BETA

4 Amendments of Damien ABAD related to 2010/0395(COD)

Amendment 356 #
Proposal for a regulation
Part 1 – article 57 – paragraph 2 – subparagraph 1 – introductory part
To this effect, the entities and persons referred to in paragraph 1 shall, in accordance with the principle of proportionality and with standards accepted by the European Union or, where such are not so, internationally accepted standards and defined in the agreement entrusting the certain specified implementation tasks:
2011/06/17
Committee: BUDG
Amendment 423 #
Proposal for a regulation
Part 1 – article 130 – paragraph 1
1. For the purpose of this Regulation, ‘financial instruments’ shall mean Union measures of financial support provided from the budget where this is expressly authorised in a basic act in order to address aone or more specific policy objectives by way of loans, including loans with interest rate rebates, guarantees, equity or quasi-equity investments or participations, or other risk-bearing instruments, possibly combined with grants. where appropriate facilitated by the Union through risk-sharing instruments. The basic act shall expressly state the type of financial instruments permitted for use in the achievement of the policy objective. The risk exposure resulting from the implementation of financial instruments shall in all cases be pre-defined and their limits expressly set by the budgetary authority. The following definitions shall apply: (a) 'loan' means an agreement which obliges the lender to make available to the borrower a sum of money in the agreed amount. The borrower is obliged to repay the loan made available to him at the due date. Usually the borrower is obliged to pay interest owed; (b) 'interest rate rebate' means a subsidy on the interests of loans; (c) 'guarantee' means a written commitment to be responsible for the debt of a third party in an event of default; (d) ‘equity investment’ means the provision of capital to a firm, invested directly or indirectly through investment fund in return for partial ownership of that firm or that fund where, in addition, the investor may assume some management control of the firm or the fund and may share in future profits; (e) ‘quasi-equity investment’ means a type of financing that involves a mix of equity and debt, where the equity allows investors to achieve a high rate of return upon the success of the company or where the debt component entails a premium price contributing to the return of the investor (e.g. mezzanine debt or subordinated debt); (f) ‘risk-sharing instrument’ means a financial instrument which guarantees the total or partial coverage of a defined risk, if possible in exchange for an agreed remuneration; where one or several public entities co-participate in an operation covered by a risk-sharing instrument, the risk shall be borne in equal shares.
2011/06/17
Committee: BUDG
Amendment 426 #
Proposal for a regulation
Part 1 – article 130 – paragraph 3
3. The Commission may implement financial instruments in direct management mode, or in indirect management mode by entrusting tasks to the entities referred to in points (iii), (iv) and (ivi) of Article 55(1)(b). The statute and nature of the operator to which the management is entrusted should be defined in the basic act.
2011/06/17
Committee: BUDG
Amendment 429 #
Proposal for a regulation
Part 1 – article 131 – paragraph 1 a (new)
1a. Financial instruments shall comply with the following principles: (a) added value of the Union's intervention, which means that financial instruments shall only be implemented at Union level, where their objectives, in particular by reason of its scale or effects, can be better achieved at Union level than at Member State level; (b) they shall be implemented in order to address sub-optimal investment situations, which have proven to be financially viable, including innovation risk or market failures that give rise to insufficient funding from market sources, in which case the legal basis shall expressly by means of referring to a rating grade or a maximum net yield, limit the risk of the operations so funded; (c) additionality, which means that financial instruments of the Union shall not aim at replacing those of a Member State, private funding or another financial intervention; (d) financial instruments shall be implemented in a way which does not distort competition in the internal market; They should take a fully market-oriented approach and in practice operate as a “well informed” investor; (e) they shall have a multiplier effect, which means that the Union contribution to a financial instrument shall mobilise a global investment exceeding the size of the Union contribution by a target leverage pre-defined in the basic act. The Commission shall report to the budgetary authority, if the pre-defined target leverage has not been achieved by the mid-term duration foreseen for a respective financial instrument and propose remedial measures; (f) the administrative rules and expenditure incurred for their implementation shall be proportionate and transparent so as not to act as a deterrent to entities referred to in points (iii), (iv) and (vi) of Article 55(1)(b) that may be entrusted with indirect management tasks; (g) appropriate measures shall be put in place to ensure that the entrusted entity has aligned interest, which means that when implementing financial instruments, the Commission shall ensure that there is a common interest in achieving the policy objectives defined for a financial instrument, possibly fostered by provisions such as co-investment requirements or financial incentives, while preventing conflict of interest with other activities of the entrusted entity. The basic act shall make provisions for the conditions set out in points (a), (b), (c), (e), (f) and (g). The European Parliament shall be regularly informed of the implementation practice at managerial level, who shall also be invited to meetings of its competent committees, where the implementation is entrusted to entities under Article 55(1)(b)(iii), (iv) and (vi).
2011/06/17
Committee: BUDG