Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-07-06-Speech-2-440"
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"Madam President, as you have understood, I will be answering on behalf of my colleague Olli Rehn, who, incidentally, may have used a bit more of my time on the final response. Mrs Bowles mentioned angels. I do not know if there are many angels when we talk of financial services. I would like to say to Mrs Bowles that the devil is always in the detail, and I will respond in as much detail as possible to the questions that she has asked.
That is the most detailed reply I can give to Mrs Bowles on the basis of the detailed questions that she put.
The first question: what amount are we talking about when we talk of this European stabilisation mechanism? What is the link with the ceiling on own resources? Madam President, the conclusions of the Ecofin Council mention a sum of EUR 60 billion for the European financial stabilisation mechanism, but the legal limit is given in Article 2(2) of Council Regulation (EU) No 407/2010, which limits loans to the margin available in the ceiling of own resources.
The decision on own resources limits the possibilities for the European Union budget to call for payments from own resources by the Member States to 1.23% of European Union GNI. This means that the combined total of the ceiling of the Multiannual Financial Framework and the total amount of the flow of debt services on the loans guaranteed by the European Union budget cannot exceed 1.23% during a given budgetary year. That is the precise response that Mr Rehn wanted to give to you on this point.
The second question: will the Commission carry out an impact analysis for these two instruments? According to the regulation on the European stabilisation mechanism, the Commission is required to prepare, six months after the creation of this mechanism and, if necessary, every six months, a report on its functioning. This report will be transmitted to the Economic and Financial Committee and the Council. Notably, it will include an impact evaluation of the text. As for the European Financial Stability Facility, this is an intergovernmental structure whose functioning is not subject to the evaluation requirements applicable to European Union texts.
The third question: what is the impact on the financial capacities of the EIB? The European stabilisation mechanism and the European Financial Stability Facility will have no direct impacts on the borrowing and financing activities of the EIB. The EIB will only manage liquidities, provide logistical support and carry out certain back office functions for the European financial stabilisation mechanism. It will not lend or borrow on behalf of this mechanism.
The fourth question: when will there be a legislative proposal for permanent crisis management on sovereign debt, and on what legal basis? Madam President, the Commission is working on potential proposals in close cooperation with the working group presided over by President Van Rompuy. No exact choice of legal basis has yet been made. You have just mentioned the question of the role of the European Parliament. The European Parliament will be kept informed of any change regarding all of these new procedures. The legal nature of the European Parliament’s participation will depend on the legal basis of the legislative proposals, as provided for by the treaty.
The sixth question: what is the coordination with the International Monetary Fund? The political conditions for a potential programme of aid to a Member State will be decided by a joint agreement with the International Monetary Fund when there is a joint package from the European financial stabilisation mechanism and the IMF, as is usually the case.
The seventh question, which you went into some detail on: how should we respond to the potential needs of countries which are not members of the euro area? Member States not participating in the euro can, if necessary, appeal to the existing rules on assistance with balance of payments. Last year, the ceiling for the aid which can be given through this facility was increased by EUR 25 billion to EUR 50 billion, of which EUR 15 billion has already been committed for loans to Hungary, Latvia and Romania. In addition, the conditions on borrowing relating to the rules on balance of payments are more favourable than those established by the rules on the European financial stabilisation mechanism.
The eighth and final question relates to the choice of legal bases. Article 122(2) of the treaty has been used as the legal basis of the rules for this financial stabilisation mechanism, because the Commission and the Council have acted in emergencies in which a number of Member States were seriously threatened by grave difficulties caused by exceptional events outside their control. The Commission and the Council, which were placed under extreme pressure, in particular from the financial markets, had to act very quickly to safeguard the euro. This would have been difficult to reconcile with a long procedure involving an important role for some national parliaments. I would add that the European Parliament itself, Madam President, had called on the Commission, in a resolution adopted in April 2009, to adopt a regulation on financial aid to Member States on the basis of Article 122."@en1
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