Strasbourg, 15/03/2001 (Agence Europe) - The Lamfalussy report on the regulation of European securities markets, that will probably be the subject of an extraordinary Ecofin Council on 23 March in Stockholm (see EUROPE of 12 and 13 March, pages 7 and 8), continues to give rise to reticence on the part of the European Parliament. This reticence was confirmed on Wednesday in an oral question from the Chair of the Committee of Economic and Monetary Affairs, German Social Democrat Christa Randzio-Plath. The EP's main concern is to respect the inter-institutional balance and the co-decision procedure. Will the symmetry of the powers of codecision be respected? Will the regulation committee foreseen in the Lamfalussy report modify or block the measures for application proposed by the Commission? Does not the Commission fear for its power of own initiative? Is it ready to withdraw or present new measures for implementation if the Parliament adopts a resolution along these lines by absolute majority? These are the main questions put by Ms Randzio-Plath.
Speaking for the Council, Secretary of State Lars Danielsson sought to reassure MEPs. The functioning of the financial markets is very important for economic growth and it is therefore necessary to be able to take decisions swiftly, but the legal framework is clear and the Parliament has nothing to fear, said Mr Danielsson. Neither has the Commission anything to fear, said Commissioner Frits Bolkestein. In his view, the Wisemen's report guarantees control and transparency and the Commission's right of own initiative is not threatened. The Commissioner added that the codecision procedure also guarantees the Parliament's right to be regularly informed throughout the procedure. If it adopts by absolute majority a resolution asking the Commission to review a proposal concerning implementation measures, then the latter is obliged to do so. It is in everyone's interest to make this system work and "the sooner the better", concluded Mr Bolkestein. Mr Danielsson said he was able to accept an interinstitutional monitoring system in which the EP would be represented.
Yes, but why so hasty, asked several MEPs. At the time when unanimity was predominant, it would sometimes take 20 years to have a text adopted, recalled German Christian Democrat Karl von Wogau, who insisted on the EP's "right to call back". One should not legislate so quickly, exclaimed Robert Goebbels, who expressed his perplexity. When it is a technical issue, why should one mobilise the Secretaries of State ? And why should these Secretaries of State closely controlled by their ministers be able to legislate faster than the Ecofin Council? Mr Goebbels also calls for a right to call back. The EP would probably not use it very often but it is a guarantee against anti-democratic digression.
Pat Cox, Irish President of the Liberal Group, said they were not reassured by the comments made by the Council and Commission. You want speed and substance, you want flexibility, but you should be ready to give us the possibility for reflection or call-back, instead of inventing new rules just for yourselves, Mr Cox told the Council. Philippe Herzog (United Left, France) also demands at least a right of call-back for the Parliament.
EP calls for interinstitutional agreement to safeguard rights
With the adoption Thursday of a resolution by Christa Randzio-Plath, the EP acknowledges that Community legislation in this field, being too inflexible, must be adapted. It requests, however, that the committees proposed by the Lamfalussy report should be established according to codecision procedure, and that one should begin negotiations as soon as possible at the highest level between Parliament, Council and Commission in order to reach an interinstitutional agreement acceptable for the three institutions. The Parliament recognises that it has a certain right of control on the future Securities Committee (which must, among other things, report to it at regular intervals), but calls for other safeguards, and above all a "binding call-back" mechanism or a similar mechanism allowing it to refer an issue to the Commission.