REPORT on the proposal for a directive of the European Parliament and of the Council amending Directives 2006/48/EC and 2006/49/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management
17.3.2009 - (COM(2008)0602 - C6-0339/2008 – 2008/0191(COD)) - ***I
Committee on Economic and Monetary Affairs
Rapporteur: Othmar Karas
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a directive of the European Parliament and of the Council on amending Directives 2006/48/EC and 2006/49/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management
(COM(2008)0602 - C6-0339/2008 – 2008/0191(COD))
(Codecision procedure: first reading)
The European Parliament,
– having regard to the draft Commission directive amending certain annexes to Directive 2006/48/EC of the European Parliament and of the Council as regards technical provisions concerning risk management,
– having regard to the Commission proposal to the European Parliament and to the Council (COM(2008)0602),
– having regard to Article 251(2) and Article 47(2) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6-0339/2008),
– having regard to Rule 51 of its Rules of Procedure,
- having regard to the report of the Committee on Economic and Monetary Affairs (A6-0139/2009),
1. Approves the Commission proposal as amended;
2. Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;
3. Instructs its President to forward its position to the Council and the Commission.
Amendment 1 Proposal for a directive – amending act Recital 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(1) Article 3 of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions allows Member States to provide for special prudential regimes for credit institutions which are permanently affiliated to a central body since 15 December 1977, provided that those regimes were introduced in national laws no later than 15 December 1979. Those time limits prevent Member States, especially those which have acceded to the European Union since 1980, to introduce the same regimes for similar affiliations of credit institutions which have been set up later on their territories. It is therefore appropriate to remove the time limits set out in Article 3, in order to ensure equal conditions for competition between credit institutions in Member States. The Committee of European Banking Supervisors should provide for non-binding guidelines in order to enhance the convergence of supervisory practices in this regard. |
(1) Article 3 of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions allows Member States to provide for special prudential regimes for credit institutions which are permanently affiliated to a central body since 15 December 1977, provided that those regimes were introduced in national laws no later than 15 December 1979. Those time limits prevent Member States, especially those which have acceded to the European Union since 1980, to introduce the same regimes for similar affiliations of credit institutions which have been set up later on their territories. It is therefore appropriate to remove the time limits set out in Article 3 of that Directive, in order to ensure equal conditions for competition between credit institutions in Member States. The Committee of European Banking Supervisors should provide for guidelines in order to enhance the convergence of supervisory practices in this regard. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 2 Proposal for a directive – amending act Recital 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
(3) Therefore, it is important to lay down criteria for those capital instruments to be eligible for original own funds of credit institutions and to align the provisions in Directive 2006/48/EC to that agreement. The amendments to Annex XII to Directive 2006/48/EC result directly from the establishment of those criteria. The eligibility criteria should refer to the most subordinated instruments of a credit institution that does not have proprietors or shareholders under national law, such as certain members' certificates of cooperative banks, insofar as the respective capital has been paid up and ranks after all other claims. |
(3) Therefore, it is important to lay down criteria for those capital instruments to be eligible for original own funds of credit institutions and to align the provisions in Directive 2006/48/EC to that agreement while taking into account the importance of a strong core capital base to be able to absorb losses. The amendments to Annex XII to Directive 2006/48/EC result directly from the establishment of those criteria. Original own funds referred to in Article 57(a) of Directive 2006/48/EC include all instruments that are regarded under national law as equity capital, rank after all other claims during liquidation and fully absorb losses pari passu with ordinary shares on a going concern basis. These may include instruments providing preferential rights for dividend payment on a non-cumulative basis, provided that they are included in Article 22 of Directive 86/635/EEC, rank after all other claims during liquidation and fully absorb losses on a going concern basis pari passu with ordinary shares. Original own funds referred to in Article 57(a) of Directive 2006/48/EC also include any other instrument under credit institutions' statutory terms taking into account the specific constitution of mutuals, cooperative societies and similar institutions and which are deemed broadly equivalent to ordinary shares in terms of their capital qualities. Instruments that do not rank after all other claims during liquidation or that do not absorb losses on a going concern basis pari passu with ordinary shares are included in the category of hybrids referred to in Article 57(ca) of Directive 2006/48/EC. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 3 Proposal for a directive – amending act Recital 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
(5) For the purpose of strengthening the crisis management framework of the Community, it is essential that competent authorities coordinate their actions with other competent authorities and where appropriate with central banks in an efficient way. In order to strengthen the efficiency of prudential supervision of parent credit institutions authorised in the Community and to allow competent authorities to better carry out the supervision of a banking group on a consolidated basis, supervisory activities should be coordinated in a more effective manner. Therefore, Colleges of Supervisors should be established. The establishment of colleges should not affect the rights and responsibilities of the competent authorities under Directive 2006/48/EC. Their establishment should be an instrument for stronger cooperation whereby competent authorities reach agreement on key supervisory tasks. The colleges should facilitate the handling of ongoing supervision and emergency situations. The consolidating supervisor may, in association with the other members of the college, decide to organise meetings or activities that are not of general interest and therefore streamline the attendance as appropriate. |
(5) For the purpose of strengthening the crisis management framework of the Community, it is essential that competent authorities coordinate their actions with other competent authorities and where appropriate with central banks in an efficient way. In order to strengthen the efficiency of prudential supervision of a banking group on a consolidated basis, supervisory activities should be coordinated in a more effective manner. Therefore, Colleges of Supervisors should be established. The establishment of colleges should not affect the rights and responsibilities of the competent authorities under Directive 2006/48/EC. Their establishment should be an instrument for stronger cooperation whereby competent authorities reach agreement on key supervisory tasks. The colleges should facilitate the handling of ongoing supervision and emergency situations. The consolidating supervisor may, in association with the other members of the college, decide to organise meetings or activities that are not of general interest and therefore streamline the attendance as appropriate. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 4 Proposal for a directive – amending act Recital 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
(7) Competent authorities should be able to participate in colleges established for the supervision of credit institutions the parent institution of which is situated in a third country. The Committee of European Banking Supervisors should provide, where necessary, for non-binding guidelines and recommendations in order to enhance the convergence of supervisory practices pursuant to Directive 2006/48/EC. |
(7) Competent authorities should be able to participate in colleges established for the supervision of credit institutions the parent institution of which is situated in a third country. The Committee of European Banking Supervisors should provide, where necessary, for guidelines and recommendations in order to enhance the convergence of supervisory practices pursuant to Directive 2006/48/EC. In order to avoid inconsistencies and regulatory arbitrage, which could result from differences in the approaches and rules applied by the various colleges and the application of discretion by Member States, guidelines on the proceedings of rules governing colleges should be developed by the Committee of European Banking Supervisors. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 5 Proposal for a directive – amending act Recital 8 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
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(8a) The current supervisory arrangements should be temporary. Colleges of supervisors are a considerable first step forward in streamlining EU supervisory cooperation and convergence. Cooperation between supervisory authorities in colleges, dealing with groups and holdings and their subsidiaries and branches, is a phase in a development towards further regulatory convergence and supervisory integration. Trust between supervisors and respect for their respective responsibilities is essential. In the event of a conflict between members of a college linked to those different responsibilities, neutral and independent advice, mediation and conflict resolving mechanisms at Community level are essential. | ||||||||||||||||||||||||||||||||||||||||||||||||
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The crisis in international financial markets has demonstrated that it is appropriate to examine further the need for a reform of the regulatory and supervisory model of the EU financial sector. In particular, the Commission announced in its Communication of 29 October 2008 entitled 'From financial crisis to recovery: A European framework for action', that it had set up a group of experts, chaired by Mr Jacques de Larosière, to consider the organisation of European financial institutions to ensure prudential soundness, the orderly functioning of markets and stronger European cooperation on financial stability oversight, an early warning mechanism and crisis management, including the management of cross-border and cross-sectoral risks, and also to examine cooperation between the EU and other major jurisdictions to help safeguard financial stability at the global level. In order to achieve the necessary level of EU supervisory convergence and cooperation and to underpin the stability of the financial system, further supervisory integration should be pursued. Such integration could result in a European System of Banking Supervisors building on the model of the European System of Central Banks. | ||||||||||||||||||||||||||||||||||||||||||||||||
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The Commission should as soon as possible and in any event by 31 December 2009, report to the European Parliament and the Council any findings in this respect and put forward any legislative proposal needed to tackle the shortcomings identified regarding the provisions related to supervisory cooperation arrangements while taking into account the recommendations of the High Level Group on financial supervision having in mind that a stronger role for an EU level supervisory system should be achieved by 31 December 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 6 Proposal for a directive – amending act Recital 14 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
(14) Since a loss arising from an exposure to a credit institutions or an investment firm can be as severe as a loss from any other exposure, such exposures should be treated and reported as any other exposures. |
(14) Since a loss arising from an exposure to a credit institutions or an investment firm can be as severe as a loss from any other exposure, such exposures should be treated and reported as any other exposures. In addition, very short-term exposures related to payment, clearing, settlement and custody services for clients are exempt to facilitate the smooth functioning of financial markets and of the related infrastructure. Those services cover, for example, the execution of cash clearing and settlement, the processing of corporate actions as well as securities lending and similar activities to facilitate settlement. The related exposures include, inter alia, balances on inter-bank accounts resulting from client payments, including credited or debited fees and interest, and other payments for client services, as well as collateral given or received. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 7 Proposal for a directive – amending act Recital 14 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
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(14a) The provisions related to External Credit Assessment Institutions (ECAIs) under this Directive should be consistent with Regulation (EC) No .../2009 on Credit Rating Agencies. In particular, the Committee of European Banking Supervisors should review its guidelines on the recognition of ECAIs to avoid duplication of work and reduce the burden of the recognition process where an ECAI is registered as a Credit Rating Agency (CRA) at Community level. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 8 Proposal for a directive – amending act Recital 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
(15) It is important to remove misalignment between the interest of firms that 're-package' loans into tradable securities and other financial instruments (originators) and firms that invest in these securities or instruments (investors). It is therefore important for originators to retain exposure to the risk of the loans in question. In particular where credit risk is transferred by securitisation, investors should make their decisions only after conducting thorough due diligence, for which they need adequate information about the securitisations. |
(15) It is important to remove misalignment between the interest of firms that 're-package' loans into tradable securities and other financial instruments (originators or sponsors) and firms that invest in these securities or instruments (investors). It is also important to distinguish securitisations where the interests of the originator or sponsor and the interests of investors are aligned, because, for example, the originator or sponsor retains a significant interest in the underlying assets, from those where they are not aligned. In addition, penalties for non-compliance with due diligence obligations need to be proportionate. It is therefore important for originators or sponsors to retain exposure to the risk of the loans in question. Accordingly, retention should be applicable to credit risk transfers such as purchase of receivables, syndicated loans or credit default swaps to the extent that their economic substance meets the definition of a securitisation under this Directive. In particular where credit risk is transferred by securitisation, investors should make their decisions only after conducting thorough due diligence, for which they need adequate information about the securitisations. The measures to address the potential misalignment of those structures need to be consistent and coherent in all relevant financial sector regulation. The Commission should put forward appropriate legislative proposals to ensure such consistency and coherence. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 9 Proposal for a directive – amending act Recital 15 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
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(15a) Due diligence procedures have greater confidence building and cross-checking potential when they are based on an open principle. Therefore whilst respecting data protection and privacy, due diligence performed by or on behalf of originators, sponsors and investors should be open rather than confidential. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 10 Proposal for a directive – amending act Recital 15 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
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(15b) Member States and competent authorities should ensure that national regulators have sufficient personnel and resources to comply with their supervisory obligations under Article 122a and that employees involved in the oversight of credit institutions in accordance with Article 122a have appropriate knowledge and experience for the duties assigned. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 11 Proposal for a directive – amending act Recital 19 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
(19) In particular the Commission should be empowered to amend Annex III of Directive 2006/48/EC in order to take account of developments on financial markets or in accounting standards or requirements which take account of Community legislation, or with regard to convergence of supervisory practice and to alter the percentage specified in Article 111(1) of that Directive to take account of developments on financial markets. Since those measures are of general scope and are designed to amend non-essential elements of Directive 2006/48/EC, they must be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC. |
(19) In particular the Commission should be empowered to amend Annex III of Directive 2006/48/EC in order to take account of developments on financial markets or in accounting standards or requirements which take account of Community legislation or with regard to convergence of supervisory practice. Since those measures are of general scope and are designed to amend non-essential elements of Directive 2006/48/EC, they must be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 12 Proposal for a directive – amending act Recital 19 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
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(19a) The crisis has revealed a need for better analysis of and response to macro-prudential problems - problems which lie at the interface between macro-economic policy and financial system regulation. This will include a need to examine: | ||||||||||||||||||||||||||||||||||||||||||||||||
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- policies that exacerbate the ups and downs of the business cycle (including, possibly, exacerbating financial crises by requiring excess capital in downturns and inadequate capital in upturns), and whether banks should build strong capital buffers and make provisions through-the-cycle that can be used during a downturn, | ||||||||||||||||||||||||||||||||||||||||||||||||
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- assumptions concerning correlations that underlie the methodologies for calculating regulatory capital, and | ||||||||||||||||||||||||||||||||||||||||||||||||
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- introducing a leverage ratio for banks. | ||||||||||||||||||||||||||||||||||||||||||||||||
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By 31 December 2009, the Commission should therefore review this Directive as a whole to address those issues and present a report to the European Parliament and the Council and any appropriate proposals. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 13 Proposal for a directive – amending act Recital 19 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
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(19b) In order to ensure financial stability, the Commission should review and report on measures to enhance the transparency of over-the-counter markets, such as by requiring the processing of credit default swaps through a central clearinghouse counterparty, established, regulated and supervised in the European Union, to mitigate the counterparty risks and more generally to reduce the overall risks, ensuring effective supervision of those entities. The Commission shall submit that report to the European Parliament and the Council together with any appropriate proposals. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 14 Proposal for a directive – amending act Recital 19 c (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
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(19c) By 31 December 2009, the Commission should report to the European Parliament and the Council on the appropriateness and expected impact of requiring institutions to retain a material net economic interest in their securitisations in the light of international market and policy developments. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 15 Proposal for a directive – amending act Recital 19 d (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
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(19d) The specific characteristics of microcredit should be taken into account in the risk assessment. Furthermore, given the low development of microcredit, the development of adequate rating systems should be promoted. The development of microcredit should be promoted. Prudential regulation and supervision relating to microcredit should be proportionate to the microcredit activities. Such supervision should be adapted to the development of standard rating systems and the reality and risks of microcredit activities. | ||||||||||||||||||||||||||||||||||||||||||||||||
Amendment 16 Proposal for a directive – amending act Article 1 – point 3 a (new) Directive 2006/48/EC Article 41 – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 17 Proposal for a directive – amending act Article 1 – point 4 Directive 2006/48/EC Article 42a – paragraph 1 – subparagraph 2 – point b | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 18 Proposal for a directive – amending act Article 1 – point 5 Directive 2006/48/EC Article 42b – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 19 Proposal for a directive – amending act Article 1 – point 5 Directive 2006/48/EC Article 42b – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 20 Proposal for a directive – amending act Article 1 – point 6 – point a Directive 2006/48/EC Article 49 – paragraph 1 – point a | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 21 Proposal for a directive – amending act Article 1 – point 6 – point b Directive 2006/48/EC Article 49 – paragraph 3 a | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 22 Proposal for a directive – amending act Article 1 – point 7 Directive 2006/48/EC Article 50 – paragraph 2 a | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 23 Proposal for a directive – amending act Article 1 – point 8 – point b a (new) Directive 2006/48/EC Article 57 – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 24 Proposal for a directive – amending act Article 1 – point 11 Directive 2006/48/EC Article 63a – paragraph 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 25 Proposal for a directive – amending act Article 1 – point 11 Directive 2006/48/EC Article 63a – paragraph 6 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 26 Proposal for a directive – amending act Article 1 – point 13 a (new) Directive 2006/48/EC TITLE V - Chapter 2 – Section 2 – Subsection 2 – Title | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 27 Proposal for a directive – amending act Article 1 – point 13 a (new) Directive 2006/48/EC Article 74 – paragraph 2 – subparagraph 2 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 28 Proposal for a directive – amending act Article 1 – point 13 b (new) Directive 2006/48/EC Article 81 - paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 29 Proposal for a directive – amending act Article 1 – point 14 – point a Directive 2006/48/EC Article 87 – paragraph 11 – subparagraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 30 Proposal for a directive – amending act Article 1 – point 14 – point a Directive 2006/48/EC Article 87 – paragraph 11 – subparagraph 2 – point b – point i | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 31 Proposal for a directive – amending act Article 1 – point 14 – point a Directive 2006/48/EC Article 87 – paragraph 11 – subparagraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 32 Proposal for a directive – amending act Article 1 – point 15 a (new) Directive 2006/48/EC Article 97 – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 33 Proposal for a directive – amending act Article 1 – point 16 – point a Directive 2006/48/EC Article 106 – paragraph 2 – point a | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 34 Proposal for a directive – amending act Article 1 – point 16 – point a Directive 2006/48/EC Article 106 – paragraph 2 – point c | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 35 Proposal for a directive – amending act Article 1 – point 16 – point b Directive 2006/48/EC Article 106 – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 36 Proposal for a directive – amending act Article 1 – point 18 Directive 2006/48/EC Article 110 – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 37 Proposal for a directive – amending act Article 1 – point 21 – point d Directive 2006/48/EC Article 113 – paragraph 4 – point c | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 38 Proposal for a directive – amending act Article 1 – point 21 – point d Directive 2006/48/EC Article 113 – paragraph 4 – point f | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 39 Proposal for a directive – amending act Article 1 – point 21 – point d Directive 2006/48/EC Article 113 – paragraph 4 – point f a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 40 Proposal for a directive – amending act Article 1 – point 21 – point d Directive 2006/48/EC Article 113 – paragraph 4 – point f b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 41 Proposal for a directive – amending act Article 1 – point 21 – point d Directive 2006/48/EC Article 113 – paragraph 4 – point f c (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 42 Proposal for a directive – amending act Article 1 – point 23 Directive 2006/48/EC Article 115 – paragraph 1 – subparagraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 43 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 44 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 45 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 46 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 47 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 48 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 6 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 49 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 50 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 51 Proposal for a directive – amending act Article 1 – point 27 Directive 2006/48/EC Article 122a – paragraph 10 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 52 Proposal for a directive – amending act Article 1 – point 28 – point a – point i Directive 2006/48/EC Article 129 – paragraph 1 – point b | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 53 Proposal for a directive – amending act Article 1 – point 28 - point b Directive 2006/48/EC Article 129 – paragraph 3 –subparagraph 1 – point a | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 54 Proposal for a directive – amending act Article 1 – point 28 - point b Directive 2006/48/EC Article 129 – paragraph 3 –subparagraph 1 - point b | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 55 Proposal for a directive – amending act Article 1 – point 28 – point b Directive 2006/48/EC Article 129 – paragraph 3 – subparagraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 56 Proposal for a directive – amending act Article 1 – point 28 – point b Directive 2006/48/EC Article 129 – paragraph 3 – subparagraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 57 Proposal for a directive – amending act Article 1 – point 28 – point b Directive 2006/48/EC Article 129 – paragraph 3 – subparagraph 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 58 Proposal for a directive – amending act Article 1 – point 28 – point b Directive 2006/48/EC Article 129 – paragraph 3 – subparagraph 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 59 Proposal for a directive – amending act Article 1 – point 28 – point b Directive 2006/48/EC Article 129 – paragraph 3 – subparagraph 6 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 60 Proposal for a directive – amending act Article 1 – point 28 – point b Directive 2006/48/EC Article 129 – paragraph 3 – subparagraph 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 61 Proposal for a directive – amending act Article 1 – point 29 Directive 2006/48/EC Article 130 – paragraph 1 – subparagraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 62 Proposal for a directive – amending act Article 1 – point 30 Directive 2006/48/EC Article 131a – paragraph 1 – subparagraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 63 Proposal for a directive – amending act Article 1 – point 30 Directive 2006/48/EC Article 131a – paragraph 2 – subparagraph 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 64 Proposal for a directive – amending act Article 1 – point 30 Directive 2006/48/EC Article 131a – paragraph 2 – subparagraph 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 65 Proposal for a directive – amending act Article 1 – point 32 –point a – point ii Directive 2006/48/EC Article 150 – paragraph 1 – point m | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 66 Proposal for a directive – amending act Article 1 – point 32 a (new) Directive 2006/48/EC Article 153 – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 67 Proposal for a directive – amending act Article 1 – point 33 Directive 2006/48/EC Article 154 – paragraph 9 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 68 Proposal for a directive – amending act Article 1 – point 33 a (new) Directive 2006/48/EC Article 156 – paragraph 2 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 69 Proposal for a directive – amending act Article 1 – point 33 a (new) Directive 2006/48/EC Article 156 – paragraph 2 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 70 Proposal for a directive – amending act Article 1 – point 33 c (new) Directive 2006/48/EC Article 156 – paragraph 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 71 Proposal for a directive – amending act Article 1 – point 33 a (new) Directive 2006/48/EC Article 156 – paragraph 3 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 72 Proposal for a directive – amending act Article 1 – point 33 a (new) Directive 2006/48/EC Article 156 – paragraph 3 b (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 73 Proposal for a directive – amending act Article 1 – point 33 a (new) Directive 2006/48/EC Article 156 – paragraph 3 c (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 74 Proposal for a directive – amending act Article 1 – point 35 – point -a (new) Directive 2006/48/EC Annex V – part 6 – point 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 75 Proposal for a directive – amending act Article 1 – point 35 a (new) Directive 2006/48/EC Annex VI – part 2 – item 1.4 – point 7 – paragraph 1 a (new) | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 76 Proposal for a directive – amending act Article 2 – point 7 Directive 2006/49/EC Article 45 – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 77 Proposal for a directive – amending act Article 2 – point 7 a (new) Directive 2006/49/EC Article 47 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 78 Proposal for a directive – amending act Article 2 – point 8 Directive 2006/49/EC Article 48 – paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 79 Proposal for a directive – amending act Article 2 a (new) Directive 2007/64/EC Article 1 – paragraph 1 – point a | |||||||||||||||||||||||||||||||||||||||||||||||||
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Amendment 80 Proposal for a directive – amending act Article 3 – Paragraph 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | ||||||||||||||||||||||||||||||||||||||||||||||||
1 Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 January 2010 at the latest. They shall forthwith communicate to the Commission the text of those provisions and a correlation table between those provisions and this Directive. |
1 Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 October 2010 at the latest. | ||||||||||||||||||||||||||||||||||||||||||||||||
They shall apply those provisions from 31 March 2010. |
They shall apply those measures from 1 January 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||
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When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made. |
When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made. |
EXPLANATORY STATEMENT
1. Context of the CRD, reasons for Revision and rapporteur´s position
The Rapporteur in general welcomes the Commission's work as a step forward to improve prudential regulation, to increase the stability of the financial system and to improve supervisory arrangements of cross-border banking groups.
The proposal is often seen or presented as one of the answers to the financial crisis. However, many amendments are due to revision clauses built in the CRD of June 2006. Furthermore, much market disruption has occurred only after the CRD proposal had been put on the table.
While the Commission has made significant efforts to incorporate in its proposal several areas of weaknesses which have been highlighted by the financial crisis, such as liquidity risk management and securitisation, some important conclusions in the numerous reports of standard setters and international bodies were not reflected in the Commission proposal. These include conclusions concerning pro-cyclicality and geographic and product concentration. It is evident that the pro-cyclicality issue has become much more important and there is a consensus that any pro-cyclicality in capital adequacy rules and accounting valuations needs to be tackled. The Rapporteur believes that there is a need to review the pro-cyclicality issue and proposes a review clause for this purpose.
The Rapporteur points out that the European Parliament has already called upon the Commission to be more active in the financial sector regarding, for example, supervisory arrangements, regulation of rating agencies (also with regard to the role attributed to rating agencies - ECAIs - under the CRD) and harmonised minimum standards for various financial products[1]. In this context, and regarding any rules applicable for rating agencies, it is very important to highlight the need for a consistent and coherent approach between the revision of the CRD and the proposal for a Regulation on Credit Rating Agencies.
1.1. Supervisory arrangements
The proposed colleges of supervisors are a temporary step forward towards a new EU architecture of supervision. The financial crisis has highlighted weaknesses in EU supervision and in the consolidating supervisor model. Further supervisory integration is necessary. The Commission should come up with a proposal which takes into account the lessons of the financial crisis. The proposal should address financial stability in the EU and reflect the outcome of parallel discussions on supervisory arrangements, including the upcoming report of the High level Group on cross-border financial supervision under the leadership of J. de Larosière. Such proposal could, building on the model of the European System of Central Banks, aim to establish a decentralised European System of Banking Supervisors.
The Rapporteur believes that the crisis has revealed weaknesses in the current EU arrangements for supervision. Furthermore, national competent authorities do not have the ability to foresee and to handle a cross-border financial crisis efficiently and in a coordinated manner. The financial crisis has also highlighted weaknesses of consolidating supervisor model. Given the advanced integration of the banking sector in the EU, and having regard to the weaknesses in present supervisory arrangements, there is a need to find a balanced solution to the EU supervisory arrangements, which, on the one hand, would improve the effectiveness of supervision, strengthen financial stability and rebuild trust in banks and financial services more generally and, on the other hand, would facilitate the business of cross-border entities.
The Rapporteur welcomes the proposal to establish colleges of supervisors for all cross-border banks and to require supervisors participating in those colleges to discuss and agree on specific issues with mediation mechanism via the Committee of European Banking Supervisors (CEBS). Strengthened cooperation and information exchange in crisis management are also welcomed.
However, he considers that the colleges of supervisors are a temporary step towards a new architecture of supervision. As regards the role of the consolidating supervisor and reinforcing its power (such as giving it the final say if a joint decision on reporting and capital add-on has not been reached by a college), the Rapporteur respects the concerns of Member States that are the in position of host country regarding the proposed role of the "Lead Supervisor".
In order to achieve the necessary level of EU supervisory convergence and cooperation, and to underpin the stability of the financial system, further supervisory integration must be pursued. The Rapporteur believes such integration should result into a decentralised European System of Banking Supervisors building on the model of the European System of Central Banks. To this purpose the Commission should come up with appropriate proposals by January 1, 2010. The Commission should also take into account the outcomes of discussions by expert groups on these issues, in particular, those of the High Level Group on cross-border financial supervision (Larosière Group) and the lessons from the financial crisis.
As the mandatory colleges should also play a role in any new EU architecture of supervision, the current text is welcomed. Consistency between colleges and coordination of colleges should be ensured via CEBS guidelines. For the time being the consolidated supervisor should have the last say on the consolidated level, whereas the last say on the local level should remain with the competent authorities responsible for supervision at this level.
Single European reporting should be put in place by the end of 2012, as different reporting in various colleges would not lead to further supervisory integration.
1.2. Securitisation
The Rapporteur in general welcomes stricter rules on securitisation. He agrees that originators should hold a certain percentage of the risk arising from the exposures that they securitise and that further due diligence should be required from the investor. Detailed information has to be available to investors, who should be required to carry out more rigorous analysis.
The Rapporteur also considers that there is a need to rebuild trust in the securitisation market and that any new rules should not disable the functioning of the market. Hence his proposed amendments to the Commission proposal take into account the legitimate concerns of industry and the need for more security for investors.
The Rapporteur proposes that one should distinguish between securitisations, where the originator or sponsor retains an interest in the underlying assets and originates those assets, and securitisations, where the originator or sponsor has no such involvement. In the former case the interests of the originator or sponsor and the investors are already aligned, so that the rationale for much of the Commission proposal falls away. In the latter case the rationale applies and the retention should be more substantial at 10 per cent to be an effective deterrent.
The Commission's proposed penalty for non-compliance with disclosure and due diligence obligations should be scaled according to the gravity of the failure and reflect the relevant supervisor's judgement.
1.3. Large exposures
The Rapporteur agrees with the Commission proposals for the large exposure regime. As inter-bank exposures are not risk-free the adjustments and simplification of the regime are welcomed. Despite the amendments to the large exposure regime the liquidity of the banking system seems to be assured. In addition, the regulation for smaller banks seems appropriate.
The Rapporteur is of the view that the Commission proposal to add comitology powers to alter the percentage limit for large exposures goes beyond what is strictly necessary (which is limited to adding Annex III to the annexes that the Commission can already amend by comitology).
1.4. Hybrids
The Rapporteur welcomes clear and harmonised EU regulation of hybrids (securities that contain features of both equity and debt). This should improve the quality of capital, while providing choice to investors. The rules on hybrids have been previously agreed in the Basel Committee on Banking Supervision, but had not been implemented in EU regulation. However, the financial crisis demonstrates how important a strong core capital buffer is for banks when facing turbulent times. Therefore, the Rapporteur proposes an amendment that further underlines the importance of a strong core capital base able to absorb losses. The Rapporteur also proposes some further precision and clarification in the recital proposed by the Commission.
1.5. Liquidity risk management
The Rapporteur agrees that the current market turmoil has highlighted the fact that liquidity and liquidity risk management is of key importance for the soundness of the banking sector and for financial stability. He therefore welcomes the proposed changes, which implement the work of CEBS and the Basel Committee.
1.6. Rating agencies
The Parliament has already pointed out in relation to the Commission CRD comitology proposal that regulation of credit rating agencies ("ECAIs" in CRD terminology) should be consistent and coherent. In practice, this means aligning the regulation of credit rating agencies (CRAs) in the CRD with the new CRA Regulation and adding the comitology proposal concerning ECAIs, appropriately revised, to either of these co-decision proposal.
- [1] f.e. Ieke van den Burg and Daniel Dăianu: report with recommendations to the Commission on Lamfalussy follow-up: future structure of supervision (2008/2148(INI))
PROCEDURE
Title |
Capital Requirements Directives (2006/48/EC and 2006/49/EC) |
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References |
COM(2008)0602 – C6-0339/2008 – 2008/0191(COD) |
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Date submitted to Parliament |
1.10.2008 |
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Committee responsible Date announced in plenary |
ECON 9.10.2008 |
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Committee(s) asked for opinion(s) Date announced in plenary |
JURI 9.10.2008 |
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Not delivering opinions Date of decision |
JURI 3.11.2008 |
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Rapporteur(s) Date appointed |
Othmar Karas 22.4.2008 |
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Discussed in committee |
20.10.2008 |
4.11.2008 |
11.12.2008 |
2.2.2009 |
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11.2.2009 |
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Date adopted |
9.3.2009 |
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Result of final vote |
+: –: 0: |
21 4 8 |
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Members present for the final vote |
Paolo Bartolozzi, Zsolt László Becsey, Pervenche Berès, Sharon Bowles, Udo Bullmann, Jonathan Evans, Elisa Ferreira, José Manuel García-Margallo y Marfil, Jean-Paul Gauzès, Robert Goebbels, Donata Gottardi, Benoît Hamon, Gunnar Hökmark, Sophia in ‘t Veld, Othmar Karas, Wolf Klinz, Kurt Joachim Lauk, Hans-Peter Martin, Gay Mitchell, Sirpa Pietikäinen, John Purvis, Bernhard Rapkay, Dariusz Rosati, Eoin Ryan, Antolín Sánchez Presedo, Olle Schmidt, Peter Skinner, Margarita Starkevičiūtė, Ivo Strejček, Cornelis Visser |
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Substitute(s) present for the final vote |
Harald Ettl, Margaritis Schinas, Eva-Riitta Siitonen |
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