REPORT on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1083/2006 as regards repayable assistance and financial engineering
16.11.2011 - (COM(2011)0483 – C7‑0215/2011 – 2011/0210(COD)) - ***I
Committee on Regional Development
Rapporteur: Danuta Maria Hübner
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1083/2006 as regards repayable assistance and financial engineering
(COM(2011)0483 – C7‑0215/2011 – 2011/0210(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2011)0483),
– having regard to Article 294(2) and Article 177 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0215/2011),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to the opinion of the European Economic and Social Committee,
– having regard to the opinion of the Committee of the Regions,
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on Regional Development (A7-0380/2011),
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.
AMENDMENTS BY PARLIAMENT[1]*
to the Commission proposal
---------------------------------------------------------
- [1] * Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Council Regulation (EC) No 1083/2006 as regards repayable assistance, financial engineering and certain provisions related to the statement of expenditure
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 Article 177 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 opinion of the European Economic and Social Committee[1],
Having regard to the opinion of the Committee of the Regions[2],
Acting in accordance with the ordinary legislative procedure[3]
Whereas:
(1) Member States have had positive experiences with repayable assistance schemes at the level of operations during the programming period 2000-2006 and have therefore continued such schemes or have started to implement repayable assistance schemes in the current programming period 2007-2013. Some Member States have also included descriptions of those schemes in their programming documents, which were approved by the Commission.
(2) Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999[4] sets out financial engineering instruments with precise areas and scope of intervention. However, the schemes implemented by Member States in the form of reimbursable grants and of credit lines managed by managing authorities via intermediate bodies are neither appropriately covered by the provisions on financial engineering instruments, nor by other provisions of Regulation (EC) No 1083/2006. It is therefore necessary, in line with Article 11(1) of Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999[5], which already provides that assistance can take the form of reimbursable grants, to set out in a new Section of Regulation (EC) No 1083/2006 that the Structural Funds may co-finance repayable assistance. That Section should cover reimbursable grants and credit lines managed by the managing authority through intermediate bodies which are ▌financial institutions.
(3) Having regard to the fact that the financial resources used through repayable assistance are partially of totally reimbursed by the beneficiaries, it is necessary to introduce appropriate provisions for the reuse of assistance reimbursed for the same purpose or in line with the objectives of the respective programme, so as to ensure that the funds repaid are properly invested and Union aid is used as effectively as possible.
(4) It is necessary to clarify that the provisions on major projects, revenue-generating projects and durability of operations should not be applicable as a matter of principle to financial engineering instruments, since those rules are rather meant for other types of operations.
(5) Having regard to the need to enhance the transparency of the implementation process and ensure appropriate monitoring, by the Member States as well as by the Commission, of the implementation of financial engineering instruments, inter alia in order to allow the Member States to provide appropriate information to the Commission on the type of instruments put in place and on the relevant actions undertaken by such instruments on the ground, it is necessary to introduce a provision on reporting. This would also allow the Commission to better assess the overall performance of financial engineering instruments and to provide a summary of the progress at the Union and Member State level.
▌
(7) In order to ensure compliance with Article 61(2) of the Council Regulation (EC) 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities[6], it is necessary to require that the statement of expenditure to be submitted to the Commission shall provide all information necessary for the Commission to produce transparent accounts which give a true image of the Union's assets and of budgetary implementation. To this effect, an attachment to each statement of expenditure shall include information on the amount of total expenditure paid in establishing financial engineering instruments and on the advances paid to the beneficiaries in the context of State aid. The format of the attachment is defined in the Annex IVa to Regulation (EC) 1083/2006 for the purpose of legal security and consistency. However, the practical implementation of the collection of data necessary for this purpose shall be conducted at national level and, as far as the applicable legal framework allows it, it should not result in a modification of national computer systems.
(8) The amendments relating to the forms and reuse of repayable assistance as well as to the exclusion of the application of the provisions on major projects, revenue-generating projects and durability of operations to operations falling under Article 44 (financial engineering instruments), aim at providing for greater legal security and clarity concerning the application of an existing practice in these fields with effect from the beginning of the eligibility period as set out by Regulation (EC) 1083/2006. It is therefore necessary that these amendments have retroactive effect from the beginning of the current programming period 2007-2013.
(9) Regulation (EC) No 1083/2006 should therefore be amended accordingly,
HAVE ADOPTED THIS REGULATION:
Article 1
Regulation (EC) No 1083/2006 is amended as follows:
(1) In Article 2 the following points 8 and 8a are added:
"(8) 'reimbursable grant': a direct financial contribution by way of a donation which can be totally or partially reimbursable without interest."
"(8a) 'credit line': a financial facility allowing the beneficiary to draw down the financial contribution, which can be totally or partially reimbursable, in relation to expenditure paid by the beneficiary and supported by receipted invoices or accounting documents of equivalent probative value."
(2) In Chapter II of Title III, the following Section 3a is inserted:
"Section 3aRepayable assistance
Article 43a
Forms of repayable assistance
1. As part of an operational programme, the Structural Funds may co-finance repayable assistance as follows:
(a) in the form of reimbursable grants, or
(b) in the form of credit lines managed by the managing authority through intermediate bodies which are ▌financial institutions.
2. The statement of expenditure concerning repayable assistance shall be submitted in accordance with Article 78(1) to (5).
Article 43bReuse of repayable assistance
Assistance repaid to the body that provided the assistance or to another competent authority of the Member State shall be ▌reused for the same purpose or in line with the objectives of the operational programme. Member States shall ensure an adequate record of the assistance repaid in the accounting system of the appropriate authority or body."
(3) The following Article 44a is inserted:
"Article 44aNon-application of certain provisions
Articles 39, 55 and 57 shall not apply to operations falling under Article 44."
(4) In the first subparagraph of Article 67(2) the following point is added:
"(j) the progress in the financing and implementation of financial engineering instruments as defined in Article 44, namely:
(i) description of the financial engineering instrument and implementation arrangements;
(ii) identification of the entities which implement the financial engineering instrument, including those acting through holding funds ▌;
(iii) amounts of the assistance from the Structural Funds and national co-financing paid to the financial engineering instrument;
▌
(iv) amounts of the assistance from the Structural Funds and national co-financing paid by the financial engineering instrument."
▌
(4a) In Article 67 the following paragraph is inserted:
"4a. Every year, by 1 October, the Commission shall provide a summary of the data on the progress in the financing and implementation of financial instruments, provided by the managing authorities of the Member States in accordance with Article 67(2) (j)";
(6) The following Article 78a is inserted:
"Article 78aRequirement to provide information in the statement of expenditure
An attachment to each statement of expenditure to be submitted to the Commission, in the format set out in Annex IVa, shall indicate the following information in relation to the amount of total expenditure included therein:
(a) as regards financial engineering instruments as defined in Article 44, the total expenditure paid in establishing or contributing to such funds or holding funds and the corresponding public contribution;
(b) as regards advances paid under Article 78(2) in the context of State aid, the total expenditure paid in the form of advances to the beneficiaries by the body granting the aid and the corresponding public contribution."
Article 2
This Regulation shall enter into force on third day following that of its publication in the Official Journal of the European Union.
However, Articles 1(1), 1(2) , and 1(3), shall apply from 1 January 2007.
▌
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament For the Council
The President The President
ANNEX
“ANNEX IVa
Attachment to statement of expenditure: information on financial engineering instruments within the meaning of Article 78(6) and advances paid to the beneficiaries under Article 78(2)
Operational Programme reference (CCI No): ………………………………………...
Name of Programme: ……………………………………………………………………
Date of provisional closure of accounts: …………………………….
Date of submission to the Commission: ………………………..
Financial engineering instruments within the meaning of Article 78(6) (cumulative amounts):
|
Priority Axis |
Basis for calculating Community contribution (public or total) |
2007-2015 |
||
|
Total amount of eligible expenditure declared in accordance with Article. 78(6) |
Corresponding public contribution |
|||
|
Priority Axis 1 |
|
|
|
|
|
Priority Axis 2 |
|
|
|
|
|
Priority Axis 3 |
|
|
|
|
|
Total |
|
|
|
|
Advances paid in the context of state aid (art. 78(2)) (cumulative amounts):
|
Priority Axis |
Basis for calculating Community contribution (public or total) |
2007-2015 |
||
|
Total amount of eligible expenditure declared in accordance with Article 78(2) |
Corresponding public contribution |
|||
|
Priority Axis 1 |
|
|
|
|
|
Priority Axis 2 |
|
|
|
|
|
Priority Axis 3 |
|
|
|
|
|
Total |
|
|
|
|
NB: If an operational programme is multi-objective or multi-Fund, the priority axis shall indicate the objective(s) and Fund(s) concerned.”
EXPLANATORY STATEMENT
Background
Council Regulation (EC) 1260/1999 identified the various forms of assistance that could be provided through Structural Funds contributions. Member States have established during the 2000-2006 programming period these forms of assistance by setting up specific funds and through repayable assistance delivered via other instruments.
In the contrary, Council Regulation (EC) 1083/2006 does not provide a definition of assistance as either repayable or non-repayable. It contains provisions for "Financial Engineering Instruments", however, these provision are rather narrow. Repayable assistance seems not to be covered by this Regulation. Nonetheless, Member States continued to use repayable forms of assistance based on the positive experience of the past programming period. Even the Commission approved programming documents including descriptions of these systems. The European Court of Auditors has identified the issue of repayable assistance in its audits of ERDF operations.
It is therefore necessary to set out in Regulation (EC) No 1083/2006 that the Structural Funds may co-finance repayable assistance. The Commission proposal aims to provide clarity about the legality of an existing legal practice.
Content of the Commission proposal
The proposal provides for a definition of reimbursable grant as a direct financial contribution by way of donation which can be totally or partially reimbursable without interest. It states that the Structural Funds may finance expenditure in respect of an operation comprising contributions to support repayable assistance. Furthermore, it clarifies that the assistance repaid, to the body providing the assistance or to another competent public authority of the Member State shall be kept in a separate account and reused to the same purpose or in line with the objectives of the operational programme.
It is a current practice of interpretation by the Commission that the rules on major projects, revenue generating projects and on durability of operations do not apply for financial engineering instruments. For reasons of legal certainty the proposal confirms this practice. In addition it introduces reporting of financial engineering instruments, having regard to the need to ensure appropriate monitoring, by the Member States as well as by the Commission, of the implementation of financial engineering instruments. It also introduces a legal obligation in order to ensure that the financial contribution paid by managing authorities for establishing or contributing to financial engineering instruments is spent for eligible expenditure within a timeframe of two years of the payment into the fund. Finally, it inserts a general provision on the requirements of the statement of expenditure.
Rapporteur's comments
Your rapporteur considers that the thrust of the proposal is sensible and that most elements are immediately clear. She agrees that legal clarity and certainty should be ensured as regards repayable assistance and financial engineering instruments. She also supports that appropriate monitoring of financial engineering instruments is necessary, however she is of the view that additional reporting obligations of the Member States should be limited. In addition your rapporteur considers that some elements of the proposal should be clarified. Therefore your rapporteur tables amendments aiming at clarifying the text, adding the definition of credit line, modifying the reporting requirements and clarifying the obligations as regards statement of expenditure.
OPINION of the Committee on Budgetary Control (10.11.2011)
for the Committee on Regional Development
on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1083/2006 as regards repayable assistance and financial engineering
(COM(2011)0483 – C7‑0215/2011 – 2011/0210(COD))
Rapporteur: Jens Geier
AMENDMENTS
The Committee on Budgetary Control calls on the Committee on Regional Development, as the committee responsible, to incorporate the following amendments in its report:
Amendment 1 Proposal for a regulation - amending act Recital 5 | ||||||||||||||||||||||||||||||||||||||||
|
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||
|
(5) Having regard to the need of ensuring appropriate monitoring, by the Member States as well as by the Commission, of the implementation of financial engineering instruments, inter alia in order to allow the Member States to provide appropriate information to the Commission on the type of instruments put in place and on the relevant actions undertaken by such instruments on the ground, it is necessary to introduce a provision on reporting. This would also allow the Commission to better assess the overall performance of financial engineering instruments. |
(5) Having regard to the need of ensuring appropriate monitoring, by the Member States as well as by the Commission, of the implementation of financial engineering instruments and repayable assistance, inter alia in order to allow the Member States to provide appropriate information to the Commission on the type of instruments and repayable assistance put in place and on the relevant actions undertaken in the context of such measures on the ground, it is necessary to introduce a provision on reporting. This would also allow the Commission to better assess the overall performance of financial engineering instruments and repayable assistance. | |||||||||||||||||||||||||||||||||||||||
Amendment 2 Proposal for a regulation - amending act Recital 6 | ||||||||||||||||||||||||||||||||||||||||
|
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||
|
(6) In order to ensure that the financial contribution which has been paid by the managing authorities into financial engineering instruments and included in a statement of expenditure is effectively spent within a defined timeframe, it is necessary to introduce an obligation for financial engineering instruments to spend the contribution for eligible expenditure within two years of the date of the relevant certified statement of expenditure. The subsequent statement of expenditure should be corrected accordingly, by deducing the unspent amounts, if the contribution in question has not been spent within the indicated period. |
(6) In order to ensure that the financial contribution which has been paid by the managing authorities into financial engineering instruments and included in a statement of expenditure is effectively spent within a defined timeframe, it is necessary to introduce an obligation for financial engineering instruments to spend the contribution for eligible expenditure within two years of the date of the relevant certified statement of expenditure. The subsequent statement of expenditure should be corrected accordingly, by deducing the unspent amounts, if the contribution in question has not been spent within the indicated period. In such cases the eligible administrative costs or charges must also be adjusted so that they are proportionate to the overall performance of the financial engineering instrument. | |||||||||||||||||||||||||||||||||||||||
Amendment 3 Proposal for a regulation - amending act Recital 7 | ||||||||||||||||||||||||||||||||||||||||
|
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||||||||
|
(7) In order to ensure compliance with Article 61(2) of the Council Regulation (EC) 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, it is necessary to require that the statement of expenditure to be submitted to the Commission shall provide all information necessary for the Commission to produce accounts which give a true image of the Union's assets and of budgetary implementation |
(7) In order to ensure compliance with Article 61(2) and Title VII of the Council Regulation (EC) 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, it is necessary to require that the statement of expenditure to be submitted to the Commission shall provide all information necessary for the Commission to produce accounts which give a true image of the Union's assets and of budgetary implementation. | |||||||||||||||||||||||||||||||||||||||
Amendment 4 Proposal for a regulation - amending act Article 1 - point 4 Regulation (EC) No 1083/2006 Article 67a | ||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Amendment 5 Proposal for a regulation - amending act Article 1 - point 5 Regulation (EC) No 1083/2006 Article 78 - paragraph 6 | ||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Amendment 6 Proposal for a regulation - amending act Article 1 - point 6 Regulation (EC) No 1083/2006 Article 78a | ||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
PROCEDURE
|
Title |
Amendment of Council Regulation (EC) No 1083/2006 as regards repayable assistance and financial engineering |
||||
|
References |
COM(2011)0483 – C7-0215/2011 – 2011/0210(COD) |
||||
|
Committee responsible Date announced in plenary |
REGI 13.9.2011 |
|
|
|
|
|
Committee(s) asked for opinion(s) Date announced in plenary |
CONT 13.9.2011 |
|
|
|
|
|
Rapporteur(s) Date appointed |
Jens Geier 22.9.2011 |
|
|
|
|
|
Discussed in committee |
10.11.2011 |
|
|
|
|
|
Date adopted |
10.11.2011 |
|
|
|
|
|
Result of final vote |
+: –: 0: |
17 1 0 |
|||
|
Members present for the final vote |
Marta Andreasen, Inés Ayala Sender, Andrea Češková, Jorgo Chatzimarkakis, Martin Ehrenhauser, Jens Geier, Gerben-Jan Gerbrandy, Ingeborg Gräßle, Ville Itälä, Iliana Ivanova, Monica Luisa Macovei, Jan Mulder, Crescenzio Rivellini, Paul Rübig, Bart Staes, Georgios Stavrakakis |
||||
|
Substitute(s) present for the final vote |
Zuzana Brzobohatá, Christofer Fjellner, Ivailo Kalfin |
||||
PROCEDURE
|
Title |
Amendment of Council Regulation (EC) No 1083/2006 as regards repayable assistance and financial engineering |
||||
|
References |
COM(2011)0483 – C7-0215/2011 – 2011/0210(COD) |
||||
|
Date submitted to Parliament |
1.8.2011 |
|
|
|
|
|
Committee responsible Date announced in plenary |
REGI 13.9.2011 |
|
|
|
|
|
Committee(s) asked for opinion(s) Date announced in plenary |
BUDG 13.9.2011 |
CONT 13.9.2011 |
EMPL 13.9.2011 |
|
|
|
Not delivering opinions Date of decision |
BUDG 8.9.2011 |
EMPL 15.9.2011 |
|
|
|
|
Rapporteur(s) Date appointed |
Danuta Maria Hübner 5.10.2011 |
|
|
|
|
|
Discussed in committee |
5.10.2011 |
|
|
|
|
|
Date adopted |
14.11.2011 |
|
|
|
|
|
Result of final vote |
+: –: 0: |
29 1 0 |
|||
|
Members present for the final vote |
François Alfonsi, Charalampos Angourakis, Catherine Bearder, Victor Boştinaru, Alain Cadec, Salvatore Caronna, Danuta Maria Hübner, María Irigoyen Pérez, Seán Kelly, Mojca Kleva, Constanze Angela Krehl, Ramona Nicole Mănescu, Riikka Manner, Iosif Matula, Erminia Mazzoni, Tomasz Piotr Poręba, Georgios Stavrakakis, Nuno Teixeira, Michail Tremopoulos, Lambert van Nistelrooij, Oldřich Vlasák, Elżbieta Katarzyna Łukacijewska |
||||
|
Substitute(s) present for the final vote |
Lena Kolarska-Bobińska, Maurice Ponga, Marie-Thérèse Sanchez-Schmid, Elisabeth Schroedter, Patrice Tirolien, Giommaria Uggias, Derek Vaughan, Iuliu Winkler |
||||
|
Date tabled |
16.11.2011 |
||||