COUNCIL OF THE EUROPEAN UNION Brussels, 7 November 2005 13688/05 Interinstitutional File: 2004/0154 (COD) CODEC 934 ECOFIN 325 TRANS 209 ECO 120 ER 159 NOTE from: to: Subject: General Secretariat Permanent Representatives Committee/Council Proposal for a regulation of the European Parliament and of the Council determining the general rules for the granting of Community financial aid in the field of the trans-european transport networks and energy and amending Council Regulation (EC) n 2236/95 Outcome of the European Parliament's first reading (Brussels, 24 to 27 October 2005) I. INTRODUCTION The Rapporteur, Mr Mario MAURO (EPP-ED - IT), presented a report consisting of 34 amendments to the proposed Regulation on behalf of the Committee on Budgets. Various political groups tabled a further 14 amendments before the plenary session. During the debate, which took place on 25 October 2005, the Rapporteur stressed the importance of trans-european networks in meeting the Lisbon targets, reinforcing social cohesion and boosting economic growth. New Member States in particular lack sufficient cross-border networks. The Rapporteur welcomed the Commission proposal which puts in place a financial framework based on the four criteria of simplification, conditionality, selectivity/concentration, and proportionality. 13688/05 AF/psc 1
The Rapporteur further stated that the Commission was right to promote new forms of financing other than subsidies, for example guarantees for risks during the construction phase. Private capital will be necessary to secure the necessary financial resources and amendments which would introduce bureaucratic obstacles should therefore be rejected. There is already a list of priority projects and those amendments which would add new priorities should also be rejected. Amendments calling for the involvement of independent experts should also be rejected because such experts would simply duplicate the expertise which Member States already have. Speaking on behalf of the EPP/ED group, Mrs Ingeborg GRÄßLE (EPP/ED - DE) welcomed the fact that the Parliament would for the first time be part of the comitology process in deciding priority lists. She further called on the Commission to apply the reimbursement obligation arising in the event of irregularities or in the event of a project not being completed withing ten years. Speaking on behalf of the PES group, Mr Herbert BÖSCH (PES AT) expressed the broad support of his group for the Rapporteur s position. He particularly appreciated the fact that the Rapporteur had taken full account of the Lisbon targets. Past experience shows that European co-financing is essential for setting up some trans-european networks. Speaking on behalf of the Verts/ALE group, Mr Sepp KUSSTATSCHER (Verts/ALE IT) argued that the current high levels of traffic are environmentally unsustainable. Rail freight should be prioritised over road freight. Speaking on behalf of the GUE/NGL group, Mr Jacky HIN (GUE/NGL FR) argued on environmental grounds for priority to be given to rail freight. Action is needed rather than just words, but the current proposal is very unambitious. Trans-european network projects need to be speeded up. Mr Stanisław JAŁOWIECKI (EPP/ED PL) referred to the new Member States two-fold task of not only integrating their transport systems with those of western Europe, but of also creating their own system. Mr Jałowiecki supported amendment 22 which would delete the stipulation in Article 8(3) that Community financial aid is excluded for sections of projects which receive other Community financing. He argued that amendment 22 would help the new Member States to receive necessary funding. 13688/05 AF/psc 2
Speaking on behalf of the Committee on Transport and Tourism, Mr Gilles SAVARY (PES FR) welcomed the proposed Regulation which is full of innovative ways to manage better the resources available for the trans-european networks, for example multi-annual programming, the automatic withdrawal of unused funds, the increase of intervention rates, the establishment of European coordinators, and the new financial guarantee instrument. Mr Savary nevertheless regretted the current lack of a budget and called for a tough stance in the budget negotiations. Mr Savary also argued that the Regulation s claim to finance all projects (not just priority projects, but also non-cross-border projects) is misleading because the Regulation s funding will be limited and will be concentrated on cross-border projects and on large-scale priority projects. It is necessary to explain that the Community will only intervene where there is Community added-value (mainly in large crossborder projects). Mrs Evelin LICHTBERGER (Verts/ALE AT) emphasised the importance of the common signalling system, cost-benefit analysis, respect for Community environment legislation, and cofinancing conditions. Commissioner BARROT: stressed the need of competitive economies for effective transport and energy networks. Europe is confronted with a strong but unbalanced increase in traffic, the requirement of sustainable growth and the need to integrate the networks of the new Member States. The European Community can add value by providing stable financing and in particular by creating a leverage effect when it prompts Member States to invest in cross-border projects and to co-operate better with each other; thanked the Parliament for its support for the Commission s proposal for EUR 20.35 billion for the transport networks and called on the Parliament not to reduce the Commission s proposal for EUR 340 million for the energy networks; opposed those parts of amendments 19 and 20 which would extend the exceptional 50% intervention rate to include not just priority cross-border projects, but also projects crossing natural barriers. The 50% intervention rate is intended to encourage Member States to invest in cross-border projects which would otherwise tend to be delayed. Funding is limited and the 50% intervention rate cannot be applied to all projects. It would be wrong to divert Community funds to projects crossing natural barriers which are not cross-border projects; and 13688/05 AF/psc 3
opposed amendment 22 because the suppression of the principle of non-cumulation of Community aid would contradict the overall budget regulation. Different sections of the same project could still be financed by different Community instruments. II. VOTE The parliament adopted 38 amendments when it voted in plenary on 26 October 2005. With regard to the adopted amendments, the Commission: can accept 13 amendments (amendments 1-3, 5, 8-9, 11, 15, 17, 23, 27-28 and 31); can accept in principle 4 amendments (amendments 7, 25, 38 and 45); can accept in part 3 amendments (amendments 13, 41 and 46); and cannot accept 18 amendments (amendments 4, 6, 12, 14, 16, 18, 19-22, 24, 26, 29-30, 32-33, 47-48) The text of the amendments adopted and the European Parliament legislative resolution are annexed to this note. 13688/05 AF/psc 4
Trans-European transport networks and energy ***I ANNEX (26.10.2005) European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council determining the general rules for the granting of Community financial aid in the field of the trans-european transport networks and energy and amending Council Regulation (EC) No 2236/95 (COM(2004)0475 C6-0086/2004 2004/0154(COD)) (Codecision procedure: first reading) The European Parliament, having regard to the Commission proposal to the European Parliament and the Council (COM(2004)0475) 1, having regard to Article 251(2) and Article 156 of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6-0086/2004), having regard to Rule 51 of its Rules of Procedure, having regard to the report of the Committee on Budgets and the opinions of the Committee on Industry, Research and Energy and the Committee on Transport and Tourism (A6-0283/2005), 1. Approves the Commission proposal as amended; 2. Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text; 3. Points out that the appropriations indicated in the legislative proposal beyond 2006 are subject to the decision on the next multiannual financial framework; 4. Calls on the Commission, once the next multiannual financial framework is adopted, to present, if appropriate, a proposal to adjust the financial reference amount for the implementation of the proposed regulation; 5. Instructs its President to forward its position to the Council and Commission. 1 Not yet published in OJ. 13688/05 AF/psc 5
Text proposed by the Commission Amendments by Parliament Amendment 1 RECITAL 4 A (new) (4a) In its resolution of 8 June 2005 on Policy Challenges and Budgetary Means of the enlarged Union 2007-2013 1, the European Parliament underlined the strategic importance of transport networks for final consolidation of the single market and for closer EU relations with candidate, pre-candidate and 'ring of friends' countries. Moreover it also expressed its willingness to examine innovative financing instruments such as loan guarantees, European concessions, European loans and an interest relief fund. 1 Texts adopted, P6_TA(2005)0224. Amendment 2 RECITAL 6 (6) Decision 1229/2003/EC of the European Parliament and of the Council at its meeting on 26 June 2003 establishing a number of guidelines concerning the trans-european network in the energy sector and repealing 1254/93/EC, identifies the objectives, the priorities for action and projects of common interest to supplement and develop this network, including the priority projects. Necessary investments, to make it possible for all the Member States to take part fully in the internal market and to supplement the interconnections with the neighbouring countries, are about 28 billion between now and 2013, for individual priority projects. The latter amount includes approximately 8 billion of investments to be made in third countries. (6) Decision.../.../EC of the European Parliament and of the Council laying down guidelines for trans-european energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC identifies the objectives, the priorities for action and projects of common interest to supplement and develop these networks, including the priority projects. Necessary investments, to make it possible for all the Member States to take part fully in the internal market and to supplement the interconnections with the neighbouring countries, are about EUR 28 billion between now and 2013, for individual priority projects. The latter amount includes approximately EUR 8 billion of investments to be made in third countries. (This amendment applies throughout the text). 13688/05 AF/psc 6
Amendment 3 RECITAL 10 (10) By this Regulation, it is appropriate to establish a programme determining the general rules for the granting of Community financial aid in the field of the trans- European transport and energy networks. This programme in the respect of the 'acquis communautaire', in particular as regards environment - has to contribute to the reinforcement of the internal market and have a stimulating effect on the competitiveness and growth of the Community. (10) By this Regulation, it is appropriate to establish a programme determining the general rules for the granting of Community financial aid in the field of the trans- European transport and energy networks. The purpose of this programme is to contribute to the reinforcement of the internal market and have a stimulating effect on the competitiveness, sustainable development and growth of the Community, while having due regard for the 'acquis communautaire', in particular as regards the environment. Amendment 4 RECITAL 12 (12) This programme has to be characterised by Community financial aid focused on the projects or parts of projects presenting the highest European value added and has to tend to encourage the actors to accelerate the implementation of the priority projects in the decisions concerning the guidelines as regards transport and energy, mentioned in recitals 4 and 6. This programme has to make it possible also to finance the other European infrastructure projects identified as being of common interest defined in the decisions. (12) This programme must be characterised by Community financial aid focused on the projects or parts of projects presenting the highest European added value and must seek to encourage the actors to accelerate the implementation of the priority projects in the decisions concerning the guidelines as regards transport and energy, referred to in recitals 4 and 6. 13688/05 AF/psc 7
Amendment 5 RECITAL 14 (14) The Community financial aid should be able to take several forms, namely direct subsidy, interest rebate, loan guarantee instruments, participation in the funds of venture capital and should also be able to cover specific risks following the construction phase. (14) Community financial aid should be able to take several forms, namely direct subsidy, interest rebate, loan guarantee instruments or participation in the funds of venture capital, and should also be able to cover specific risks following the construction phase. Regardless of its form, Community financial aid should be granted in accordance with the provisions of the Financial Regulation 1 and its implementing rules. 1 Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (OJ L 248, 16.9.2002, p. 1). Amendment 6 RECITAL 14 A (new) Amendment 7 RECITAL 15 (14a) The Community should recognise cross-financing of T projects by way of toll supplements as a further means of speeding up the completion of other T projects and should be careful to comply with the detailed arrangements laid down by the European Parliament and the Council. (15) For the implementation of Community financial support for large-scale projects spreading across several years, it is advisable to allow an agreement from the Community on a multi-annual basis. Indeed, only definite, attractive financial agreements, binding the Community in the long term, will allow the reduction of uncertainties connected with the carrying out of these projects and to mobilise the both public and private investors. (15) For the implementation of Community financial support for large-scale projects spreading across several years, it is advisable to allow a commitment from the Community on a multi-annual basis, differentiating by project financed, by multi-annual programme authorisation and by annual payment appropriation. Indeed, only definite, attractive financial commitments, binding the Community in the long term, will make it possible to reduce the uncertainties connected with the completion of these projects and to mobilise both public and private investors. 13688/05 AF/psc 8
Amendment 8 RECITAL 15 A (new) Amendment 9 RECITAL 18 (15a) The European Union should seek to encourage public-private forms of financing, whether institutional or contractual, which have proved to be effective, by means of legal guarantees which are compatible with competition law and the internal market, and by endeavouring to spread good practice among the Member States. (18) Given the experience gained in applying Regulation no 2236/95 and the nature of the competences given to the Commission it is appropriate to adopt the measures necessary for the implementation of this regulation in accordance with Decision nº1999/468/ec of the Council at its meeting on 28 June 1999 laying down the methods of the exercise of the executive powers conferred on the Commission. (18) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. Amendment 11 ARTICLE 2, POINT 4 (4) Beneficiary: a public or private body having the overall responsibility for the project and proposing to invest its own resources or other funds in its construction. (4) Beneficiary: a public, private or publicprivate body having overall responsibility for a project and proposing to invest its own resources or other funds in its construction. Amendment 12 ARTICLE 2, POINT 7 (7) Post construction phase risks: Risks occurring in the first years following the end of construction due to specific factors and involving reduced receipts in use of income relative to forecasts. (7) Post construction phase risks: Risks occurring in the first years following the end of construction due to specific unforeseeable factors and involving a reduction in operating revenue in relation to forecasts made by independent bodies. 13688/05 AF/psc 9
Amendment 13 ARTICLE 3, PARAGRAPH 2 2. Eligibility is subject to respect for Community policies and laws, notably in relation to competition, environmental protection, public procurement and to the effective implementation of Community provisions of interoperability of networks, in particular rail. 2. Eligibility is subject to respect for Community policies and laws, notably in relation to competition, environmental and health protection, sustainable development and public procurement, and to the effective implementation of Community policies on the multimodal linkage of networks, in particular for rail and for inland, coastal and maritime navigation, inland waterways and short sea shipping. Amendment 14 ARTICLE 3, PARAGRAPH 3 3. In the domain of transport only, eligibility is also subject to engagement by each member state concerned to the financial contribution to the projects submitted for Community financial aid while mobilising, if necessary, private funds. 3. In the field of transport only, eligibility is also subject to a commitment by each Member State concerned to ensure adequate access of the regions concerned to the network and to the financial contribution to the projects submitted for Community financial aid, including by mobilising, if necessary, private funds. Amendment 15 ARTICLE 5, PARAGRAPH 1 1. Projects of common interest shall be awarded Community aid in relation to their contribution to the objectives and the priorities defined in the framework of Decisions nº 1692/96/CE and nº 1229/2003. 1. Projects of common interest shall be awarded Community aid in relation to their contribution to the objectives and the priorities defined in the framework of the White Paper entitled 'European Transport policy for 2010: time to decide' and Decision No 1692/96/EC, as amended by Decision No 884/2004/EC, and Decision No 1229/2003/EC. Amendment 16 ARTICLE 5, PARAGRAPH 2, POINT (A) a) Projects presented jointly by at least two Member States notably in cross-frontier cases. a) Projects presented jointly by at least two Member States, notably in the cross-border sections of these cases. 13688/05 AF/psc 10
Amendments 17 and 38 ARTICLE 5, PARAGRAPH 2, POINT (E) e) To programmes for the deployment of traffic management systems for rail and its components as well as traffic management systems in the domain of air and maritime that provide for interoperability. e) Programmes for the deployment of traffic management systems for rail, in particular European rail signalling systems (ERTMS/ETCS), and its components as well as traffic management systems in the field of air, maritime, inland waterway and coastal transport that provide for interoperability. Amendment 18 ARTICLE 5, PARAGRAPH 2, POINT (E A) (new) Amendment 45 ARTICLE 5, PARAGRAPH 3 (ea) Projects which contribute to the elimination of bottlenecks and to an increase in long-distance transport connections, particularly in cross-border railway transport. 3. In the field of energy particular attention will be paid to projects that contribute to: a) the continuity of the network and the optimisation of its capacity b) the integration of the energy internal market and in particular the cross-border sections c) the security of energy supply and in particular the interconnections with the third countries d) the connection of the renewable energy resources and/or e) the safety, reliability and interoperability of the inter-connected networks 3. In the field of energy particular attention will be paid to projects that contribute to attaining the objectives and priorities set out in Decision No / /EC of the European Parliament and of the Council [laying down guidelines for trans- European energy networks and repealing Decisions 96/391/EC and No 1229/2003/EC]. In accordance with Decision No / /EC, an appropriate level of priority shall be attributed to projects declared to be of European interest. 13688/05 AF/psc 11
Amendments 19, 20 and 41 ARTICLE 7, PARAGRAPH 2, POINT (B), POINT (I) i) For Priority projects in the transport domain, a maximum of 30% of the total eligible costs of the works; exceptionally, trans-frontier sections of projects included in the T-T programme can benefit from a maximum grant rate of 50% of total eligible costs, provided that they are started before 2010 and that the Member States concerned have presented a plan to the Commission giving all the guarantees necessary regarding the financial support from the Member State and the timetable for the implementation of the project. This rate shall be adapted in relation to the benefits received by the other Member States; i) For Priority projects in the field of transport, a maximum of 30% of the total eligible costs of the works; exceptionally, cross-border sections of projects included in the T-T programme as well as the deployment of European interoperable rail signalling systems may benefit from a maximum grant rate of 50% of total eligible costs, provided that the process of their implementation has begun before 2010 and that the Member States concerned have presented a plan to the Commission giving all the guarantees necessary regarding the financial support from the Member State and the timetable for the implementation of the project; Amendment 21 ARTICLE 7, PARAGRAPH 3 3. The Commission, in conformity with the procedures set out in article 17 paragraph 2, adopts the procedures, the timetable and the amounts for the payments for the instruments referred to in paragraph 1 points b), c),d) of this article. 3. The Commission shall, in accordance with the procedures referred to in Article 17(2), adopt the procedures, the timetable and the amounts of payments for the instruments referred to in paragraph 1( b), (c) and (d). The Commission shall submit the draft implementing measures to the European Parliament in good time so that, where necessary, Parliament may deliver its opinion, in accordance with Article 8 of Decision 1999/468/EC, before the measures are adopted. Amendment 22 ARTICLE 8, PARAGRAPH 3 3. Community financial aid is excluded for sections of projects which receive other Community financing. deleted 13688/05 AF/psc 12
Amendment 23 ARTICLE 9, PARAGRAPH 1 1. The projects of common interest financed under this Regulation must be in conformity with the provisions of the Treaty, to legal acts adopted on the basis of the Treaty and to Community policies, including those concerning the protection of the environment, interoperability, competition and public procurement. 1. The projects of common interest financed under this Regulation must be in conformity with the provisions of the Treaty, with legal acts adopted on the basis of the Treaty and with Community policies, including those concerning the protection of the environment, sustainable development, interoperability, competition and public procurement. Amendment 24 ARTICLE 11, PARAGRAPH 1 1. The Commission shall establish, in conformity with the procedure established in article 17 2, a multi-annual programme and an annual programme. 1. The European Parliament and the Council shall, on a proposal from the Commission, adopt a multi-annual programme in accordance with the procedure referred to in Article 251 of the Treaty. The Commission shall establish, in accordance with the procedure referred to in Article 17(2), an annual programme. The Commission shall submit the annual programme to the European Parliament in good time before its adoption so that, where appropriate, Parliament may deliver its opinion in accordance with Article 8 of Decision 1999/468/EC. Amendment 25 ARTICLE 12, PARAGRAPH 1 1. Each project of common interest selected under the multi-annual programme, will be the subject of single Commission grant decision within the meaning of Article 17 paragraph 2. The budgetary commitment for each annual allocation is made by the Commission through a grant decision based on the evaluation of the state of progress of the projects of the estimated needs and of the available budget. 1. Each project of common interest selected under the multi-annual programme will be the subject of a single Commission grant decision within the meaning of Article 17(2). The grant decision shall state clearly the amount of appropriations committed over the whole period and the schedule for the payment of the annual appropriations by the Commission. The budgetary commitment for each annual allocation shall be made by the Commission through a grant decision based on the evaluation of the state of progress of the projects, of the estimated needs and of the available budget. 13688/05 AF/psc 13
Amendment 46 ARTICLE 12, PARAGRAPH 1 A (NEW) 1a. Transport projects which are, or are part of, a cross-border segment may be the subject of a Commission grant decision subject to the existence of a bilateral agreement between the Member States concerned on completing the cross-border project within their respective national territories. Amendment 26 ARTICLE 14, PARAGRAPH 2 2. The Member States shall undertake the monitoring and control of projects in close cooperation with the Commission and certify the reality and the conformity of the expenditure incurred under the project or the part o the project. The Member State may request the participation of the Commission for on site visits. 2. The Member States shall undertake the monitoring and control of projects in close cooperation with the Commission and shall certify the reality and conformity of the expenditure incurred under the project or the part of a project in question. Member States may request the participation of the Commission in on site visits. The Commission may also request inspections of sites and participate in them. Amendment 27 ARTICLE 14, PARAGRAPH 3 3. The Member States shall inform the Commission of the measures taken under paragraphs 2 and 3 and supply, notably, a description of the control systems, the management, and the monitoring established to ensure that the projects are undertaken correctly. 3. The Member States shall inform the Commission of the measures taken under paragraph 2 and shall supply, inter alia, a description of the control systems, the management, and the monitoring established to ensure that projects are undertaken correctly. This information shall be taken into account by the Commission when taking a decision on a possible cancellation, reduction or suspension of assistance pursuant to Article 15. 13688/05 AF/psc 14
Amendment 28 ARTICLE 15, PARAGRAPH 3 3. Following the examination provided for by paragraph 2, the Commission can reduce, suspend or cancel the aid for the project in question if any irregularities have been revealed or any of the conditions attached to the grant of aid have not been respected, notably when any important modifications have been introduced concerning the nature, or the means of undertaking the project. 3. Following the examination provided for by paragraph 2, the Commission may reduce, suspend or cancel the aid for the project in question and recover any amounts already released if any irregularities have been revealed or any of the conditions attached to the grant of aid have not been respected, notably when any important modifications have been introduced concerning the nature of, or the means of undertaking, the project. Amendment 29 ARTICLE 15, PARAGRAPH 5 5. If, ten years after the award of Community financial aid to a project, it has not been completed, the Commission can, in accordance with the principle of proportionality, request reimbursement of the aid paid, taking account all relevant facts. 5. If, ten years after the award of Community financial aid to a project, it has not been completed, the Commission shall, in accordance with the principle of proportionality, request reimbursement of the aid paid, taking into account all relevant facts. Amendment 30 ARTICLE 17, PARAGRAPH 4 4. The EIB is represented in the committee and does not take part in the voting. 4. The EIB and the European Parliament are represented in the committee and do not take part in the voting. 13688/05 AF/psc 15
Amendment 31 ARTICLE 19, PARAGRAPH 1 1. The Commission shall submit a report every three years to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions on the activities undertaken under this Regulation. The report shall contain an evaluation of the results achieved with Community aid in the various different fields of application, in terms of the original objectives, as well as a chapter on the content and the implementation of the current multi-annual programme. 1. The Commission shall submit a report every three years to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the activities undertaken under this Regulation. The report shall contain an evaluation of the results achieved with Community aid in the various fields of application, in terms of the original objectives, as well as a chapter on the content and implementation of the current multi-annual programme. The report shall also contain information on the sources of funding for each project. Amendment 32 ARTICLE 19, PARAGRAPH 2 2. The beneficiary Member States and where appropriate, beneficiaries shall ensure that suitable publicity is given to assistance granted under this Regulation in order to inform the public of the role of the Community in the implementation of the projects of common interest. 2. The beneficiary Member States and, where appropriate, beneficiaries shall ensure that suitable publicity is given to assistance granted under this Regulation in order to inform the public of the role of the Community in the implementation of the projects of common interest. Member States shall make available to the public all information on the economic, social and environmental assessments of projects that are potentially eligible for assistance under this Regulation. Amendment 33 ARTICLE 19, PARAGRAPH 2 A (new) 2a. Every year the Commission shall present to the European Parliament, together with the preliminary draft budget, a report on the financial implications arising from the existence and the activities of the European Coordinators introduced by Article 1(10) of Decision No 884/2004/EC. 13688/05 AF/psc 16
Amendments 47 and 48 ARTICLE 20, PARAGRAPH 1 1. The amount of the financial reference for the implementation of this regulation for the period 2007-2013 is 20,690 million of which 20.350 million are allocated to transport and 340 million to energy. 1. The indicative financial framework for the implementation of this Regulation for the period 2007-2013 is EUR 20 464 million of which EUR 20 350 million are allocated to transport and EUR 114 million to energy. 13688/05 AF/psc 17