Supervisory and/or regulatory restrictions on the free movement of capital in the European Union
3.6.2013
Question for written answer P-006195-13
to the Commission
Rule 117
Corien Wortmann-Kool (PPE)
The free movement of capital is a crucial pillar of the European Union’s single market. Since the onset of the financial crisis, some actions by national prudential authorities have been put in place with the intention of protecting local banking systems by preventing banks from moving funds to other countries.
On 3 February 2013, the Wall Street Journal and several other news sources reported that the Commission had written to all national banking supervisors to remind them about EU rules on the free movement of capital and on the use of prudential measures for banks[1]. Furthermore, the Commission asked all national banking supervisors to provide — by the end of February — information about their current supervisory practices.
1. Does the Commission agree that restrictions on capital movements fragment the single market and are therefore a serious threat to economic recovery and growth?
2. Can the Commission confirm that an official inquiry is looking into current supervisory practices which may prevent free flows of funds across national borders?
3. If so, will the Commission make the results of this inquiry publicly available, with data broken down by Member State? If not, why not?
4. Can the Commission indicate which supervisory and/or regulatory obstacles are dominant and in which Member States, including capital controls, restrictions on intra-group transfers and lending, limiting activities of branches and prohibiting expatriation of profits? If not, why not?
5. Can the Commission indicate what corrective tools are available to address these obstacles and what further steps it considers appropriate? Can it also indicate whether corrective action has been taken concerning national supervisory authorities?
- [1] ‘EU Aims to Free Flow of Funds Across Borders’, Wall Street Journal, 3 February 2013.
OJ C 46 E, 18/02/2014