Brussels, 13/07/2010 (Agence Europe) - On Tuesday 13 July in Brussels, the Ecofin Council of EU member state economy and finance ministers, agreed on the compromise proposals presented by the Belgian EU Presidency with a view to facilitating talks and a compromise with the European Parliament on reform of the financial system. The Ecofin Council strengthened the mandate given to the Presidency to negotiate, while granting it the necessary amount of flexibility regarding the wording of the texts. The amended texts contain a number of the EP's main demands, including the ban on certain toxic substances, or the role of the authorities in emergency situations, which points to the hope of a comprehensive agreement being close to hand.
Didier Reynders, Finance Minister of Belgium, said the Belgian EU Presidency will seek to bring talks on reform of the financial system to a successful conclusion during July. A trilogue (Commission, Council and EP) will be held on Wednesday 14 July and discussions will continue within Coreper. Reynders thus hopes the EP will vote in second reading on these texts in September (session on Monday 6 and Thursday 9 September). An extraordinary Ecofin Council is scheduled for 7 September.
Michel Barnier, European Commissioner, underlined that, in the Presidency's compromise proposals, there are “important elements, improvements made by the European Parliament”. “We are moving forward step by step. It is on setting up these three independent European authorities, supported by national overseers, and on the Systemic Risk Council, that the effectiveness of many other measures depends”, he explained.
The proposals presented by the Commission in autumn 2009 consist above all of: - proposals for regulations on macro-prudential surveillance of the financial system and the creation of a European Systemic Risks Committee; - draft regulations aimed at establishing a European banking authority, a European insurance and professional pensions authority and a European financial markets authority. Negotiations with the Parliament aim at their adoption during first reading, so that the European Systemic Risk Council and the three new surveillance authorities may be up and running on 1 January 2011. There is considerable consensus between the two institutions, but the European Parliament, which called for the texts to be improved, has not concluded its first reading of 8 July. It has deferred voting until September to allow the Belgian EU Presidency time to negotiate a more moderate stance from member states.
Michel Barnier pointed out that they were in codecision and that one should take into account the “useful and intelligent” suggestions made by EP rapporteurs. The text of the Presidency compromise is composed of elements from the EP, for example, the ban on certain toxic substances, or the role of the authorities in crisis management and emergency situations. The United Kingdom has agreed to the principle whereby the new European regulatory authorities could address an establishment directly without having to go through national regulators, in emergency situations. London has nonetheless demanded that emergency situations be defined by the Ecofin Council.
Other priorities of the Belgian Presidency. Didier Reynders presented the Belgian Presidency programme of work. On economic and budgetary matters, “complementary measures will be necessary” to ensure financial stability and raise the major challenges, he said. The Presidency will ensure there is the necessary monitoring of work by the “taskforce” for ensuring economic coordination and greater rigour in terms of budgetary policy. “We have planned to come back to this during an Ecofin Council on 7 September, when we shall mainly deal with the follow-up to be given to the elements for amending the Stability and Growth Pact”, the Belgian minister said. Ministers will also discuss how to organise economic growth in EU 2020 strategy and problems of competitiveness on the internal market (see Mario Monti's report on this subject).
“The debate that we have had on stress tests shows the need to heighten the credibility of institutions that have been particularly shaken up over recent years”, Reynders went on to say. Also, he said, the Council will be returning to the directive on alternative investment fund managers in line with the commitments taken by the G20, and will hold a debate on rating agencies.
On the subject of taxation, the Ecofin Council of 7 September will discuss the possibility of introducing taxation on financial transactions and a tax on banks. Ministers will also discuss savings income, the code of conduct on corporate taxation and other themes related to indirect taxation (for combating fraud in the VAT sector). As far as green or environmental tax is concerned, the energy directive will have to be looked at again. Finally, on the EU's external role, an agreement is expected on the external mandates of the European Investment Bank (EIB). (L.C./transl.jl)