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7.7.2012 Official
Journal
of
the
European
Union L
177/1
I
(Legislative acts)
DECISIONS
DECISION No 602/2012/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 4 July 2012
on amendments to the Agreement Establishing the European Bank for Reconstruction and
Development (EBRD) extending the geographic scope of EBRD operations to the Southern and
Eastern Mediterranean
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
Bank’s region of operations to the Southern and Eastern
EUROPEAN UNION,
Mediterranean, the Southern and Eastern Mediterranean
consists of the countries that have a shoreline on the
Mediterranean, as well as Jordan which is closely inte
grated into this region.
Having regard to the Treaty on the Functioning of the European
Union, and in particular Article 212 thereof,
(3)
In response to the 2011 events in the Southern and
Having regard to the proposal from the European Commission,
Eastern Mediterranean, on 8 March 2011 the
Commission and the High Representative of the Union
for Foreign Affairs and Security Policy presented a Joint
After transmission of the draft legislative act to the national
Communication entitled ‘A Partnership for Democracy
parliaments,
and Shared Prosperity with the Southern Mediterranean’
signalling the Union’s strong political and economic
support to the region. The Joint Communication
included an option to extend the EBRD’s mandate to
Acting in accordance with the ordinary legislative procedure (
cover the countries of the Southern Neighbourhood,

1 ),
building on the EBRD’s experience over the last 20
years. The European Council of 24 and 25 March
2011 broadly endorsed the contents of that
Whereas:
Joint Communication. In its Resolution of 7 April
2011 on the review of the European Neighbourhood
Policy – Southern Dimension, the European Parliament
invited the EBRD to change its statute in order to
(1) Since
its
establishment
in
1991,
the
European
Bank
for
participate in the financial assistance process.
Reconstruction and Development (EBRD) has assisted the
Central and Eastern European countries in their transition
towards open market economies and the promotion of
private and entrepreneurial initiative. The geographic
scope of EBRD operations should be extended to the
(4)
In May 2011, the G8 leaders launched the Deauville
Southern and Eastern Mediterranean in order to
Partnership to help the countries of the Southern and
promote similar objectives. In response to the
Eastern Mediterranean in their transition towards free,
economic and political situation in countries of the
democratic and tolerant societies and called on the
Southern and Eastern Mediterranean, the EBRD has
EBRD to extend its geographic scope in order to
developed a phased approach to starting its activities
leverage its experience and support the transition of
that will take into consideration the specificity of the
those countries to embrace the principles of multi-party
region.
democracy, pluralism and market economy.
(2)
According to the Report of the Board of Directors to the
Board of Governors on the geographic expansion of the
(5) The
expansion
of
EBRD
operations
to
the
Southern
and
Eastern Mediterranean reflects support by the Union and
the international community for the hope, encouraged by
( 1 ) Position of the European Parliament of 13 June 2012 (not yet
published in the Official Journal) and decision of the Council of
the Arab Spring, for a transition in that region towards
26 June 2012.
market economies and pluralistic democratic societies.

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L 177/2
EN
Official Journal of the European Union
7.7.2012
(6)
Bearing in mind the fragility of the economies in the
(11) In carrying out its activities in the Southern and Eastern
EBRD’s new countries of operation and the social
Mediterranean, the representatives of the Union in the
inequalities which were one of the root causes of the
governing bodies of the EBRD should encourage the
turmoil of the Arab Spring, the representatives of the
EBRD to continue its close engagement with the Union
Union in the governing bodies of the EBRD should
and collaboration with civil society, as well as to develop
encourage the EBRD to broaden its focus on private-
further its close cooperation with the European
sector development, in order also to contribute,
Investment Bank and other European and international
through its financing, to the achievement of socially
public financing institutions, in order to make full use of
and environmentally sustainable societies, as elaborated
their comparative advantages. The EBRD should also
in the relevant Millennium Development Goals, and in
avoid duplicating the activities of such other public
line with Article 3(5) and Article 21 of the Treaty on
financing institutions.
European Union. In particular, the representatives of the
Union in the governing bodies of the EBRD should
encourage the EBRD’s contribution to the transition
(12) Before
the
EBRD
approves
a
potential
new
country
of
towards energy-efficient, socially inclusive, open market
operation, it should make a detailed technical assessment
economies while taking into account the social, poverty,
of the economic and political conditions existing in the
civil and human rights context.
country concerned, including: an assessment of that
country’s commitment to principles of multi-party
democracy, pluralism and market economics, as
enshrined in Article 1 of the Agreement, an assessment
(7) By
Resolutions
137
and
138,
adopted
on
30
September
of transition gaps, and a review of activities of other
2011, the Board of Governors of the EBRD voted in
international financing institutions in that country and
favour of the necessary amendments to the Agreement
of the priorities in relation to which the EBRD could
Establishing the EBRD (the ‘Agreement’), enabling it to
best make use of its unique knowledge and skills. In
expand the geographical scope of EBRD operations to the
discussing those assessments, the representatives of the
Southern and Eastern Mediterranean while maintaining
Union in the governing bodies of the EBRD should
its commitment to its existing countries of operation.
encourage the EBRD to take full account of the views
All EU Governors of the EBRD, including the Governor
of the Union.
representing the Union, voted in favour of those amend
ments.
(13) In the report that the Commission will present in
accordance with Decision No 1219/2011/EU by the
end of the fourth Capital Resources Review for the
(8) By
its
Resolution
134,
adopted
on
21
May
2011,
the
period of 2011-15, the Commission should take into
Board of Governors of the EBRD stressed that the
account the extension of the EBRD’s work in the
planned extension of the EBRD’s mandate should be
Southern and Eastern Mediterranean.
achieved without requiring additional capital
contributions from its shareholders.
(14) With respect to the EBRD’s contribution to the transition
of the prospective countries of operation in the Southern
(9) Pursuant
to
Article
56
of
the
Agreement,
the
Board
of
and Eastern Mediterranean towards well-functioning,
Governors of the EBRD is to ask all members whether
sustainable, modern market economies, the represen
they accept the proposed amendments.
tatives of the Union in the governing bodies of the
EBRD should invite the EBRD to report on its
performance annually and to conduct comprehensive
assessments of its impact on building such economies
in advance of its quinquennial capital resources reviews.
(10) The
representatives
of
the
Union
in
the
governing
bodies
of the EBRD should use their best endeavours to
encourage the EBRD to monitor its operations closely,
particularly in countries where there is a lack of political
(15) The
amendments
to
the
Agreement
should
therefore
be
accountability, where civil and human rights are infringed
approved on behalf of the Union,
or where high levels of corruption persist. Furthermore,
the representatives of the Union in the governing bodies
of the EBRD should use their best endeavours to ensure
HAVE ADOPTED THIS DECISION:
that the principles of prudential banking, transparency
and anti-fraud, as invoked in Decision No 1219/2011/EU
of the European Parliament and of the Council
Article 1
of 16 November 2011 concerning the subscription by
the European Union to additional shares in the capital of
The amendments to Articles 1 and 18 of the Agreement, which
the European Bank for Reconstruction and Development
extend the geographical scope of EBRD operations, are hereby
(EBRD) as a result of the decision to increase this capi
approved on behalf of the Union.
tal ( 1 ), are taken into account in the activities of the
EBRD in the new countries of operation.
The text of the amendments is set out in the Annex for
( 1 ) OJ L 313, 26.11.2011, p. 1.
informative purposes.

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EN
7.7.2012 Official
Journal
of
the
European
Union L
177/3
Article 2
The Governor of the EBRD representing the Union shall, on behalf of the Union, communicate to the EBRD
the Declaration of Acceptance of the amendments.
Article 3
As part of the annual report to the European Parliament, the Governor of the EBRD representing the Union
shall also report on the EBRD’s activities and operations in the Southern and Eastern Mediterranean.
Article 4
This Decision shall enter into force on the third day following that of its publication in the Official Journal of
the European Union.
Done at Strasbourg, 4 July 2012.
For the European Parliament
For the Council
The President
The President
M. SCHULZ
A. D. MAVROYIANNIS

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L 177/4
EN
Official Journal of the European Union
7.7.2012
ANNEX
AMENDMENTS TO THE AGREEMENT ESTABLISHING THE EUROPEAN BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Article 1 of the Agreement Establishing the Bank shall be amended to read as follows (new text in italics):
‘Article 1
Purpose
In contributing to economic progress and reconstruction, the purpose of the Bank shall be to foster the transition
towards open market-oriented economies and to promote private and entrepreneurial initiative in the Central and
Eastern European countries committed to and applying the principles of multiparty democracy, pluralism and market
economics. Subject to the same conditions, the purpose of the Bank may also be carried out in Mongolia and in member
countries of the Southern and Eastern Mediterranean as determined by the Bank upon the affirmative vote of not less than two-
thirds of the Governors, representing not less than three-fourths of the total voting power of the members. Accordingly, any
reference in this Agreement and its annexes to “Central and Eastern European countries”, “countries from Central and
Eastern Europe”, “recipient country (or countries)” or “recipient member country (or countries)” shall refer to
Mongolia and each of such countries of the Southern and Eastern Mediterranean as well.’
Article 18 of the Agreement Establishing the Bank shall be amended to read as follows (new text in italics):
‘Article 18
Special funds
1.
(i) The Bank may accept the administration of Special Funds which are designed to serve the purpose and
come within the functions of the Bank in its recipient countries and potential recipient countries. The full cost of
administering any such Special Fund shall be charged to that Special Fund.
(ii) For the purposes of subparagraph (i), the Board of Governors may, at the request of a member which is
not a recipient country, decide that such member qualifies as a potential recipient country for such limited
period and under such terms as may seem advisable. Such decision shall be taken by the affirmative vote
of not less than two-thirds of the Governors, representing not less than three-fourths of the total voting
power of the members.
(iii) The decision to allow a member to qualify as a potential recipient country can only be made if such
member is able to meet the requirements for becoming a recipient country. Such requirements are those
set out in Article 1 of this Agreement, as it reads at the time of such decision or as it will read upon the
entry into force of an amendment that has already been approved by the Board of Governors at the time
of such decision.
(iv) If a potential recipient country has not become a recipient country at the end of the period referred to in
subparagraph (ii), the Bank shall forthwith cease any special operations in that country, except those
incident to the orderly realisation, conservation and preservation of the assets of the Special Fund and
settlement of obligations that have arisen in connection therewith.
2. Special
Funds
accepted
by
the
Bank
may
be
used in its recipient countries and potential recipient countries in any
manner and on any terms and conditions consistent with the purpose and functions of the Bank, with the other
applicable provisions of this Agreement, and with the agreement or agreements relating to such Funds.
3. The
Bank
shall
adopt
such
rules
and
regulations
as
may
be
required
for
the
establishment,
administration
and
use of each Special Fund. Such rules and regulations shall be consistent with the provisions of this Agreement,
except for those provisions expressly applicable only to ordinary operations of the Bank.’

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Document Outline

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