A3-0107/94

Resolution on the democratic control of the financial policy of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD)

The European Parliament,

-having regard to the statute of the European Investment Bank,

-having regard to the statute of the European Bank for Reconstruction and Development,

-having regard to the conclusions of the Edinburgh European Summit and the practical results thereof,

-having regard to the report of the Committee on Budgetary Control (A3-0107/94),

A.whereas the capital of the EIB is held by the twelve Member States of the European Community,

B.whereas the activities of the EIB involve use of its own resources, budgetary appropriations, other Community funds and budgetary guarantees,

C.whereas the EIB was constituted under the Treaty establishing the European Economic Community and forms part of the European Community's institutional framework,

D.whereas 51% of the capital of the EBRD is held by European Community institutions and the Member States of the Community,

E.whereas the EBRD and the Community have undertaken to work in close cooperation with each other including the provision by the latter of subsidies to the former,

1.Considers that the EIB forms an integral part of the European institutional and political framework, that its activities are political in nature in that they involve the use of public funds in the pursuit of public policy, and that as such they should be subject to proper democratic control; notes however that the instruments of such control do not currently exist;

2.Considers that the European Parliament has a duty, as guarantor of public policy at the European level, to ensure effective democratic control of the activities of the EIB;

3.Calls on the Commission to initiate negotiations between the EIB, the Court of Auditors, the Commission and the European Parliament with a view to empowering the Court of Auditors to carry out audits of all the activities of the EIB; calls on the Court of Auditors subsequently to produce an annual report on the activities of the EIB to be submitted to the European Parliament;

4.Notes with concern the poor functioning of the agreement between the Court of Auditors, the European Investment Bank and the Commission concerning the Court of Auditors' powers to carry out audits into operations involving budgetary funds, which has severely compromised the Court of Auditors' ability to certify budgetary operations involving the Bank; believes this problem illustrates the unsatisfactory nature of the current institutional relationships in this field;

5.Proposes the introduction of a discharge procedure in the European Parliament based on the EIB's annual report, an annual report on the EIB by the Court of Auditors and an EIB annual strategy document submitted for consultation with the European Parliament and published in advance of the relevant year; believes that this would considerably enhance democratic political control of the EIB's activities;

6.Calls on the Commission to prepare appropriate amendments to the Treaties to institute a discharge procedure for the European Investment Bank to be included in the next revision of the Treaties in 1996;

7.Emphasises its commitment to the autonomy of the EIB in day-to-day management of its affairs, and in particular as regards the allocation of loans;

8.Stresses its confidence in the professionality of the management of the EIB and in the financial strength of the Bank as a financial institution; believes that public confidence in both of these would be enhanced as a result of the proposals contained in this resolution;

9.Notes that more than half the capital of the European Bank for Reconstruction and Development is constituted by money belonging to the European Community taxpayer; believes therefore that the interests of the Community taxpayer would best be served were the Member States of the European Community to coordinate their activities in the field of budgetary control; observes that the European Parliament is the institution best placed to exercise the control function;

10.Calls on the Member States to entrust the task of budgetary control of the EBRD to the institutions of the European Community, in particular the Court of Auditors reporting to the European Parliament;

11.Welcomes the improvements in budgetary control made following the report of the EBRD's Audit Committee; requests that henceforth all reports of the Audit Committee be made available to the European Parliament;

12.Proposes to institute an annual review of the activities of the EBRD, based on a report by the Committee on Budgetary Control;

13.Instructs its President to forward this resolution to the Commission, the Council, the Court of Auditors, the European Investment Bank and the European Bank for Reconstruction and Development.