Procedure : 2009/0001(COD)
Document stages in plenary
Document selected : A6-0246/2009

Texts tabled :

A6-0246/2009

Debates :

PV 06/05/2009 - 3
CRE 06/05/2009 - 3

Votes :

PV 06/05/2009 - 6.10
Explanations of votes

Texts adopted :

P6_TA(2009)0368

REPORT     ***I
PDF 201kWORD 310k
6.4.2009
PE 420.115v02-00 A6-0246/2009

on the proposal for a decision of the European Parliament and of the Council establishing a Community programme to support specific activities in the field of financial services, financial reporting and auditing

(COM(2009)0014 – C6‑0031/2009 – 2009/0001(COD))

Committee on Economic and Monetary Affairs

Rapporteur: Karsten Friedrich Hoppenstedt

Rapporteur for opinion(*):

Giuseppe Gargani, Committee on Legal Affairs

(*) Associated committee - Rule 47 of the Rules of Procedure

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 OPINION OF THE COMMITTEE ON LEGAL AFFAIRS (*)
 OPINION of the Committee on Budgets

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a decision of the European Parliament and of the Council establishing a Community programme to support specific activities in the field of financial services, financial reporting and auditing

(COM(2009)0014 – C6‑0031/2009 – 2009/0001(COD))

(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2009)0014),

–   having regard to Article 251(2) and Article 95 of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6‑0031/2009),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committe on Legal Affairs and the Committee on Budgets (A6-0246/2009),

1.  Approves the Commission proposal as amended;

2.  Considers that the reference amount indicated in the legislative proposal must be compatible with the ceiling of heading 1a of the multiannual financial framework for 2007 to 2013 and points out that the annual amount will be decided within the annual budgetary procedure in accordance with Point 37 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(1) (IIA);

3.  Considers that Point 47 of the IIA applies in the event that the European bodies co-financed by the programme to support specific activities in the field of financial services, financial reporting and auditing become agencies;

4.  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;

5.  Instructs its President to forward its position to the Council and the Commission.

Amendment  1

Proposal for a decision

Recital 2

Text proposed by the Commission

Amendment

(2) In a global economy, there is also a need to converge standards between jurisdictions or develop international standards. It is therefore important that the Community plays a role in the international standard setting process for financial markets. To ensure that interests of the Community are respected and that global standards are of high-quality and compatible with the Community legislation, it is essential that the interests of the Community are adequately represented in the international standard setting processes.

(2) In a global economy, there is also a need to converge standards between jurisdictions or develop international standards in a transparent and democratic process. It is therefore important that the Community plays a role in the international standard setting process for financial markets. To ensure that interests of the Community are respected and that global standards are of high-quality and compatible with the Community legislation, it is essential that the interests of the Community are adequately represented in the international standard setting processes.

Justification

Parliament has spoken out many times about the need to improve the governance of the international institutions responsible for laying down accounting and financial standards.

Amendment  2

Proposal for a decision

Recital 2 a (new)

Text proposed by the Commission

Amendment

(2a) The financial crisis has highlighted the need to improve the governance of the International Accounting Standards Board along the lines set out in the European Parliament resolution of 24 April 2008 on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB)1.

 

1. OJ C ...

Amendment  3

Proposal for a decision

Recital 5

Text proposed by the Commission

Amendment

(5) It is also appropriate to provide action grants to the three legal support structures, whose exclusive aim is to provide administrative support to the Committee of European Securities Regulators, established by Commission Decision 2001/527/EC, the Committee of European Banking Supervisors, established by Commission Decision 2004/5/EC and the Committee of European Insurance and Pension Supervisors, established by Commission Decision 2004/6/EC, for the carrying out of projects relating to, inter alia, training of staff of national supervisory authorities and management of information technology projects.

(5) It is also appropriate to provide grants to the three legal support structures, to provide support to the Committee of European Securities Regulators, established by Commission Decision 2001/527/EC, the Committee of European Banking Supervisors, established by Commission Decision 2004/5/EC and the Committee of European Insurance and Pension Supervisors, established by Commission Decision 2004/6/EC, for fulfilling their mandates relating, inter alia, to training of staff of national supervisory authorities and management of information technology projects.

Amendment  4

Proposal for a decision

Recital 7

Commission draft proposal

Amendment

(7) A Community co-financing ensures that these bodies benefit from clear, stable, diversified, sound and adequate funding and that they are able to accomplish their public interest mission in an independent and efficient manner.

(7) A Community co-financing ensures that those bodies benefit from clear, stable, diversified, sound and adequate funding and that they are able to accomplish their public interest mission in an independent and efficient manner. The Commission should ensure that bodies that carry out activities in third countries, such as the Public Interest Oversight Board (PIOB) and the International Accounting Standards Committee Foundation (IASCF) do not benefit under the Community programme until neutral funding arrangements, including from third countries, form a majority of their total funding.

Amendment  5

Proposal for a decision

Recital 7 a (new)

Text proposed by the Commission

Amendment

(7a) Sufficient funding should be set aside for a Community contribution to the functioning of the level 3 Lamfalussy committees, to international accounting standard setting, and, in particular, to the IASCF, including the IASB and the European voice, the European Financial Reporting Advisory Group (EFRAG).

Amendment  6

Proposal for a decision

Recital 7 b (new)

Text proposed by the Commission

Amendment

(7b) Community funding of the level 3 committees and the EFRAG, the IASCF and the PIOB should, in particular in regard to the IASCF, be made conditional upon the practical fulfilment of the governance requirements laid down by the Community.

Justification

While the need to improve IASCF governance has now been acknowledged and taken into account in the discussions on the reform of the global financial system's architecture, any Community funding for the IASCF should be made conditional upon practical fulfilment of the Union's governance requirements.

Amendment  7

Proposal for a decision

Recital 8

Text proposed by the Commission

Amendment

(8) In addition to changing their funding patterns, IASCF and EFRAG are currently undergoing governance reforms to make sure that their structure and processes ensure their ability to accomplish their public interest mission in an independent and efficient manner. These reforms should be in place by the time the Community co-financing starts.

(8) In addition to changing their funding patterns, IASCF and EFRAG are currently undergoing governance reforms to make sure that their structure and processes ensure their ability to accomplish their public interest mission in an independent, efficient, transparent and democratic manner. The importance of those reforms has been stressed by the G20, by the de Larosière Group, and in the Commission Communication for the Spring European Council of 4 March 2009, entitled "Driving European recovery". The reforms should be in place by the time the Community co-financing starts. In relation to the IASCF the reforms should, inter alia, fulfil the expectations set out in the Council Conclusions of 8 July 2008 and in European Parliament Resolution of 24 April 2008, in particular as regards the establishment of the Monitoring Board with relevant powers and an appropriate composition; the achievement of greater transparency and legitimacy in the IASCF’s standard- and agenda-setting processes; the enhancement of the effectiveness of the Standards Advisory Council; the formalisation of the role of impact assessments as part of the IASB's due process; and the establishment of a stable and independent funding regime.

Amendment  8

Proposal for a decision

Recital 9 a (new)

Commission draft proposal

Amendment

 

(9a) Even if the Eight Council Directive of 10 April 1984 based on Article 54(3)(g) of the Treaty on the approval of persons responsible for carrying out the statutory audits of accounting documents1 obliged Member States to set up independent oversight bodies in the field of auditing, the financial crisis has revealed deficiencies in the oversight of audit firms and in particular as regards Community cooperation between oversight bodies. The Commission should, by 1 July 2010, present a plan for reinforcing Community cooperation between audit firm oversight bodies, and suggests that such reinforcement follow similar lines to those for the development or enhancement of the level 3 committees.

 

1. OJ L 126, 12.5.1984, p. 20.

Amendment  9

Proposal for a decision

Recital 11

Text proposed by the Commission

Amendment

(11) Since the selection of new beneficiaries is a measure of general scope within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission, that selection should be made by use of the regulatory procedure provided for in Article 5 of that Decision.

(11) The measures necessary for the implementation of this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission.

 

(11a) In particular, the Commission should be empowered to decide on the amounts and on the maximum percentage of financing and select new beneficiaries for the Programme. Since those measures are of general scope and are designed to amend non-essential elements of this Decision, they much be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.

Amendment  10

Proposal for a decision

Recital 13 a (new)

Text proposed by the Commission

Amendment

 

(13a) The financial crisis has highlighted the need for reform of the regulatory and supervisory models for the European Union’s financial sector. In particular, the Commission reported 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 Jacques de Larosière with a mandate to consider the organisation of Community financial institutions to ensure prudential soundness, the orderly functioning of markets and stronger Community cooperation on financial stability oversight, early warning mechanisms and crisis management, including the management of cross-border and cross-sectoral risks. The remit of the group of experts was to examine cooperation between the European Union and other major jurisdictions to help ensure financial stability at the global level. The Commission was to present the practical outcome of its work to the European Parliament and the Council as soon as possible and in any event no later than 1 July 2010, together with any legislative proposals needed to address the failings identified in the provisions for cooperation as regards oversight.

Amendment  11

Proposal for a decision

Article 4

Text proposed by the Commission

Amendment

The beneficiaries mentioned in the Annex shall benefit from the Programme.

The beneficiaries referred to in the Annex shall benefit from the Programme. Those beneficiaries that carry out activities in third countries, such as the IASCF and the PIOB, shall not benefit from the Programme until correspondingly neutral funding arrangements, including from third-country parties, form a majority of their total funding.

Justification

The proposal's aim of decreasing these bodies' reliance upon industry funding will be better achieved if pressure is brought to bear on non-EU parties to follow suit. There is little point having EU funding if industry still dominates elsewhere.

Amendment  12

Proposal for a decision

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

2. Community financing to the beneficiaries set out in Section A of the Annex shall only be awarded in the form of operating grants, which shall be used to finance their operating costs and expenses including the running of their secretariats and the remuneration of their employees. In the event of renewal, those operating grants shall not be automatically decreased.

2. Community financing in the form of operating grants shall be awarded to the beneficiaries set out in Sections A and B of the Annex. Operating grants shall be used to finance beneficiaries' operating costs and expenses including the running of their secretariats and the remuneration of their employees. In the event of renewal, those operating grants shall not be automatically decreased.

Amendment  13

Proposal for a decision

Article 5 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

3. Community financing to the beneficiaries set out in Section B of the Annex, shall only be awarded in the form of action grants. Action grants shall only be granted for the activities set out in Article 6 and shall be subject to all the following conditions:

3. Community financing in the form of action grants shall be awarded to the beneficiaries set out in Sections A and B of the Annex. Action grants shall be granted only for the activities set out in Article 6 and shall be subject to the following conditions:

Amendment  14

Proposal for a decision

Article 5 – paragraph 3 – point a

Text proposed by the Commission

Amendment

(a) they shall not cover activities included in the mandates of the Committee of European Securities Regulators, the Committee of European Banking Supervisors and the Committee of European Insurance and Pension Supervisors;

(a) the action grants shall provide financing for all the activities that help to fulfil the mandates of the Committee of European Securities Regulators, the Committee of European Banking Supervisors and the Committee of European Insurance and Pension Supervisors, and may also provide financing for activities other than those referred to in Article 6;

Amendment  15

Proposal for a decision

Article 5 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) the administrative support function of the beneficiaries identified in Section B of the Annex shall be clearly set out in their respective statutes. The administrative support function shall be the sole purpose of the beneficiaries referred to in Section B of the Annex and shall include the carrying out of the activities laid down in Article 6 for the benefit of the Committee of European Securities Regulators, the Committee of European Banking Supervisors and the Committee of European Insurance and Pension Supervisors.

(b) the administrative support functions shall be carried out by the beneficiaries referred to in Sections A and B of the Annex and shall include the activities laid down in Article 6 for the benefit of the Committee of European Securities Regulators, the Committee of European Banking Supervisors and the Committee of European Insurance and Pension Supervisors.

Amendment  16

Proposal for a decision

Article 5 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall decide on the amounts and on the maximum percentage of financing. Such decisions of the Commission shall be made public.

4. The Commission shall decide on the amounts and on the maximum percentage of financing. Such decisions of the Commission shall be made public. Those measures, designed to amend non-essential elements of this Decision, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 13(2).

Amendment  17

Proposal for a decision

Article 9 – paragraph 1

Text proposed by the Commission

Amendment

1. The financial reference amount for the implementation of this Decision over the period 2010-2013 is EUR 36,2 million.

1. The financial envelope for the implementation of this Decision over the period 2010 to 2012 is EUR 60 million.

Amendment  18

Proposal for a decision

Article 9 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. In the case where the Commission presents its first appropriation request to the budgetary authority in relation to the International Accounting Standards Committee Foundation, it shall accompany such request by a report on the governance reforms of that body to be assessed by the European Parliament and by the Council before 15 April of the year of the request. The report shall focus on the governance structure and processes, including the composition and powers of the Monitoring Board. The report shall also focus on the ability of the IASCF and IASB to accomplish their public interest mission in a transparent and efficient manner. The report shall also set out progress as regards the roadmaps for third countries introduction of IFRS for their domestic issuers.

Amendment  19

Proposal for a decision

Article 11 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission shall ensure that for any action financed by the Programme, the beneficiary submits annually a technical and financial report on the progress of work and that a final report is submitted after the completion of the action. The Commission shall determine the form and content of the reports.

1. The Commission shall ensure that for any action financed by the Programme, the beneficiary submits annually a technical and financial report on the progress of work and that a final report is submitted after the completion of the action. The Commission shall determine the form and content of the reports. The beneficiary shall also submit an annual report to the European Parliament.

Justification

In its capacity as budgetary authority, Parliament should be involved in supervising and assessing the effectiveness of the funding of beneficiaries by means of a system of annual reports.

Amendment  20

Proposal for a decision

Article 13 – paragraph 2 – subparagraph 1

Text proposed by the Commission

Amendment

2. Where reference is made to this paragraph, the regulatory procedure laid down in Article 5 of Decision 1999/468/EC shall apply, in compliance with Articles 7 and 8 thereof.

2. Where reference is made to this paragraph, the regulatory procedure with scrutiny laid down in Article 5a(1) to (4), and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

Amendment  21

Proposal for a decision

Article 13 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

The period provided for in Article 5(6) of Decision 1999/468/EC shall be 3 months.

deleted

Amendment  22

Proposal for a decision

Article 14 – paragraph 1 – introductory part

Commission draft proposal

Amendment

1. No later than 31 December 2014, the Commission shall submit a report based, inter alia, on the annual reports referred to in Article 11(1), to the European Parliament and the Council on the achievement of the Programme’s objectives.

1. No later than 6 months before the end of the Programme, the Commission shall submit a report based, inter alia, on the annual reports referred to in Article 11(1), to the European Parliament and the Council on the achievement of the Programme’s objectives.

Amendment  23

Proposal for a decision

Article 14 – paragraph 1 a (new)

Commission draft proposal

Amendment

 

1a. By 1 July 2010, the Commission shall present a plan for reinforcing Community cooperation between audit firm oversight bodies, including how to set up and finance a body similar to those under consideration in respect of the level 3 committees.

Amendment  24

Proposal for a decision

Article 14 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. As soon as possible, and in any event by 1 July 2010, the Commission shall present to the European Parliament, the Council and the European Central Bank, a report on the need for further reforms of the oversight system taking account of the responsibilities under the Treaty, and shall put forward the necessary legislative proposals.

(1)

             OJ C 139, 14.6.2006, p. 1.


EXPLANATORY STATEMENT

The rapporteur welcomes the fact that the Commission has responded to Parliament’s call for action and is proposing to provide financial support for the Community in the financial services sector and in the areas of financial reporting and auditing, and the activities of certain European and international institutions. Co-financing of this kind for the committees of the supervisory authorities, IASCF, EFRAG and PIOB, can to a large degree help to ensure that they fulfil their mandates independently and efficiently.

The rapporteur also agrees with the Commission on the need to prevent the committees of the supervisory authorities, IASCF, EFRAG and PIOB, from having to rely on undiversified and voluntary funding from interested parties. In these circumstances it should be possible to support the committees of the supervisory authorities IASCF, EFRAG and PIOB in such a way that they have appropriate funds for implementing certain strategic projects and thus to secure diversified and appropriate funding of the organisations concerned. For this reason the programme must be flexibly designed to ensure that at least the committees of the supervisory authorities, IASCF, EFRAG and PIOB are able to obtain all the operating grants and action-related financial aid they require.

Against the backdrop of the current financial crisis it would seem essential to give top priority to expanding convergence on oversight and cooperating in the area of financial services in connection with financial reporting and auditing. The rapporteur agrees with the Council(1) and Commission on the need to ‘redefine the regulatory and supervisory model of the EU financial sector, particularly for the large cross-border financial institutions’(2).The proposals to introduce colleges of oversight authorities in the context of the various directives is certainly a small step in the right direction.

On the other hand the rapporteur finds it unambitious that the Commission has only revised its decisions on setting up the committees of the supervisory authorities(3), although Parliament has repeatedly called for those committees also to be given an appropriate legal framework. The Commission could have put forward the necessary legislative proposals for creating the appropriate regulatory framework, without anticipating the findings of the Larosière Group(4). For this reason the rapporteur sees good reason to restrict co-financing of the committees initially to a three-year term, until the right policy conclusions are drawn from de Larosière and indeed implemented.

In the circumstances the rapporteur recommends that the Commission should present to Parliament, the Council and the ECB no later than 1 July 2010 a report and the necessary legislative proposals for further reform of the regulation and oversight of the European financial markets.

In conclusion the rapporteur points to the need, when defining the financial reference framework, also to bear in mind that this will involve supporting at least six bodies over a three-year period. The rapporteur therefore considers that the financial reference amount must be increased in order to provide those bodies with in principle at least EUR 20 million a year, to ensure that specific schemes in the form of IT projects and the accompanying renewal of infrastructure can be financed in the best possible manner.

(1)

See Declaration on a concerted European Action Plan of the Euro Area countries (14239/08), Brussels summit of the Euro Area countries of 12 October 2008, and Conclusions of the Brussels European Council (14368/08) of 15-16 October 2008, paragraph 1 et seq.

(2)

Communication from the Commission, ‘From financial crisis to recovery: A European framework for action’, COM(2008) 706 final, Brussels, 29 October 2008, p. 4.

(3)

http://ec.europa.eu/internal_market/finances/committees/index_en.htm.

(4)

See Commission press release of 11 November 2008 (IP/08/1679), downloadable from http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1679&format=HTML&aged=0&language=EN&guiLanguage=en.


OPINION OF THE COMMITTEE ON LEGAL AFFAIRS (*)

COMMITTEE ON LEGAL AFFAIRS

CHAIRMAN

Ref.: D(2009)19017

(*) Associated committee - Rule 47 of the Rules of Procedure

Ms Pervenche BERÈS

Chair

Committee on Economic and Monetary Affairs

ASP 14G206

BRUSSELS

Subject:     Community programme to support specific activities in the field of financial services, financial reporting and auditing (COM(2009)0014 – C6-0031/2009 – 2009/0001(COD)

Dear Ms Berès,

The Committee on Legal Affairs has been granted enhanced cooperation under Rule 47 of the Rules of Procedure for its opinion on the above proposal for a Community programme. The Committee on Legal Affairs is in particular responsible for Community acts which affect the Member States' legal order, namely in the field of company law, which also includes the specific fields of accounting and auditing.

Owing to your committee's very tight timetable, the Committee on Legal Affairs will not be able to proceed with delivery of a formal opinion before your report is adopted.

However, the Committee on Legal Affairs has agreed on sending you the following observations.

The Committee on Legal Affairs welcomes the proposal for a decision of the European Parliament and of the Council on establishing a Community programme to support specific activities in the field of financial services, financial reporting and auditing.

The Committee on Legal Affairs also welcomes the recommendation of the rapporteur of the Committee on Economic and Monetary Affairs that the Commission should present to Parliament, the Council and the ECB no later than 1 July 2010 a report and the necessary legislative proposals for further reform of the regulation and oversight of the European financial markets.

In addition, the Committee on Legal Affairs has few comments which it hopes the Committee on Economic and Monetary Affairs will take into account.

In its report on the on implementation of Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts (2008/2247(INI)) the Committee on Legal Affairs has already stated that "it regrets that not all Member States have introduced the system of public oversight required by the Directive" and noted further that "public oversight under the Directive must be organised in such a way that conflicts of interest are avoided". It also stressed that it considered it "very important that the cooperation required under the Directive between public-oversight authorities should actually materialise, since intensive cooperation between oversight authorities fosters convergence between Member States and can prevent additional administrative burdens resulting from different national procedures and requirements."

In this line the Committee on Legal Affairs proposes the following amendments for two new recitals and one new paragraph to be inserted in Article 14 of the proposal concerning independent oversight bodies in the field of auditing and asks the Chairman of the Committee on Economic and Monetary Affairs to take into account these amendments with regard to Rule 47 of the Rules of Procedure:

Recital 7

(7) A Community co-financing ensures that these bodies benefit from clear, stable, diversified, sound and adequate funding and that they are able to accomplish their public interest mission in an independent and efficient manner. The Commission should ensure that beneficiaries who carry out activities in third countries, such as the Public Interest Oversight Board (PIOB), develop a policy for ensuring that correspondingly neutral funding arrangements form a majority of their total funding, including from third-country parties.

Recital 9 a (new)

(9a) Even if the 8th company law directive obliged Member States to set up independent oversight bodies in the field of auditing the crisis has revealed deficiencies in the oversight of audit firms and in particular in the European cooperation of oversight bodies. The Commission should no later than 1 July 2010 present a plan for reinforcing European audit firm oversight cooperation, and suggests that this should follow similar lines to those for the development or enhancement of the Lamfalussy committees.

Article 14 – paragraph 1 a (new)

(1a) The Commission shall no later than 1 July 2010 present a plan for reinforcing European audit firm oversight cooperation, including how to set up and finance a body similar to those under consideration in respect of the Lamfalussy committees.

The appointed rapporteur Mrs. Van den Burg for the Committee on Legal Affairs on the above mentioned proposal for a decision of the European Parliament and of the Council on establishing a Community programme to support specific activities in the field of financial services, financial reporting and auditing is ready to fully participate in the work of the Economic and Monetary Committee on this.

In conclusion, after examining the issue at its meeting of 30 March 2009, the Committee on Legal Affairs, unanimously(1) decided to recommend that your Committee, as the committee responsible, proceed to examine the above proposal in keeping with its suggestions.

Yours sincerely,

Giuseppe Gargani

(1)

The following Members were present: Giuseppe Gargani (Chair), Francesco Enrico Speroni (Vice-Chair), Bert Doorn, Jean-Paul Gauzès, Neena Gill, Klaus-Heiner Lehne, Manuel Medina Ortega, Aloyzas Sakalas, Eva-Riitta Siitonen, Diana Wallis, Jaroslav Zvěřina, Tadeusz Zwiefka.


OPINION of the Committee on Budgets (11.3.2009)

for the Committee on Economic and Monetary Affairs

on the proposal for a decision of the European Parliament and of the Council establishing a Community programme to support specific activities in the field of financial services, financial reporting and auditing

(COM(2009)0014 – C6‑0031/2009 – 2009/0001(COD))

Rapporteur: Titley

SHORT JUSTIFICATION

Commission proposal

The Commission proposes the establishment of a Community programme, providing direct funding from the Community budget to the three EU Committees of Supervisors (Committee of European Security Regulators - CESR, Committee of European Banking Supervisor - CEBS and Committee of European Insurance and Occupational Pension Supervisors CEIOPS) and to key international and European bodies involved in the standard-setting process for financial reporting and auditing. These bodies are the International Accounting Standards Committee Foundation (IASCF), the European Financial Reporting Advisory Group (EFRAG) and the Public Interest Oversight Body (PIOB).

According to the Commission, stable, diversified, sound and adequate funding of these bodies will enable them to accomplish their mission in an independent and efficient manner. Enhanced supervisory convergence and cooperation will contribute to the stability of financial markets. At the same time, the high quality of internationally harmonised financial reporting and auditing rules and a level playing field for European businesses on the global markets are of key importance to the creation of a favourable business environment. The European contribution to the international accounting debate should also be enhanced by strengthening the resources and role of EFRAG.

The contributions would amount to EUR 36.2 million and would cover the period from 1 January 2010 until 31 December 2013. The proposal involves co-financing by the beneficiaries using their own funds or funds received from third parties (e.g. member organisations, stakeholders).

The proposal will entail reprogramming of the relevant heading in the financial perspective (i.e. heading 1a), and has no financial implications on the revenue.

Draftsman's position

1. In the current economic climate we welcome the Commission's proposal, particularly recalling the European Parliament's September 2008 opinion calling for "sufficient funding to be set aside for international accounting standard setting".

2. Considers that the reference amount indicated in the legislative proposal is compatible with the ceiling of subheading 1a of the current multiannual financial framework 2007-13, but notes that this would reduce the margin available which could have implications for the financing of future projects in that heading. As a result the Rapporteur welcomes the amount proposed by the Commission but would not recommend an increase, unless the need for it was clearly demonstrated.

3. The Commission needs to clarify if the bodies referred to in the Commission's proposal will become quasi EU agencies, as a result of receiving Community funding. If this is the case, reminds the Commission and the Council of the need to respect Article 47 of the 17 May 2006 IIA, since the financial resources to create new agencies is very limited due to the current margins under each heading.

AMENDMENTS

The Committee on Budgets calls on the Committee on Economic and Monetary Affairs, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1

Draft legislative resolution

Paragraph 1 a (new)

Draft legislative resolution

Amendment

 

1a. Considers that the reference amount indicated in the legislative proposal must be compatible with the ceiling of heading 1a of the multiannual financial framework (MFF) 2007-2013 and points out that the annual amount will be decided within the annual budgetary procedure in accordance with the provisions of Point 37 of the Interinstitutional Agreement (IIA) of 17 May 2006;

Amendment  2

Draft legislative resolution

Paragraph 1 b (new)

Draft legislative resolution

Amendment

 

1b. Considers that, should the European bodies co-financed by the "Programme to support specific activities in the field of financial services, financial reporting and auditing" become agencies, Point 47 of the abovementioned IIA shall apply;

Amendment  3

Proposal for a decision

Article 14 – paragraph 1 – introductory part

Commission draft proposal

Amendment

1. No later than 31 December 2014, the Commission shall submit a report based, inter alia, on the annual reports referred to in Article 11(1), to the European Parliament and the Council on the achievement of the Programme’s objectives.

1. No later than 6 months before the end of the programme, the Commission shall submit a report based, inter alia, on the annual reports referred to in Article 11(1), to the European Parliament and the Council on the achievement of the Programme’s objectives.

PROCEDURE

Title

Community programme to support specific activities in the field of financial services, financial reporting and auditing

References

COM(2009)0014 – C6-0031/2009 – 2009/0001(COD)

Committee responsible

ECON

Opinion by

       Date announced in plenary

BUDG

3.2.2009

 

 

 

Rapporteur

       Date appointed

Gary Titley

4.2.2009

 

 

Discussed in committee

23.2.2009

11.3.2009

 

 

Date adopted

11.3.2009

 

 

 

Result of final vote

+:

–:

0:

25

0

0

Members present for the final vote

Richard James Ashworth, Reimer Böge, Brigitte Douay, Göran Färm, Szabolcs Fazakas, Vicente Miguel Garcés Ramón, Ingeborg Gräßle, Catherine Guy-Quint, Jutta Haug, Anne E. Jensen, Vladimír Maňka, Mario Mauro, Jan Mulder, Gérard Onesta, Margaritis Schinas, Nina Škottová, Theodor Dumitru Stolojan, László Surján, Gary Titley, Helga Trüpel, Kyösti Virrankoski, Ralf Walter

Substitute(s) present for the final vote

Călin Cătălin Chiriţă, Marusya Ivanova Lyubcheva, Peter Šťastný

PROCEDURE

Title

Community programme to support specific activities in the field of financial services, financial reporting and auditing

References

COM(2009)0014 – C6-0031/2009 – 2009/0001(COD)

Date submitted to Parliament

23.1.2009

Committee responsible

       Date announced in plenary

ECON

3.2.2009

Committee(s) asked for opinion(s)

       Date announced in plenary

BUDG

3.2.2009

JURI

3.2.2009

 

 

Rapporteur(s)

       Date appointed

Karsten Friedrich Hoppenstedt

15.1.2009

 

 

Discussed in committee

2.3.2009

23.3.2009

 

 

Date adopted

31.3.2009

 

 

 

Result of final vote

+:

–:

0:

27

0

0

Members present for the final vote

Paolo Bartolozzi, Zsolt László Becsey, Pervenche Berès, Sebastian Valentin Bodu, Sharon Bowles, Udo Bullmann, David Casa, Jonathan Evans, Elisa Ferreira, Ingo Friedrich, Jean-Paul Gauzès, Benoît Hamon, Karsten Friedrich Hoppenstedt, Sophia in ‘t Veld, Wolf Klinz, Kurt Joachim Lauk, Astrid Lulling, Gay Mitchell, Sirpa Pietikäinen, John Purvis, Dariusz Rosati, Olle Schmidt, Margarita Starkevičiūtė, Ieke van den Burg

Substitute(s) present for the final vote

Harald Ettl, Gianni Pittella, Eva-Riitta Siitonen

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