The report by Christian Ehler (EPP, German) on the implementation of the European Innovation Council (EIC), which is highly critical of the EIC’s governance, was adopted on 26 October by the European Parliament’s Committee on Industry, Research and Energy (ITRE) with 56 votes in favour and 2 abstentions. Compromise Amendment 1 was also adopted.
The report states that the European Commission’s Directorate-General for Budget wanted to distance the EIC Fund from the European Commission. The report opposes the Commission’s interpretation that the EIC Fund should be managed indirectly and the fact that the Commission is now proposing that only the share of equity investments be managed indirectly.
The report raises other issues, such as whether the EIC should be the sole investor in a company if the market does not want to take on risk. For the rapporteur, this is explicitly allowed by the Horizon Europe legislation. However, according to the rapporteur, there is a tendency for EIC support in the form of equity investments to be made conditional on the beneficiary obtaining appropriate financing and a lead investor in the markets.
The report recommends that the Commission adopt a governance approach for the EIC which should include: - the continued role of the Investment Committee and the EIC Fund Board (relying on the European Investment Bank and external fund managers for day-to-day portfolio management); - an investment strategy for equity investments based on qualitative milestones; - an exit strategy for equity investments in line with EU objectives.
In addition, the report recommends that an independent body be set up no later than 2025 as the main body responsible for implementing the EIC.
Link to the report: https://aeur.eu/f/3sw
Link to the amendment: https://aeur.eu/f/3sz (Original version in French by Émilie Vanderhulst)