Procedure : 2010/0101(COD)
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Document selected : A7-0327/2011

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PV 13/10/2011 - 6.5
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5 October 2011
PE 472.361v02-00 A7-0327/2011

on the Council position at first reading with a view to the adoption of a decision of the European Parliament and of the Council granting an EU guarantee to the European Investment Bank against losses under loans and loan guarantees for projects outside the Union and repealing Decision No 633/2009/EC

(12443/1/2011 – C7-0270/2011 – 2010/0101(COD))

Committee on Budgets

Rapporteur: Ivailo Kalfin



on the Council position at first reading with a view to the adoption of a decision of the European Parliament and of the Council granting an EU guarantee to the European Investment Bank against losses under loans and loan guarantees for projects outside the Union and repealing Decision No 633/2009/EC

(12443/1/2011 – C7-0270/2011 – 2010/0101(COD))

(Ordinary legislative procedure: second reading)

The European Parliament,

–   having regard to the Council position at first reading (12443/1/2011 – C7-0270/2011),

–   having regard to its position at first reading(1) on the Commission proposal to Parliament and the Council (COM(2010)0174),

–   having regard to Article 294(7) of the Treaty on the Functioning of the European Union,

–   having regard to Rule 72 of its Rules of Procedure,

–   having regard to the recommendation for second reading of the Committee on Budgets (A7-0327/2011),

1.  Approves the Council position at first reading;

2.  Notes that the act is adopted in accordance with the Council position;

3.  Instructs its President to sign the act with the President of the Council, in accordance with Article 297(1) of the Treaty on the Functioning of the European Union;

4.  Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union;

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


Texts adopted of 17.2.2011, P7_TA(2011)0062.


1. Background and comments on the procedure

The European Investment Bank (EIB), whose shareholders are the Member states, is one of the most important EU financial instruments. Its lending outside the EU (EUR 9bln) represented above 12% of its total 2010 lending.

The external mandate of the EIB, i.e. the EU budgetary guarantee covering sovereign and political risks of EIB loan and loan guarantee operations outside the EU, is codecided between Parliament and Council since Decision 633/2009/EC of 13 July 2009, following a challenge of the legal basis by the European Parliament (EP)(1).

On 21 April 2010, the Commission submitted to the EP and the Council a proposal for a Decision of the European Parliament and the Council granting an EU guarantee to the European Investment Bank against losses under loans and guarantees for projects outside the European Union(2). The proposed Decision builds on the mid-term review of the EIB external mandate foreseen in Decision 633/2009/EC. This review was presented in a Communication from the Commission(3) which drew on an external evaluation supervised and managed by a Steering committee of wise persons, on an evaluation carried out by an external consultancy(4), and on specific evaluations carried out by the evaluation department of the EIB.

At committee level, a number of amendments were tabled at first reading, including compromises which emerged from multiple informal contacts and opinions received from five committees. On 27 January 2011 the committee on budgets (BUDG) adopted its recommendation to plenary incorporating a global compromise amendment in the form of a consolidated text.

During its sitting of 17 February 2011 the EP adopted at first reading a legislative resolution(5) amending the Commission’s proposal.

On 3 March 2011, a mandate was given by BUDG to the rapporteur, to enter negotiations with Council and Commission with a view to a second reading agreement, in accordance with the Joint declaration on practical arrangements for the codecision procedure(6) and with Rule 70.

A number of informal trilogues took place between the EP, Council and Commission (see Annex). The EIB was invited to raise issues of concern in separate meetings, and regularly informed of progress made. In this context, an agreement was reached on 21 June, which was confirmed by BUDG through a letter by its Chairman dated 27 June 2011, and by COREPER on 14 September 2011.

On 20 September 2011, the Council adopted its position at first reading in accordance with Article 294 of the Treaty on the Functioning of the European Union (TFEU), incorporating the agreement.

2. The Commission's proposal: objective and main elements

The general objective is, on the basis of findings of the mid-term review, to ensure the continuation of the EU guarantee for EIB external financing for the remainder of the current financial perspectives 2007-2013, whilst introducing a number of new elements in the mandate.

The new elements are the following:

* Activation of the EUR 2 billion "optional mandate", which was placed in reserve. This optional mandate is to be be activated not as an increase of individual regional ceilings, but as a mandate dedicated to projects which contribute to the fight against climate change across all regions covered by the decision.

* Replacing the current system of regional objectives for operations under EU guarantee with horizontal high-level objectives covering all regions under the external mandate.

* Development by the Commission, together with the EIB, and in consultation with the European External Action Service (EEAS), of operational guidelines for each region under the external mandate, reflecting EU regional strategies in order to strengthen the link between the implementation of EIB activities in line with the general high-level objectives under the external mandate and EU regional priorities.

* Strengthening of the capacity of the EIB to support EU development objectives through

 enhancing the EIB's appraisal and monitoring of social and development aspects of projects.

 increasing the focus of EIB intervention in sectors which will further the development of third countries, such as environmental infrastructure including water and sanitation, sustainable transportation and climate change mitigation and adaptation. The EIB should also progressively increase its activity in support of health and education.

* Activation of the EIB external mandate for five new countries, including Belarus.

3. Parliament’s first reading

The Parliament’s legislative resolution adopted by a very large majority (538 in favour, 37 against and 37 abstentions) at first reading was accompanied by 5 amendments. Amendment 1 presented by BUDG introduced changes throughout the text.

In its position EP sought primarily to adjust the ceilings for continuity of operations until 31 December 2013, to strengthen the transparency of EIB operations under the external mandate and their support to EU external policy objectives, and to prepare for longer term prospects some of which were highlighted by mid-term review recommendations.

The most important amendments covered the following issues:

Ceilings: The ceilings are raised by EUR 1,857 bln to cover adequately the extension of the mandate to new countries (Recital (7a), Article 2(1)), and a 20% reallocation flexibility is introduced between regional ceilings (Annex I, final paragraph). The possibility for EIB to reinvest reflows from earlier operations as proposed in the draft regulation (EC) n°1638/2006 is encouraged (Recital 8c).

EU objectives and conditionality: EIB operations shall in particular contribute to principles referred to in Article 21 TEU; in developing countries, attention shall be paid to natural resources and reduction of poverty; the EIB and the Commission shall present by 2012 a strategy to phase out projects detrimental to EU climate objectives (Article 3). Reference is made to the Paris Declaration of 2005 and the Accra Agenda for Action of 2008 (Recital 13, Article 5(2)), and to the Millennium Development Goals (Recital 15a). The eligibility of countries to the Climate change Mandate can be restricted for those not committing to reaching appropriate targets in this respect (Article 2(4)). EIB due diligence on development aspects includes verifying appropriate local public consultation (Article 6(1)). Extension of the Mandate to Belarus is rejected (Annex II, B- Neighbourhood and Partnership countries). Regional operational guidelines shall be adopted by delegated acts (Recital 23, Article 5).

Transparency and reporting

The Commission's annual report (Article 10) shall in particular include sections on:

- support to EU external policy objectives of eligible operations,

- development impact, environmental and social sustainability,

- breakdown of Union financial resources used in combination with EIB financing and other donors.

Performance indicators developed by the EIB in relation to development, environment and human rights (Article 5(2)) shall form the basis of annual public reports (Article 6(2a)).

Where possible, monitoring of such aspects (including support of financial intermediaries to SMEs) during implementation and completion by project promoters shall also be disclosed (Article 6(2)).

A new Article is created which bans operations in non-cooperative jurisdictions (Article 10a).

Longer-term perspectives An EU platform for cooperation and development shall be created by mid 2012 to increase and rationalise blending of grants and loans, involving other European multilateral and bilateral finance institutions (Recital (25), Article 8(2a)). A new Article foresees the creation of a Working Party to reassess the future of the development aid, including the role of EIB (Article 10b). Reference is made to micro-credit (Recital 8b) and a cost-benefit analysis is foreseen concerning the creation of subsidiaries, in particular in the Mediterranean region (Recital 25a).

4. Assessment of the Council's first reading

The Council endorses the agreement reached between Parliament and Council during informal trilogues (see Annex).

A very limited number of Parliament’s modifications have not been fully, partially or in principle accepted by the Council (Recitals (6a), (8b), (8c), (25a), Article 5(3a), Article 8(2a), Article (10b)). Areas where EP had demonstrated a key interest, e.g. reporting, ceilings, development, environment, conditionality, are covered in the text.

Ceilings: The ceiling for the General Mandate is raised by 1,684 bln, of wich EUR 1 bln is directed to the Southern Mediterranean region as called for in EP's first reading (Recital 12, Annex I). A 10% flexibility is foreseen within and between regions. The reference to reflows, an issue pending in another procedure, is not kept.

EU objectives and conditionality:

No restrictions on Iceland eligibility are foreseen, whereas Belarus is kept inelegible. Conditionality is reinforced by allowing Commission to change the list of eligible countries through delegated acts (Article 4(2) Annex III) on the basis of a pre-set list of potentially eligible countries (Article 4(1), Annex II). On the other hand, it is made clear that regional operational guidelines are of technical nature and subject to a regional policy framework codecided by legislators (Article 6(1), Annex IV).

Longer-term perspectives The Commission should report to the European Parliament and to the Council by mid-2012 and, if appropriate, make a proposal for an EU platform for cooperation and development (Recital 31).

The assessment of the opportunity to create subsidiaries -a prerogative of the EIB board- and of the future of development aid (Working party) has not been kept.

New Recital (40) foresees, amongst others, an examination of the possibility for the EIB to provide micro-credit financing, under the next Financial Framework.

5.   Content of the recommendation

Your rapporteur would like to recommend the acceptance of the first reading of Council. The content of the Council’s text largely reflects Parliament’s first reading. The text is the result of intense negotiations from February to June 2011.

On the whole the extended mandate of the EIB will allow a much better coordination for achieving the EU goals, considerably more accountability and transparency and a better use of the EU budgetary guarantee.


A Guarantee Fund protects the EU budget from shocks that might otherwise occur in case of defaults on loans that are guaranteed by the EU. Currently, 9% of the total outstanding amount of loans granted is paid into the Fund from the budget. The provisioning of the Fund occurs in year N+2 of loan disbursement.


2010/0101 (COD) - COM(2010)0174, SEC(2010)0443.


COM(2010)0173, SEC(2010)442.


Independant evaluation by COWI (Feb. 2010), Michael Camdessus et al., “European Investment Bank's external mandate 2007-2013 Mid-Term Review: Report and recommendations of the steering committee of ‘wise persons’,” February 2010. Available from: <




OJ C 145, 30.6.2007, p. 5.


Decision on the EIB external mandate

Steps and informal meetings in 2011 between the EP negotiating team (1), the Presidency of the Council (2) and Commission



Meetings on the EIB external mandate Decision

27 January


BUDG adopts its recommendation to the plenary

17 February


EP adopts its first reading

28 February


Exploratory talks with a view to presenting a request to BUDG Committee to open negotiations

3 March


BUDG committee gives mandate to set up a negotiating team and enter negotiations

17 March


Informal trilogue

22 March


Informal trilogue

31 March




BUDG committee meeting: rapporteur gives state of play of negotiations (Annex XXI, point 6 of the Rules of procedure)

12 April


Informal trilogue

14 April


BUDG meeting: state of play of negotiations

3 May


Informal trilogue

5 May


BUDG meeting: state of play of negotiations

Informal trilogue

12 May


Informal trilogue

23 May


BUDG meeting: state of play of negotiations

1 June


Informal trilogue

15 June


BUDG meeting: state of play of negotiations

21 June


Informal trilogue. Agreement.

27 June


BUDG meeting: Approval of the agreement.

BUDG Chair letter committing to approve Council's first reading position if it conforms with the agreement.

19 September


Council adopts its first reading position

(1) Rapporteur Ivailo Kalfin, Shadow-rapporteurs: Giovanni Collino, Sidonia Elżbieta Jedrzejewska (EPP), Carl Haglund (ALDE), Helga Trüpel (Greens/EFA), Miguel Portas (GUE), Claudio Morganti (EFD).

(2) Council represented by the Head of the Economic and Financial Unit of the Permanent Representation of Hungary to the European Union.



EU guarantee to the EIB against losses under loans and guarantees for projects outside the EU


12443/1/2011 – C7-0270/2011 – 2010/0101(COD)

Date of Parliament’s first reading – P number

17.2.2011                     T7-0062/2011

Commission proposal

COM(2010)0174 - C7-0110/2010

Receipt of Council position at first reading announced in plenary


Committee responsible

       Date announced in plenary







       Date appointed

Ivailo Kalfin





Date adopted





Result of final vote







Members present for the final vote

Marta Andreasen, Francesca Balzani, Lajos Bokros, Andrea Cozzolino, Isabelle Durant, James Elles, Göran Färm, José Manuel Fernandes, Eider Gardiazábal Rubial, Salvador Garriga Polledo, Jens Geier, Ivars Godmanis, Estelle Grelier, Lucas Hartong, Jutta Haug, Anne E. Jensen, Sergej Kozlík, Jan Kozłowski, Alain Lamassoure, Giovanni La Via, Barbara Matera, Miguel Portas, Dominique Riquet, László Surján, Angelika Werthmann

Substitute(s) present for the final vote

François Alfonsi, Philippe Boulland, Roberto Gualtieri, Paul Rübig, Peter Šťastný, Georgios Stavrakakis

Date tabled


Last updated: 6 October 2011Legal notice