Brussels, 20/09/2011 (Agence Europe) - On Tuesday 20 September, in Brussels, the EU Council of Ministers formally adopted a decision to grant a European Union guarantee to the European Investment Bank (EIB) in the event of losses resulting from loans to projects outside the EU. The text was the subject of a Council agreement on 18 July this year (see EUROPE 10421). It provides, essentially, that the maximum ceiling for EIB financing operations covered by the EU guarantee throughout the period 2007-2013 will not exceed €29.484 billion. This ceiling is divided into two: a general mandate of €27.484 billion and a mandate relating to climate change of €2 billion.
The decision adopted on Tuesday increases by almost €2 billion the current EIB global ceiling for lending outside the EU on the basis of the guarantees that the latter grants to the Bank. This amount mainly comprises the additional support of €1 billion for SMEs and infrastructure of the Mediterranean Basin, an increase advocated in turn by EIB President Philippe Maystadt, the European Parliament and High Representative Catherine Ashton, in the wake of the Arab Spring in Tunisia and Egypt.
The general mandate (outside mandate relating to climate change) is divided between the following regional ceilings and sub-ceilings: - countries in pre-accession phase: €9,048,000,000; - neighbouring and partner countries: €13,548,000,000 (of which €9,700,000,000 for the Mediterranean countries and €3,848,000,000 for Eastern Europe, the South Caucasus and Russia); - €2,912,000,000 for Latin America; - €1,040,000,000 for Central Asia; - and €936,000,000 for South Africa.
The decision adopted by the EU27 on the EU's external mandate is the result of an agreement reached at the end of June 2011 with the European Parliament, which was pronounced at first reading on a proposal made on 17 February 2011. (OL/transl.jl)