Source: European Parliament
As the Honourable Members correctly point out, in line with the applicable legal framework approved by the co-legislators, budgetary guarantees such as those underpinning the European Fund for Strategic Investments[1] and the InvestEU Fund[2] are granted for investments based on their alignment with EU policy priorities and their additionality.
Where such guarantees are implemented in indirect management, implementing partners are fully responsible to enforce contract terms, in accordance with their own rules and procedures, including during legal insolvency proceedings. This includes measures to minimise losses for the relevant partner and the EU guarantee.
The Commission provides annual reports on guarantee calls in the aggregate at the end of each financial year in accordance with Articles 250 and 217 of the Financial Regulation[3], and any loss from the relevant guarantees will be reported in that context, with due account to the necessary protection of commercially sensitive information.
The Commission carries out annual evaluations of the adequacy of the provisioning for budgetary guarantees given expected losses.
If the Commission has evidence that such provisioning is inadequate, it is prepared to take remedial action in line with Article 217 of the Financial Regulation.
However, over the last decade no remedial action has been necessary and, looking ahead, no such action appears likely since losses experienced remain in line with expectations.
In general, the Commission gives top priority to a viable battery ecosystem in the EU. The recently announced ‘Battery Booster’ will support that ecosystem notably through dedicated financing and demand-side measures, favouring EU production and diversification of supplies.