Decision No 562/2014/EU on the participation of the European Union in the capital increase of the European Investment Fund

What it is

to enable the purchase of 450 additional shares in the European Investment Fund in the context of a capital increase of the EIF. PROPOSED ACT: Decision of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: the European Investment Fund (EIF) was founded in 1994 to stimulate sustained and balanced growth within the Community. Its statutory goal to support EU policies has been reflected in the exceptional growth of both equity investments and guarantees during the recent crisis. Following the capital increase of the EIF in 2007, the subscribed capital amounts to EUR 3 billion divided into 3 000 shares each with a nominal value of EUR 1 million. The paid-in capital of the EIF is currently EUR 600 million (i.e. 20 % of subscribed capital). The Committee on Budgets adopted the report by Eider GARDIAZÁBAL RUBIAL (S&D, ES) on the proposal for a decision of the European Parliament and of the Council on the participation of the European Union in the capital increase of the European Investment Fund (EIF). The parliamentary committee recommended that the position adopted by the European Parliament at first reading under the ordinary legislative procedure should amend the proposal so as to provide that the Commission monitor how the objective of the Decision has been achieved and present two reports to the European Parliament and to the Council: an interim report by 31 December 2016 and a final report by 31 December 2018. The European Parliament adopted by 547 votes to 22, with 10 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council on the participation of the European Union in the capital increase of the European Investment Fund. Parliament adopted its position at first reading following the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement reached between the European Parliament and the Council. They amended the proposal as follows: Aim : this Decision aims to increase the European Investment Fund support of actions which complement Member States' actions in favour of enterprises, particularly small and medium-sized enterprises. Reports : the Commission should monitor how the objective of the Decision has been achieved and present two reports to the European Parliament and to the Council, an interim report by 31 December 2016 and a final report by 31 December 2018. LEGISLATIVE ACT: Decision No 562/2014/EU of the European Parliament and of the Council on the participation of the European Union in the capital increase of the European Investment Fund. CONTENT: the European Investment Fund (EIF) was founded in 1994 to stimulate sustained and balanced growth within the Community. Following the capital increase of the EIF in 2007, the subscribed capital amounts to EUR 3 billion divided into 3 000 shares each with a nominal value of EUR 1 million with a ratio of 20 % of the capital paid-in. The Union, represented by the Commission, participated in the previous increase of the…

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