18 Amendments of Joachim KUHS related to 2020/0106(COD)
Amendment 57 #
Proposal for a regulation
–
–
The European Parliament rejects the Commission proposal.
Amendment 59 #
Proposal for a regulation
Recital 1
Recital 1
(1) Commission estimates derived from firm-level data suggest that the equity repair needs resulting from the economic effects of the national and regional lockdown measures in response to the Covid-19 pandemic could be in the region of EUR 720 billion in 2020. The number could go higher in case lockdown measures were to stay in place for longer than currently assumed or necessary, or if they had to be re-imposed due to a resurgence of contaminations. If left unaddressed these capital shortfalls may lead to a prolonged period of lower investment, more speculative investments since investors will keep looking for yields on the market, which could lead to asset bubbles, and higher unemployment. The impact of the capital shortfall will be uneven across sectors and Member States, leading to further divergences in the single market. This is compounded by the fact that the capacity of Member States to provide State aid, beyond the pre-existing disastrous effects of the single currency. This is compounded by the fact that the institutional frameworks and public spending cultures differs greatly across Member States.
Amendment 61 #
Proposal for a regulation
Recital 1
Recital 1
(1) Commission estimates derived from firm-level data, source of which must be properly referenced and duly disclosed to the public, suggest that the equity repair needs resulting from the Covid-19 pandemic could be in the region of EUR 720 billion in 2020. The number could go higher in case lockdown measures were to stay in place for longer than currently assumed, or if they had to be re-imposed due to a resurgence of contaminations. If left unaddressed these capital shortfalls may lead to a prolonged period of lower investment and higher unemployment. The impact of the capital shortfall will be uneven across sectors and Member States, leading to divergences in the single market. This is compounded by the fact that the capacity of Member States to provide State aid differs greatly.
Amendment 68 #
Proposal for a regulation
Recital 2
Recital 2
(2) In accordance with Regulation [European Union Recovery Instrument] and within the limits of resources allocated therein, recovery and resilience measures under the solvency support window of the European Fund for Strategic Investments should be carried out to address the unprecedented impact of the COVID-19 crisis. Such additionalnational and regional lockdown measures in response to the COVID-19 pandemic. These resources should be used in such a way as to ensure compliance with the time limits provided for in Regulation [EURI].
Amendment 77 #
Proposal for a regulation
Recital 3
Recital 3
(3) In order to counter the severe economic consequences of the Covid-19 pandemic in the Union, companies that have encountered difficulties because of the economic crisis caused by the pandemic and that cannot obtain sufficient support, whose recapitalisation would prove necessary and that cannot obtain sufficient support, which remains to be demonstrated in common criteria, through market financing, or measures undertaken by Member States, should be provided with a facility for solvency support as a matter of urgency under a Solvency Support Instrument which should be added as a third window under the EFSI.
Amendment 80 #
Proposal for a regulation
Recital 3
Recital 3
(3) In order to counter the severe economic consequences of the national and regional lockdown measures in response to the Covid-19 pandemic in the Union, companies that have encountered difficulties because of the economic crisilockdown measures caused by the pandemic and that cannot obtain sufficient support through market financing, or measures undertaken by Member States, should be provided with a facility for solvency support as a matter of urgency under a Solvency Support Instrument which should be added as a third window under the EFSIcompensation mechanism for the damages incurred following the lockdown measures, or to exit the market.
Amendment 94 #
Proposal for a regulation
Recital 4
Recital 4
(4) Companies supported under the Solvency Support Instrument should be established and operating in the Union, meaning that they should have their registered office in a Member State and should be active in the Union in the sense that they have substantial activities in terms of staff, manufacturing, research and development or other business activities in the Union. They should pursue activities in support of objectives covered by this Regulation. They should have a viable business model and not have been in difficulty in terms of the State aid framework7 already at end 2019. Support should be targeted at eligible companies operating in those Member States and sectors which are most impacted by the Covid-19 crisis and/or where the availability of State solvency support is more limitedin terms of the effect of the lockdown measures on GDP. _________________ 7 As defined in Article 2(18) of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p.1).
Amendment 98 #
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4a) Underlines that in no way, the Solvency Support Instrument should be used as rogue State Aid for Member States who did not manage their public finances well over the last years, and therefore have less budgetary space to provide State Aid. This would create an incentive for Member States not to pursue sound budgetary policies, but speculate on future EU emergency programs, mainly financed by those Member States who did pursue sound budgetary policies.
Amendment 108 #
Proposal for a regulation
Recital 5
Recital 5
Amendment 111 #
Proposal for a regulation
Recital 6
Recital 6
Amendment 118 #
Proposal for a regulation
Recital 8
Recital 8
(8) The delivery modes of the support should be fclexiblear and unambiguous in view of the need of differing solutions in different Member States. They should include, inter alia, EIB Group financing, or guarantee or investment in existing independently managed funds or in special purpose vehicles that in turn invest in eligible companies. Furthermore, the support could be channelled via newly established independently managed funds, including via first-time teams, or via special purpose vehicles especially set up either at European or regional or national level with a view to benefiting from the EU guarantee in order to invest in eligible companies. The EU guarantee could also be used to guarantee or finance an intervention by a national promotional bank or institution in line with State aid rules together with private investors in support of eligible companies. Undue distortion of competition in the internal market should be avoided.
Amendment 119 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) Underlines that the EIB is the bank of the Member States and not an EU Institution; remains fully committed to the independence of the EIB and its board members in taking appropriate investment decisions; renounces any political meddling with their investment portfolios and strategies.
Amendment 122 #
Proposal for a regulation
Recital 9
Recital 9
(9) The equity funds, special purpose vehicles, investment platforms and national promotional banks and institutions should provide equity or quasi-equity (such as hybrid debt, preferred stock or convertible equity) to eligible companies, but excluding entities targeting buy-out (or replacement capital) intended for asset stripping and excluding quasi-equity and debt-financing; these investments should not be diverted to operations outside the Union.
Amendment 125 #
Proposal for a regulation
Recital 10
Recital 10
(10) The financing and investment operations should be aligned with current policy priorities of the Union such as the European Green Deal and the Strategy on shaping Europe’s digital future. Support to cross-border activities should also be targeted.
Amendment 136 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to be able to channel support to the European economy through the European Investment Fund (EIF),ensure a stable and sustainable economic recovery across the Union, political meddling with investment decisions should be avoided, therefore the Commission should be in a positionnot be allowed to participate in one or more possible capital increases of the EIF in order to allow it to continue supporting the European economy and its recovery. The Union should be able to maintain its overall share in the EIF capital. A sufficient financial envelope to this effect should be foreseen in the revised Multiannual Financial Framework for the current perioduropean Investment Fund (EIF). The Union should gradually and swiftly decrease its overall share in the EIF capital.
Amendment 137 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to be able to channel support to the European economy through the European Investment Fund (EIF), the Commission should, after obtaining the opinion of the European Parliament, be in a position to participate in one or more possible capital increases of the EIF in order to allow it to continue supporting the European economy and its recovery. The Union should be able to maintain its overall share in the EIF capital. A sufficient financial envelope to this effect should be foreseen in the revised Multiannual Financial Framework for the current period.
Amendment 180 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8
Article 1 – paragraph 1 – point 8
Regulation (EU) 2015/1017
Article 8 – paragraph 3
Article 8 – paragraph 3
Notwithstanding the first paragraph, only companies established in a Member State and operating carrying out the majority of their activities within the Union can be supported by the financing and investment operations under the solvency support window.
Amendment 190 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) 2015/1017
Article 9 – paragraph 2 a – point a
Article 9 – paragraph 2 a – point a
(a) target thaim to determine at at least 40 % of EFSI financingater stage a reasonable share of the financing of the EFSI, which is difficult to quantify at present, under the infrastructure and innovation window support project components that contribute to climate action, in line with the commitments made at the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21). EFSI financing for SMEs and small mid- cap companies shall not be included in that computation. The EIB shall use its internationally agreed methodology to identify those climate action project components or cost shares;