

EMPL28.1.2015

Rapporteur       Date appointed

Danuta Jazłowiecka28.1.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 29.1.2015 5.3.2015 24.3.2015

Date adopted 1.4.2015

Result of final vote +:–:0:

3768

Members present for the final vote Laura Agea, Guillaume Balas, Brando Benifei, Enrique Calvet Chambon, Martina Dlabajová, Arne Gericke, Marian Harkin, Danuta Jazłowiecka, Agnes Jongerius, Rina Ronja Kari, Jan Keller, Ádám Kósa, Agnieszka Kozłowska-Rajewicz, Zdzisław Krasnodębski, Jean Lambert, Jérôme Lavrilleux, Patrick Le Hyaric, Jeroen Lenaers, Verónica Lope Fontagné, Javi López, Thomas Mann, Dominique Martin, Anthea McIntyre, Joëlle Mélin, Elisabeth Morin-Chartier, Emilian Pavel, Georgi Pirinski, Terry Reintke, Sofia Ribeiro, Maria João Rodrigues, Claude Rolin, Anne Sander, Sven Schulze, Siôn Simon, Jutta Steinruck, Romana Tomc, Ulrike Trebesius, Marita Ulvskog, Renate Weber, Tatjana Ždanoka, Jana Žitňanská, Inês Cristina Zuber

Substitutes present for the final vote Daniela Aiuto, Georges Bach, Elmar Brok, Sergio Gutiérrez Prieto, Joachim Schuster, Neoklis Sylikiotis, Ivo Vajgl

Substitutes under Rule 200(2) present for the final vote

Eleonora Evi, Massimo Paolucci

PE551.765v03-00 216/354 RR\551765EN.doc

EN

15.4.2015

OPINION OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Miriam Dalli

SHORT JUSTIFICATION

The Commission proposal on the European Fund for Strategic Investments recognises in its Explanatory Memorandum that, as a consequence of the economic and financial crisis, the level of investment in the EU has dropped by about 15% since its peak in 2007. Accordingly, economic recovery, job creation, long-term growth and competitiveness are being hampered. The proposal also stresses that this investment gap poses risks to reaching the targets set by the Europe 2020 Strategy.

The rapporteur recalls that Europe 2020 is the EU's growth strategy for this decade and thus the means by which the EU will become a smart, sustainable and inclusive economy. These three mutually reinforcing priorities should help the EU and the Member States deliver high levels of employment, productivity and social cohesion.  Concretely in the EU2020 strategy, the Union has set five ambitious objectives - employment, innovation, education, social inclusion, climate and energy - to be reached by 2020. It is therefore essential that in the EFSI too, these objectives are equally addressed in an appropriate and satisfactory way.

Today, investment is the most powerful tool that can help Europe to significantly reshape and modernise its economy, whilst ensuring social and territorial cohesion within the EU. What is important is not only the quantity of investments, but how the money is invested and where it is invested. Unfortunately, too much focus has been put on austerity, and too little on measures to stimulate growth. Major victims of these miscalculations have been both private and public investment, reaching levels too low to sustain a recovery, and too weak to underpin tomorrow’s growth. Therefore, European and national policies must shift the economy from

RR\551765EN.doc 217/354 PE551.765v03-00

EN

its current dismal trajectory onto a higher growth path, and one on which Europe's economic, social and environmental challenges can be addressed with equal force and determination.

The rapporteur believes that the EFSI proposal can provide us with the opportunity to implement the much needed structural reforms that can help us transform our economy into a more sustainable and resource-efficient one. This can be our opportunity to strongly support innovation and R&D in both the environment and the health sectors by providing more focused funding for developing technologies, including ones that are at the demonstration phase.

The rapporteur's vision is to have:

1. An infrastructure union based on a clear political commitment that prioritises renewable energy technologies and low-carbon energy investments, encompassing a massive investment programme to modernise and upgrade our power generation capacities and energy networks, establishing a new mandatory target for interconnections between Member States, creating European super-grids, and new storage solutions and gas hubs for securing our energy supplies.

2. An energy union that sets sustainable, resource efficient and climate resilient economic growth as a top priority, that fosters competitiveness of European industries and economies; and that is based on the long-term socio-economic and environmental benefits of greenhouse gas emissions reduction, environmental protection and waste management.

3. A revolutionary approach towards mobility, to be able to reduce the environmental footprint of our transport systems, to have more eco-innovation in the mobility sector, reduce car emissions, promote the consumption of renewable fuels, invest in clean public transport, electric mobility and in sustainable alternatives for heavy load vehicles and maritime transport.

4. The overriding aim to achieve this, while ensuring a strong social element in the investment programme by incorporating into the transition to the new energy model the two essential elements of job creation and sustainable growth.

In this context, the rapporteur believes that the EFSI can offer an opportunity, not just to restore growth and quality jobs, but to tackle in parallel the defining challenges of the 21st century, such as global competition and sustainability, fighting climate change and achieving an energy transition that decarbonises our economy. This needs to be done in line with the Europe 2020 Strategy and the EU’s 2030 Energy and Climate Package. Therefore, we need to focus our investment strategy around our vision of the kind of Europe that we are trying to build.

The rapporteur believes that the transition towards a sustainable, resource efficient and decarbonised economy is the overriding priority and policy goal for Europe’s future development. It is an enormous challenge but there is no other way forward. Ambitious

PE551.765v03-00 218/354 RR\551765EN.doc

EN

investment is needed for years to come, if we wish to successfully transform our economy. But investing in ‘no matter what’ will not get Europe back on track. We have to channel the investment opportunities offered by the EFSI into these key EU priority areas.

RR\551765EN.doc 219/354 PE551.765v03-00

EN

AMENDMENTS

The Committee on the Environment, Public Health and Food Safety calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs ,as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationTitle

Text proposed by the Commission Amendment

Proposal for a Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

REGULATION OF THE   EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013

on the European Fund   for Strategic Investments

Amendment 2

Proposal for a regulationRecital 2

Text proposed by the Commission Amendment

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for stimulating investment. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained increase in growth potential.

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for improving European competitiveness and stimulating investment. Europe needs to focus on cutting red tape and reducing administrative burdens for business, open up the internal market for investments and to safeguard that financial markets can provide liquidity needed to finance private investments. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a

PE551.765v03-00 220/354 RR\551765EN.doc

EN

sustained increase in growth potential.

Amendment 3

Proposal for a regulationRecital 2 a (new)

Text proposed by the Commission Amendment

(2a) The EFSI must be a complement to an overall strategy to improve European competitiveness and attract investments.  Structural reforms, fiscal responsibility and simplification of legislation is a precondition to improve the environment for private investments in Europe.

Amendment 4

Proposal for a regulationRecital 4

Text proposed by the Commission Amendment

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects.

(4) Throughout the economic and financial crisis, the Union has not made enough efforts to promote growth, despite initiatives set out in the Europe 2020 strategy that put in place an approach for smart, environmentally sustainable and socially inclusive growth. The European Investment Bank ('EIB') strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable and environmentally sustainable investment projects.

Amendment 5

Proposal for a regulationRecital 9 a (new)

RR\551765EN.doc 221/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(9a) The effectiveness of the revival of investment must also be judged on its ability to bring private investors back to the long-term financing of the economy, in so far as a large share of private savings in the EU (some EUR 16 000 billion) is at present mainly invested in the short term and often outside the EU;

Amendment 6

Proposal for a regulationRecital 10

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union, and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union, by facilitating increased access to financing with the aim of stimulating sustainable economic growth. It is intended that increased access to financing should be prioritized to the benefit of small and medium enterprises and cooperative enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties through EFSI shall should contribute to strengthening the Union's economic, social and territorial cohesion and energy and resource efficiency by transitioning into a sustainable, digital and circular economy.

Justification

These ambitious EU investments must aim at the much needed structural reforms in order to transform our economy into a more sustainable one, to re-strengthen Europe's industrial capacity, its SMEs and micro enterprises.

Amendment 7

PE551.765v03-00 222/354 RR\551765EN.doc

EN

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high societal, environmental and economic added value, high potential for creating sustainable quality jobs and for achieving Union policy objectives, in particular the Union's energy, climate and efficiency targets as laid down in the Europe 2020 strategy and the 2030 Framework for climate and energy policies, as well as its sustainable development goals and Innovation Union with particular focus on research and innovation in health and the development of new medicines. The EFSI should contribute to the transformation to a green, sustainable and resource efficient economy.

Amendment 8

Proposal for a regulationRecital 12

Text proposed by the Commission Amendment

(12) Many small and medium enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. The EFSI should help these businesses to overcome capital shortages by allowing the EIB and the European Investment Fund ('EIF') to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI.

(12) Many small and medium enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. This is particularly true of businesses in rural areas, where economic growth and measures to safeguard jobs are urgently needed. The EFSI should help these businesses to overcome capital shortages by allowing the EIB and the European Investment Fund ('EIF') to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI.

RR\551765EN.doc 223/354 PE551.765v03-00

EN

Amendment 9

Proposal for a regulationRecital 13

Text proposed by the Commission Amendment

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible. The work of the EFSI on providing finance to small and medium enterprises and small mid-cap companies should be channelled through the European Investment Fund ('EIF') to benefit from its experience in these activities.

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible. The work of the EFSI on providing finance to small and medium enterprises, particularly in rural areas, and small mid-cap companies should be channelled through the European Investment Fund ('EIF') to benefit from its experience in these activities.

Amendment 10

Proposal for a regulationRecital 14

Text proposed by the Commission Amendment

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote job creation, long-term growth and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

(14) The EFSI should target projects delivering high societal, sustainable, environmental and economic benefits. In particular, the EFSI should target environmentally and socially sustainable projects that promote quality job creation, long-term growth and sustainability, resource and energy efficiency, innovation and new technologies in the health sector, the green economy and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market

PE551.765v03-00 224/354 RR\551765EN.doc

EN

failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such an effective and strategic use.

Amendment 11

Proposal for a regulationRecital 14 a (new)

Text proposed by the Commission Amendment

(14a) When selecting the projects eligible for EFSI support, specific attention should be given to energy efficiency to ensure that energy efficiency projects are competing on equal terms with projects that are aimed at increasing energy supply or developing new infrastructure; in particular, energy efficiency and demand response projects shall be treated on a level-playing field with energy supply projects in terms of cost-benefit analysis.

Justification

The Communication of 25.2.2015 on the Energy Union, COM(2015) 80 ‘A Framework Strategy for a Resilient Energy Union with a Forward Looking Climate Change Policy’, stresses that it is ‘necessary to fundamentally rethink energy efficiency and treat it as an energy source in its own right, representing the value of energy saved. As part of the market design review, the Commission will ensure that energy efficiency and demand side response can compete on equal terms with generation capacity.'

Amendment 12

Proposal for a regulationRecital 15

Text proposed by the Commission Amendment

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most

(15) The EFSI should target environmentally sound and socially acceptable projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should

RR\551765EN.doc 225/354 PE551.765v03-00

EN

affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

finance projects across the Union, while it should play a special investment-enabling role including in the countries most affected by the financial crisis, and in other disadvantaged rural areas of Europe. The EFSI should only be used where financing is not available from other sources on reasonable terms.

Amendment 13

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically, socially, environmentally and technically viable and sufficiently mature, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing, namely, creating quality jobs, encouraging the transition to a low-carbon economy, circular economy and promoting social and territorial cohesion within the Union.

Amendment 14

Proposal for a regulationRecital 16 a (new)

Text proposed by the Commission Amendment

(16a) The EFSI should also target innovative investment projects of structural importance for the future of the European Union and its citizens in many areas of the future which are being underexploited and contribute to sustainable development, such as new sources of energy, the protection and conservation of biodiversity, the green economy and the blue economy.

PE551.765v03-00 226/354 RR\551765EN.doc

EN

Amendment 15

Proposal for a regulationRecital 17

Text proposed by the Commission Amendment

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of public and private investment projects in the green and circular economy, and ensure the environmental viability of the projects. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives and the policies of the European Union. The Steering Board of the EFSI should be accountable for its decisions to the European Parliament. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies with high environmental and societal value added.

Amendment 16

Proposal for a regulationRecital 19

Text proposed by the Commission Amendment

(19) In order to allow for further increase in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors. Third

(19) In order to allow for further increase in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors.

RR\551765EN.doc 227/354 PE551.765v03-00

EN

parties may contribute directly to the EFSI and take part in the EFSI governance structure.

Amendment 17

Proposal for a regulationRecital 21 a (new)

Text proposed by the Commission Amendment

(21a) The procedures for implementing the EFSI and the formal commitment of Member States will play an important role in its success, but measures will also have to be taken to ensure that the best projects are selected according to objective criteria regardless of their national provenance.

Amendment 18

Proposal for a regulationRecital 24

Text proposed by the Commission Amendment

(24) EIB financing and investment operations supported by the EFSI should be managed in accordance with the EIB’s own rules and procedures, appropriate control measures and measures taken to avoid tax evasion, as well as with the relevant rules and procedures concerning the European Anti-Fraud Office (OLAF) and the Court of Auditors, including the Tripartite agreement between the European Commission, the European Court of Auditors and the European Investment Bank.

(24) EIB financing and investment operations supported by the EFSI should be managed in accordance with the EIB’s own rules and procedures and, as regards its horizontal and sectorial policies, including appropriate control measures and measures taken to avoid tax evasion, as well as with the relevant rules and procedures concerning the European Anti-Fraud Office (OLAF) and the Court of Auditors, including the Tripartite agreement between the European Commission, the European Court of Auditors and the European Investment Bank.

Justification

This addition is required to clarify that EIB policies should be respected in the context of the EFSI, such as transport, energy or climate policy, given that the EIB commits to apply its normal project appraisal process to every project that then goes through the EFSI.

PE551.765v03-00 228/354 RR\551765EN.doc

EN

Amendment 19

Proposal for a regulationRecital 25

Text proposed by the Commission Amendment

(25) The EIB should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance and impact and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

(25) The EIB should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance and socio-economic and environmental impact of the projects, and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of environmental, social and economic sustainability. Impact assessment should also take into account the resource efficiency of the projects.

Amendment 20

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union and be suited especially to address the needs of SMEs.

Amendment 21

Proposal for a regulationRecital 29

RR\551765EN.doc 229/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

(29) The contribution from the Union budget to the EU budget Guarantee Fund will be progressively authorised by the European Parliament and the Council in the framework of the annual budgetary procedures up to 2020. For this purpose, the budgetary authority should make use, where appropriate, of all available mechanisms of flexibility and relevant provisions under the 2014-2020 MFF Regulation;

__________________2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending

PE551.765v03-00 230/354 RR\551765EN.doc

EN

Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

Amendment 22

Proposal for a regulationRecital 32

Text proposed by the Commission Amendment

(32) Member States have also begun work at national level on establishing and promoting project pipelines for projects of national significance. The information prepared by the Commission and the EIB should provide links to the accompanying national project pipelines.

(32) Member States have also begun work at national level on establishing and promoting project pipelines for environmentally innovative projects of national significance. The information prepared by the Commission and the EIB should provide links to the accompanying national project pipelines.

Amendment 23

Proposal for a regulationRecital 33

Text proposed by the Commission Amendment

(33) Although the projects identified under the project pipeline may be used by the EIB in the identification and selection of EFSI supported projects, the project pipeline should have a broader scope of identifying projects across the Union. This scope may include projects that are capable of being fully financed by the private sector or with the assistance of other instruments provided at European or national level. The EFSI should be able to support financing and investment to projects identified by the project pipeline, but there should be no automaticity between inclusion on the list and access to EFSI support and the EFSI be conferred with discretion to select and support projects that are not included on the list.

(33) Although the projects identified under the project pipeline may be used by the EIB in the identification and selection of environmentally sustainable EFSI supported projects, the project pipeline should have a broader scope of identifying environmentally sustainable projects across the Union. This scope may include projects that are capable of being fully financed by the private sector or with the assistance of other instruments provided at European or national level. The EFSI should be able to support financing and investment to environmentally sustainable projects identified by the project pipeline, but there should be no automaticity between inclusion on the list and access to EFSI support and the EFSI be conferred with discretion to select and support

RR\551765EN.doc 231/354 PE551.765v03-00

EN

projects that are not included on the list.

Amendment 24

Proposal for a regulationRecital 33 a (new)

Text proposed by the Commission Amendment

(33a) In selection of EFSI supported projects, those projects with resource efficient solutions should be given priority. No projects which are carbon and resource intensive should be funded.

Amendment 25

Proposal for a regulationRecital 33 b (new)

Text proposed by the Commission Amendment

(33b) Taking into account the Commission's calculations on the need of 142 billion euros investments on transmission, offshore grid and smart grid infrastructure, the projects contributing to this need should be especially supported.

Amendment 26

Proposal for a regulationRecital 36 a (new)

Text proposed by the Commission Amendment

(36a) Since the EFSI will be composed of significant reallocations from the EU budget, Parliament shall have the right to call the EU Budget Commissioner before Parliament in order to exercise scrutiny over the use of the EU budget, especially with regard to performance and spending outcomes.

Justification

The Budget Commissioner and the Court of Auditors have called for a culture change in how

PE551.765v03-00 232/354 RR\551765EN.doc

EN

the EU institutions deal with the EU Budget - in particular, the need for an increased emphasis on accountability and a focus on performance and spending outcomes. It is therefore important that the Parliament exercises scrutiny over these elements and holds the Commissioner to account. The right of scrutiny should only extend to the Commissioner in order to safeguard the independence of EFSI governance.

Amendment 27

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 1

Text proposed by the Commission Amendment

The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI').

The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI') that are environmentally sustainable.

Amendment 28

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

The purpose of the EFSI shall be to support environmentally sound and socially acceptable investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement') The investments supported by the EFSI shall be targeted, as a matter of priority, at sources of new and innovative growth and enable the EU economy to make the transition towards a real sustainable economy.

Amendment 29

Proposal for a regulationArticle 1 – paragraph 2

RR\551765EN.doc 233/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities. The Member States and other third parties may not take part in the EFSI governance structure.

Amendment 30

Proposal for a regulationArticle 1 a (new)

Text proposed by the Commission Amendment

Article 1a

Definitions

For the purposes of this Regulation only, the following definitions shall apply:

(a) ‘national promotional banks or institutions’ means legal entities carrying out financial activities on a professional or commercial basis which are issued with a mandate by a Member State, whether at central, regional or local level, to carry out public development or promotional activities;

(b) ‘small and medium-sized enterprises’ or ‘SMEs’ means micro, small and medium-sized enterprises as defined in Recommendation 2003/361/EC;

(c) ‘mid-cap companies’ means legal entities having up to 3000 employees that are not SMEs.

Amendment 31

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 2

PE551.765v03-00 234/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

The EFSI Agreement shall provide that there is a clear distinction between operations carried out with the EFSI support and other operations of the EIB.

The EFSI Agreement shall provide that there is a clear distinction between operations carried out with the EFSI support and other operations of the EIB. Such additionality shall be ensured by the Steering Board on the basis of the risk profile of the EFSI and on the fulfilment of the policy objectives set in Art. 5(2).

Amendment 32

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

The EFSI Agreement shall provide for specific and measurable criteria for the assessment of projects' contribution towards the general policy goals in Art. 5(2).

Amendment 33

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

2. The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development, and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on

2. The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB, without, however, creating additional administrative burdens or other systems. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development by prioritising sustainable and low-carbon energy, transport and resource-efficiency projects, and act as a single technical advisory hub for project financing within the Union. This shall

RR\551765EN.doc 235/354 PE551.765v03-00

EN

relevant issues of EU legislation. include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation. The EIAH shall be structured in order to act as a facilitator addressing the procedural needs of SMEs.

Justification

The EIAH should put a particular focus on projects that are in line with the EU's energy, climate and sustainability goals. In this regard, energy and resource efficiency have the biggest potential of multiple benefits for the EU: biggest potential to cut costs (enhancing the competitiveness of specific sectors), high job creation, excellent cost-effectiveness, and improved energy and resource security improving EU resilience and SME support.

Amendment 34

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds.

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national and regional promotional banks and the managing authorities of the European Structural and Investment Funds, building appropriate partnerships at Member State level.

Amendment 35

Proposal for a regulationArticle 2 – paragraph 3

Text proposed by the Commission Amendment

3. Member States that become parties to the EFSI Agreement shall be able to provide their contribution, in particular, in the form of cash or a guarantee acceptable to the EIB. Other third parties shall be able to provide their contribution only in cash.

3. Member States that become parties to the EFSI Agreement shall be able to provide their contribution, in particular, in the form of cash or a guarantee acceptable to the EIB. Other third parties shall be able to provide their contribution only in cash. Member States' contributions shall be subject to the full range of the existing rules of the Stability and Growth Pact.

PE551.765v03-00 236/354 RR\551765EN.doc

EN

Amendment 36

Proposal for a regulationArticle 3 – paragraph 1

Text proposed by the Commission Amendment

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2). The Steering Board shall elect one of its members to be Chairperson.

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the risk profile of the EFSI and the investment policy of projects that EFSI can support, in order to ensure additionality of the EFSI compared to normal EIB operations, and conformity with the objectives under Article 5(2) and the EU Treaty's objectives of social, economic and territorial cohesion. The Steering Board shall operate in a fully transparent manner and elect one of its members to be Chairperson.

Amendment 37

Proposal for a regulationArticle 3 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

For as long as the only contributors to the EFSI are the Union and the EIB, the number of members and votes within the Steering Board shall be allocated based on the respective size of contributions in the form of cash or guarantees.

The number of Members of the Steering Board shall be allocated between the EIB and the Commission.

Amendment 38

Proposal for a regulationArticle 3 – paragraph 4 – subparagraph 3

Text proposed by the Commission Amendment

The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of

The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of

RR\551765EN.doc 237/354 PE551.765v03-00

EN

the Commission and the EIB for a renewable fixed term of three years.

the Commission and the EIB for a renewable fixed term of three years and not exceeding 6 years in total. The Managing Director and the Deputy Managing Director shall be appointed following an open and transparent selection procedure.

Amendment 39

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 1

Text proposed by the Commission Amendment

5. The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5, irrespective of their geographic location.

5. The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5 in a fully transparent and accountable manner, irrespective of their geographic location. The Investment Committee shall also ensure that the projects are environmentally viable.

Justification

Full transparency and accountability should be ensured for the development of investment policies and guidelines and for project selection, in order to improve project quality and ensure ownership and smooth implementation. All relevant information and assessment concerning each project should be publicly disclosed.

Amendment 40

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2

Text proposed by the Commission Amendment

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant

PE551.765v03-00 238/354 RR\551765EN.doc

EN

market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

market experience in project finance, and expertise in the general objectives referred to Article 5(2). Experts shall be appointed by the Steering Board following an open and transparent procedure for a fixed term of three years, renewable only once. It must be ensured that project selection is based on EIB principles and guided by a set of sustainability criteria as defined in Article 5.

Amendment 41

Proposal for a regulationArticle 4 – paragraph 1 a (new)

Text proposed by the Commission Amendment

EIB financing and investment operations supported by the EFSI should be managed in accordance with the EIB's own rules and procedures and having regard to its horizontal and sectorial policies.

Justification

This addition is required to clarify that all EIB policies should be respected in the context of the EFSI, for example transport, energy or climate policy areas. This is quite logical given that the EIB commits to applying its normal project appraisal process to every project that then goes through the EFSI.

Amendment 42

Proposal for a regulationArticle 5 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and

2. The EU guarantee shall be granted for EIB financing and investment operations fostering the transition towards a smart, sustainable, circular and decarbonized economy, approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in

RR\551765EN.doc 239/354 PE551.765v03-00

EN

support any of the following general objectives:

accordance with Article 7(2). The operations concerned shall be economically, environmentally and socially viable and consistent with Union policies, shall be coherent with the sustainable development objectives of the Lisbon Treaty, the Union's energy and climate goals and the Europe 2020 growth strategy, and shall support any of the following general objectives:

Amendment 43

Proposal for a regulationArticle 5 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of sustainable, low-carbon and energy efficient infrastructure in compliance with the EU’s long-term climate, energy and environment policy goals, including in the areas of transport, particularly sustainable modes of transport, electric mobility, eco-friendly solutions in industrial centres, urban and remote areas, and the deployment of alternative and low-carbon transport infrastructures; energy, in particular intra-Union energy interconnections, smart grids, smart meters, electricity and gas energy storage capacities in order to reduce energy dependence; and digital infrastructure;

Amendment 44

Proposal for a regulationArticle 5 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) investment in education and training, health, research and development, information and communications technology and innovation;

(b) investment in education and training, in innovative health solutions, such as eHealth, and new effective medicines; in research, development and innovation, particularly in new types of renewable

PE551.765v03-00 240/354 RR\551765EN.doc

EN

energy and low-carbon technologies and alternative fuels; in projects which are still in their demonstration and pilot phase; in eco-innovation; in information and communications technology;

Amendment 45

Proposal for a regulationArticle 5 – paragraph 2 – point c

Text proposed by the Commission Amendment

(c) expansion of renewable energy and energy and resource efficiency;

(c) development and expansion of renewable energy, low-carbon energy technologies, resource efficiency measures to promote the circular economy, and accentuated support for energy efficiency projects, in particular demand side solutions and major energy efficient refurbishment of buildings;

Amendment 46

Proposal for a regulationArticle 5 – paragraph 2 – point d

Text proposed by the Commission Amendment

(d) infrastructure projects in the environmental, natural resources, urban development and social fields;

(d) sustainable infrastructure projects in the environmental, natural resources and biodiversity fields in line with the 7th Environmental Action Programme, as well as in the resource efficiency, waste reduction, water management, rural and urban development, sustainable urban mobility and social economy fields;

Amendment47

Proposal for a regulationArticle 5 – paragraph 2 – point d a (new)

RR\551765EN.doc 241/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(da) innovative investments in under-utilised areas such as new forms of energy, protection and conservation of biodiversity, the green economy;

Amendment 48

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

In addition, the EU guarantee shall be granted for support of dedicated investment platforms and national promotional banks, via the EIB, that invest in operations meeting the requirements of this Regulation. In that case, the Steering Board shall specify policies regarding eligible investment platforms.

In addition, the EU guarantee shall be granted for support of dedicated investment platforms and national and regional promotional banks, via the EIB, that invest in operations meeting the requirements of this Regulation.

Furthermore, in order to treat energy efficiency as an energy source in its own right, the EU Guarantee shall only be granted for EIB financing and investment operations if a comparison, on the basis of a level playing-field where energy efficiency and demand-side response are competing on equal terms with generation capacity, is carried out whenever it is technically feasible and in accordance with the principles and criteria set out in Annex 1a (new), while having in mind justifiable urgent and exceptional energy security considerations.

Justification

The Communication of 25.2.2015 on the Energy Union, COM(2015) 80 ‘A Framework Strategy for a Resilient Energy Union with a Forward Looking Climate Change Policy’, stresses that it is ‘necessary to fundamentally rethink energy efficiency and treat it as an energy source in its own right, representing the value of energy saved. As part of the market design review, the Commission will ensure that energy efficiency and demand side response can compete on equal terms with generation capacity. ’This should be reflected in the

PE551.765v03-00 242/354 RR\551765EN.doc

EN

requirements for the granting of the EU Guarantee.

Amendment 49

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

The EU guarantee can be combined with, or can be used to complement, accelerate or strengthen existing EU financial instruments.

Amendment 50

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 2 b (new)

Text proposed by the Commission Amendment

The operations concerned shall not include:

(a) the decommissioning or the construction of nuclear power stations;

(b) investment in airport infrastructure unless related to environmental protection or accompanied by investment necessary to mitigate or reduce its negative environmental impact;

(c) investments in coal and oil infrastructures;

(d) investments in new motorway or new roads with four or more lanes.

Justification

A few specific risky and controversial sectors should not be supported by the EFSI with taxpayers’ money. Points a and b mirror the regulation of the European Regional Development Fund (Regulation (EU) No 1301/2013). Points c and d reflect very carbon intensive investments that are among the most risky according to the Environmental Impact Assessment Directive (Directive2011/92/EU of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment).

RR\551765EN.doc 243/354 PE551.765v03-00

EN

Amendment 51

Proposal for a regulationArticle 8 – paragraph 5 a (new)

Text proposed by the Commission Amendment

Without prejudice to Paragraph 5 the target amount shall be met by gradual budgetary commitment appropriations to the guarantee fund to be decided in the frame of the annual budgetary procedure, taking due account of all means available under Council Regulation 1311/2013 of 2 December 2013 laying down the Multi annual Financial Framework 2014-2020, in particular Article 11, 13, 14 as well as if needed and as a last resort solution the possibility - in full respect of point 17 and 18 of the IIA of 2 December 2013 - to redeploy funds from multiannual programs under heading 1A if these programs prove to be under – committed. The financing of the guarantee Fund, both in respect of commitments and payments appropriations shall be reviewed in the frame of the Mid Term review/ revision of the MFF 2014-2020 due to be launched by the end of 2016 at the latest as foreseen in article 2 of Council Regulation 1311/2013 of 2 December 2013 laying down the MFF 2014-2020.

Amendment 52

Proposal for a regulationArticle 8 – paragraph 7 – point a

Text proposed by the Commission Amendment

(a) any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the European Union of the year n+1,

(a) any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the European Union of the year n+1, and shall be reallocated to programmes which envelopes might have been reduced

PE551.765v03-00 244/354 RR\551765EN.doc

EN

to finance the guarantee fund, as referred to in paragraph 5a (new), in order to compensate these losses;

Amendment 53

Proposal for a regulationArticle 9 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union, which are environmentally and socially sustainable. The pipeline is without prejudice to the final projects selected for support according to Article 3(5) but should indicate whether the proposed projects are eligible for the EU guarantee fund in accordance with the objectives and criteria laid down in Article 5.

Amendment 54

Proposal for a regulationArticle 9 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which are environmentally sound and socially acceptable and which significantly contribute to achieving EU policy objectives. The Commission and the EIB shall ensure that the various Union policy objectives set out in Article 5(2), are equally and effectively pursued in terms of selected projects and investments.

RR\551765EN.doc 245/354 PE551.765v03-00

EN

Justification

According to Article 3, strategic orientations, asset allocation and investment policy is delegated to a Steering Board, assisted by an Investment Committee. For the sake of transparency, accountability and the strategic use of resources, regular updates on current and future investments must include detailed information on how each of the EU policy objectives defined in article 5 paragraph 2 are realised and financially supported.

Amendment 55

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future green and circular economy investment projects in their territory.

Amendment 56

Proposal for a regulationArticle 10 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) an assessment of the added value, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

(b) an assessment of the economical, social and environmental added value, including indicators that measure the efficient use of resources, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

Amendment 57

Proposal for a regulationArticle 10 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(ba) an assessment of EFSI's additionality

PE551.765v03-00 246/354 RR\551765EN.doc

EN

relative to standard EIB operations

Amendment 58

Proposal for a regulationArticle 11 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. At the request of the European Parliament, the EU Budget Commissioner shall take part in a hearing at the European Parliament on the use of EU funds in the EFSI.

Justification

Since EFSI will be composed of significant reallocations from the EU budget, Parliament should have the right to call the EU Budget Commissioner before Parliament in order to exercise scrutiny over the use of the budget, especially with regard to performance and spending outcomes.

Amendment 59

Proposal for a regulationArticle 13 – paragraph 1

Text proposed by the Commission Amendment

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives referred to in Article 5(2).

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives and criteria referred to in Article 5(2).

Amendment 60

Proposal for a regulationArticle 14 – paragraph 1

RR\551765EN.doc 247/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

The EU guarantee and the payments and recoveries under it that are attributable to the general budget of the Union shall be audited by the Court of Auditors.

The external audit of the activities undertaken in accordance with the EFSI regulation are carried out by the European Court of Auditors in accordance with the Article 287 TFEU.

Amendment 61

Proposal for a regulationArticle 18Regulation (EU) No 1291/2013Article 18

Text proposed by the Commission Amendment

[...] deleted

Justification

Financing from the Union budget should not be taken from the Horizon 2020 and the Connecting Europe Facility, but rather from the structural funds.

Amendment 62

Proposal for a regulationArticle 19Regulations (EU) No 1316/2013Article 5 – paragraph 1

Text proposed by the Commission Amendment

Article 19 deleted

Amendment to Regulation (EU) No 1316/2013

In Article 5 of Regulation (EU) No 1316/2013, paragraph 1 is replaced by the following:

1. The financial envelope for the implementation of the CEF for the period 2014 to 2020 is set at EUR 29 942 259 000 (*) in current prices. That amount shall

PE551.765v03-00 248/354 RR\551765EN.doc

EN

be distributed as follows:

a) transport sector: EUR 23 550 582 000, of which EUR 11 305 500 000 shall be transferred from the Cohesion Fund to be spent in line with this Regulation exclusively in Member States eligible for funding from the Cohesion Fund;

b) telecommunications sector: 1 041 602 000 EUR;

c) energy sector: 5 350 075 000 EUR.

These amounts are without prejudice to the application of the flexibility mechanism provided for under Council Regulation (EU, Euratom) No 1311/2013(*).

(*) Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-20 (OJ L 347, 20.12.2013, p. 884).

Justification

Financing from the Union budget should not be taken from the Horizon 2020 and the Connecting Europe Facility, but rather from the structural funds.

Amendment 63

Proposal for a regulationAnnex I

Text proposed by the Commission Amendment

Annex I deleted

Amendment 64

Proposal for a regulationAnnex I a (new)

Text proposed by the Commission Amendment

Annex Ia

RR\551765EN.doc 249/354 PE551.765v03-00

EN

Principles and criteria to be applied in the use of the EU guarantee for EIB financing and investment operations, when comparing proposed investments in energy efficiency and demand-side response as alternatives to investments to increase generation and transmission capacity

Ex ante evaluation of investment projects including energy demand-side efficiency improvement and demand response, where competing projects on energy supply-side measures include generation capacity and/or transmission infrastructure investment, shall use least-cost solutions as selection criteria, ensuring comparability of the projects by using similar calculation methods as set out below.

To help ensure comparability, the following principles and criteria shall be adhered to for the use of the EU guarantee for EIB financing and investment operations in such cases where comparison is technically feasible, in addition to the other priorities, principles and criteria set out in Article 5 of this Regulation1a,

1. The EU Guarantee may be granted for EIB financing and investment operations where least-cost comparisons between demand-side and supply side options can be made, and when it can be established that the entire life-cycle costs and benefits of eligible investments in energy demand efficiency improvement and demand-side response are represented and can be compared on equal terms with competing investments in energy supply, including generation capacity, with its distribution, and transmission infrastructure.

2. Full life-cycle analysis of costs and benefits of investments in both energy demand-side and energy supply-side projects shall include all measurable

PE551.765v03-00 250/354 RR\551765EN.doc

EN

and/or estimable economic, environmental and societal impacts, calculated and discounted over time in accordance with established principles such as net present values, and reflect realistic discount rates1b and service lives1c. Every effort will be made to ensure comparability. Simple pay-back periods (SPP) will be avoided.

Similarly, and to the extent possible, comparable principles and criteria shall be applied for the ex ante evaluation and comparison of prospective resource efficiency use improvement projects with regard to resource supply project investments.

_________________________1a. Also to note are references in Article 5.4 of this Regulation to European Structural and Investment Funds and .thereby to EU Regulation 1303/2013 and the integrated approach set out in Annex 1 thereof,1b. The current EIB practice of applying a 5% discount rate to reflect societal costs and benefits should continue and be adapted to changing market rates. 1c. For additional examples and guidance on calculation methodologies see Commission Delegated Regulation (EU) No 244/2012 of 16 January 2012 at http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32012R0244 and Guidance Document at http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52012XC0419(02)

RR\551765EN.doc 251/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

ENVI28.1.2015

Rapporteur       Date appointed

Miriam Dalli3.2.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 18.3.2015

Date adopted 14.4.2015

Result of final vote +:–:0:

48116

Members present for the final vote Margrete Auken, Pilar Ayuso, Zoltán Balczó, Catherine Bearder, Ivo Belet, Simona Bonafè, Biljana Borzan, Nessa Childers, Mireille D’Ornano, Miriam Dalli, Seb Dance, Angélique Delahaye, Jørn Dohrmann, Ian Duncan, Stefan Eck, Eleonora Evi, José Inácio Faria, Francesc Gambús, Iratxe García Pérez, Elisabetta Gardini, Gerben-Jan Gerbrandy, Jens Gieseke, Julie Girling, Sylvie Goddyn, Françoise Grossetête, Andrzej Grzyb, Benedek Jávor, Josu Juaristi Abaunz, Karin Kadenbach, Kateřina Konečná, Giovanni La Via, Peter Liese, Norbert Lins, Valentinas Mazuronis, Susanne Melior, Miroslav Mikolášik, Gilles Pargneaux, Piernicola Pedicini, Bolesław G. Piecha, Pavel Poc, Michèle Rivasi, Annie Schreijer-Pierik, Davor Škrlec, Dubravka Šuica, Tibor Szanyi, Nils Torvalds, Glenis Willmott, Jadwiga Wiśniewska, Damiano Zoffoli

Substitutes present for the final vote Paul Brannen, Nicola Caputo, Herbert Dorfmann, Eleonora Forenza, Esther Herranz García, Peter Jahr, Joëlle Mélin, József Nagy, Younous Omarjee, Marit Paulsen, Sirpa Pietikäinen, Christel Schaldemose, Bart Staes, Kay Swinburne, Tom Vandenkendelaere

Substitutes under Rule 200(2) present for the final vote

Ignazio Corrao

PE551.765v03-00 252/354 RR\551765EN.doc

EN

24.3.2015

OPINION OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMER PROTECTION

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Pascal Durand

SHORT JUSTIFICATION

The European Fund for Strategic Investment (EFSI) has its origins in the consensus that there is a chronic deficit in the funding and financing of key infrastructure and innovation in European Union. The Rapporteur welcomes the Commission's proposal for a Regulation as a step towards this goal. This opinion focuses on ensuring that EFSI achieves its objectives with a focus on the single market, whilst coherently integrating EFSI goals and funding structures with existing Union acquis, goals and financial instruments.Regarding the objective of the fund, the Rapporteur proposes to include an explicit reference to the inclusion of micro-enterprises (as defined in Commission Recommendation 2003/361/EC), as well as SMEs. Also included are social economy enterprises such as cooperatives, associations, foundations and mutual societies.The Rapporteur proposes additions to Article 5.2 in order to focus the fund's objectives on sectors and economies which would most benefit from additional investment capital, in terms of jobs, innovation and infrastructure. This would mean projects in sectors and economies with low employment, innovation or economic performance at present, but with the high long-term potential in these areas. Such projects should provide long term sustainable economic, social and environmental benefits. One of objectives of EFSI should include the development of the internal market, particularly the digital single market and digital infrastructure. The completion of the digital single market will create high quality employment, growth and innovation. Furthermore, the development of digital infrastructure is one of the prerequisites for a knowledge-based and inclusive society.It should be made clear that the projects funded by EFSI would in no way involve privatisation of public goods and services by the back door and ensure the continuation of the subsidiarity principle, particularly the right of public authorities to deliver public services as

RR\551765EN.doc 253/354 PE551.765v03-00

EN

they see fit. Project goals should be consistent and compatible with Union objectives, including provisions on state aid and public procurement, reducing unnecessary barriers to a fully functioning single market whilst respecting subsidiarity and ensuring local ownership (local/regional authorities, civil society etc.) and where possible, local involvement in a project. Projects should also where possible, have EU added value. Regarding the appropriation of Horizon 2020 funds into EFSI, the Rapporteur proposes to introduce a restriction that any transfer of Horizon 2020 funds should be taken from projects which are already close to market. This would ensure that early-stage projects which are of higher risk and thus less attractive to investors will still receive funding from Horizon 2020. This will ensure that the EU continues to support early innovation in smart, sustainable and inclusive growth.Finally, the Rapporteur proposes to include ex ante control, namely that inter alia, any funded project must have received a positive economic, social and environmental sustainability impact assessment.

AMENDMENTS

The Committee on the Internal Market and Consumer Protection calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationRecital 1

Text proposed by the Commission Amendment

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on Member States. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness.

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on Member States. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects and internal and external competitiveness. Investment is a crucial component that will not only stimulate rapid economic and social recovery from the crisis, but also stimulate the creation of more and

PE551.765v03-00 254/354 RR\551765EN.doc

EN

better jobs across the Union.

Amendment 2

Proposal for a regulationRecital 4

Text proposed by the Commission Amendment

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects.

(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth, through the European Semester for economic policy coordination. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects.

Amendment 3

Proposal for a regulationRecital 5

Text proposed by the Commission Amendment

(5) On 15 July 2014, the then President-elect of the European Commission presented a set of Political Guidelines for the European Commission to the European Parliament. These Political Guidelines called for the mobilisation of ‘up to EUR 300 billion in additional public and private investment in the real economy over the next three years’ to stimulate investment for the purpose of job creation.

(5) On 15 July 2014, the then President-elect of the European Commission presented a set of Political Guidelines for the European Commission to the European Parliament. These Political Guidelines called for an Energy Union, a connected Digital Single Market, and the mobilisation of ‘up to EUR 300 billion in additional public and private investment in the real economy over the next three years’ to stimulate investment for the purpose of

RR\551765EN.doc 255/354 PE551.765v03-00

EN

job creation.

Amendment 4

Proposal for a regulationRecital 9

Text proposed by the Commission Amendment

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the internal market, in particular in energy, digital and capital markets, by enhancing regulatory predictability and promoting a mentality shift towards a risk-taking culture. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

Amendment 5Proposal for a regulationRecital 9 a (new)

Text proposed by the Commission Amendment

(9a) The EFSI should comply with the Union rules on competition applying to undertakings (Articles 101 to 106 of the Treaty on the Functioning of the European Union).

Amendment 6

Proposal for a regulationRecital 10

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular

PE551.765v03-00 256/354 RR\551765EN.doc

EN

benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

benefit to micro, small and medium-sized enterprises as defined in Commission Recommendation 2003/361/EC1a, and start-ups. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 1500 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion and to boost competitiveness, innovation, economic growth and job creation in the Union.

__________________1a Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36)

Amendment 7

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high economic added value, including those with high social and environmental value that simultaneously drive short-term economic, social and environmental benefits and long-term sustainability, contributing to achieving Union policy objectives.

Amendment 8

Proposal for a regulationRecital 17

RR\551765EN.doc 257/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in structuring and financing investment projects and in at least one of the areas listed in this Regulation. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

Amendment 9

Proposal for a regulationRecital 17 a (new)

Text proposed by the Commission Amendment

(17a) For the purposes of the transparency, accountability and independence of the Steering Board and the Investment Committee, a system for the prevention of conflicts of interest should be established and implemented.

Amendment 10

Proposal for a regulationRecital 22

Text proposed by the Commission Amendment

(22) In accordance with the Treaty on the Functioning of the European Union,

(22) In accordance with the Treaty on the Functioning of the European Union,

PE551.765v03-00 258/354 RR\551765EN.doc

EN

Infrastructure and project investments supported under EFSI should be consistent with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project meets these criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). The Commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds.

Infrastructure and project investments supported under EFSI should comply with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project meets these criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). The Commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds.

Amendment 11Proposal for a regulationRecital 29 a (new)

Text proposed by the Commission Amendment

(29a) Since EFSI should contribute to helping businesses by overcoming capital shortages, there is a risk that basic or early-stage scientific research will not benefit from this Regulation. The Commission should therefore ensure that any funds taken from Horizon 2020 are withdrawn only from those programmes that fund activities that are close to market, in order to protect research activities that do not stand to benefit directly from this Regulation.

Amendment 12

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 1

RR\551765EN.doc 259/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI').

The Commission shall be empowered to adopt delegated acts in accordance with Article 20a concerning an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI').

Justification

The Parliament and the Council as co-legislators shall scutinize the conditions of the provision agreement between the Commission and the European Investment Bank (EIB) before the agreement comes into force.

Amendment 13

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

The purpose of the EFSI shall be to support investments in the Union as described in Article 5(2), in a non-discriminatory way, conducive to long-term competitive and sustainable growth and innovation and to ensure increased access to financing for companies having up to 1500 employees, with a particular focus on micro, small and medium-sized enterprises and start-ups, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

Amendment 14

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

The EFSI shall support strategic investments with high economic added

PE551.765v03-00 260/354 RR\551765EN.doc

EN

value, including those with high social and environmental value, such as single market completion and integration that simultaneously drives short-term economic benefits and long-term sustainability in all areas including job creation, such as the targets of the Union strategy for smart, sustainable and inclusive growth and promoting economic, social and territorial cohesion, contributing to achieving Union policy objectives. All projects shall be compatible with the Union acquis, policies and instruments.

Amendment 15

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point g

Text proposed by the Commission Amendment

(g) requirements governing the use of the EU guarantee, including within specific time frames and key performance indicators;

(g) requirements governing the use of the EU guarantee, including within specific time frames, key projects and areas of financing listed in Article 5(2), and key performance indicators;

Amendment 16

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on

RR\551765EN.doc 261/354 PE551.765v03-00

EN

the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on fields and areas of Union legislation and policies with particular relevance for the objectives set out in Article 5(2). Particular focus shall be given to provision of information to innovative entrepreneurs and supporting them.

Amendment 17

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2

Text proposed by the Commission Amendment

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in structuring and financing of investment projects, and in at least one of the areas listed in Article 5(2). Those experts shall be appointed by the Steering Board for a renewable fixed term of three years.

Amendment 18

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 3 a (new)

Text proposed by the Commission Amendment

The Investment Committee shall be accountable to the Steering Board, which shall supervise the fulfilment of the EFSI's objectives. When implementing the guidelines adopted by the Steering Board, the Investment Committee shall not take instructions from the EIB, the Member States, other Union

PE551.765v03-00 262/354 RR\551765EN.doc

EN

institutions or any other body.

Justification

Amendment was drafted in order to clarify interaction between the Steering Board and the Investment Committee and to clarify that the Investment Committee makes independent decisions.

Amendment 19

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and support any of the following general objectives:

The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2).

EFSI shall target projects with higher risk profiles than existing EIB and Union instruments or programmes in order to ensure additionality over existing operations.

The operations concerned shall be consistent with Union policies, complementary to existing Union programmes, seek best value for money in compliance with the Union legal acts on public procurement and, where possible, have Union added value, and support any of the following general objectives:

RR\551765EN.doc 263/354 PE551.765v03-00

EN

Amendment 20

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point a

Text proposed by the Commission Amendment

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of the internal market and its infrastructure, including in the areas of digital single market, transport and sustainable mobility, including public transport, in industrial, urban and tourist centres, and in rural areas; energy, such as energy interconnections, synchronisation and storage; and telecommunications infrastructure, particularly in order to reduce the urban-rural divide;

Amendment 21

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point b

Text proposed by the Commission Amendment

(b) investment in education and training, health, research and development, information and communications technology and innovation;

(b) investment including infrastructure in education and training, digital skills, literacy, and cultural and creative industries, health, research and development, and innovation;

Amendment 22

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point d

Text proposed by the Commission Amendment

(d) infrastructure projects in the environmental, natural resources, urban

(d) infrastructure projects in the environmental, natural resources, urban

PE551.765v03-00 264/354 RR\551765EN.doc

EN

development and social fields; development and social fields and public services, including digital public administration and eProcurement;

Amendment 23Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

The Commission shall ensure that any funds taken under Annex II to Regulation (EU) No 1291/2013 are withdrawn only from those programmes that fund close to market activities, in order to protect research activities that do not stand to benefit directly from this Regulation.

Amendment 24

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 2 b (new)

Text proposed by the Commission Amendment

Granting of the EU guarantee for EIB financing and investment operations shall be subject to a comprehensive sustainability impact assessment taking into account economic, environmental and social impact, as well as Union added-value and positive impact on job creation, growth and internal market integration.

Amendment 25

Proposal for a regulationArticle 9 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission and the EIB, with 1. The Commission and the EIB, with

RR\551765EN.doc 265/354 PE551.765v03-00

EN

support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

support from the Member States, shall establish a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

Amendment 26

Proposal for a regulationArticle 9 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

2. The Commission and the EIB shall develop, update and disseminate, on a regular, transparent and structured basis, information on current and future investments which significantly contribute to achieving Union policy objectives.

Amendment 27

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States and regional and local authorities shall develop, update and disseminate, on a regular, transparent and structured basis, information on current and future investment projects in their territory.

Amendment 28

Proposal for a regulationArticle 10 – paragraph 2 – point d

Text proposed by the Commission Amendment

(d) an assessment of the quality of EIB financing and investment operations;

(d) an assessment of the quality and effectiveness of EIB financing and

PE551.765v03-00 266/354 RR\551765EN.doc

EN

investment operations;

Amendment 29

Proposal for a regulationArticle 12 – paragraph 5 a (new)

Text proposed by the Commission Amendment

5a. The EIB and the Commission shall assess whether the redirection of funding from the Horizon 2020 and Connecting Europe Facility programmes has led to a more effective use of public money and higher volumes from the private sector than under the Union budget.

Amendment 30

Proposal for a regulationArticle 15 – paragraph 1

Text proposed by the Commission Amendment

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of fraud, corruption, money laundering or other illegal activity that may affect the financial interests of the Union.

1. The EIB shall notify OLAF promptly and provide it with the necessary information when, at any stage of the preparation, implementation or closure of operations subject to the EU guarantee, it has grounds to suspect that there is a potential case of conflict of interests, fraud, corruption, money laundering or other illegal activity that may affect the financial interests of the Union.

Amendment 31

Proposal for a regulationArticle 18Regulation (EU) N° 1291/2013Article 6 – paragraphs 1, 2, 3 and Annex II

Text proposed by the Commission Amendment

Article 18 deleted

RR\551765EN.doc 267/354 PE551.765v03-00

EN

Amendments to Regulation (EU) No 1291/2013

Regulation (EU) No 1291/2013 is hereby amended as follows:

(1) In Article 6, paragraphs 1, 2 and 3 are replaced by the following:

'1. The financial envelope for the implementation of Horizon 2020 is set at EUR 74 328,3 million in current prices, of which a maximum of EUR 71 966,9 million shall be allocated to activities under Title XIX TFEU.

The annual appropriations shall be authorised by the European Parliament and by the Council within the limits of the multiannual financial framework.

2. The amount for activities under Title XIX TFEU shall be distributed among the priorities set out in Article 5(2) of this Regulation as follows:

(a) Excellent science, EUR 23 897,0 million in current prices;

(b) Industrial leadership, EUR 16 430,5 million in current prices;

(c) Societal challenges, EUR 28 560,7 million in current prices.

The maximum overall amount for the Union financial contribution from Horizon 2020 to the specific objectives set out in Article 5(3) and to the non-nuclear direct actions of the JRC shall be as follows:

(i) Spreading excellence and widening participation, EUR 782,3 million in current prices;

(ii) Science with and for society, EUR 443,8 million in current prices;

(iii) Non-nuclear direct actions of the JRC, EUR 1 852,6 million in current prices.

PE551.765v03-00 268/354 RR\551765EN.doc

EN

The indicative breakdown for the priorities and specific objectives set out in Article 5(2) and (3) is set out in Annex II.

3. The EIT shall be financed through a maximum contribution from Horizon 2020 of EUR 2 361,4 million in current prices as set out in Annex II.'

(2) Annex II is replaced by the text set out in Annex I to this Regulation.

Justification

Keeping Horizon 2020 funding as it currently stands, unchanged, is essential for maintaining innovation in research, promoting jobs and growth across the EU and keeping the EU's research sector globally competitive.

Amendment 32

Proposal for a regulationArticle 19Regulation (EU) No 1316/2013Article 5 – paragraph 1

Text proposed by the Commission Amendment

Article 19 deleted

Amendment to Regulation (EU) No 1316/2013

In Article 5 of Regulation (EU) No 1316/2013, paragraph 1 is replaced by the following:

‘1.The financial envelope for the implementation of the CEF for the period 2014 to 2020 is set at EUR 29 942 259 000 (*) in current prices. That amount shall be distributed as follows:

(a) transport sector: EUR 23 550 582 000, of which EUR 11 305 500 000 shall be transferred from the Cohesion Fund to be spent in line with this Regulation exclusively in Member States eligible for funding from the Cohesion Fund;

(b) telecommunications sector: EUR 1 041 602 000;

RR\551765EN.doc 269/354 PE551.765v03-00

EN

(c) energy sector: EUR 5 350 075 000.

These amounts are without prejudice to the application of the flexibility mechanism provided for under Council Regulation (EU, Euratom) No 1311/2013(*).

(*) Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-20 (OJ L 347, 20.12.2013, p. 884).’

Justification

Cuts to successful programmes, such as the Connecting Europe Facility, should be avoided.

Amendment 33

Proposal for a regulationArticle 20 a (new)

Text proposed by the Commission Amendment

Article 20a

Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The delegation of power referred to in Article 1(1) shall be conferred on the Commission for an indeterminate period of time.

3. The delegation of power referred to in Article 1(1) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

PE551.765v03-00 270/354 RR\551765EN.doc

EN

4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5. A delegated act adopted pursuant to Article 1(1) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

RR\551765EN.doc 271/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

IMCO12.2.2015

Rapporteur       Date appointed

Pascal Durand24.2.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 17.3.2015

Date adopted 24.3.2015

Result of final vote +:–:0:

3062

Members present for the final vote Dita Charanzová, Carlos Coelho, Sergio Gaetano Cofferati, Lara Comi, Daniel Dalton, Nicola Danti, Pascal Durand, Vicky Ford, Ildikó Gáll-Pelcz, Evelyne Gebhardt, Maria Grapini, Antanas Guoga, Sergio Gutiérrez Prieto, Liisa Jaakonsaari, Jiří Maštálka, Marlene Mizzi, Jiří Pospíšil, Virginie Rozière, Christel Schaldemose, Andreas Schwab, Olga Sehnalová, Igor Šoltes, Ivan Štefanec, Catherine Stihler, Róża Gräfin von Thun und Hohenstein, Mylène Troszczynski, Anneleen Van Bossuyt, Marco Zullo

Substitutes present for the final vote Pascal Arimont, Roberta Metsola, Franz Obermayr, Adam Szejnfeld, Ulrike Trebesius, Sabine Verheyen, Inês Cristina Zuber

Substitutes under Rule 200(2) present for the final vote

Jonathan Arnott, Ashley Fox, Andrey Novakov

PE551.765v03-00 272/354 RR\551765EN.doc

EN

31.3.2015

OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Lambert van Nistelrooij

SHORT JUSTIFICATION

Cohesion policy represents the main EU investment policy in the real economy targeting economic growth, competitiveness, job creation, improving the quality of life for EU citizens, as well as sustainable development on the long term. With a budget of about EUR 500 billion, including national co-financing and investments leveraged through grants and financial instruments, cohesion policy and its European Structural and Investment Funds (ESIF) represent the EU key instruments to deliver the Europe 2020 goals of smart, sustainable and inclusive growth.

With the adoption of 266 programmes by the end of February 2015, counting for more than EUR 256 billion, investments are channelled towards boosting economic competitiveness, strengthening research, technological development and innovation, improving entrepreneurship and business environment, fighting unemployment and social exclusion as well as towards promoting the shift to a low carbon economy. The remaining 122 programmes foreseen to be adopted by mid-2015 will have the same focus of ensuring a real GDP growth, enhancing competitiveness in all EU regions. With the European Fund for Strategic Investments (EFSI), the EU is creating a new instrument which aims to mobilise at least EUR 315 billion of additional investment over the next three years, maximising the impact of public resources and attracting private investment. The EFSI will be limited to projects delivering high societal and economic value, with a high risk-return profile and which are economically and technically viable, having an initial budget of EUR 21 billion (EUR 5 billion from the EIB and EUR 16 billion from the Union budget) to be multiplied through private investment, Member States' and promotional banks' participation and financial engineering up to EUR 315 billion.

Although both ESIF and EFSI are instruments supporting strategic investments of European

RR\551765EN.doc 273/354 PE551.765v03-00

EN

added value aiming to achieve the Union’s policy objectives, there are important differences between them as to their scope and objectives, which should be emphasised. In accordance with the Common Provisions Regulation (Regulation (EU) No 1303/2013), the ESIF provide support through multi-annual programmes, aiming at delivering the Union strategy for smart, sustainable and inclusive growth, and the Fund-specific missions pursuant to the objectives as set out in Article 174(1) of the Treaty on the Functioning of the European Union (TFEU), of economic, social and territorial cohesion. The EFSI, having Article 175 (3) TFEU as its legal basis, on the other hand, aims at intervening at project level with the objective of mobilising additional investment and improving access to funding through the supply of risk-bearing capacity to the EIB.

Your rapporteur believes that the aim of the Opinion of the Committee on Regional Development on the Regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/ 2013 and (EU) No 1316/ 2013 should focus on emphasising these differences, and on the importance of ensuring an effective coordination and articulation of the instruments and avoiding potential substitutions, in order to enhance synergies and increase each other’s added value.

The current architecture of cohesion policy is performance oriented and before the ESIF investments are committed, certain conditions have to be met, with a view of ensuring the appropriate environment to maximise their impact. Certain pre-conditions have to be fulfilled, such as smart specialisation strategies, or business friendly reforms, in order for the investments to start. By having the premises for economic and social viability ensured also under ESIF and through the commitment of Member States to a more effective use of the funds, synergies can be more easily reached between the two kinds of instruments and should be exploited efficiently.

Therefore, your rapporteur insists on the imperative that support from the ESIF and EFSI should be additional and that one instrument does not crowd out the other. The use of ESIF is governed by the Common Provisions Regulation and by the Fund-specific Regulations. As EFSI is not a financial instrument in the meaning of the Financial Regulation, there is no mechanism for ESIF to contribute directly to the capital of the EFSI. There is nevertheless a possibility of combining ESIF with investments made by EFSI at the level of individual projects, where a part could be financed by ESIF and another part supported by EFSI. The project needs to comply with the ESIF legal framework, be under a specific programme, and has also to be consistent with the objectives of the ESIF. Moreover, the participation of ESIF may be possible by way of investment platforms which can be regional (in some cases cross-border, implying several Member States), sectorial (across several Member States in one sector) and national (grouping certain investments projects on the territory of one Member State). Managing authorities under the ESIF could decide either to invest in the capital of an investment platform, or to contribute to a facility whereby the ESIF-funded financial instrument and an investment platform could co-invest in specific projects together with private investors.

In this context, your rapporteur supports the provision of specific arrangements for the possible combination of the instruments. Over the coming years more information will be gathered regarding the scope of such arrangements. These specific arrangements should, in any case be set out by the Commission by delegated act.

PE551.765v03-00 274/354 RR\551765EN.doc

EN

Although territorial aspects are not the primary concern of the EFSI, the viability of the projects being the ultimate criteria, from the regional development point of view it is important to ensure a geographical balance across the Union, thus contributing to strengthening the economic, social and territorial cohesion. In this respect, cross-border projects have proved to deliver high European added value.

From this perspective, the EIB and the Commission, should assess and report their evaluations also on the EFSI investments’ coordination with other Union policies and instruments and in particular with the ESIF, as well as the impact on economic social and territorial cohesion. The actual uptake in the EFSI projects from the ESIF might be of importance in the evaluation. In the coming years, the actual use of ESIF in combination with EFSI will deliver lessons on project level.

AMENDMENTS

The Committee on Regional Development calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationCitation 1

Text proposed by the Commission Amendment

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 172, 173, and Article 175(3) and Article 182(1) thereof,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 172, 173, 174 and Article 175(3) and Article 182(1) thereof,

Amendment 2

Proposal for a regulationRecital 1

Text proposed by the Commission Amendment

(1) The economic and financial crisis has led to a lowering of the level of investments within the Union. Investment has fallen by approximately 15% since its peak in 2007. The Union suffers in particular from a lack of investment as a consequence of market uncertainty

(1) The economic and financial crisis has led to a lowering of the level of investments and knowledge valorisation within the Union. Investment has fallen by approximately 15% since its peak in 2007, impacting all European regions and especially the less developed ones. All of

RR\551765EN.doc 275/354 PE551.765v03-00

EN

regarding the economic future and the fiscal constraints on Member States. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness.

them and in particular those more affected by the crisis suffer from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on Member States. This lack of investment slows economic recovery and negatively affects job creation, long-term growth prospects and competitiveness. It therefore prevents a speedier realisation of the objectives of the Union strategy for smart, sustainable and inclusive growth as well as of the process of reducing disparities between regions.

Amendment 3

Proposal for a regulationRecital 2

Text proposed by the Commission Amendment

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for stimulating investment. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained increase in growth potential.

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment and still increasing disparities between regions. Structural reforms and fiscal responsibility are necessary preconditions for stimulating investment, while incentives for creating an investment-inducing environment in Member States could boost economic recovery. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained increase in growth potential.

Amendment 4

Proposal for a regulationRecital 4

Text proposed by the Commission Amendment

(4) Throughout the economic and financial crisis, the Union has made efforts to

(4) Throughout the economic and financial crisis, the Union has made efforts to

PE551.765v03-00 276/354 RR\551765EN.doc

EN

promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects.

promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to coordinate policies and instruments and to ensure that the investment needs of the Union are addressed effectively with a view to ensuring harmonious development and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects.

Amendment 5

Proposal for a regulationRecital 9

Text proposed by the Commission Amendment

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(9) The investment environment within the Union should be improved and stabilised by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

Amendment 6

Proposal for a regulationRecital 10

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive and strategic investments in the Union, which are of economic and societal importance for boosting a sustainable economy and the creation of quality jobs, and to ensure increased access to financing, particularly

RR\551765EN.doc 277/354 PE551.765v03-00

EN

such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

in regions where such access is structurally constrained. It is intended that increased access to financing should be of particular benefit to small and medium enterprises, creating a proper environment for innovative start-ups. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

Amendment 7

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high economic, societal and environmental value added. Those investments should have a high degree of complementarity and coherence with those of other Union instruments, thus benefitting from positive externalities in order to achieve Union policy objectives and targets of smart, sustainable and inclusive growth.

Amendment 8

Proposal for a regulationRecital 14

Text proposed by the Commission Amendment

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote job creation, long-term growth and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide

(14) The EFSI should target projects delivering high economic, societal and environmental value, while also contributing to strengthening the Union’s economic, social and territorial cohesion and thus preventing the generation of new imbalances between different areas in the Union. In particular, the EFSI should target projects that promote job creation,

PE551.765v03-00 278/354 RR\551765EN.doc

EN

range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

long-term growth and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use. Attention should also be paid to the experiences and practices of regions concerning the use of market instruments.

Amendment 9

Proposal for a regulationRecital 15

Text proposed by the Commission Amendment

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality and complementarity over existing operations. The EFSI should finance projects across the Union, with particular attention to less developed, geographically and demographically disadvantaged regions (such as outermost, northernmost, islands or mountain regions), as well as regions characterised by a high level of unemployment, which were in general the most affected by the financial crisis. The EFSI should only be used where full financing is not available from other sources on reasonable financial terms and the crowding-out effect between the different resources at project level should be avoided to the greatest extent.

RR\551765EN.doc 279/354 PE551.765v03-00

EN

Amendment 10

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing. It is therefore necessary to lay down clear principles, criteria and conditions for the use of EFSI support.

Amendment 11

Proposal for a regulationRecital 20

Text proposed by the Commission Amendment

(20) At the level of projects, third parties may co-finance together with EFSI on a project-by-project basis or in investment platforms related to specific geographic or thematic sectors.

(20) Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee, in accordance with the objectives, principles and rules under the legal framework applicable to those funds, and in particular Regulation (EU) No 1303/2013 of the European Parliament and of the Council1a (the "Common Provisions Regulation"), and with the Partnership Agreements and relevant programmes. The flexibility of that approach should foster the synergies between Union instruments, ensure maximum added value and enhance the potential to attract investors to the areas of investment targeted by the EFSI. Full complementarity between instruments and investments, without replacement of financial instruments developed under the European Structural and Investment Funds should be provided, so that the crowding-out effect between them is avoided to the greatest extent.

PE551.765v03-00 280/354 RR\551765EN.doc

EN

____________________1a Regulation (EU) No 1303/2013 of the European Parliament and of the Councilof 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund (OJ L 347, 20.12.2013, p. 320).

Amendment 12

Proposal for a regulationRecital 21

Text proposed by the Commission Amendment

(21) Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI.

(21) At the level of projects, third parties may co-finance together with EFSI on a project-by-project basis or in investment platforms related to specific geographic or thematic sectors. The support of the European Structural and Investment Funds to regional, national and sectorial investment platforms should be possible under certain conditions, which should be provided for by means of delegated acts of the Commission.

Amendment 13

Proposal for a regulationRecital 25

Text proposed by the Commission Amendment

(25) The EIB should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance and impact and to identifying

(25) The EIB and the Commission should regularly evaluate activities supported by the EFSI with a view to assessing their relevance, performance, impact as well as

RR\551765EN.doc 281/354 PE551.765v03-00

EN

aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

their coordination, complementarity and consistency with other Union policies and instruments, and in particular with the support from the European Structural and Investment Funds, and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

Amendment 14

Proposal for a regulationRecital 29

Text proposed by the Commission Amendment

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI. EFSI

PE551.765v03-00 282/354 RR\551765EN.doc

EN

funding for projects that foster start-ups as well as other Research Development and Innovation-related activities should provide in all cases an added value to the real economy.

Amendment 15

Proposal for a regulationRecital 29 a (new)

Text proposed by the Commission Amendment

(29 a) The Commission should provide to the budgetary authority, in the context of the mid-term revision of the MFF, which possibilities exist to redirect the available funding to the EU guarantee from programmes other than Horizon 2020 and the Connecting Europe Facility.

Amendment 16

Proposal for a regulationRecital 31

Text proposed by the Commission Amendment

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for investment. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for appropriate investment that can be developed including through public-private partnerships. This 'project pipeline' should ensure that information is made publicly available regarding investment

RR\551765EN.doc 283/354 PE551.765v03-00

EN

information on which to base their investment decisions.

projects on a regular and structured basis to ensure that investors have reliable information on which to base their investment decisions.

Amendment 17

Proposal for a regulationRecital 32

Text proposed by the Commission Amendment

(32) Member States have also begun work at national level on establishing and promoting project pipelines for projects of national significance. The information prepared by the Commission and the EIB should provide links to the accompanying national project pipelines.

(32) Regional and local authorities and stakeholders, including regional innovation platforms, regional development agencies and managing authorities of the European Structural and Investment Funds are a crucial source of information on current and future investment opportunities. Therefore, Member States should consider their input while establishing and promoting project pipelines for projects of national, regional, cross-border or macro-regional significance. The information prepared by the Commission and the EIB should provide links to the accompanying national project pipelines.

Amendment 18

Proposal for a regulationRecital 34

Text proposed by the Commission Amendment

(34) To ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress and impact of the EFSI.

(34) To ensure accountability to European citizens, the EIB and the Commission should regularly report to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the progress and impact of the EFSI.

PE551.765v03-00 284/354 RR\551765EN.doc

EN

Amendment 19

Proposal for a regulationArticle 1

Text proposed by the Commission Amendment

Article 1 Article 1

European Fund for Strategic Investments European Fund for Strategic Investments

1. The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI').

1. The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a European Fund for Strategic Investments ('EFSI'), which shall be transmitted to the European Parliament and the Council.

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

The purpose of the EFSI shall be to support competitive and efficient investments in the Union and to ensure increased and accessible financing for companies, including start-ups, having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement')

1a. The Commission and the EIB shall ensure that the support from EFSI is consistent with, and complementary to, other policies and instruments of the Union, contributing also to the objective of economic, social and territorial cohesion.

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, regional and local authorities and private sector entities.

Amendment 20

Proposal for a regulationArticle 1 a (new)

RR\551765EN.doc 285/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

Article 1 a

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) 'investment platform' means a co-financing arrangement established for financing a group of projects that could take the form of a legally incorporated Special Purpose Vehicle, a managed account or a contract; an investment platform may be regional (pooling across several Member States and/or regions), national (grouping certain investment projects on the territory of a given Member State) or sectorial (pooling across several Member States in one sector);

(2)'third party' means a public or a private body other than the Commission or the EIB which may, subject to the consent of existing contributors, contribute directly to the EFSI and take part in the EFSI governance structure, including Member States, national promotional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union;

(3)´additionality´ means that crowding-out effect between EFSI and other Union funds or private resources at project level is avoided to the greatest extent and EFSI is used only where full financing is not available from other sources on reasonable financial terms.

Amendment 21

Proposal for a regulationArticle 2 – paragraph 2 – subparagraphs 1 and 2

PE551.765v03-00 286/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

2. The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

2. The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall provide support taking into account specificities and concrete needs of Member States. It shall have as its objective to build upon and complement existing EIB and Commission advisory services, in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing in the framework of the EFSI. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, and without prejudice to the competence of the Commission to oversee the application of Union law on relevant issues of EU legislation.

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds.

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, technical assistance experts, national and regional promotional banks, local and regional authorities and stakeholders, including regional innovation platforms, the managing authorities and monitoring committees of the European Structural and Investment Funds, as well as the regional development agencies.

Amendment 22

Proposal for a regulationArticle 3 – paragraph 1

Text proposed by the Commission Amendment

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation

RR\551765EN.doc 287/354 PE551.765v03-00

EN

and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2). The Steering Board shall elect one of its members to be Chairperson.

and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2). When establishing these, the Steering Board shall take into account the need to avoid geographical concentration. The Steering Board shall elect one of its members to be Chairperson.

Amendment 23

Proposal for a regulationArticle 3 – paragraph 5

Text proposed by the Commission Amendment

5. The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5, irrespective of their geographic location.

5. The EFSI Agreement shall provide that the EFSI shall have an Investment Committee, which shall be responsible for examining potential operations in line with the EFSI investment policies and approving the support of the EU guarantee for operations in line with Article 5.

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project financing and a broad range of expertise, including in regional development, and be appointed by the Steering Board for a renewable fixed term of three years.

Decisions of the Investment Committee shall be taken by simple majority.

Decisions of the Investment Committee shall be taken by simple majority.

Amendment 24

Proposal for a regulationArticle 3 – paragraph 5 a (new)

Text proposed by the Commission Amendment

5a. The Investment Committee shall take into account the Union’s objective of

PE551.765v03-00 288/354 RR\551765EN.doc

EN

strengthening economic, social and territorial cohesion and avoid further imbalances between regions with a view to reaching overall harmonious development across the Union.

Amendment 25

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

2. The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and support any of the following general objectives:

2. The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or funding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies as well as with the Union strategy for smart, sustainable and inclusive growth, and support any of the following general objectives:

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of infrastructure, including in the areas of transport and cross-border connections, particularly in industrial and tourist centres; energy, in particular energy interconnections and renewable energy; and digital infrastructure;

(b) investment in education and training, health, research and development, information and communications technology and innovation;

(b) investment in education and training, social inclusion, health, research and development, information and communications technology and innovation and blue growth;

(c) expansion of renewable energy and energy and resource efficiency;

(c) expansion of renewable energy and energy and resource efficiency;

(d) infrastructure projects in the environmental, natural resources, urban development and social fields;

(d) infrastructure projects in the environmental, natural resources, urban development and social fields including, where appropriate, social housing, as well as in public services;

(e) providing financial support for the companies referred to in Article 1(1),

(e) providing financial support for the companies referred to in Article 1(1),

RR\551765EN.doc 289/354 PE551.765v03-00

EN

including working capital risk financing. including working capital risk financing.

Amendment 26

Proposal for a regulationArticle 5 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. The operations concerned shall contribute to the long-term sustainable development of the region in which the operation is taking place.

Amendment 27

Proposal for a regulationArticle 5 – paragraph 4

Text proposed by the Commission Amendment

4. Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee.

4. Member States may use European Structural and Investment Funds to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee, in accordance with the objectives, principles and rules under the legal framework applicable to those funds, and with the Partnership Agreements and relevant programmes. Coordination, complementarity, additionality, coherence and synergies shall be ensured. The same expenditure item shall not receive support from more than one source.

Amendment 28

Proposal for a regulationArticle 5 – paragraph 4 a (new)

Text proposed by the Commission Amendment

4a. The Commission shall be empowered to adopt delegated acts in accordance with Article 17 laying down additional specific arrangements on combining the support of the European Structural and

PE551.765v03-00 290/354 RR\551765EN.doc

EN

Investment Funds to projects financed by the EIB with the support of the EU guarantee, including arrangements for the participation of the European Structural and Investment Funds under Investment Platforms.

Amendment 29

Proposal for a regulationArticle 5 – paragraph 4 b (new)

Text proposed by the Commission Amendment

4b. The Commission, the EIB and the Member States shall ensure that all investments with the support of the EFSI take into consideration their impact at regional level and on economic, social and territorial cohesion, and foster synergies and effective coordination between the EFSI and the European Structural and Investment Funds, in order to ensure that they contribute to the achievement of the Union's economic, social and territorial cohesion.

Amendment 30

Proposal for a regulationArticle 9

Text proposed by the Commission Amendment

Article 9 Article 9

European investment project pipeline European investment project pipeline

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5). The selection of projects shall take into account the added value in terms of economic and social sustainability.

RR\551765EN.doc 291/354 PE551.765v03-00

EN

1a. Member States shall make use of the expertise of regional and local authorities and stakeholders, including regional innovation platforms, development agencies and managing authorities of the European Structural and Investment Funds as a source of information for current and future investment opportunities and trends.

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, information on current and future investments which significantly contribute to achieving EU policy objectives.

2. The Commission and the EIB shall develop, update and disseminate, on a regular and structured basis, all information available on current and future investments which significantly contribute to achieving EU policy objectives. The European Parliament may request further clarification from the Commission and the EIB in that regard.

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States, and, where appropriate, regional and local authorities shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

Amendment 31

Proposal for a regulationArticle 10 – paragraph 2

Text proposed by the Commission Amendment

2. The EIB, in cooperation with the EIF as appropriate, shall report annually to the European Parliament and to the Council on EIB financing and investment operations. The report shall be made public and include:

2. The EIB, in cooperation with the EIF as appropriate, shall report annually to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on EIB financing and investment operations. The report shall be made public and include:

(a) an assessment of EIB financing and investment operations at operation, sector, country and regional levels and their compliance with this Regulation, together with an assessment of the allocation of EIB financing and investment operations

(a) an assessment of EIB financing and investment operations at operation, sector, country, regional and macroregional levels and their compliance with this Regulation, together with an assessment of the allocation of EIB financing and

PE551.765v03-00 292/354 RR\551765EN.doc

EN

between the objectives in Article 5(2); investment operations between the objectives in Article 5(2);

(-a) a description of the projects where the support of the European Structural and Investment Funds is combined with the support of the EFSI, and the total amount of the contributions from each source;

(-aa) an assessment of the European added-value and the contribution of EFSI to achieving Union policy targets, in particular the targets of smart, sustainable and inclusive growth;

(b) an assessment of the added value, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

(b) an assessment of the added value, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

(c) an assessment of the financial benefit transferred to beneficiaries of EIB financing and investment operations on an aggregated basis;

(c) an assessment of the financial benefit transferred to beneficiaries of EIB financing and investment operations on an aggregated basis;

(d) an assessment of the quality of EIB financing and investment operations;

(d) an assessment of the quality of EIB financing and investment operations including of the results achieved;

(e) detailed information on calls on the EU guarantee;

(e) detailed information on calls on the EU guarantee;

(f) the financial statements of the EFSI. (f) the financial statements of the EFSI.

Amendment 32

Proposal for a regulationArticle 12 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. In the report referred to in paragraph 2(b), the Commission shall examine the contribution of the EFSI to the Union strategy for smart, sustainable and inclusive growth, its consistency with other Union policies and instruments, as well as the impact of the EFSI operations on economic, social and territorial

RR\551765EN.doc 293/354 PE551.765v03-00

EN

cohesion.

Amendment 33

Proposal for a regulationArticle 12 – paragraph 2 b (new)

Text proposed by the Commission Amendment

2b. Where the European Structural and Investment Funds are used to contribute to the financing of eligible projects in which the EIB is investing with the support of the EU guarantee, under Article 5(4) of this Regulation, the Member States shall provide information on this contribution in the framework of the reporting obligations under Article 50(5) and point (d) of Article 52(2) of the Common Provisions Regulation.

PE551.765v03-00 294/354 RR\551765EN.doc

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

REGI28.1.2015

Rapporteur       Date appointed

Lambert van Nistelrooij11.2.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 26.2.2015

Date adopted 26.3.2015

Result of final vote +:–:0:

3261

Members present for the final vote Pascal Arimont, José Blanco López, Franc Bogovič, Victor Boștinaru, Mercedes Bresso, Andrea Cozzolino, Rosa D’Amato, Michela Giuffrida, Anna Hedh, Krzysztof Hetman, Ivan Jakovčić, Constanze Krehl, Andrew Lewer, Louis-Joseph Manscour, Martina Michels, Iskra Mihaylova, Andrey Novakov, Younous Omarjee, Stanislav Polčák, Fernando Ruas, Monika Smolková, Ruža Tomašić, Monika Vana, Matthijs van Miltenburg, Lambert van Nistelrooij, Derek Vaughan

Substitutes present for the final vote Isabella Adinolfi, Martina Anderson, Enrique Calvet Chambon, Salvatore Cicu, Andor Deli, Elena Gentile, Ivana Maletić, James Nicholson, Jan Olbrycht, Bronis Ropė, Julie Ward, Milan Zver

Substitutes under Rule 200(2) present for the final vote

Daniela Aiuto

RR\551765EN.doc 295/354 PE551.765v03-00

EN

15.4.2015

OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Albert Deß

SHORT JUSTIFICATION

The level of investment in the EU has dropped by about 15% since its peak in 2007, and is therefore well below what historical trends might have led one to expect. This is partly a consequence of the economic and financial crisis, and is hampering economic recovery, job creation, long-term growth and competitiveness. As only a partial recovery is forecast in the next few years, there is a need for further measures in order to make good this shortfall in investment. The Committee on Agriculture and Rural Development therefore supports the Commission’s Political Guidelines for 2014-2019, which regard this problem as a major political challenge.

The proposed ‘investment offensive for Europe’ combines mobilisation of at least EUR 315 billion in additional investment funding in the next three years, in order to maximise the impact of public funding and catalyse private investment, with targeted initiatives tailored to the needs of the real economy and measures to make Europe more attractive for investment.

A legal framework and the allocation of budget appropriations are basic preconditions for the investment programme. Once adopted, the proposed regulation will be implemented jointly by the Commission and the EIB as strategic partners, but it must not involve any additional administrative burden or payment systems which would undermine the efficiency of the objectives of the European Fund for Strategic Investments (EFSI).

Given the key role which small and medium enterprises (SMEs) play in the EU economy, especially in terms of employment creation, they will be a key beneficiary of the support provided for under this proposal. In this context it is important to fully involve the Common Agricultural Policy (CAP), as the CAP, being the only fully communitised field of policy, is of territorial application and is therefore very well suited to carrying out projects

PE551.765v03-00 296/354 RR\551765EN.doc

EN

comprehensively in conjunction with the EFSI. The CAP has also generated particular added value in many parts of the European Union.

In planning and operating support arrangements, it is important to draw on experience of existing financing instruments and programmes such as the CAP in order to make targeted investments successfully. This is particularly true of businesses in rural areas, where economic growth and the preservation of jobs are urgently needed.

AMENDMENTS

The Committee on Agriculture and Rural Development calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationRecital 2

Text proposed by the Commission Amendment

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for stimulating investment. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained increase in growth potential.

(2) Comprehensive action is required to reverse the vicious circle created by a lack of investment. Structural reforms and fiscal responsibility are necessary preconditions for supporting growth and stimulating investment. Along with a renewed impetus towards investment financing, these preconditions can contribute to establishing a virtuous circle, where investment projects help support employment and demand and lead to a sustained increase in growth potential.

Amendment 2

Proposal for a regulationRecital 8

Text proposed by the Commission Amendment

(8) The EFSI is part of a comprehensive approach to address uncertainty surrounding public and private

(8) The EFSI is part of a comprehensive approach to address uncertainty surrounding public and private

RR\551765EN.doc 297/354 PE551.765v03-00

EN

investments. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union.

investments. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union. This strategy is complementary to objectives promoting the Union's economic, social and territorial cohesion in the Union and within the Member States.

Amendment 3

Proposal for a regulationRecital 9

Text proposed by the Commission Amendment

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(9) The investment environment within the Union should be improved by carrying out necessary structural reforms, removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability and reducing regulatory red tape. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

Amendment 4

Proposal for a regulationRecital 10

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased and geographically-balanced access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises, including agricultural holdings. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up

PE551.765v03-00 298/354 RR\551765EN.doc

EN

should contribute to strengthening the Union's economic, social and territorial cohesion.

to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's competitiveness, growth potential and economic, social and territorial cohesion, particularly in rural, remote and disadvantaged areas.

Amendment 5

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives, to the development of infrastructure particularly in rural areas, research and innovation, the development and modernisation of the agri-food sector and to the improvement of access to finance for SMEs in this sector. The CAP, being the only fully communitised field of policy, is of territorial application and is therefore very well suited to carrying out projects comprehensively in conjunction with the EFSI. Many of the existing instruments of the CAP can be used to make targeted investments successfully.

Amendment 6

Proposal for a regulationRecital 12

Text proposed by the Commission Amendment

(12) Many small and medium enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. The EFSI should help these businesses to overcome capital shortages

(12) Many small and medium enterprises, as well as mid-cap companies, across the Union require assistance to attract market financing, especially as regards investments that carry a greater degree of risk. This is particularly true of businesses in rural areas, where economic growth

RR\551765EN.doc 299/354 PE551.765v03-00

EN

by allowing the EIB and the European Investment Fund ('EIF') to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI.

and the preservation of jobs are urgently needed in order to prevent rural depopulation. The EFSI should help these businesses to overcome capital shortages by allowing the EIB and the European Investment Fund ('EIF') to provide direct and indirect equity injections, as well as to provide guarantees for high-quality securitisation of loans, and other products that are granted in pursuit of the aims of the EFSI.

Amendment 7

Proposal for a regulationRecital 13

Text proposed by the Commission Amendment

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible. The work of the EFSI on providing finance to small and medium enterprises and small mid-cap companies should be channelled through the European Investment Fund ('EIF') to benefit from its experience in these activities.

(13) The EFSI should be established within the EIB in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact and benefit as quickly as possible. The work of the EFSI on providing finance to small and medium enterprises, particularly to enterprises operating in rural areas, and small mid-cap companies should be channelled through the European Investment Fund ('EIF') to benefit from its experience in these activities.

Amendment 8

Proposal for a regulationRecital 14

Text proposed by the Commission Amendment

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote job creation, long-term growth and competitiveness. The EFSI should support a wide range of

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote quality and long-term job creation, long-term sustainable growth, innovation and competitiveness,

PE551.765v03-00 300/354 RR\551765EN.doc

EN

financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

especially infrastructure measures (digital and transport , including fast broadband in every region of the Union). The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment and the involvement of rural communities in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures, without adding to the administrative burden or creating additional payment systems, which would undermine the efficiency of the EFSI’s objectives, so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use. The EFSI should also ensure consistency and complementarity in relation to projects that have already been financed by Union funds, paying special attention to rural development funds.

Amendment 9

Proposal for a regulationRecital 15

Text proposed by the Commission Amendment

(15) The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including in the countries most affected by the financial crisis. The EFSI should only be used where financing is not available from other sources on reasonable terms.

15. The EFSI should target projects with a higher risk-return profile than existing EIB and Union instruments to ensure additionality over existing operations. The EFSI should finance projects across the Union, including particularly in the countries and regions most affected by the financial crisis, as well as in the many disadvantaged areas of Europe which are rural and areas in extremely peripheral locations, which suffer from high

RR\551765EN.doc 301/354 PE551.765v03-00

EN

unemployment and depopulation. The EFSI should only be used where financing is not available from other sources on reasonable terms.

Amendment 10

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing; the EFSI should also closely target investments that can create economic circuits.

Amendment 11

Proposal for a regulationRecital 19

Text proposed by the Commission Amendment

(19) In order to allow for further increase in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI and take part in the EFSI governance structure.

(19) In order to allow for further increase in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI and be consulted within the EFSI governance structure.

Amendment 12

Proposal for a regulationRecital 20 a (new)

PE551.765v03-00 302/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

(20a) The financial contributions of Member States to the EFSI, including their possible participation in investment platforms, shall not be taken into account by the European Commission in the definition of budget adjustments under the preventive arm of the Growth and Stability Pact.

Amendment 13

Proposal for a regulationRecital 21

Text proposed by the Commission Amendment

(21) Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI.

(21) Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee. It is also necessary to build fully on the CAP policy instruments which have already generated particular added value in many parts of the Union. The EFSI must be fully aligned with the innovative financial instruments used in farm policy. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI.

Amendment 14

Proposal for a regulationRecital 22

Text proposed by the Commission Amendment

(22) In accordance with the Treaty on the Functioning of the European Union, Infrastructure and project investments supported under EFSI should be consistent

(22) In accordance with the Treaty on the Functioning of the European Union, Infrastructure, research and development, and project investments supported under

RR\551765EN.doc 303/354 PE551.765v03-00

EN

with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project meets these criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). The Commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds.

EFSI should be consistent with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project meets these criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). With a view to ensuring an efficient use of public funds, the Commission considers providing further guidance to guarantee full consistency with sector specific State aid rules when projects are partly to be funded with public grants.

Amendment 15

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national and regional promotional banks and the managing authorities of the European Structural, agricultural and Investment Funds. This should establish a single point of entry for questions related to technical assistance and administrative burdens for

PE551.765v03-00 304/354 RR\551765EN.doc

EN

investments within the Union.

Amendment 16

Proposal for a regulationRecital 29

Text proposed by the Commission Amendment

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI. The EFSI should not be funded with any additional amounts from European structural or investment funds.

__________________ __________________2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon

2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon

RR\551765EN.doc 305/354 PE551.765v03-00

EN

2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

Amendment 17

Proposal for a regulationRecital 31

Text proposed by the Commission Amendment

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for investment. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable information on which to base their investment decisions.

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for investment in consultation with the regional authorities, the private sector and civil society. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular, user-friendly and structured basis to ensure that investors have reliable information on which to base their investment decisions.

PE551.765v03-00 306/354 RR\551765EN.doc

EN

Amendment 18

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

The purpose of the EFSI shall be to support investments in the Union and to ensure an increased and more easily-accessible and geographical-balanced access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB, with particular priority being assigned to businesses and cooperatives in rural areas and in structurally weak and disadvantaged areas, as well as areas in extremely peripheral locations, as well as to driving forward projects promoting territorial cohesion and interconnection in rural areas ('EFSI Agreement').

Amendment 19

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

The EFSI shall support strategic investments with high social, environmental and economic added value, promoting economic, social and territorial cohesion and contributing to achieving Union objectives in all policy areas including agriculture and the agri-food sector.

Amendment 20

Proposal for a regulationArticle 1 – paragraph 2

RR\551765EN.doc 307/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, regional and local authorities, public interest bodies, public-private partnerships (PPPs), and public research institutions.

Amendment 21

Proposal for a regulationArticle 1 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. The EFSI shall be responsible for funding projects with significant value added, paying attention at all times to complementarity and coherence with all other EU financed projects.

Amendment 22

Proposal for a regulationArticle 2 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. Eligibility criteria for   the use of the EU guarantee

The EFSI Agreement shall   provide that the EFSI is to support projects which:

(a) are consistent with Union   policies,

(b) are economically and   technically viable,

(c) provide additionality, and

PE551.765v03-00 308/354 RR\551765EN.doc

EN

(d) maximise where possible the   mobilisation of private sector capital.

Amendment 23

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB, without, however, creating additional administrative burden or other systems. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. The EIAH shall provide targeted assistance in accordance with the particularities and needs of Member States with less developed financial markets. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

Amendment 24

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national promotional banks and the managing authorities of the European Structural and Investment Funds.

To meet that objective, the EIAH shall use the expertise of the EIB, the Commission, national and regional promotional banks and the managing authorities of the European Structural, agricultural and

RR\551765EN.doc 309/354 PE551.765v03-00

EN

Investment Funds.

Amendment 25

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2

Text proposed by the Commission Amendment

The Investment Committee shall be composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

The Investment Committee shall be composed of eight independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project structuring and project financing, as well as macroeconomic expertise in regional economic and social development. The Investment Committee shall have a pluridisciplinary composition encompassing a broad range of expertise in various sectors, such as agriculture, research, transport and SMEs. It shall be appointed by the Steering Board for a renewable fixed term of three years. When appointing the Committee, the Steering board shall take into account the gender balance of the members.

Amendment 26

Proposal for a regulationArticle 4 – paragraph 1

Text proposed by the Commission Amendment

The Union shall provide a guarantee to the EIB for financing or investment operations carried out within the Union covered by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6.

The Union shall provide a guarantee to the EIB for financing or investment operations carried out within the Union covered by this Regulation ('EU guarantee'). The EU guarantee shall be granted as a guarantee on demand in respect of instruments referred to in Article 6. The objectives of the Horizon 2020 programme and the CEF shall not, under any circumstances, be affected by the establishment of the

PE551.765v03-00 310/354 RR\551765EN.doc

EN

guarantee for the EFSI.

Amendment 27

Proposal for a regulationArticle 5 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of infrastructure, including local and regional community related infrastructures, in the areas of transport, particularly in industrial, rural and agricultural areas and tourist centres; energy, in particular energy interconnections; and digital and telecommunication infrastructure with priority to rural areas lagging behind in fast broadband provisions;

Amendment 28

Proposal for a regulationArticle 5 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) investment in education and training, health, research and development, information and communications technology and innovation;

(b) investment in education and training, health, social and long-term care services, research and development including research, local community capacity building, and infrastructures relevant for research and innovation;

Amendment 29

Proposal for a regulationArticle 5 – paragraph 2 – point c

Text proposed by the Commission Amendment

(c) expansion of renewable energy and energy and resource efficiency;

(c) expansion of renewable energy, research into renewable energy and expansion of energy and resource

RR\551765EN.doc 311/354 PE551.765v03-00

EN

efficiency;

Amendment 30

Proposal for a regulationArticle 5 – paragraph 2 – point d

Text proposed by the Commission Amendment

(d) infrastructure projects in the environmental, natural resources, urban development and social fields;

(d) infrastructure projects in the environmental, agricultural, natural resources, rural and urban development and social fields;

Amendment 31

Proposal for a regulationArticle 5 – paragraph 2 – point e

Text proposed by the Commission Amendment

(e) providing financial support for the companies referred to in Article 1(1), including working capital risk financing.

(e) providing financial support for the companies referred to in Article 1(1), including working capital risk financing and financial support for investments that can create economic circuits.

Amendment 32

Proposal for a regulationArticle 8 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) payments from the general budget of the Union,

(a) payments from the general budget of the Union, without calling on any additional amounts from European structural or investment funds,

Amendment 33

Proposal for a regulationArticle 9 – paragraph 1

PE551.765v03-00 312/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States, and in consultation with the regional authorities, the private sector and civil society, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

Amendment 34

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States and regional and local authorities shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

RR\551765EN.doc 313/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

AGRI12.2.2015

Rapporteur       Date appointed

Albert Deß21.1.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 24.2.2015

Date adopted 14.4.2015

Result of final vote +:–:0:

31130

Members present for the final vote Clara Eugenia Aguilera García, Eric Andrieu, Richard Ashworth, José Bové, Paul Brannen, Daniel Buda, Nicola Caputo, Matt Carthy, Michel Dantin, Paolo De Castro, Albert Deß, Diane Dodds, Herbert Dorfmann, Edouard Ferrand, Luke Ming Flanagan, Beata Gosiewska, Martin Häusling, Esther Herranz García, Jan Huitema, Peter Jahr, Jarosław Kalinowski, Elisabeth Köstinger, Zbigniew Kuźmiuk, Philippe Loiseau, Mairead McGuinness, Nuno Melo, Giulia Moi, Ulrike Müller, James Nicholson, Marit Paulsen, Jens Rohde, Lidia Senra Rodríguez, Czesław Adam Siekierski, Marc Tarabella, Janusz Wojciechowski, Marco Zullo

Substitutes present for the final vote Bas Belder, Rosa D’Amato, Angélique Delahaye, Momchil Nekov, Stanislav Polčák, Sofia Ribeiro, Annie Schreijer-Pierik, Molly Scott Cato, Tibor Szanyi, Estefanía Torres Martínez

PE551.765v03-00 314/354 RR\551765EN.doc

EN

24.3.2015

OPINION OF THE COMMITTEE ON CULTURE AND EDUCATION

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Bogdan Andrzej Zdrojewski

SHORT JUSTIFICATION

The Commission made a commitment to launch an initiative focusing on the creation of jobs, long-term growth and competitiveness. The Commission Communication "An Investment Plan for Europe" provided first guidance on how Europe can overcome the financial and economic crisis. The legislative framework for the new initiative was presented in the proposal for a Regulation on the European Fund for Strategic Investments (EFSI). The EFSI is supposed to generate private investment via the mobilisation of public money and create an investment friendly environment. An initial EU guarantee of EUR 16 billion to the European Investment Bank (EIB) together with a EUR 5 billion commitment of the EIB itself shall mobilise private money resulting in EUR 315 billion additional finance for investment. The EIB has already announced that it is ready to pre-finance projects for small and medium- sized companies before the 2015 summer break.

Education and TrainingThe aim of the EFSI is to target projects that stimulate job creation, enhance long-term growth and increase competitiveness. The Commission rightly includes investments in education and training within its general objectives of the financing and investment operations in Article 5(2). High-quality education and training is a key factor for social inclusion and at a later stage translate into investment decisions and economic growth.

Culture and Creative Sectors (CCS)However, the Commission has missed a chance to further capitalise on the high potential of the culture and creative sectors. In its resolution on European cultural and creative sectors as sources of economic growth and jobs, the European Parliament has already recognised the decisive role culture and creative sectors can play in the EU’s economic recovery. CCS serve as sources for economic and social innovation, interact with many other economic sectors and attract investors. Investments in CCS therefore need to be included in the general objectives

RR\551765EN.doc 315/354 PE551.765v03-00

EN

listed in Article 5(2) in order to also direct future investments into this important sector of economy.

Relevant ExpertiseThe governance of the EFSI is of crucial importance for its success. The Investment Committee is the final appraiser for a project as it has to decide whether or not the EU guarantee can be used for a particular project. Experience in project financing is an important however not sufficient criteria for the selection of the experts of the Investment Committee. In order to guarantee that the general objectives of the financing and investment operations are met it must also be ensured that the members of the Investment Committee have experience in the support of all these objectives. What must be avoided by all means is a biased composition of the Committee which would run risk of privileging certain policy objectives and neglect necessary investments in other areas such as education and training and CCS.

Connecting Europe FacilityParts of the EFSI will be funded by redirecting EUR 3,3 billion from the Connecting Europe Facility (CEF). Parts of this sum include EUR 0,1 billion from the 2017/18 budget for European digital services infrastructures. Europeana, Europe's digital library, archive and museum, is currently funded from that budget line. It must be ensured that the funding and smooth functioning of Europeana is not affected by the reduction of the CEF.

AMENDMENTS

The Committee on Culture and Education calls on the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationRecital 10

Text proposed by the Commission Amendment

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000

(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union in order to boost the economy and job creation as well as social and cultural inclusion. It is intended that increased access to financing should be of particular benefit to small and medium enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are

PE551.765v03-00 316/354 RR\551765EN.doc

EN

employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.

Amendment 2

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high social and economic value added, promoting research, education and training, and contributing to achieving Union policy objectives.

Amendment 3

Proposal for a regulationRecital 14

Text proposed by the Commission Amendment

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote job creation, long-term growth and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

(14) The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote research, education and training, job creation, long-term growth and competitiveness and contribute to achieving the targets of the Union strategy for smart, sustainable and inclusive growth. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective

RR\551765EN.doc 317/354 PE551.765v03-00

EN

and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.

Amendment 4

Proposal for a regulationRecital 14 a (new)

Text proposed by the Commission Amendment

(14a) The EFSI should target projects in the cultural and creative sectors (CCS). The CCS act as catalysts for, and disseminators of, innovation, the beneficial effects of which are not limited to the CCS but also extend into numerous other sectors of the economy.

Justification

A number of studies have confirmed the major contribution to the Union's economy in terms of growth and jobs. It is essential to provide CCS with access to financing methods and funding models, particularly as all creative work involves risk taking.

Amendment 5

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing. It is therefore necessary to lay down clear principles, relevant economic and social criteria and conditions for EFSI support.

Amendment 6

Proposal for a regulation

PE551.765v03-00 318/354 RR\551765EN.doc

EN

Recital 16 a (new)

Text proposed by the Commission Amendment

(16a) The EFSI should also support projects in the fields of education, training and research, development of ICT skills and digital education, as well as the cultural and creative sector. Investment in these fields should adopt a holistic approach which in each case displays appropriate respect for the intrinsic value of education and culture. Long-term impact, sustainability and high quality are decisive selection criteria for projects receiving support.

Amendment 7

Proposal for a regulationRecital 17

Text proposed by the Commission Amendment

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

(17) Decisions on the use of the EFSI support for infrastructure and large mid-cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects and in the support for the general objectives of the financing and investment operations. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

Justification

Adjustment to changes in Article 3(5).

RR\551765EN.doc 319/354 PE551.765v03-00

EN

Amendment 8

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub (EIAH) should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union, access to which should be fostered by a multilingual and decentralised approach, to support effective dissemination of information.

Amendment 9

Proposal for a regulationRecital 29

Text proposed by the Commission Amendment

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council2, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council3, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to

deleted

PE551.765v03-00 320/354 RR\551765EN.doc

EN

ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

__________________2 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).3 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (OJ L 348, 20.12.2013, p. 129).

Amendment 10

Proposal for a regulationRecital 32

Text proposed by the Commission Amendment

(32) Member States have also begun work at national level on establishing and promoting project pipelines for projects of national significance. The information

(32) Member States and regional and local authorities should work on establishing and promoting project pipelines for projects of European

RR\551765EN.doc 321/354 PE551.765v03-00

EN

prepared by the Commission and the EIB should provide links to the accompanying national project pipelines.

significance. The information prepared by the Commission and the EIB should provide links to the accompanying national project pipelines.

Amendment 11

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 2

Text proposed by the Commission Amendment

The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

The purpose of the EFSI shall be to support investments in the Union and to ensure an increased and more accessible financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement').

Amendment 12

Proposal for a regulationArticle 1 – paragraph 2

Text proposed by the Commission Amendment

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, regional and local authorities and private sector entities.

Amendment 13

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2

Text proposed by the Commission Amendment

The Investment Committee shall be The Investment Committee shall be

PE551.765v03-00 322/354 RR\551765EN.doc

EN

composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years.

composed of six independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance and be appointed by the Steering Board for a renewable fixed term of three years. The Investment Committee as a whole shall have extensive expertise in relation to the general objectives listed in Article 5(2)(a) to (e).

Justification

In order to optimise the use of the EU guarantee it must be ensured that the independent experts of the Investment Committee are also experienced when it comes to the support of the general objectives laid down in Article 5(2).

Amendment 14

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point a

Text proposed by the Commission Amendment

(a) development of infrastructure, including in the areas of transport, particularly in industrial centres; energy, in particular energy interconnections; and digital infrastructure;

(a) development of infrastructure, including in the areas of transport, particularly in industrial and tourist centres; energy, in particular energy interconnections; and digital infrastructure;

Amendment 15

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 1 – point b

Text proposed by the Commission Amendment

(b) investment in education and training, health, research and development, information and communications technology and innovation;

(b) investment in education and training, with the goal of closing the skills-gap, increasing employability and thus promoting growth, in social policies, including social protection and social services, in culture and the creative sector, health, research and development, information and communications technology and innovation;

RR\551765EN.doc 323/354 PE551.765v03-00

EN

Amendment 16

Proposal for a regulationArticle 9 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

1. The Commission and the EIB, with support from the Member States and regional and local authorities, shall promote the creation of a transparent pipeline of current and potential future investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

Amendment 17

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States and regional and local authorities shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

Amendment 18

Proposal for a regulationArticle 10 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) an assessment of the added value, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis;

(b) an assessment of the European added value, the mobilisation of private sector resources, the estimated and actual outputs, outcomes and impact of EIB financing and investment operations at an aggregated basis; and the contribution to achieving Union policy targets, in particular to the

PE551.765v03-00 324/354 RR\551765EN.doc

EN

Union Strategy for smart, sustainable and inclusive growth;

RR\551765EN.doc 325/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

CULT28.1.2015

Rapporteur       Date appointed

Bogdan Andrzej Zdrojewski5.2.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 26.2.2015

Date adopted 24.3.2015

Result of final vote +:–:0:

2152

Members present for the final vote Isabella Adinolfi, Dominique Bilde, Andrea Bocskor, Louise Bours, Silvia Costa, Mircea Diaconu, Damian Drăghici, Angel Dzhambazki, Jill Evans, Emmanouil Glezos, Giorgos Grammatikakis, Petra Kammerevert, Andrew Lewer, Svetoslav Hristov Malinov, Fernando Maura Barandiarán, Luigi Morgano, Momchil Nekov, Michaela Šojdrová, Helga Trüpel, Sabine Verheyen, Julie Ward, Bogdan Brunon Wenta, Theodoros Zagorakis, Bogdan Andrzej Zdrojewski, Milan Zver, Krystyna Łybacka

Substitutes present for the final vote Sylvie Guillaume, György Hölvényi, Dietmar Köster, Ilhan Kyuchyuk, Ernest Maragall, Emma McClarkin, Martina Michels

PE551.765v03-00 326/354 RR\551765EN.doc

EN

17.4.2015

OPINION OF THE COMMITTEE ON CONSTITUTIONAL AFFAIRS

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Strategic Investments and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013(COM(2015)0010 – C8-0007/2015 – 2015/0009(COD))

Rapporteur: Danuta Maria Hübner

SHORT JUSTIFICATION

The proposal for a Regulation establishing the European Fund for Strategic Investment (EFSI) is at the heart of the Commission's so-called "Investment Plan for Europe", launched in November 2014. With the aim to revive the European economy by attracting additional public investment and maximising the use of public resources, this proposal makes the first step in the implementation of the Investment Plan by creating the necessary legal framework for the Plan in the framework of EU's legal order.

While the proposal of the Commission is outlining the necessary basic provisions for the establishment of EFSI, your Rapporteur has identified some shortcomings in terms of transparency, the links with the overall institutional structure and the Union's legal framework. In particular, your Rapporteur would like to see the governance structure of the European Fund for Strategic Investment enhanced by rendering it more transparent and democratically accountable, by strengthening the role of the European Parliament and clarifying further the division of responsibilities between the governing bodies of the Fund. The relations between the different levels of governance need to be more streamlined to make it clear who is responsible for the decisions at which stage of the project evaluation. In any case full independence and transparency in the selection of projects need to be ensured, as well as democratic accountability, especially since financing will partially come from the EU budget in the form of guarantees.

What concerns reporting, the role of the Parliament needs to be strengthened. Being the only institution directly elected by European citizens, the Parliament should be informed more regularly on the activities of EFSI and its governing bodies. Furthermore, the EIB should also report on the services provided and the budget spent by the European Hub Investment Advisory Hub.

RR\551765EN.doc 327/354 PE551.765v03-00

EN

In terms of transparency, the management of the EFSI should respect all relevant EU rules on public access to documents and information. Furthermore, the independence of the Steering Board and the Investment Committee from political interference should be safeguarded and it should be ensured that its members possess the necessary expertise to evaluate projects from a broad array of areas and geographic regions. Moreover, all relevant documentation related to the investment possibilities and the criteria for the selection of projects should be public and openly available to investors and all interested parties. In this relation the Investment Committee should establish clear and transparent criteria for the selection of projects to exclude the possibility for political interference and thus ensure secure and fair basis for participation of private investors.

The Commission should ensure the fair and equal treatment of all participants in the co-financing of projects under EFSI in the formulation of the core principles for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. In this sense, these criteria should also be publicly known to all investors.

Concerning the choice of legal instrument, your Rapporteur believes that some aspects, which the Commission suggests to be included in the EFSI Agreement, should rather be part of the Regulation itself since they concern core provisions for the governance of the Fund and its place in the Union's institutional structure. In this respect the European Investment Advisory Hub should be subject to stricter accountability rules as it will be partially financed from the EU budget.

Since Member States' contributions to EFSI will not be included in the calculation of the fiscal adjustment under the corrective and preventive arms of the Stability and Growth Pact, your Rapporteur insists on Eurostat adopting as soon as possible the relevant rules for the statistical reporting of such contributions in order to create legal certainty and predictability.

All in all, while the EFSI could be seen as a catalyst for leveraging more investment in Europe it could also pave the way for better economic policy coordination and even as a step in the direction of a deeper Economic and Monetary Union.

AMENDMENTS

The Committee on Constitutional Affairs calls on the Committee on Economic and Monetary Affairs and the Committee on Budgets, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulationCitation 1

Text proposed by the Commission Amendment

Having regard to the Treaty on the Having regard to the Treaty on the

PE551.765v03-00 328/354 RR\551765EN.doc

EN

Functioning of the European Union, and in particular Articles 172, 173, and Article 175(3) and Article 182(1) thereof,

Functioning of the European Union, and in particular Articles 172, 173, Article 175(3), Article 182(1) and Article 194 thereof,

Amendment 2

Proposal for a regulationRecital 8

Text proposed by the Commission Amendment

(8) The EFSI is part of a comprehensive approach to address uncertainty surrounding public and private investments. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in the Union.

(8) The EFSI is part of a comprehensive approach to address uncertainty surrounding public and private investments until a system of own resources for the Union budget can be agreed. The strategy has three pillars: mobilising finance for investment, making investment reach the real economy and improving the investment environment in order to achieve economic, social and territorial cohesion across the Union.

Amendment 3

Proposal for a regulationRecital 9

Text proposed by the Commission Amendment

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this accompanying work.

(9) The investment environment within the Union should be improved by removing barriers to investment, reinforcing the Single Market and by enhancing regulatory predictability. The work of the EFSI, and investments across Europe generally, should benefit from this work which adds value to national efforts.

RR\551765EN.doc 329/354 PE551.765v03-00

EN

Amendment 4

Proposal for a regulationRecital 10 a (new)

Text proposed by the Commission Amendment

(10a) While the EFSI's primary purpose is to act as a catalyst for investment in Europe, the initiative could also play an important role as a driver for better economic policy coordination among the Member States and for progress towards the deepening of the Economic and Monetary Union;

Amendment 5

Proposal for a regulationRecital 11

Text proposed by the Commission Amendment

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives.

(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives and values.

Amendment 6

Proposal for a regulationRecital 12 a (new)

Text proposed by the Commission Amendment

(12a) All key provisions relating to the establishment, governance and accountability of the EFSI and the EIAH are contained in this Regulation and only the measures necessary for the implementation of this Regulation should be contained in the EFSI Agreement between the Commission and the EIB, without prejudice to the respective powers of the Union institutions;

PE551.765v03-00 330/354 RR\551765EN.doc

EN

Amendment 7

Proposal for a regulationRecital 16

Text proposed by the Commission Amendment

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing.

(16) The EFSI should target investments that are expected to be economically and technically viable, which may entail a degree of appropriate risk, whilst still meeting the particular requirements for EFSI financing. Where a national court of audit or an independent council or any anti-corruption body of a Member State has expressed some concerns on a project, a type of investment or on a body having the responsibility of investing public money and such concerns have been communicated to the EFSI, it should take into account the opinions expressed.

Amendment 8

Proposal for a regulationRecital 16 a (new)

Text proposed by the Commission Amendment

(16a) When carrying out the tasks conferred on them by this Regulation, the governing bodies of the EFSI (namely, the Steering Board and the Investment Committee) should act independently and in the interests of the EFSI and should not seek or take instructions from any public or private body.

Amendment 9

Proposal for a regulationRecital 17

Text proposed by the Commission Amendment

(17) Decisions on the use of the EFSI support for infrastructure and large mid-

(17) Decisions on the use of the EFSI support for infrastructure and large mid-

RR\551765EN.doc 331/354 PE551.765v03-00

EN

cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

cap projects should be made by an Investment Committee. The Investment Committee should be composed of independent and impartial experts who are knowledgeable and experienced in the areas of investment projects. The experts of the Investment Committee should be selected on the basis of a transparent procedure which ensures that the Committee disposes of the broadest possible expertise, encompassing various sectors and geographic markets of the Union. The Investment Committee should be accountable to a Steering Board of the EFSI, who should supervise the fulfilment of the EFSI's objectives. To effectively benefit from the experience of the EIF, the EFSI should support funding to the EIF to allow the EIF to undertake individual projects in the areas of small and medium enterprises and small mid-cap companies.

Amendment 10

Proposal for a regulationRecital 17 a (new)

Text proposed by the Commission Amendment

(17a) The Investment Committee should establish a set of transparent, fair and objective criteria for project evaluation, which should be publicly known and which should serve the Investment Committee in their deliberations. The results of the deliberations of the Investment Committee should be publicly known.

Amendment 11

Proposal for a regulationRecital 19

Text proposed by the Commission Amendment

(19) In order to allow for further increase (19) In order to allow for further increase

PE551.765v03-00 332/354 RR\551765EN.doc

EN

in its resources, participation in the EFSI should be open to third parties, including Member States, national promotional banks or public agencies owned or controlled by Member States, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI and take part in the EFSI governance structure.

in its resources, participation in the EFSI should be open to third parties, including Member States, national and regional promotional banks or public agencies owned or controlled by Member States and regional authorities, private sector entities and entities outside the Union subject to the consent of existing contributors. Third parties may contribute directly to the EFSI.

Amendment 12

Proposal for a regulationRecital 21

Text proposed by the Commission Amendment

(21) Provided that all relevant eligibility criteria are fulfilled, Member States may use European Structural Investment Funds to contribute to the financing of eligible projects that are supported by the EU guarantee. The flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the EFSI.

deleted

Amendment 13

Proposal for a regulationRecital 22

Text proposed by the Commission Amendment

(22) In accordance with the Treaty on the Functioning of the European Union, Infrastructure and project investments supported under EFSI should be consistent with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. If a project meets these criteria and receives support from the EFSI, the Commission has announced that

(22) In accordance with the Treaty on the Functioning of the European Union, infrastructure and project investments supported under EFSI should be consistent with State aid rules. To that end, the Commission has announced that it will formulate a set of core principles, for the purpose of State aid assessments, which a project will have to meet to be eligible for support under the EFSI. The criteria, which should be developed on the basis of these principles, should ensure the fair

RR\551765EN.doc 333/354 PE551.765v03-00

EN

any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). The Commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds.

and equal treatment of all stakeholders involved in the co-financing of the project. If a project meets these fair and objective criteria and receives support from the EFSI, the Commission has announced that any national complementary support, will be assessed under a simplified and accelerated State aid assessment whereby the only additional issue to be verified by the Commission will be the proportionality of public support (absence of overcompensation). The Commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds.

Amendment 14

Proposal for a regulationRecital 23 a (new)

Text proposed by the Commission Amendment

(23a) As national contributions to the EFSI will not be taken into account by the Commission when defining the fiscal adjustment under the preventive and the corrective arm of the Stability and Growth Pact, Eurostat should adopt as soon as possible the rules for the statistical recording and categorisation of Member State contributions to EFSI in order to create predictability and certainty for Member States when they prepare their presentation of their stability and convergence programmes and national reform programmes.

Amendment 15

Proposal for a regulationRecital 25

Text proposed by the Commission Amendment

(25) The EIB should regularly evaluate (25) The EIB and the Investment

PE551.765v03-00 334/354 RR\551765EN.doc

EN

activities supported by the EFSI with a view to assessing their relevance, performance and impact and to identifying aspects that could improve future activities. Such evaluations should contribute to accountability and analysis of sustainability.

Committee should regularly evaluate and report to the European Parliament and the Council on activities supported by the EFSI with a view to assessing their relevance, performance and impact and to identifying aspects that could improve future activities. Such evaluations and reporting should be made public and contribute to accountability and analysis of sustainability.

Amendment 16

Proposal for a regulationRecital 26

Text proposed by the Commission Amendment

(26) Alongside the financing operations that will be conducted through the EFSI, a European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union.

(26) Alongside the financing operations that will be conducted through the EFSI, a public European Investment Advisory Hub ('EIAH') should be created. The EIAH should provide strengthened support for project development and preparation across the Union, by building on the expertise of the Commission, the EIB, national promotional banks and the managing authorities of the European Structural and Investment Funds. This should establish a single point of entry for questions related to technical assistance for investments within the Union. The EIB should report annually to the European Parliament and the Council on the services provided by the EIAH and the execution of the budget of the EIAH.

Amendment 17

Proposal for a regulationRecital 29

Text proposed by the Commission Amendment

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the

(29) To partially finance the contribution from the Union budget, the available envelopes of the Horizon 2020 – the

RR\551765EN.doc 335/354 PE551.765v03-00

EN

Framework Programme for Research and Innovation 2014-2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI.

Framework Programme for Research and Innovation 2014- 2020, provided by Regulation (EU) No 1291/2013 of the European Parliament and of the Council, and the Connecting Europe Facility, provided by Regulation (EU) No 1316/2013 of the European Parliament and of the Council, should be reduced. Those programmes serve purposes that are not replicated by the EFSI. However, the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes. The EFSI should be able to leverage the EU guarantee to multiply the financial effect within those areas of research, development and innovation and transport, telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned Horizon 2020 and Connecting Europe Facility programmes. It is, therefore, appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of EFSI. Any additional amendment to the legal bases of these programmes that would be necessary for their effective performance as a result of their reduced financial resources should be done as soon as possible in order to avoid delays in implementation.

Amendment 18

Proposal for a regulationRecital 31

Text proposed by the Commission Amendment

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of

(31) Within the Union, there are a significant number of potentially viable projects that are not being financed due to a lack of certainty and transparency with respect to such projects. Often, this is because private investors are not aware of

PE551.765v03-00 336/354 RR\551765EN.doc

EN

the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline of current and future investment projects in the Union suitable for investment. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable information on which to base their investment decisions;

the projects or have insufficient information to make an assessment of the investment risks. The Commission and the EIB, with support from the Member States, should promote the creation of a transparent pipeline, for information purposes only, of current and future investment projects in the Union suitable for investment. This 'project pipeline' should ensure that information is made publicly available regarding investment projects on a regular and structured basis to ensure that investors have reliable information on which to base their investment decisions;

Amendment 19

Proposal for a regulationRecital 34

Text proposed by the Commission Amendment

(34) To ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress and impact of the EFSI;

(34) To ensure accountability to European citizens, the EIB and the governance bodies of the EFSI should regularly report to the European Parliament and the Council on the progress and impact of the EFSI. In accordance with the Union rules on public access to documents and information, the EIB should also make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives of the EFSI.

Amendment 20

Proposal for a regulationArticle 1 – paragraph 1 – subparagraph 1

Text proposed by the Commission Amendment

The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a

The Commission shall conclude an agreement with the European Investment Bank (EIB) on the establishment of a

RR\551765EN.doc 337/354 PE551.765v03-00

EN

European Fund for Strategic Investments ('EFSI').

European Fund for Strategic Investments ('EFSI') in line with the requirements set out in this Regulation.

Amendment 21

Proposal for a regulationArticle 1 – paragraph 2

Text proposed by the Commission Amendment

2. The EFSI Agreement shall be open to accession by Member States. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities.

2. The EFSI Agreement shall be open to accession by Member States, under the terms laid out in the EFSI Agreement. Subject to the consent of existing contributors, the EFSI Agreement shall also be open to accession by other third parties, including national promotional banks or public agencies owned or controlled by Member States, and private sector entities. The Member States and other third parties may not take part in the EFSI governance structure.

Amendment 22

Proposal for a regulationArticle 1 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. The Commission shall be empowered to enter into the EFSI Agreement on behalf of the Union by means of a delegated act in accordance with Article 17, provided that the EFSI Agreement meets the requirements set out in this Regulation.

Amendment 23

Proposal for a regulationArticle 1 – paragraph 2 b (new)

PE551.765v03-00 338/354 RR\551765EN.doc

EN

Text proposed by the Commission Amendment

2b. The Commission shall be empowered to accept later amendments to the EFSI Agreement by means of delegated acts in accordance with Article 17, provided that the amendments to the EFSI Agreement meet the requirements set out in this Regulation.

Amendment 24

Proposal for a regulationArticle 2 – paragraph 1 – subparagraph 1 – point d

Text proposed by the Commission Amendment

(d) the governance arrangements concerning the EFSI, in accordance with Article 3, without prejudice to the Statute of the European Investment Bank;

deleted

Amendment 25

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment

The EFSI Agreement shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

This Regulation shall provide for the creation of a European Investment Advisory Hub ('EIAH') within the EIB. The EIAH shall have as its objective to build upon existing EIB and Commission advisory services in order to provide advisory support for investment project identification, preparation and development and act as a single technical advisory hub for project financing within the Union. This shall include support on the use of technical assistance for project structuring, use of innovative financial instruments, use of public-private partnerships and advice, as appropriate, on relevant issues of EU legislation.

RR\551765EN.doc 339/354 PE551.765v03-00

EN

Amendment 26

Proposal for a regulationArticle 2 – paragraph 2 – subparagraph 4 a (new)

Text proposed by the Commission Amendment

The EIB shall report annually to the European Parliament and the Council on the services provided by the EIAH and the execution of the budget of the EIAH.

Amendment 27

Proposal for a regulationArticle 3 – paragraph -1 (new)

Text proposed by the Commission Amendment

-1. When carrying out the tasks conferred on them by this Regulation, the governing bodies of the EFSI referred to in this Article shall act independently and in the interests of the EFSI and shall not seek or take instructions from any public or private body.

Amendment 28

Proposal for a regulationArticle 3 – paragraph 1

Text proposed by the Commission Amendment

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2). The Steering Board shall elect one of its members to be Chairperson.

1. The EFSI Agreement shall provide that the EFSI shall be governed by a Steering Board, which shall determine the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support and the risk profile of the EFSI, in conformity with the objectives under Article 5(2). The Steering Board shall elect a Chairperson from among its members for a once renewable period of three years.

PE551.765v03-00 340/354 RR\551765EN.doc

EN

Amendment 29

Proposal for a regulationArticle 3 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

The Steering Board shall take decisions by consensus.

The Steering Board shall take decisions by consensus and shall make its decisions public and accessible.

Amendment 30

Proposal for a regulationArticle 3 – paragraph 3 – subparagraph 3 a (new)

Text proposed by the Commission Amendment

When a national court of audit or an independent council or any anti-corruption body of a Member State has expressed some concerns on a project, a type of investment or on a body having the responsibility of investing public money and such concerns have been communicated to the EFSI, the Steering Board shall take into account the opinions expressed;

Amendment 31

Proposal for a regulationArticle 3 – paragraph 4 – subparagraph 2

Text proposed by the Commission Amendment

The Managing Director shall report every quarter on the activities of the EFSI to the Steering Board.

The Managing Director shall report every quarter on the activities of the EFSI to the Steering Board, and at least annually to the European Parliament and the Council. The quarterly report shall be made public.

Minutes of the meetings of the Steering Board shall be made available to the European Parliament, including for each project the results of the votes in case the Steering Board did not take a decision by

RR\551765EN.doc 341/354 PE551.765v03-00

EN

consensus.

Amendment 32

Proposal for a regulationArticle 3 – paragraph 4 – subparagraph 3

Text proposed by the Commission Amendment

The Managing Director and the Deputy Managing Director shall be appointed by the Steering Board on a joint proposal of the Commission and the EIB for a renewable fixed term of three years.

The Managing Director and the Deputy Managing Director shall be appointed on the basis of an open and transparent selection procedure. On the basis of such a procedure, conducted in line with EIB procedures, the Commission shall, after hearing the Steering board and upon receiving the consent of the EIB, provide a shortlist of candidates to the European Parliament for the positions of Managing Director and deputy Managing Director.

The Commission shall, upon receiving the consent of the EIB, submit to the European Parliament for approval a proposal for the appointment of the Managing Director and the Deputy Managing Director. Following the approval of that proposal, the Steering Board shall appoint the Managing Director and the Deputy Managing Director for a once renewable fixed term of three years.

Amendment 33

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 1 a (new)

Text proposed by the Commission Amendment

The Investment Committee shall take into account the Union's goal of economic, social and territorial cohesion and avoid further imbalances across the regions of the European Union.

PE551.765v03-00 342/354 RR\551765EN.doc

EN

Amendment 34

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2 a (new)

Text proposed by the Commission Amendment

The investment committee shall be composed of eight independent experts and the Managing Director selected on the basis of an open and transparent selection procedure. The independent experts shall have a multidisplinary approach and a high level of relevant market experience in project finance and technology,extensive knowledge of the sectors and geographic markets of the Union and be appointed by the Steering Board for a renewable fixed term of three years. When carrying out their duties, the members of the Investment Committee shall be independent, impartial and shall not seek nor take any instructions from the Union, its Member States, governments, the EIB or any other public or private body.

Amendment 35

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 2 b (new)

Text proposed by the Commission Amendment

The Investment Committee shall draw up a set of transparent, fair and objective criteria for project evaluation, which shall be publicly known and which shall serve the Investment Committee in their deliberations. The results of the deliberations of the Investment Committee shall be publicly known.

Amendment 36

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 3

RR\551765EN.doc 343/354 PE551.765v03-00

EN

Text proposed by the Commission Amendment

Decisions of the Investment Committee shall be taken by simple majority.

Decisions of the Investment Committee shall be taken by simple majority and shall be made public and accessible.

Amendment 37

Proposal for a regulationArticle 3 – paragraph 5 – subparagraph 3 a (new)

Text proposed by the Commission Amendment

The Managing Director shall report regularly to the Steering Board on the works of the Investment Committee.

Amendment 38

Proposal for a regulationArticle 5 – paragraph 2 – subparagraph 2

Text proposed by the Commission Amendment

In addition, the EU guarantee shall be granted for support of dedicated investment platforms and national promotional banks, via the EIB, that invest in operations meeting the requirements of this Regulation. In that case, the Steering Board shall specify policies regarding eligible investment platforms.

In addition, the EU guarantee shall be granted for support of dedicated investment platforms and national and regional promotional banks, via the EIB, that invest in operations meeting the requirements of this Regulation. In that case, the Steering Board shall specify policies regarding eligible investment platforms, which shall involve the competent public authorities, relevant social and economic partners and representatives of civil society.

Amendment 39

Proposal for a regulationArticle 9 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission and the EIB, with support from the Member States, shall promote the creation of a transparent pipeline of current and potential future

1. The Commission and the EIB, with support from the Member States and local authorities, shall promote the creation of a transparent pipeline of current and

PE551.765v03-00 344/354 RR\551765EN.doc

EN

investment projects in the Union. The pipeline is without prejudice to the final projects selected for support according to Article 3(5).

potential future investment projects in the Union, which shall be publicly available for investors and other interested parties. The list of projects contained in the pipeline shall be drawn up for information purposes only and shall be without prejudice to the final projects selected for support according to Article 3(5).

Amendment 40

Proposal for a regulationArticle 9 – paragraph 3

Text proposed by the Commission Amendment

3. Member States shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

3. Member States, in consultation with local authorities, shall develop, update and disseminate, on a regular and structured basis, information on current and future investment projects in their territory.

Amendment 41

Proposal for a regulationArticle 10 – paragraph 1

Text proposed by the Commission Amendment

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the Commission on EIB financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.

1. The EIB, in cooperation with the EIF as appropriate, shall report semi-annually to the European Parliament, the Council and the Commission on EIB financing and investment operations under this Regulation. The report shall include an assessment of compliance with the requirements on the use of the EU guarantee and the key performance indicators established pursuant to Article 2(1)(g). The report shall also include statistical, financial and accounting data on each EIB financing and investment operation and on an aggregated basis.

RR\551765EN.doc 345/354 PE551.765v03-00

EN

Amendment 42

Proposal for a regulationArticle 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. The EIB, in cooperation with the EIF as appropriate, shall report annually to the European Parliament and to the Council on EIB financing and investment operations. The report shall be made public and include:

2. The EIB, in cooperation with the EIF as appropriate, shall report orally to the European Parliament and to the Council on EIB financing and investment operations every semester as well as annually in written form. Both reports shall be made public and include:

Amendment 43

Proposal for a regulationArticle 10 – paragraph 3 – introductory part

Text proposed by the Commission Amendment

3. For the purposes of the Commission's accounting and reporting of the risks covered by the EU guarantee and management of the guarantee fund, the EIB, in cooperation with the EIF as appropriate, shall provide the Commission every year:

3. For the purposes of the Commission's accounting and reporting of the risks covered by the EU guarantee and management of the guarantee fund, the EIB, in cooperation with the EIF as appropriate, shall provide the European Parliament, the Council and the Commission every year:

Amendment 44

Proposal for a regulationArticle 11 – paragraph 1

Text proposed by the Commission Amendment

1. At the request of the European Parliament, the Managing Director shall participate in a hearing of the European Parliament on the performance of the EFSI.

1. At the request of the European Parliament, the Chairperson of the Steering Committee and the Managing Director shall participate in a hearing of the European Parliament on the performance of the EFSI, as often as considered necessary by the Parliament.

PE551.765v03-00 346/354 RR\551765EN.doc

EN

Amendment 45

Proposal for a regulationArticle 11 – paragraph 2

Text proposed by the Commission Amendment

2. The Managing Director shall reply orally or in writing to questions addressed to the EFSI by the European Parliament, in any event within five weeks of receipt of a question.

2. The Chairperson of the Steering Board and the Managing Director shall reply orally or in writing to questions addressed to the EFSI by the European Parliament, in any event within five weeks of receipt of a question.

Amendment 46

Proposal for a regulationArticle 11 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. All projects financed under the EFSI will be covered under the policies and procedures of the EIB complaints mechanism and memorandum of understanding with the European Ombudsman.

Amendment 47

Proposal for a regulationArticle 11 – paragraph 2 b (new)

Text proposed by the Commission Amendment

2b. Upon request of the competent committees of the European Parliament, and without disclosing information on ongoing investigations, OLAF may provide information on the application of this Regulation.

RR\551765EN.doc 347/354 PE551.765v03-00

EN

Amendment 48

Proposal for a regulationArticle 11 – paragraph 3

Text proposed by the Commission Amendment

3. At the request of the European Parliament, the Commission shall report to the European Parliament on the application of this Regulation.

3. At the request of the European Parliament, the Commission and/or the EIB shall report to the European Parliament on the application of this Regulation, the use of the EU guarantee and the functioning of the guarantee fund.

Amendment 49

Proposal for a regulationArticle 11 – paragraph 3 a (new)

Text proposed by the Commission Amendment

3a. At the request of the European Parliament, the EIB shall report on the services provided by the EIAH and the execution of the budget of the EIAH.

Amendment 50

Proposal for a regulationArticle 11 – paragraph 3 b (new)

Text proposed by the Commission Amendment

3b. An agreement shall be concluded between the European Parliament and the EIB on the detailed arrangements for the exchange of information between the European Parliament and the EIB on financing and investment operations conducted by the EIB under this Regulation.

PE551.765v03-00 348/354 RR\551765EN.doc

EN

Amendment 51

Proposal for a regulationArticle 12 – paragraph 4

Text proposed by the Commission Amendment

4. The EIB and EIF shall on a regular basis provide the European Parliament, the Council and the Commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the EIB and EIF under this Regulation.

4. The EIB and EIF shall on a regular basis, and whenever requested, provide the European Parliament, the Council and the Commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the EIB and EIF under this Regulation.

Amendment 52

Proposal for a regulationArticle 12 – paragraph 5

Text proposed by the Commission Amendment

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation accompanied by any relevant proposal.

5. At the latest [PO insert date three years after the entry into force of this Regulation], the Commission shall submit a report to the European Parliament and the Council on the application of this Regulation accompanied by any relevant proposal for a review of this Regulation.

Amendment 53

Proposal for a regulationArticle 13

Text proposed by the Commission Amendment

In accordance with its own transparency policies on access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives referred to in Article 5(2).

In accordance with the Union rules on public access to documents and information, the EIB shall make publicly available on its website information relating to all EIB financing and investment operations and how they contribute to the general objectives referred to in Article 5(2).

RR\551765EN.doc 349/354 PE551.765v03-00

EN

Amendment 54

Proposal for a regulationArticle 17 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. The power to adopt delegated acts referred to in Article 1(3) shall be conferred on the Commission for a period of one year from the entry into force of this Regulation.

Amendment 55

Proposal for a regulationArticle 17 – paragraph 1 b (new)

Text proposed by the Commission Amendment

1b. The power to adopt delegated acts referred to in Article 1(4) shall be conferred on the Commission for an unlimited period of time.

Amendment 56

Proposal for a regulationArticle 17 – paragraph 3

Text proposed by the Commission Amendment

3. The delegation of power referred to in Article 8(6) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

3. The delegation of power referred to in Articles 1(3), 1(4) and 8(6) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

PE551.765v03-00 350/354 RR\551765EN.doc

EN

Amendment 57

Proposal for a regulationArticle 17 – paragraph 3 a (new)

Text proposed by the Commission Amendment

3a. A delegated act adopted pursuant to Article 1(3) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

Amendment 58

Proposal for a regulationArticle 17 – paragraph 5

Text proposed by the Commission Amendment

5. A delegated act adopted pursuant to Article 8(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

5. A delegated act adopted pursuant to Article 1(4) or Article 8(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

RR\551765EN.doc 351/354 PE551.765v03-00

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Opinion by       Date announced in plenary

AFCO9.3.2015

Rapporteur       Date appointed

Danuta Maria Hübner17.3.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 17.3.2015 16.4.2015

Date adopted 16.4.2015

Result of final vote +:–:0:

1833

Members present for the final vote Mercedes Bresso, Elmar Brok, Fabio Massimo Castaldo, Richard Corbett, Pascal Durand, Esteban González Pons, Danuta Maria Hübner, Ramón Jáuregui Atondo, Constance Le Grip, Jo Leinen, Petr Mach, Maite Pagazaurtundúa Ruiz, Jacek Saryusz-Wolski, György Schöpflin, Pedro Silva Pereira, Barbara Spinelli, Claudia Tapardel, Kazimierz Michał Ujazdowski, Rainer Wieland

Substitutes present for the final vote Max Andersson, Gerolf Annemans, Marcus Pretzell

Substitutes under Rule 200(2) present for the final vote

Rosa Estaràs Ferragut, José Inácio Faria, Gabriel Mato, Ramón Luis Valcárcel Siso

PE551.765v03-00 352/354 RR\551765EN.doc

EN

PROCEDURE

Title European Fund for Strategic Investments

References COM(2015)0010 – C8-0007/2015 – 2015/0009(COD)

Date submitted to Parliament 13.1.2015

Committees responsible       Date announced in plenary

BUDG28.1.2015

ECON28.1.2015

Committees asked for opinions       Date announced in plenary

CONT9.3.2015

EMPL28.1.2015

ENVI28.1.2015

ITRE28.1.2015

IMCO12.2.2015

TRAN28.1.2015

REGI28.1.2015

AGRI12.2.2015

CULT28.1.2015

AFCO9.3.2015

Associated committees       Date announced in plenary

ITRE9.3.2015

TRAN9.3.2015

Rapporteurs       Date appointed

José Manuel Fernandes11.2.2015

Udo Bullmann11.2.2015

Rule 55 – joint committee meetings       Date announced in plenary

       9.3.2015

Discussed in committee 23.2.2015 26.2.2015 2.3.2015

Date adopted 20.4.2015

Result of final vote +:–:0:

69136

Members present for the final vote Nedzhmi Ali, Gerolf Annemans, Jean Arthuis, Richard Ashworth, Burkhard Balz, Hugues Bayet, Pervenche Berès, Reimer Böge, Udo Bullmann, Esther de Lange, Fabio De Masi, Jean-Paul Denanot, Gérard Deprez, Anneliese Dodds, Markus Ferber, José Manuel Fernandes, Elisa Ferreira, Eider Gardiazabal Rubial, Jens Geier, Sven Giegold, Neena Gill, Sylvie Goulard, Ingeborg Gräßle, Roberto Gualtieri, Monika Hohlmeier, Gunnar Hökmark, Cătălin Sorin Ivan, Othmar Karas, Georgios Kyrtsos, Alain Lamassoure, Philippe Lamberts, Werner Langen, Bernd Lucke, Olle Ludvigsson, Ivana Maletić, Vladimír Maňka, Ernest Maragall, Fulvio Martusciello, Marisa Matias, Bernard Monot, Clare Moody, Siegfried Mureșan, Luděk Niedermayer, Liadh Ní Riada, Younous Omarjee, Stanisław Ożóg, Pina Picierno, Paul Rübig, Petri Sarvamaa, Molly Scott Cato, Peter Simon, Patricija Šulin, Ernest Urtasun, Inese Vaidere, Marco Valli, Tom Vandenkendelaere, Cora van Nieuwenhuizen, Daniele Viotti, Pablo Zalba Bidegain, Pablo Zalba Bidegain, Marco Zanni, Sotirios Zarianopoulos

Substitutes present for the final vote Mady Delvaux, Bas Eickhout, Ildikó Gáll-Pelcz, Eva Kaili, Rina Ronja Kari, Jeppe Kofod, Thomas Mann, Morten Messerschmidt, Andrej Plenković, Maria João Rodrigues, Tibor Szanyi, Nils Torvalds, Miguel

RR\551765EN.doc 353/354 PE551.765v03-00

EN

Urbán Crespo, Derek Vaughan, Tomáš Zdechovský

Substitutes under Rule 200(2) present for the final vote

Inés Ayala Sender, Mark Demesmaeker, Eleonora Evi, Arne Gericke, Morten Messerschmidt, Dominique Riquet, Ulrike Trebesius, Anneleen Van Bossuyt, Jarosław Wałęsa, Bogdan Brunon Wenta, Marco Zullo

PE551.765v03-00 354/354 RR\551765EN.doc

EN