27.3. 87 Official Journal of the European Communities No C 80/7
II
(Preparatory Acts)
COMMISSION
Proposal for a Council Decision on financing major Community infrastructure projects
COM(86) 722 final
(Submitted by the Commission to the Council on 23 December 1986)
(87/C 80/14)
THE COUNCIL OF THE EUROPEAN COMMUNITIES, HAS DECIDED AS FOLLOWS:
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 235
thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Par-
liament,
Having regard to the opinion of the Economic and
Social Committee,
Whereas large-scale infrastructure projects are a
powerful factor for integration and help to unify the
internal market, thereby making European industry more
competitive;
Whereas the emergence and launching of such projects
encounter a variety of obstacles, including financial
obstacles, that stem from their characteristics and from
the different types of risk associated with them;
Whereas their financing will, from now on, have to rely
more than in the past on private capital, which is not
necessarily attracted by this type of project;
Whereas the interest and European dimension of such
projects justify assistance being provided by the
Community;
Whereas the purpose of such assistance must be to
mobilize private capital and channel it towards large-
scale projects of European interest;
Whereas specific Community action is, therefore, needed
to promote the emergence and financial launching of
infrastructure projects of European interest;
Whereas the European Investment Bank has stated its
willingness to participate in such action,
Article 1
Provision shall be made for Community action to assist
large-scale infrastructure projects of European interest
located in whole or in part in the Community. The
purpose of such action shall be to facilitate the
emergence and launching of such projects by mobilizing
new sources of capital and channelling the proceeds
towards them.
Article 2
1. Large-scale infrastructure projects of European
interest shall aim either to provide a link which does not
exist, to offer substantially improved services or to
provide new services.
2. They may concern various sectors of activity,
focusing primarily on transport, telecommunications,
energy and the environment.
3. The projects and their implementation shall comply
with the provisions of the Treaty and of secondary
legislation, notably in competition matters, and with
Community rules and policies applicable in the fields
concerned.
Article 3
In order to facilitate the emergence and launching of
large-scale infrastucture projects of European interest,
the following means of financing may be drawn on:
— specific budgetary resources,
— resources available under Community policies and
measures whose objectives the projects are designed
to achieve,
— specific loans from the own resources of the
European Investment Bank (EIB) and, should the
need arise, from resources raised by the European
Economic Community (EEC) on capital markets.
No C 80/8 Official Journal of the European Communities 27. 3. 87
Article 4
1. The preparatory work and studies necessary to
demonstrate the technical, financial and economic
viability of projets may qualify for a contribution from
the Community in the form of a grant or repayable
advance.
2. Such expenditure shall be financed under Article
581 of the budget in the case of transport infrastructure
and under Article 709 in the case of energy infra-
structure. In other cases, it shall be financed under a
specific budget heading (Article 798) entitled
'Preparatory studies and measures in connection with
large-scale European infrastructure projects' in the
chapter relating to financial engineering operations. An
amount of differentiated appropriations shall be entered
under the specific budget heading in the annual budget
procedure.
Article 5
1. The large-scale projects referred to in Article 2 may
be declared to be of European Interest. In order to have
such a declaration conferred on them, the projects shall
be submitted to the Commission either directly or
through the intermediary of a Member State.
Such projects must draw to a large extent on private
savings and comply with the objectives and criteria laid
down by the Community programmes relating to the
sectors to which they belong. The Commission shall:
— determine whether or not they comply with this
Decision;
— identify the advantages they bring in the light of not
only technical and financial but also socio-economic
criteria. Account shall be taken among other things
of the impact the projects have on Community
competitiveness and of their effects, including in
terms of employment and incomes, on the countries
and regions most directly concerned.
2. The declaration of European interest shall be made
by the Commission after agreement has been reached
with the Member States directly concerned by the
projects. The Commission shall inform the Council and
Parliament thereof.
However, in the case of projects relating to sectors not
covered by Community programmes, the declaration of
European interest may be conferred only after agreement
by the Council.
The Commission's decision declaring projects to be of
European interest shall be published in the Official
Journal of the European Communities.
3. Large-scale infrastructure projects declared to be of
European interest may:
— depending on their nature, be covered by provisions
designed to facilitate the raising of private funds,
provisions which shall be submitted on a case-by-case
basis by the Commission to the Council, after
consulting the Economic Policy Committee;
— receive a grant from the Community budget and
qualify for specific loans as referred to in Article 3.
Article 6
1. The financial packaging necessary for the start-up
of the work involved in projects declared to be of
European interest may qualify for Community assistance
in the form of repayable advances.
2. In the annual budget procedure, an amount of
differentiated appropriations shall be entered under a
specific budget heading entitled 'Contribution to large-
scale European infrastructure projects' in the chapter
relating to financial engineering operations.
3. The repayment date of any repayable advance shall
be agreed between the Commission and the beneficiary:
— either when the work is started;
— or on completion of the work;
— or during the operational phase provided a profit-
sharing clause is included.
Article 7
1. Loans made by the EIB out of its own resources for
projects declared to be of European interest may be
covered by a guarantee under the Community budget.
The budget guarantee may be granted in respect of EIB
loans that are not likely to qualify either for a guarantee
from the Member State or States involved in the project
or for any other adequate guarantees.
2. The guarantee under the Community budget shall
be conditional and partial. The Commission shall decide
on a case-by-case basis whether to grant it and on the
operational arrangements. Its decision shall be laid down
in an agreement concluded with the EIB.
3. Decisions to grant guarantees taken by the
Commission shall be subject to an overall ceiling fixed at
1 000 million ECU. If necessary, the Council, acting by a
qualified majority on a proposal from the Commission
and after consulting Parliament, shall raise the ceiling.
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