25 Amendments of Frances FITZGERALD related to 2020/0106(COD)
Amendment 62 #
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 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 and widespread business failures. 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 and solvency support differs greatly.
Amendment 63 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) The core objective of the Solvency Support Instrument is to preserve jobs and prevent widespread business failures in the Union, while also aiming to protect the Single Market and strengthen cohesion. EFSI financing under the solvency support window will address the recapitalisation needs to companies that are viable in the long-term but facing solvency risks due to the COVID-19 pandemic. The EIB should aim to maximise the amount of private investment mobilised as part of the Solvency Support Instrument, given that it is a market-based instrument as part of EFSI, in order to address the investment needs of the Union given the severe economic challenges presented by the COVID-19 pandemic.
Amendment 79 #
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, in particular SMEs, that have encountered difficulties because of the economic crisis 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 EFSI.
Amendment 83 #
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
(3a) The Solvency Support Instrument should place special emphasis on SMEs given that they represent over 99 % of businesses in the Union and their economic value is significant and crucial. SMEs have been particularly impacted by the COVID-19 crisis with up to 90% of Union SMEs reportedly impacted economically, notably in the services sector, manufacturing, construction, tourism, and the cultural and creative sectors. A core objective of the Solvency Support Instrument is to preserve jobs in the SME sector while also continuing to foster competitiveness and innovation with a focus on the green and digital economy.
Amendment 86 #
(3b) Notes that the longer the COVID- 19 pandemic continues, the greater the risk to the sustainability of European companies, particularly SMEs. Considers that as the pandemic evolves, the EU guarantee under the solvency support window may need to be increased to respond to ongoing challenges arising from the pandemic.
Amendment 92 #
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 modelbe economically viable in the long-term 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 limited, while ensuring a balanced geographical spread across the Union. _________________ 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 101 #
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4a) Support provided under the solvency support window should allow for a higher degree of risk than normal EIB operations. Support should only be provided under the Solvency Support Instrument to activities that are consistent with the Union’s policies and its Treaty- based fundamental values.
Amendment 104 #
Proposal for a regulation
Recital 4 b (new)
Recital 4 b (new)
(4b) EFSI financing under the solvency support window should focus mainly on the sectors showing the greatest share of firms facing liquidity and working capital shortfalls such as accommodation and food service activities, arts, entertainment and recreation, transportation, manufacturing, startups and newly created companies and wholesale and retail trade.
Amendment 110 #
Proposal for a regulation
Recital 5
Recital 5
(5) The EU guarantee granted to the European Investment Bank (EIB) should be increased by EUR 66 436 320 000 in order to create the third window of the EFSI – the solvency support window – under which solvency support should be provided. This figure may need to be increased further depending on how the pandemic evolves and the challenges it presents for European companies.
Amendment 117 #
Proposal for a regulation
Recital 8
Recital 8
(8) The delivery modes of the support should be flexible in view of the need of differing solutions in different Member States and in order to ensure that support can be channelled to eligible companies without bureaucratic difficulties. 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 121 #
Proposal for a regulation
Recital 9
Recital 9
(9) The Solvency Support Instrument ensures that equity funds, special purpose vehicles, investment platforms and national promotional banks and institutions shouldcan provide equity or quasi-equity (such as hybrid debt, preferred stock or convertible equity, subordinated loans, and other instruments that are particularly suitable to provide solvency support to SMEs) to eligible companies, but excluding entities targeting buy-out (or replacement capital) intended for asset stripping.
Amendment 127 #
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, the SME Strategy for a sustainable and digital Europe, and the new Industrial Strategy for a green and digital Europe. Support to cross-border activities should also be targeted.
Amendment 135 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) At least 70% of EFSI financing under the solvency support window should be earmarked for SMEs.
Amendment 142 #
Proposal for a regulation
Recital 13
Recital 13
(13) An amount of EUR 1050 000 000 should be established to support the set-up and management of investment funds, special purpose vehicles and investment platforms in Member States, in particular in those which do not have developed equity fund markets, and to support the green and digital transformation of companies financed under the solvency support window.
Amendment 147 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14a) The EIB should report regularly to the European Parliament and Council on the implementation, impact and activities of the Solvency Support Instrument in order to provide proper democratic accountability. The EIB should, in particular, provide details of the number of operations conducted, the geographical coverage across the Union, the amount of support provide to SMEs and how the Instrument aligns with the Union's priorities such as the EU Green Deal and the Strategy on Shaping Europe's Digital future. At the request of the European Parliament, the Chair of the Steering Board and the Managing Director should participate in hearings and reply to questions within a fixed period. The Commission should report annually on the situation of the guarantee fund.
Amendment 154 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EU) 2015/1017
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
(9) ‘companies’ means for the purposes of the solvency support window companies, SMEs, project companies, public- private partnerships and other legal structures.
Amendment 158 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2015/1017
Article 3 – paragraph 1 – point c
Article 3 – paragraph 1 – point c
(c) the solvency of companies established in a Member State and operating in the Union, with a particular focus on SMEs.
Amendment 167 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 Regulation (EU) 2015/1017
Article 1 – paragraph 1 – point 5 Regulation (EU) 2015/1017
However, support under the solvency support window shall only be granted if it is to the benefit of companies that are financially viable in the long-term and that were not in difficulty in State aid terms8 already at the end of 2019 but since then face significant solvency risks due to the crisis caused by the Covid-19 pandemic; _________________ 8 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 185 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) 2015/1017
Article 9 – paragraph 2 – subparagraph 3 – introductory part
Article 9 – paragraph 2 – subparagraph 3 – introductory part
The operations concerned shall be consistent with Union policies, including the European Green Deal9 and, the Strategy on shaping Europe’s digital future10 , the SME Strategy for a sustainable and digital Europe, and the new Industrial Strategy for a green and digital Europe, as well as supporting an inclusive and symmetric recovery in the aftermath of the COVID-19 pandemic, and support any of the following general objectives:’ _________________ 9 COM(2019)640 final. 10 COM(2020)67 final.
Amendment 193 #
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 – subparagraph 1 – point b
Article 9 – paragraph 2 a – subparagraph 1 – point b
(b) ensure that the majority of EFSI financing under the solvency support window is utilised to support eligible companies in Member States and sectors economically most hit by the Covid-19 pandemic while ensuring a balanced geographical spread of support across Member States. The Steering Board shall regularly monitor the geographical and sectoral coverage of support and shall update diversification and concentration limits where necessary in accordance with Annex II Section 8, point b;
Amendment 200 #
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 – subparagraph 1 – point c
Article 9 – paragraph 2 a – subparagraph 1 – point c
(c) ensure that the majority of EFSI financing under the solvency support window is utilised to support eligible companies, particularly SMEs, in Member States where the availability of State solvency support is more limited.
Amendment 203 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12 b (new)
Article 1 – paragraph 1 – point 12 b (new)
Regulation (EU) 2015/1017
Article 9 – paragraph 2 a – point c a (new)
Article 9 – paragraph 2 a – point c a (new)
(12b) In Article 9, paragraph 2a, a new point ca is added: (ca) ensure that at least 70% of EFSI financing under the solvency support window is utilised to support eligible small and medium-sized enterprises (SMEs) as defined in EU recommendation 2003/361.
Amendment 216 #
Proposal for a regulation
Article 1 – paragraph 1 – point 26
Article 1 – paragraph 1 – point 26
Regulation (EU) 2015/1017
Article 14 a – paragraph 1
Article 14 a – paragraph 1
An amount of up to EUR 1050 000 000 shall be made available for covering costs, advisory services and technical and administrative assistance to set-up and manage funds, special purpose vehicles, investment platforms and other vehicles for the purposes of the solvency support window including for support referred to in point (i) of Article 14(2) and having a special focus on Member States with less developed equity markets and on funds, investment platforms and special purpose vehicles providing support to SMEs. The technical assistance shall also be available to support the green and digital transformation of companies financed under this window, with a particular focus on SMEs.
Amendment 241 #
Proposal for a regulation
Article 1 – paragraph 1 – point 31 – point 3
Article 1 – paragraph 1 – point 31 – point 3
Regulation (EU) 2015/1017
Annex II – Section 6 – point d – indent 5
Annex II – Section 6 – point d – indent 5
– CWith the exception of SMEs as defined in EU recommendation 2003/361, companies targeted by funds, special purpose vehicles or investment platforms shall be encouragrequired to comply, to the extent possible, with minimum high- level social and environmental safeguards in line with guidance provided by the Steering Board. Such guidance should include adequate provisions for avoiding undue administrative burdens, taking into account the size of companies and including lighter provisions for SMEs. Companies with a certain level of exposure to a pre-defined list of environmentally harmful activities, in particular the sectors covered by the EU Emissions Trading System (EU ETS), shall be encouraged to put in place, in the future, green transition plans. Companies shall also be encouraged to advance in their digital transformation. Technical assistance shall be available to assist companies for the purpose of these transitions.
Amendment 251 #
Proposal for a regulation
Article 1 – paragraph 1 – point 31 – point 4
Article 1 – paragraph 1 – point 31 – point 4
Regulation (EU) 2015/1017
Annex II – section 8 – point b – subparagraph 1
Annex II – section 8 – point b – subparagraph 1
EFSI-supported operations shall not be concentrated in any specific territory at the end of the investment period concerned. To this end the Steering Board shall adopt indicative geographical diversification and concentration guidelines with the aim of ensuring a balanced geographical spread of support. The Steering Board may decide to modify these indicative limits, after consulting the Investment Committee.