NOTE:Text in orange proposed by Social Platform.
Text in red proposed by the EP EC0Nand BUDG Committee rapporteurs in document PE551.765v01-00.
Text in green proposed by the EP EMPL Committee rapporteur in document PE549.263v01-00 and strongly supported by Social Platform.
Proposal for amendment / (1)Article 1 – paragraph 1 – subparagraph 2
Text proposed by Commission
The purpose of the EFSI shall be to support investments in the Union and to ensure increased access to financing for companies having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement'). / Text proposed by Social Platform
The purpose of the EFSI shall be to support public and private investments in the Union and to ensure increased access to financing for companies, social economy enterprises and service providers having up to 3000 employees, with a particular focus on small and medium enterprises, through the supply of risk bearing capacity to the EIB ('EFSI Agreement'). The overall objective of the EFSI shall be to promote and guarantee sustainable, inclusive and long-term growth and quality job creation as well as social inclusion in the Union.
Justification for this proposal:
Adding “public and private” would make it more explicit that both public and private actors can benefit from the EFSI.
Adding social economy enterprises and service providers would ensure the EFSI supports access to financing for all economic operators.
Adding “inclusive” and “social inclusion” would better align the article with the objective of Europe 2020 to support employment, productivity and social cohesion in Europe, which is also in line with recital 4.
Proposal for amendment / (2)
Article 3 – paragraph 2 - subparagraph2(NEW)
Text proposed by Commission+ Rapporteurs
2. For as long as the only contributors to the EFSI are the Union and the EIB, the number ofthe Steering Board shall comprise fourmembers:three appointed by the Commission and one by the EIB.and votes within The Steering Board shall be allocated based on the respective size of contributions in the form of cash or guarantees elect a Chairperson from among its members for a renewable fixed term of three years. / Text proposed by Social Platform
2. For as long as the only contributors to the EFSI are the Union and the EIB, the number ofthe Steering Board shall comprise four members:three appointed by the Commission and one by the EIB.and votes within The Steering Board shall be allocated based on the respective size of contributions in the form of cash or guarantees elect a Chairperson from among its members for a renewable fixed term of three years.
Steering Board members from the Commission shall include representatives with proven expertise in employment and social policies.
Justification for this proposal:
These representatives should make sure that the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support, are consistent with the EU’s policy priorities and in particular the improvement of employment rates, the reduction unemployment as well as of poverty and social exclusion, and tackling all forms of discrimination.
Proposal for amendment / (3)
Article 3 – paragraph 5 – subparagraph 2
Text proposed by Commission
The Investment Committee shall be composed of sixeight independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance andstructuring and project financing, as well as macroeconomic expertise. The Investment Committee shall have a pluridisciplinary composition encompassing a broad range of expertise in various sectors, such as research and development, transport and SMEs. It shallbe appointed by the Steering Board for a renewable fixed term of three years. / Text proposed by Social Platform
The Investment Committee shall be composed of sixeight independent experts and the Managing Director. Independent experts shall have a high level of relevant market experience in project finance andstructuring and project financing, as well as macroeconomic expertise. The Investment Committee shall have a pluridisciplinary composition encompassing a broad range of expertise in various sectors, such as research and development, transport and SMEs. A specialist in social policies shall be appointed as one of the independent experts in the Investment Committee. This expert shall be responsible for assessing the social impact of submitted projects to ensure that those receiving support from the fund are supporting the social objectives of the EU and benefit society as a whole. The Investment CommitteeIt shallbe appointed by the Steering Board for a renewable fixed term of three years.
Justification for this proposal:
The social impact of every project should be assessed, with the support of a social expert in the Investment Committee, to ensure that projects brings both economic and societal added value, which has been expressed to be the aim of the EFSI (Recital 14). This proposal is in line with the amendment in the draft ECON/BUDG report requiring the Investment Committee to have a pluridisciplinairy composition.
Proposal for amendment / (4)
Article 5 – paragraph 2 – subparagraph 1
Text proposed by Commission+ Rapporteurs
The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5) or EIBfunding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2). The operations concerned shall be consistent with Union policies and support any of the following general objectivesand approved by the Investment Committee referred to in Article 3(5): / Text proposed by Social Platform
The EU guarantee shall be granted for EIB financing and investment operations approved by the Investment Committee referred to in Article 3(5)or EIBfunding to the EIF in order to conduct EIB financing and investment operations in accordance with Article 7(2)and approved by the Investment Committee referred to in Article 3(5). The operations concerned shall be consistent with Union policies, contribute to achieving the objectives of Europe 2020 and support any of the following general objectives:
Justification for this proposal:
This amendment reflects the aim expressed already in the Investment Plan for the EFSI to be in line with and support Europe 2020.We do however support Amendment 40 of the Rapporteurs regarding Art 5 para 2 a (a) and therefore only put forward this suggestion on para 2, sub 1 to serve as an alternative in casethe amendment of the Rapporteurs is not adopted by the Committee.
Proposal for amendment / (5)
Article 5 – paragraph 2 – subparagraph 1 – point b
Text proposed by Commission
(b) investment in education and training, health, research and development, information and communications technology and innovation; / Text proposed by Social Platform
(b) investmentin the social field including social protection, social and care services, and the social economy, in education and training, health, research and development, information and communications technology and innovation;
Justification for this proposal:
Investment in the social field should go beyond building social infrastructure if it is to achieve long-term and sustainable results.Such investments will both generate more job creation and support people’s participation in the economy and in society as a whole.
Proposal for amendment / (6)
Article 5 – paragraph 2 – subparagraph 1 – point e a (NEW)
Text proposed by the Commission / Text proposed by Social Platform
(ea) investments in sectors with high job-creation potential, focusing on long-term and sustainable effects, including the social, health and care sectors as well as the social economy.
Justification for this proposal:
It was one of the initial aims of the Investment Plan for Europe and of the EFSI to support investment for job creation and this amendment is a concrete translation of this aim.
The social, health and care sectors and the social economy have a particularly great job creation potential that will only expand in the years to come.
Proposal for amendment / (7)
Article 5 – paragraph 2 – subparagraph 2 a(a) (new)
Text proposed by the Commission / Text proposed by Social Platform
a) the pursuit of the Union objective of the Europe 2020 Strategy of smart, sustainable, long-term and inclusive growth and having high societal and economic value, the highest possible positive impact on quality job creation and social inclusion, and EU added value;
Justification for this proposal:
We very much support amendment 40 of the Rapporteurs regarding Art 5 para 2 a (a) as it reflects the need for the EFSI to be in line with the Europe 2020 objective of smart, sustainable and inclusive growth. Social Platform’s suggestion for amendment is meant to make this reference more explicit as well asto include the Europe 2020 objective to support social cohesion next to job creation.
Proposal for amendment / (8)
Article 5 – paragraph 2 – subparagraph 2b(NEW)
Text proposed by the Commission / Text proposed by Social Platform
To guide the selection of projects that the EFSI can support, the Steering Board shall include social and equality preconditions in the strategic orientation, in the guidelines on the strategic asset allocation, and in the operating policies and procedures, including the investment policies.
Justification for this proposal:
This requirement will make sure that the strategic orientation, the strategic asset allocation and operating policies and procedures, including the investment policy of projects that EFSI can support – determined by the Steering Board - are consistent with the EU’s policy priorities. It should lead to the selection of projects that are consistent with EU’s social policy priorities, including the reduction of poverty and social exclusion, and tackling all forms of discrimination.
Proposal for amendment / (9)
Article 10 – paragraph 2 (g) (NEW)
Text proposed by Commission / Text proposed by Social Platform
(g) an assessment of the contribution to the Union’s social and equality objectives, in particular regarding quality job creation and the Europe 2020 Strategy targets for employment, education and poverty reduction.
Justification for this proposal:
This would ensure the EFSI is supporting projects in line with all EU policies, including social and equality policies.
Proposal for amendment / (10)
Recital 4
Text proposed by Commission
(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further action is required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects. / Text proposed by Social Platform
(4) Throughout the economic and financial crisis, the Union has made efforts to promote growth, in particular through initiatives set out in the Europe 2020 strategy that put in place an approach for smart, sustainable and inclusive growth, unfortunately with an insufficient impact on employment and poverty levels. The European Investment Bank ('EIB') has also strengthened its role in instigating and promoting investment within the Union, partly by way of an increase in capital in January 2013. Further and complementary action is thus required to ensure that the investment needs of the Union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects, with a strong focus on their growth- and quality job-creation potential, and their benefit to society as a whole.
Justification for this proposal:
This amendment brings the recitalbetter in line with the objectivesof the Investment Plan as well as of Europe 2020 to support employment, productivity and social cohesion in Europe.
Proposal for amendment / (11)
Recital 10
Text proposed by Commission
(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing. It is intended that increased access to financing should be of particular benefit to small and medium enterprises,. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion. / Text proposed by Social Platform
(10) The purpose of the EFSI should be to help resolve the difficulties in financing and implementing productive investments in the Union and to ensure increased access to financing with the aim of generating growth, and quality jobs and social inclusion. It is intended that increased access to financing should be of particular benefit to small and medium enterprises, which represent 99 % of businesses in the Union, and employ more than 90 million workers in the Union and include social economy enterprises. It is also appropriate to extend the benefit of such increased access to financing to mid-cap companies, which are companies having up to 3000 employees. Overcoming Europe's current investment difficulties should contribute to strengthening the Union's economic, social and territorial cohesion.
Justification for this proposal:
This amendment would help ensure the EFSI to be in line with the objective of Europe 2020 to support growth, employment, productivity and social cohesion in Europe.
The social economy, as a sustainable businessmodel, has already often proven to generate both economic, environmental and social return, including regarding their job creation potential. The size of social economy enterprises in general ranges from very small to medium.
Proposal for amendment / (12)
Recital 11
Text proposed by Commission
(11) The EFSI should support strategic investments with high economic value added contributing to achieving Union policy objectives. / Text proposed by Social Platform
(11) The EFSI should support strategic investments with high economic and social value added and job creation potential contributing to achieving Union policy objectives, especially regarding the employment, education and poverty reduction targets of the Europe 2020 strategy.
Justification for this proposal:
This amendment reflects the aim expressed already in the Investment Plan for the EFSI to bring high economic as well as societal value added, and to be in line with all the objectives of Europe 2020.
Proposal for amendment / (13)
Recital 14
Text proposed by Commission+ Rappporteurs
The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote job creation, sustainable long-term growth and competitiveness. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use. / Text proposed by Social Platform
The EFSI should target projects delivering high societal and economic value. In particular, the EFSI should target projects that promote quality job creation, long-termsustainableand inclusive growth, and competitiveness, and social inclusion. The EFSI should support a wide range of financial products, including equity, debt or guarantees, to best accommodate the needs of the individual project. This wide range of products should allow the EFSI to adapt to market needs whilst encouraging private investment in the projects. The EFSI should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money. The requirement for consistency with State aid principles should contribute to such effective and strategic use.
Justification for this proposal:
This is in line with the objective of Europe 2020 to support employment, productivity and social cohesion in Europe.
Proposal for amendment / (14)
Recital 14 a(NEW)
Text proposed by Commission / Text proposed by Social Platform
(14a) The impact of the EFSI on employment, education and poverty reduction should be systematically monitored and further encouraged, especially with a view to achieving prolonged societal gains in the form of sustainable and quality employment, and social inclusion. This should also secure a fair distribution of investment returns among investors and workers.
Justification for this proposal:
This amendment reflects the aim of the EFSI to be in line with the objectives of Europe 2020.
Social Platform is the largest civil society alliance fighting for social justice and participatory democracy in Europe. Consisting of 48 pan-European networks of NGOs, we campaign to ensure that EU policies are developed in partnership with the people they affect, respecting fundamental rights, promoting solidarity and improving lives.
Contact person:
Herlinde Vanhooydonck
Policy and Advocacy Officer
Social Inclusion and Employment
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