13 Amendments of Dimitrios PAPADIMOULIS related to 2020/0106(COD)
Amendment 58 #
Proposal for a regulation
Recital 1
Recital 1
(1) Based on its spring 2020 economic forecast, 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 significantly 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. Moreover, the Commission’s summer 2020 economic forecast projects a significantly greater contraction of the EU economy in 2020 and a less robust recovery in 2021 than initially predicted, leading to an even deeper recession with wider divergences. In a stress scenario, in which 2020 GDP growth would be projected at -15.5%, the direct impact on equity of all incorporated companies (listed and non-listed) in the Union could rise to EUR 1.2 trillion. If left unaddressed these capital shortfalls maywill lead to a prolonged period of lower investment and much higher unemployment. The impact of the capital shortfall will be uneven across sectors and Member States, leading to even wider divergences in the single market. This is compounded by the fact that the capacity of Member States to provide State aid differs greatly.
Amendment 69 #
Proposal for a regulation
Recital 2
Recital 2
(2) In accordance with Regulation [European Union Recovery Instrument]order to address the capital shortfall of companies, especially SMEs, and within the limits of resources allocated therein,s impact in terms of investment and employment, targeted and effective recovery and resilience measures under the solvency support window of the European Fund for Strategic Investments should be carried out as soon as possible to address the unprecedented socio-economic impact of the COVID-19 crisis. Such additional resources should be used in such a way as to ensure compliance with the time limits provided for in Regulation [EURI].
Amendment 76 #
Proposal for a regulation
Recital 3
Recital 3
(3) In order to counter the severe economic and social consequences of the Covid-19 pandemic in the Union, companies that have encountereding difficulties because of the economic crisis caused by the pandemic and thats well as micro and small companies with pre-existing difficulties that have been further aggravated due to the pandemic, which 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 81 #
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
(3a) The purpose of the Solvency Support Instrument is to help companies to overcome this difficult period so that they are in a position to carry the recovery, to safeguard employment levels, and to counter-balance the expected distortions in the single market, given that not all companies have, by definition, the same level of access to market financing and certain Member States may not have sufficient budgetary means available to provide adequate support to companies in need. The possibility of national solvency support measures for companies may therefore differ substantially across Member States and sectors and lead to an uneven playing field. Furthermore, as there is a considerable risk that the impact of the COVID-19 outbreak will be long- lasting and to a certain extent, unpredictable, this lack of capacity to help viable companies can lead to systemic distortions, creating new disparities or cementing existing ones. Given the strong interdependence of the Union economy, an economic downturn in one part of the Union or in a specific sector would have negative spill-over effects on cross-border supply chains or on other sectors, respectively, and therefore on the Union economy as a whole. Conversely, for the same reason, support in one part of the Union or in a specific sector would also have positive spill-over effects on cross- border supply chains or on other sectors, respectively, and therefore on the Union economy as a whole.
Amendment 89 #
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 also target companies that have been newly created before the end of 2020, which have acquired or are managing assets or branches of companies in difficulty in terms of the State aid framework already at the end of 2019, provided that there has been a change in management. Micro or small enterprises that were already in difficulty on 31 December 2019 should also be eligible, subject to certain conditions, since they are eligible for State aid under the Temporary Framework for State aid measures7a. 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 availapossibility of State solvency support isand access to market financing are more limited. _________________ 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). 7aThe Communication from the Commission of 20 March 2020 on Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak.
Amendment 96 #
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4a) The Steering Board should set specific geographical and sectoral concentration limits for the solvency support window, in line with the indicators and methodology established by the Commission, in order to ensure, respectively, that the majority of the EU guarantee under the Solvency Support Instrument supports eligible companies in Member States and sectors which have been economically most adversely affected by the COVID-19 pandemic and that the majority of that guarantee supports eligible companies in Member States, where the possibility of State solvency support and access to market financing are most limited. The limits can be updated over time in view of the COVID- 19 impacts.
Amendment 123 #
Proposal for a regulation
Recital 10
Recital 10
(10) The financing and investment operations should be aligned with current policy priorities and objectives of the Union such as the European Green Deal, the Sustainable Development Goals, the Paris Agreement, the “do no significant harm” principle, the European Pillar of Social Rights, the just transition to a carbon-neutral economy by 2050 at the latest and the Strategy on shaping Europe’s digital future. Support to cross-border activities should also be targeted.
Amendment 148 #
(14a) In order to ensure accountability to European citizens, the EIB should regularly report to the European Parliament and the Council on the progress, impact and operations of the Solvency Support Instrument, in particular as regards the number of operations conducted, the geographical and sectoral coverage and the social impact, with a special focus on job positions preserved due to the access to the solvency support window. 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 183 #
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 and objectives, including the European Green Deal9, the Sustainable Development Goals, the Paris Agreement, the “do no significant harm” principle, the European Pillar of Social Rights, the just transition to a carbon-neutral economy by 2050 at the latest, the New Industrial Strategy for Europe9a and the Strategy on shaping Europe’s digital future10 , 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(2020)640 final. 9a COM(2020)102 final. 10 COM(2019)67 final.
Amendment 191 #
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 that at least 40 % of EFSI financing 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)European Green Deal, the Paris Agreement and the “do no significant harm” principle. 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;
Amendment 198 #
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 c
Article 9 – paragraph 2 a – point c
(c) ensure that the majority of EFSI financing under the solvency support window is utilised to support eligible companies in Member States and sectors where the availapossibility of State solvency support isand access to market financing are more limited.
Amendment 214 #
Proposal for a regulation
Article 1 – paragraph 1 – point 24 – point -a (new)
Article 1 – paragraph 1 – point 24 – point -a (new)
Regulation (EU) 2015/1017
Article 14 – paragraph 1 – subparagraph 2
Article 14 – paragraph 1 – subparagraph 2
(-a) in paragraph 1, the second subparagraph is amended as follows: ‘The EIAH shall be able to provide technical assistance in the areas listed in Article 9(2), in particular energy efficiency, TEN-T and urban mobility. It shall also support the preparation of climate action and circular economy projects or components thereof, in particular in the context of COP21,as well as the transition to a fair, inclusive, sustainable and carbon-neutral economy by 2050 at the latest or components thereof, in particular in the context of the European Green Deal, the Paris Agreement, the “do no significant harm” principle and the preparation of projects in the digital sector, as well as the preparation of projects referred to in the second indent of the third subparagraph of Article 5(1).’
Amendment 249 #
Proposal for a regulation
Article 1 – paragraph 1 – point 31 – point 3 a (new)
Article 1 – paragraph 1 – point 31 – point 3 a (new)
Regulation (EU) 2015/1017
Annex II – Section 8 – paragraph 1 – point a
Annex II – Section 8 – paragraph 1 – point a
(3a) In Section 8, point a is amended as follows: ‘(a) Sectoral Concentration In order to manage sector diversification and concentration of the EFSI portfolio, the Steering Board shall set indicative concentration limits in respect of the volume of operations supported by the EU guarantee at the end of the investment period. The indicative concentration limits shall be made public. The Steering Board may decide to modify these indicative limits, after consulting the Investment Committee. In that case, the Steering Board shall explain its decision to the European Parliament and to the Council in writing.The Steering Board shall set specific diversification and concentration limits under the Solvency Support Window to ensure that the respective requirements of Article 9(2a), (b) and (c) are fulfilled, whilst avoiding excessive concentration in a limited number of sectors. The Steering Board shall regularly take stock of the economic impact of the Covid-19 pandemic on Member States and sectors. On this basis, the Steering Board may decide to modify these limits, after consulting the Investment Committee. The Steering Board shall explain its decisions relating to the indicative and Solvency Support Window specific limits to the European Parliament and the Council in writing. The European Parliament and the Council may invite the Chair of the Steering Board to an exchange of views on those decisions.’