No L 71/34 Official  Journal of the European Communities 14. 3. 87 COUNCIL DECISION of 9 March 1987 empowering the Commission to borrow under the New Community Instrument for the purpose of promoting investment within the Community (87/182/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parli- ament (%), Having regard to the opinion of the Economic and Social Committee (%), Whereas the Community’s investment financing facilities should continue to operate, with a view to correcting structural shortcomings in the production system and increasing the pace of economic growth so as to slow down the disturbing trend of unemployment; Whereas loan applications already approved by the Commission account for over two thirds of the borrowing authorized by the Council in Decision 83/200/EEC (¥); Whereas, within the framework of this Decision, action under the New Community Instrument, as last defined by Decision 83/200/EEC, should be concentrated in favour of small and medium-sized enterprises ; Whereas such action will help to achieve the Commu- nity’s objectives regarding the reduction of regional dispa- rities ; Whereas it is vital in order to strengthen the Commu- nity’s technological base and industrial competitiveness to encourage the innovative capacity and commercial dyna- " mism of undertakings ; Whereas investment by small and medium-sized underta- kings involving the application of new technologies and innovation has features which raise special financing problems ; Whereas special financing arrangements should conse- quently be provided for to deal with such problems, in particular by extending the financing base and by encou- raging the supply of equity funding from financial inter- mediaries ; Whereas the New Community Instrument must make a contribution to the implementation of the Integrated Mediterranean Programmes ; () OJ No C 163, 3. 7. 1985, p. 4 (% OJ No C 343, 31. 12. 1985, p. 126. % O] No C 303, 25. 11. 1985, p. 12. () OJ No L 112, 28. 4. 1983, p. 26. Whereas the Commission should therefore be empowered to borrow amounts enabling it to grant loans of up to 750 million ECU in principal ; Whereas the European Investment Bank (hereinafter referred to as the ‘Bank’) has stated that it is willing to contribute to the implementation of this measure, and to take responsibility for managing the cash holdings for carrying out the lending operations, it being understood that the discharge and audit procedures shall be exclusi- vely those provided for in the Bank’s Statute in respect of all its operations, HAS DECIDED AS FOLLOWS: Article 1 The Commission shall be empowered to borrow, on behalf of the European Economic Community under the New Community Instrument, amounts enabling it to grant loans of up to the equivalent of 750 million ECU in principal. Article 2 The proceeds of the borrowings referred to in Article 1 shall be on-lent to finance investment projects that contribute to the industrial adjustment and the competiti- veness of the Community, in particular by means of the application of new technologies and innovation. These projects, to be carried out in Community territory, must be such that they serve the Community’s priority objectives relating to the financing of investment by small and medium-sized undertakings in industry and other productive sectors taking into account #nter alia their regional impact and the need to combat unemployment. Article 3 The Commission shall decide whether or not projects are eligible in accordance with the following priorities and guidelines : — the investment projects of small and medium-sized enteerprises in industry and other productive sectors, in particular with a view to the application of new technologies and innovation and to improving the rational use of energy shall be eligible ; the projects of small enterprises shall have priority;