The European Parliament adopted by 546 votes to 96,
with 30 abstentions, a resolution on the proposal for a Council
regulation establishing a facility for providing financial
assistance for Member States whose currency is not the
Euro.
Members welcome the balance of payments (BoP) proposal
as a first step towards achieving a level playing field between
euro area and non-euro area Member States. They regret that the
Commission did not conduct a wide consultation before the adoption
of the BoP proposal and that a number of amendments are needed
in order to achieve an acceptable outcome.
Consequently, the European Parliament asks the Council
and the Commission to take account of the following requests
before submission of the draft Regulation for consent of the
European Parliament:
Clarity of the procedures: the resolution demands more clarity in some central
concepts of the proposal and seeks to introduce procedures for
financial assistance that are both clear, fair and do not impose
unnecessary consultations where these are not warranted.
Furthermore, the role of the EU budget as the ultimate
collateral in the financial assistance granted under this
regulation should be reflected in appropriate procedures of
accountability towards the European Parliament.
In this context, the resolution recommends the
following:
- the Commission should present appropriate solutions
beyond existing provisions as to how Parliament's budgetary
oversight role of the Union budget could be more substantially
taken into account in the BoP proposal and implemented so as to
allow for true accountability;
- since the EFSM will soon be discontinued in light of
the entry into force of the ESM Treaty, the outstanding funding
capacity in the EFSM (approximately EUR 10 000 million) could be
transferred to the BoP facility, which would increase its firepower
from EUR 50 000 million to EUR 60 000 million. Upon the
discontinuation of the EFSM, the remaining EFSM capacity will no
longer be used in the EFSM framework and could be used from then
onwards under the BoP facility;
- no effective link or material conditionality should be
established between the BoP facility and the use of structural
funds in the BoP proposal; conditions relating to the use of
structural funds should, if needed, be addressed in the relevant
Cohesion Policy legislative act;
- on the consultation requirement with the
Commission where financial assistance outside the Union is
sought, should not apply to a Member State receiving financial
assistance on a precautionary basis in the form of a credit line
which is not conditioned to the adoption of new policy measures by
the concerned Member State, as long as the credit line is not
drawn;
- it is necessary to enhance the transparency and
accountability within the enhanced surveillance process by
adapting the economic dialogue in a way that allows the relevant
national parliament as well as the European Parliament to invite
the Commission, the Council, the European Central Bank (ECB) and
the International Monetary Fund (IMF) for an exchange of
views;
- the Commission should present its draft
recommendation to grant a loan to a Member State together with
the draft macroeconomic adjustment programme to the European
Parliament;
- regarding the conditions and the procedures for
granting loans, the European Central Bank (ECB) should have
less involvement in the preparation of the adjustment
programmes;
- more clarity and more precise guidelines
are needed as regards conditions for granting a
enhanced conditions credit line (ECCL), of the BoP proposal
as to the thresholds and criteria of the assessment at which a
Member State is no longer eligible for a precautionary conditioned
credit line (PCCL), but still eligible for a ECCL;
- more clarity and specifications are required for the
elaboration and assessment of the macroeconomic adjustment
programme, particularly regarding
policy and procedural requirements aiming at re-establishing a
sustainable balance of payments position and at restoring its
capacity to finance itself fully on the financial
markets.
Bank recapitalisation:
the European Stability Mechanism (ESM), which was established in
October 2012, is the main support mechanism for euro area Member
States, with a lending capacity of EUR 500 000 million, provided by
subscribed capital; whereas the ESM will, in the future, under
certain conditions, be able to fund banks in difficulties directly.
The BoP proposal does not provide for Member States whose currency
is not the euro to benefit from financial instruments which are
fully comparable to those within the ESM at their disposal. This
report seeks therefore to establish an indirect bank
recapitalisation instrument for non-euro Member States,
particularly in light of the potential participation of these
Member States in the upcoming single supervisory mechanism and of
the need to provide them with a fiscal backstop. That indirect
instrument would take the form of a loan for bank recapitalisation,
alongside the three existing instruments for financial assistance
under the BoP (PCCLs, ECCLs and loans).
Other than the indirect bank recapitalisation
instrument above, the possibility of changing the ESM treaty
and of allowing non-euro Members States, participating in the
single supervisory mechanism, to benefit from the bank
recapitalisation tool of the ESM could be considered provided that
participation in the single supervisory mechanism and the ESM is
permanent and provides for the same rights and obligations as for
euro Member States. In that case, the Member States would make a
capital contribution specifically to the bank recapitalisation
instrument of the ESM.
Streamlining the BoP proposal with the provisional
agreement of the two-pack: whilst welcoming the final agreement of the
Parliament and the Council negotiating teams on the substance of
the Gauzès report, Parliament stresses that it is important
that the Regulation be adopted on the basis of the BoP proposal and
that it reflects the current state of play, in particular as
regards:
- transparency of
Commission decisions;
- specifications concerning the reinforcement of the
efficiency and the effectiveness of revenue collection capacity and
the fight against tax fraud and evasion, with a view to
safeguarding tax revenues;
- parameters to take into account when subjecting a
Member State to enhanced surveillance;
- transparency and accountability to European Parliament
and where relevant to the national parliaments;
- specifications regarding the evaluation on the
government debt sustainability analysis, including disclosure
requirements;
- comprehensive audit of a Member State’s public
finances within the macroeconomic adjustment programme;
- regular communication of the review mission assessment
in post-programme surveillance to the competent committee of the
European Parliament and to the parliament of the Member State
concerned, including the possibility to conduct an economic
dialogue;
- reverse qualified majority voting in the Council
regarding corrective measures under post-programme
surveillance.
Lastly, Parliament requests, in the interest of
transparent decision-making, that the Council and the Commission
await the adoption of this interim report before adopting the
regulation on the basis of the BoP proposal.