European Parliament legislative resolution of 23 May 2012 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 302/2009 concerning a multiannual recovery plan for bluefin tuna in the eastern Atlantic and Mediterranean (COM(2011)0330 – C7-0154/2011 – 2011/0144(COD))

P7_TA(2012)0214 A7-0449/2011

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2011)0330),

–  having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0154/2011),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 26 October 2011(1),

–  having regard to the undertaking given by the Council representative by letter of 18 April 2012 to approve Parliament's position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Fisheries and the opinion of the Committee on the Environment, Public Health and Food Safety (A7-0449/2011),

1.  Adopts its position at first reading hereinafter set out;

2.  Approves the statement by Parliament annexed to this resolution;

3.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

4.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 23 May 2012 with a view to the adoption of Regulation (EU) No .../2012 of the European Parliament and of the Council amending Council Regulation (EC) No 302/2009 concerning a multiannual recovery plan for bluefin tuna in the eastern Atlantic and Mediterranean

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) No 500/2012).

Annex to the legislative resolution

Statement by the European Parliament on implementing acts

The European Parliament declares that the provisions of this Regulation regarding implementing acts are the result of a delicate compromise. In order to achieve a first reading agreement before the beginning of the bluefin tuna fishing season, the European Parliament has therefore accepted the possibility of implementing acts in certain specific cases. It underlines however, that those provisions shall not be taken or used as a precedent for regulating similar situations for effective transposition of future international conservation and management measures which have been established by Regional Fisheries Management Organisations and which become binding upon the Union in accordance with the terms of the international conventions setting up those organisations.

(1) OJ C 24, 28.1.2012, p. 116.

European Parliament legislative resolution of 23 May 2012 on the proposal for a regulation of the European Parliament and of the Council on the accelerated phasing-in of double-hull or equivalent design requirements for single-hull oil tankers (recast) (COM(2011)0566 – C7-0269/2011 – 2011/0243(COD))

P7_TA(2012)0215 A7-0034/2012

(Ordinary legislative procedure – recast)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2011)0566),

–  having regard to Article 294(2) and Article 100(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0269/2011),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 7 December 2011(1),

–  having consulted the Committee of the Regions,

–  having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts(2),

–  having regard to the letter of 25 November 2011 from the Committee on Legal Affairs to the Committee on Transport and Tourism in accordance with Rule 87(3) of its Rules of Procedure,

–  having regard to the undertaking given by the Council representative by letter of 4 April 2012 to approve Parliament's position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rules 87 and 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Transport and Tourism (A7-0034/2012),

A.  whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance,

1.  Adopts its position at first reading hereinafter set out, taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 23 May 2012 with a view to the adoption of Regulation (EU) No .../2012 of the European Parliament and of the Council on the accelerated phasing-in of double-hull or equivalent design requirements for single-hull oil tankers (recast)

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) No 530/2012).

(1) OJ C 43, 15.2.2012, p. 98. (2) OJ C 77, 28.3.2002, p. 1.

European Parliament legislative resolution of 23 May 2012 on the draft Council decision on the conclusion of the Protocol setting out the fishing opportunities and the financial contribution provided for by the Fisheries Partnership Agreement between the European Community and the Republic of Mozambique (18059/2011 – C7-0028/2012 – 2011/0378(NLE))

P7_TA(2012)0216 A7-0147/2012

(Consent)

The European Parliament,

–  having regard to the draft Council decision (18059/2011),

–  having regard to the draft for the new Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries Partnership Agreement between the European Community and the Republic of Mozambique (18058/2011),

–  having regard to the request for consent submitted by the Council in accordance with Article 43(2) and Article 218(6), second subparagraph, point (a), of the Treaty on the Functioning of the European Union (C7-0028/2012),

–  having regard to Rules 81 and 90(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on Fisheries and the opinions of the Committee on Development and the Committee on Budgets (A7-0147/2012),

1.  Consents to conclusion of the protocol;

2.  Calls on the Commission to forward to Parliament the minutes and the conclusions of the meetings of the Joint Committee provided for in Article 9 of the Agreement, as well as the multiannual sectoral programme provided for in Article 3 of the new Protocol and the corresponding annual evaluations; calls on the Commission to facilitate the participation of representatives of Parliament as observers in the meetings of the Joint Committee; calls on the Commission to submit to Parliament and the Council, within the last year of application of the new Protocol and before the opening of negotiations for its renewal, a full evaluation report on its implementation, without imposing unnecessary restrictions on access to this document;

3.  Calls on the Commission and Council, in the context of their respective competences, to keep Parliament immediately and fully informed, at all stages of the procedures related to the new Protocol and its renewal, pursuant to Article 13(2) of the Treaty on European Union and Article 218(10) of the Treaty on the Functioning of the European Union;

4.  Instructs its President to forward its position to the Council and Commission, and the governments and parliaments of the Member States and the Republic of Mozambique.

European Parliament legislative resolution of 23 May 2012 on the proposal for a Council directive on a common system of financial transaction tax and amending Directive 2008/7/EC (COM(2011)0594 – C7-0355/2011 – 2011/0261(CNS))

P7_TA(2012)0217 A7-0154/2012

(Special legislative procedure – consultation)

The European Parliament,

–  having regard to the Commission proposal to the Council (COM(2011)0594),

–  having regard to Article 113 of the Treaty on the Functioning of the European Union , pursuant to which the Council consulted Parliament (C7-0355/2011),

–  having regard to the reasoned opinions submitted, within the framework of the Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Cypriot Parliament, the Maltese Parliament and the Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on Development, the Committee on Budgets and the Committee on the Internal Market and Consumer Protection (A7-0154/2012),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

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

Text proposed by the Commission   Amendment Amendment 1 Proposal for a directive Recital 1 (1)  The recent financial crisis has led to debates at all levels about a possible additional tax on the financial sector and in particular a financial transactions tax (FTT). This debate stems from the desire to ensure the financial sector contribute to covering the costs of the crisis and that it is taxed in a fair way vis-à-vis other sectors for the future; to dis-incentivise excessively risky activities by financial institutions; to complement regulatory measures aimed at avoiding future crises and to generate additional revenue for general budgets or specific policy purposes. (1)  The recent financial crisis has led to debates at all levels about a possible additional tax on the financial sector and in particular a financial transactions tax (FTT). This debate stems from the desire to ensure the financial sector contribute to covering the costs of the crisis and that it is taxed in a fair way vis-à-vis other sectors for the future; to dis-incentivise excessively risky activities by financial institutions; to complement regulatory measures aimed at avoiding future crises and to generate additional revenue for general budgets, inter alia as a contribution to fiscal consolidation, in order to stimulate growth and create jobs, or for specific policy purposes, such as development aid and fighting climate change. Amendment 2 Proposal for a directive Recital 2 (2)  In order to prevent distortions through measures taken unilaterally by Member States, bearing in mind the extremely high mobility of most of the relevant financial transactions, and thus to ensure the proper functioning of the internal market, it is important that the basic features of a FTT in the Member States are harmonised at Union level. Incentives for tax arbitrage in the Union and allocation distortions between financial markets in the Union, as well as possibilities for double or non taxation should thereby be avoided. (2)  In order to prevent distortions through measures taken unilaterally by Member States, bearing in mind the extremely high mobility of most of the relevant financial transactions, and thus to ensure the proper functioning of the internal market, it is important that the basic features of FTT in the Member States are harmonised, and this Directive is implemented, at Union level. Incentives for tax arbitrage in the Union and allocation distortions between financial markets in the Union, as well as possibilities for double or non taxation should thereby be avoided. Bearing in mind the ultimate goal of a Union-wide application of FTT, should a group of Member States, including, but not limited to euro area Member States, choose to move faster by means of enhanced cooperation under Article 329 of the Treaty on the Functioning of the European Union, the model developed in this Directive would seem suitable as a basis for implementation within that group of Member States. However, an introduction of FTT in a particularly limited number of Member States could lead to a significant distortion of competition in the internal market and comprehensive measures should be taken in order to ensure that such a move does not negatively affect the functioning of the internal market. Amendment 3 Proposal for a directive Recital 2 a (new) (2a)  In line with the European Council conclusions of 17 June 2010 and taking into account that FTT will truly achieve its objectives if it is introduced at a global level, the Union should lead efforts to reach agreement on FTT at a global level. By means of setting an example for the introduction of FTT, the Union must push resolutely for a global agreement in the relevant international arena, in particular the G20, to establish a common ground for introducing a global FTT. Concrete actions in this direction should be part of the report of the Commission in the framework of the first review of this Directive. Amendment 4 Proposal for a directive Recital 3 (3)  For the internal market to function properly, FTT should apply to trade in a wide range of financial instruments, including structured products, both in the organised markets and ‘over-the-counter’, as well as to the conclusion and modification of all derivative contracts. For the same reason, it should apply to a broadly determined range of financial institutions. (3)  In order to reduce the scope for tax avoidance, relocation risk and regulatory arbitrage, FTT should apply to trade in a wide range of financial instruments, including structured products, both in the organised markets and ‘over-the-counter’, as well as to the conclusion and modification of all derivative contracts. For the same reason, it should apply to a broadly determined range of financial institutions. Including the widest possible range of financial instruments and actors should also ensure that the tax burden is equally spread among all actors but relatively higher on more speculative and more disruptive financial transactions. The same result could not be achieved if the scope of FTT were more limited, e.g. if it took the form of a stamp duty, which would place the full tax burden on a much more limited group of instruments traded on regulated markets without fulfilling the aim of curbing excessive and harmful speculation. Amendment 5 Proposal for a directive Recital 11 a (new) (11a)  With a view to strengthening the position of stock exchange trading, which is strictly regulated, controlled and transparent, against unregulated, uncontrolled and less transparent off-exchange trading, Member States should apply lower tax rates to financial transactions on stock exchanges than to off-exchange transactions. This will make it possible to effect a shift in trading from markets with little or no regulation to stock exchanges that are subject to strict regulation and control. Amendment 6 Proposal for a directive Recital 12 (12)  In order to concentrate the taxation on the financial sector as such rather than on citizens and because financial institutions execute the vast majority of transactions on financial markets, the tax should apply to those institutions, whether they trade in their own name, in the name of other persons, for their on own account or for the account of other persons. (12)  In order to concentrate the taxation on the financial sector as such rather than on citizens and because financial institutions execute the vast majority of transactions on financial markets, the tax should apply only to those institutions, whether they trade in their own name, in the name of other persons, for their on own account or for the account of other persons. Amendment 7 Proposal for a directive Recital 13 (13)  Because of the high mobility of financial transactions and in order to help mitigating potential tax avoidance, the FTT should be applied on the basis of the residence principle. (13)  Because of the high mobility of financial transactions and in order to help mitigating potential tax avoidance and in order to ensure the widest possible coverage of actors and transactions, FTT should be applied on the basis of a very broadly defined residence principle, supplemented by elements of the issuance principle. In addition, for better enforcement of FTT, the ownership principle should apply. Amendment 8 Proposal for a directive Recital 14 (14)  The minimum tax rates should be set at a level sufficiently high for the harmonisation objective of this Directive to be achieved. At the same time, they have to be low enough so that delocalisation risks are minimised. (14)  The minimum tax rates should be set at a level sufficiently high for the harmonisation objective of this Directive to be achieved, so that the financial sector makes an appropriate contribution towards the costs of the economic crisis, thus boosting the real economy. At the same time, until the implementation of a uniform global FTT regime,those rates have to be low enough so that delocalisation risks are minimised. Amendment 9 Proposal for a directive Recital 15 a (new) (15a)  Since avoidance, evasion and abuse rates will partly depend on the capability of Member States to verify taxable transactions carried out on a trading venue in a third country, Member States and, where applicable, the Commission should make full use of instruments for cooperation on tax matters established by the OECD, the Council of Europe and other international organisations. If necessary, new bilateral and multilateral cooperative initiatives should be taken in this regard. Amendment 10 Proposal for a directive Recital 16 (16)  In order to allow the adoption of more detailed rules for determining whether certain financial activities constitute a significant part of an undertaking's activity, so that the undertaking can be considered a financial institution for the purposes of this Directive, as well as more detailed rules regarding protection against tax evasion, avoidance and abuse, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the measures necessary to this effect. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing-up delegated acts, should ensure a timely and appropriate transmission of relevant documents to the Council. (16)  In order to allow the adoption of more detailed rules for determining whether certain financial activities constitute a significant part of an undertaking's activity, so that the undertaking can be considered a financial institution for the purposes of this Directive, as well as more detailed rules regarding protection against tax evasion, avoidance and abuse, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the measures necessary to this effect. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, particularly with experts, non-governmental organisations (NGOs) and other stakeholders. The Commission, when preparing and drawing-up delegated acts, should ensure a timely and appropriate transmission of relevant documents to the European Parliament and the Council. Amendment 11 Proposal for a directive Recital 17 a (new) (17a)  This Directive does not address the management of revenue from FTT. However, having regard to the Commission proposal for a Council regulation laying down the multiannual financial framework for the years 2014 to 2020 and in particular concerning the provisions on the Union's own resources, part of the revenue from FTT could be managed at Union level, either as a part of Union own resources or directly linked to specific Union policies and public goods. The use of part of revenue from FTT as Union own resources would reduce national contributions to the Union budget and would therefore release funds from the national budgets for other uses. Amendment 12 Proposal for a directive Recital 17 b (new) (17b)  Only Member States are competent to raise tax. Amendment 13 Proposal for a directive Article 1 – paragraph 2 2.  This Directive shall apply to all financial transactions, on condition that at least one party to the transaction is established in a Member State and that a financial institution established in the territory of a Member State is party to the transaction, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction. 2.  This Directive shall apply, in accordance with Article 3, to all financial transactions, subject to one of the following conditions: (a) at least one party to the transaction is established in a Member State and a financial institution established in the territory of a Member State is party to the transaction, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction; or (b) the transaction involves a financial instrument issued by legal entities registered in the Union. Amendment 14 Proposal for a directive Article 2 – paragraph 1 – point 1 – point c a (new) (ca) currency spot transactions except where they are directly related to the commercial activities of a non-financial counterparty that is an end user; Amendment 15 Proposal for a directive Article 2 – paragraph 1 – point 7 – point f (f) a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and the Council, an investment manager of such fund or institution; (f) a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and of the Council on the activities and supervision of institutions for occupational retirement provision, an investment manager of such fund or institution, and an entity set up for the purpose of investment of such funds or institutions acting solely and exclusively in the interest of such funds or institutions, shall not be considered a financial institution for the purposes of this Directive until the review of this Directive pursuant to Article 16; Amendment 16 Proposal for a directive Article 3 – paragraph 1 – point e a (new) (ea) it is party, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction in relation to a financial instrument issued within the territory of a Member State or of the Union. Amendment 17 Proposal for a directive Article 3 – paragraph 2 a (new) 2a.  For the purpose of applying paragraph 1 in a consistent manner, Member States' competent authorities shall closely cooperate with each other and with ESMA in relation to the supervision of financial markets. Amendment 18 Proposal for a directive Article 3 a (new) Article 3a Issuance 1.  For the purposes of this Directive, a financial instrument is deemed to be issued within the territory of a Member State or of the Union where it is issued by a legal entity that is registered in a Member State. 2.  In the case of a derivatives agreement the condition of issuance within the territory of a Member State or of the Union is fulfilled where the reference or underlying instrument is issued by a legal entity that is registered in a Member State. 3.  In the case of a structured instrument, the condition of issuance within the territory of a Member State or of the Union is fulfilled where the structured instrument is based on or backed by a significant proportion of assets or financial instruments and derivatives agreement with reference to financial instruments issued by a legal entity that is registered in a Member State. Amendment 19 Proposal for a directive Article 3 b (new) Article 3b Transfer of legal title 1.  A financial transaction in relation to which no FTT has been levied shall be deemed legally unenforceable and shall not result in a transfer of legal title of the underlying instrument. 2.  A financial transaction as referred to in paragraph 1 shall be deemed not to fulfil the requirements for central clearing under Regulation (EU) No .../2012 of the European Parliament and the Council of ... on OTC derivatives, central counterparties and trade repositories [EMIR] or the capital adequacy requirements under Regulation (EU) No .../2012 of the European Parliament and the Council of ... on prudential requirements for credit institutions and investment firms [CRR IV]. 3.  In the case of automatic electronic payment schemes with or without the participation of payment settlement agents, revenue authorities of a Member State may establish a system of automatic electronic collection of FTT and certificates for transferring legal title. Amendment 20 Proposal for a directive Article 8 – paragraph 3 3.  Member States shall apply the same rate to all financial transactions that fall under the same category pursuant to paragraph 2 (a) and (b). 3.  In order to avoid tax arbitrage, Member States shall apply the same rate to all financial transactions that fall under the same category pursuant to paragraph 2 (a) and (b). Amendment 21 Proposal for a directive Article 8 – paragraph 3 a (new) 3a.  Member States shall apply a lower rate of tax to financial transactions on stock exchanges than to those in off-exchange trading. This shall apply to the financial transactions referred to in Articles 5 and 6. Amendment 22 Proposal for a directive Article 9 – paragraph 2 2.  Where a financial institution acts in the name or for the account of another financial institution only that other financial institution shall be liable to pay FTT. 2.  Where a financial institution acts in the name, for the account or by order of another financial institution, only that other financial institution shall be liable to pay FTT. Where several financial institutions are involved in such a process only the original institution listed as a trader shall be liable to pay FTT. Amendment 23 Proposal for a directive Article 10 – paragraph 1 1.  Member States shall lay down registration, accounting, reporting obligations and other obligations intended to ensure that FTT due to the tax authorities is effectively paid. 1.  Member States shall lay down accounting and reporting obligations and other obligations intended to ensure that FTT due to the tax authorities is effectively paid. Amendment 24 Proposal for a directive Article 10 – paragraph 1 a (new) 1a.  A financial institution shall, within six months from the entry into force of this Directive, register at the tax authorities of the Member State where it is deemed to be established in accordance with Article 3(1). Amendment 25 Proposal for a directive Article 10 – paragraph 1 b (new) 1b.  A Member State shall inform other Member States of the financial institutions registered at their territory. Amendment 26 Proposal for a directive Article 10 – paragraph 5 a (new) 5a.  Member states shall disclose annually to the Commission and to Eurostat transaction volumes against which revenues have been collected. Amendment 27 Proposal for a directive Article 11 – title Specific provisions relating to the prevention of evasion, avoidance and abuse Specific provisions relating to transparency and the prevention of tax evasion, avoidance and abuse Amendment 28 Proposal for a directive Article 11 – paragraph 1 1.  Member States shall adopt measures to prevent tax evasion, avoidance and abuse. 1.  Union rules shall be adopted to prevent tax evasion, avoidance and abuse. Amendment 29 Proposal for a directive Article 11 – paragraph 1 a (new) 1a.  The Commission shall establish an expert working group (FTT Committee) comprising representatives from the Member States that supervises the application of this Directive. Member States shall appoint bodies with sufficient competence to take immediate action in the case of abuse. The FTT Committee shall supervise financial transactions in order to detect avoidance schemes, to propose countermeasures and to coordinate the implementation of such countermeasures at national level where appropriate. Amendment 30 Proposal for a directive Article 11 – paragraph 3 a (new) 3a.  The administrative burden imposed on tax authorities through the introduction of FTT shall be kept to a minimum and, to that end, the Commission shall encourage cooperation between national tax authorities. Amendment 31 Proposal for a directive Article 11 – paragraph 3 b (new) 3b.  Eurostat shall collect and publish annually the financial flows subject to FTT within the Union. Amendment 32 Proposal for a directive Article 11 – paragraph 3 c (new) 3c.  In order to verify taxable transactions carried out on a trading venue in a third country, Member States and, where applicable, the Commission shall make full use of instruments for cooperation on tax matters established by relevant international organisations. Amendment 33 Proposal for a directive Article 11 – paragraph 3 d (new) 3d.  In order to adapt Member States' tax administrations to the provisions of this Directive and, in particular, in relation to administrative cooperation referred to in paragraph 3, Member States shall provide them with necessary and adequate human resources and technical equipment. Particular attention shall be focused on providing training for officials. Amendment 34 Proposal for a directive Article 11 – paragraph 3 e (new) 3e.  The Commission shall conduct a thorough examination to analyse the administrative costs for regional and local authorities arising from the implementation of this Directive. Amendment 35 Proposal for a directive Article 16 Every five years and for the first time by 31 December 2016, the Commission shall submit to the Council a report on the application of this Directive and, where appropriate, a proposal for its modification. Every five years and for the first time by 31 December 2016, the Commission shall submit to the European Parliament and the Council a report on the application of this Directive and, where appropriate, a proposal for its modification. In that report the Commission shall, at least, examine the impact of the FTT on the proper functioning of the internal market, the financial markets and the real economy and it shall take into account the progress on taxation of the financial sector in the international context. In that report the Commission shall, at least, examine the impact of FTT on the proper functioning of the internal market, the financial markets and the real economy. It shall also assess the impact of certain provisions such as the appropriate scope of FTT, the possibility to distinguish between different categories of financial products and assets with a view to charging higher rates after a certain ratio of cancelled orders, the rate of taxation and the exemption of institutions for occupational retirement provision under Article 2(1)(7)(f). Where the Commission finds that distortion or abuse has taken place, it shall propose appropriate remedies. In addition, the Commission shall analyse and report on national FTT tax revenue collection based on the residency of financial institutions and to what extent that collection differs from tax distribution based on the underlying customer residency, namely to what extent financial consolidation centralises tax revenues in financial centres. In its reports, the Commission shall take into account different forms of taxation of the financial sector, under discussion or already in place, and progress regarding the introduction of a wider FTT. Where appropriate, the Commission shall put forward proposals or undertake action in order to facilitate convergence and promote the introduction of a global FTT.

European Parliament resolution of 23 May 2012 on EU and China: Unbalanced Trade? (2010/2301(INI))

P7_TA(2012)0218 A7-0141/2012

The European Parliament,

–  having regard to Articles 2, 3, 6 and 21 of the Treaty on European Union,

–  having regard to Articles 153, 191, 207 and 218 of the Treaty on the Functioning of the European Union,

–  having regard to Articles 12, 21, 28, 29, 31 and 32 of the Charter of Fundamental Rights of the European Union,

–  having regard to the Protocol on the Accession of the People's Republic of China to the World Trade Organization of 23 November 2001,

–  having regard to its resolution of 5 February 2009(1), and the report by its External Policies Directorate-General of July 2011, on trade and economic relations with China,

–  having regard to the joint statement on the occasion of the 13th EU-China Summit held in Brussels on 6 October 2010,

–  having regard to the Commission Communication entitled ‘Trade, Growth and World Affairs – Trade Policy as a core component of the EU's 2020 strategy’ (COM(2010)0612) and the European Parliament resolution of 27 September 2011 on a new trade policy for Europe under the Europe 2020 strategy(2),

–  having regard to its resolution of 19 February 2008 on the EU's strategy to deliver market access for European companies(3),

–  having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community and the Commission Communication of 6 December 2006 entitled ‘Global Europe: Europe's trade defence instruments in a changing global economy’,

–  having regard to the Commission Communication entitled ‘A Single Market for Intellectual Property Rights’ of 24 May 2011, the proposal for a regulation of the European Parliament and of the Council concerning customs enforcement of intellectual property rights (COM(2011)0285), the Commission report of 14 July 2011 on EU customs enforcement of intellectual property rights and the European Parliament resolution of 18 December 2008 on the impact of counterfeiting on international trade ,

–  having regard to the WTO report of 5 July 2011 on China's export measures on various raw materials and the European Parliament resolution of 13 September 2011 on an effective raw materials strategy for Europe(4),

–  having regard to its resolution of 13 December 2011 on trade and investment barriers(5) ,

–  having regard to its resolution of 6 April 2011 on the future European international investment policy(6),

–  having regard to its resolutions of 25 November 2010 on corporate social responsibility in international trade agreements(7), on human rights and social and environmental standards in international trade agreements(8) and on international trade policy in the context of climate change imperatives (9),

–  having regard to its resolution of 24 April 2008 entitled ‘Towards a reform of the World Trade Organization’(10) and its resolution of 14 September 2011 on the state of play of the negotiations on the Doha Development Agenda(11),

–  having regard to the Commission Communication to the Council and the European Parliament entitled ‘EU – China: Closer partners, growing responsibilities’ (COM(2006)0631) and its accompanying policy paper ‘Competition and Partnership – A policy for EU-China trade and investment’ (COM(2006)0632),

–  having regard to its resolution of 5 February 2009 on enhancing the role of European SMEs in international trade(12),

–  having regard to the European Council conclusions of 23 October 2011, and the final declaration of the G20 Summit in Cannes on 4 November 2011 entitled ‘Building our common future: renewed collective action for the benefit of all’,

–  having regard to the Chinese Government's White Paper of 23 December 2010 on China-Africa economic and trade cooperation,

–  having regard to Rule 48 of its Rules of Procedure,

–  having regard to the report of the Committee on International Trade and the opinions of the Committee on Development, the Committee on Employment and Social Affairs, the Committee on Industry, Research and Energy and the Committee on the Internal Market and Consumer Protection (A7-0141/2012),

A.  whereas China joined the WTO in 2001 and has subsequently become the world's leading exporter of goods, accounting for 10,36 % of exports in 2010 and the world's second largest economic power;

B.  whereas the EU is the top destination for Chinese exports, which rose by 39,5 % between 2009 and 2010, and whereas China is the EU's second-largest trading partner;

C.  whereas the EU has replaced Japan as China's largest source of import; whereas growing Chinese imports have been crucial for the recent economic performance of export-oriented EU member states like Germany;

D.  whereas the increased development of its economy and its accession to the WTO entail not only substantial benefits but also a greater responsibility for China to play a full and positive role in the global economic order, in particular in the International Monetary Fund (IMF) and the World Bank Group;

E.  Whereas bilateral trade relations have developed considerably since the signature of the EU-China cooperation agreement in 1985, and it is therefore essential that this agreement is brought into line with the current economic situation; whereas the European Commission adopted its major policy strategy on China in 2006 and, under this framework, entered in January 2007 into negotiations on a comprehensive Partnership and Cooperation Agreement with the aim to further improve relations between the EU and China in the fields of trade and investment;

F.  whereas trade between EU and China has been growing rapidly and continuously in the last three decades, reaching a peak amount of total trade of EUR 395 billion in 2010, and whereas the imbalance in bilateral trade has been in China's favour since 1997, this trade deficit amounted to EUR 168,8 billion in 2010 compared to EUR 49 billion in 2000; while the value added to Chinese exports is very limited once the value of components imported from the EU and elsewhere is discounted; whereas foreign companies established in China account for nearly 85 % of all export trade deriving from assembly operations;

G.  whereas foreign investment by the EU in China in 2010 amounted to EUR 4,9 billion and foreign investment by China in the EU in the same year amounted to EUR 0,9 billion;

H.  whereas the divergent social, economic, and democratic models in China and in the EU, as well as their respective demographics and natural resources, play a large role in the trade imbalances between the two regions;

I.  whereas the challenge posed by China is more industrial than commercial, and requires Europe to implement an ambitious Europe-wide industrial policy, given that purely national approaches do not permit a cohesive Community approach towards China;

J.  whereas the shift of production of numerous consumer goods to China has eliminated many jobs in the European Union; whereas this shift was also accompanied by drastic price reductions which made many of these consumer goods affordable for European Union low-income households, and has contributed to a relatively low inflation environment;

K.  whereas the participants of the last United Nations Climate Change Conference in Durban did not reach a binding agreement, and whereas the commitments made by some countries to reduce their greenhouse gas emissions are not sufficient, given the urgency to limit the increase in temperatures to two degrees during the 21st century if the climate change agenda is to be met;

L.  whereas economic growth in Europe is estimated to be much weaker than the growth in China, which is expected to reach around 9 % in 2012;

M.  whereas the type of internal economic imbalances that are affecting the European economies are growing in the Chinese economy as well, not least in the real estate sector, as exemplified by the recent housing bubble;

N.  Whereas the impact of the EU Common Commercial Policy is sometimes undermined by the diverging national interests pursued by Member States towards China;

O.  whereas the social costs of the current economic crisis are high; whereas the employment rate in the EU has dropped by 1,8 % and, consequently, 9,6 % of the economically active population (23 million people) are unemployed, the youth unemployment rate is 21 %, prospects for employment levels to recover remain uncertain and 17 % of EU citizens risk falling into poverty;

P.  whereas China, having acceded to the WTO in 2001, should respect WTO rules by liberalising its trade and opening its market; whereas so far its efforts in this regard have not been satisfactory by any means;

Q.  whereas China's accession to the Agreement on Government Procurement (GPA) should be eased through a broadening of the scope of the GPA's rules by means of a revision, as agreed at the last WTO Ministerial Conference on 15 December 2011;

R.  whereas the efforts of European enterprises to access the Chinese market are hindered by the Chinese Government's interventionist industrial policies, the inadequate protection of intellectual property, a system of rules that is as ambiguous in substance as in its application, and by other non-tariff and technical barriers to trade;

S.  whereas the undervaluation of the yuan continues to create artificial trade advantages for China, and whereas G20 member countries have promised to facilitate greater exchange rate flexibility;

T.  whereas in 2010, over 103 million items of goods, valued in total to EUR 1,11 billion, were seized at the EU's external borders on suspicion of infringing intellectual property rights (IPR); whereas China is the country of origin for 85 % of these goods; whereas an important feature of intellectual property protection is the correct enforcement of existing laws and international commitments, including statutes on penalties; whereas such goods are frequently produced in facilities that also produce legitimately labelled goods, and are often produced in disregard of both labour law and health and safety requirements and thus pose a danger to consumers and, in the case of chemicals, to the wider environment;

U.  whereas China, in accordance with its 12th five-year plan, some goals of which are similar to goals presented in the EU 2020 Strategy, is to develop the strategic sectors of energy, construction and transport, and will have major needs in the service sector; whereas this could provide new investment opportunities for European businesses and for enhanced co-operation;

Improving market access

1.  Calls on the Commission to apply the principle of reciprocity to the EU's common trade policy with developed and emerging countries such as China, in order to restore fair competition and to ensure a more level playing field.

2.  Welcomes the strengthening of economic relations between the European Union and China; calls on the EU and on China to pursue a relationship of partnership and mutual benefits rather than engage in fierce competition and confrontation;

3.  Notes that the Chinese economy does not fulfil the criteria of a market economy as defined by the WTO; calls on the Commission to cooperate with the Chinese Government in order to eliminate all remaining obstacles by 2016, when market economy status is supposed to be granted China by the WTO; emphasises that this status should only be accorded prior to this date if China has fulfilled all criteria; asks the EU to carry out regular assessments in the form of annual reports on China's compliance with the obligations included in its protocol on accession to the WTO;

4.  While recognising that the objective conditions for China qualifying for market economy status are unlikely to be met in the near future, calls on the Commission to submit, by the end of 2012, a proposal to the European Parliament on the measures to be taken by the Commission before such status is recognised by the EU;

5.  Regrets the existence of numerous tariff and non-tariff barriers to the Chinese market, such as certain forms of discrimination against foreign operators, particularly in the banking, insurance and telecommunications sectors, and the complexity of the tariff structure and technical barriers to trade, such as the lack of transparency in technical rules and conformity assessment procedures as well as in the Chinese Compulsory Certification System (CCC); regrets that China, contrary to the provisions of the WTO Agreement on Subsidies and Countervailing Measures (ASCM), does not systematically give notification of specific subsidies;

6.  Points out that China has established very considerable trade advantages for itself in relation to the EU through targeted state subsidies, using a great variety of legal constructs; urges China to bring its state subsidy programmes into line with relevant WTO law; further calls on the Commission to reform the anti-subsidy regulation in order for the EU to be able to respond effectively to the considerable challenges presented by China;

7.  Notes that China deplores the existence of trade barriers to the European market, such as the EU's significant agricultural subsidies for European farmers, the complex system of agricultural tariffs, the technical obstacles to trade and the barriers erected to block third country investments in certain Member States;

8.  Is concerned by the unreliability of the judicial system, which fails to enforce contractual obligations, and by the lack of transparency and uniformity in applying the regulatory regime governing investments;

9.  Is concerned by the lack of predictability and publicity in connection with the technical rules and standards applicable to products, particularly in relation to certification, creating significant trade barriers for businesses exporting to China;

10.  Calls on China to adopt international standards for products and services so as to promote increased trade between China and other countries; welcomes the fact that China is increasing its involvement in international standard-setting bodies, and believes that it must be encouraged to do so through reciprocated EU involvement in the bodies which lay down Chinese standards; stresses the importance of compliance by Chinese imports with European standards for food and non-food products;

11.  Is concerned by the fact that foreign businesses face difficulties in accessing Chinese public procurement, which stands in contrast to the fact that access to European public procurement is guaranteed; is concerned by the possibly unfair terms of competition that apply whereby, in particular, disguised state aid allows Chinese businesses to make markedly better offers than their European competitors; welcomes the revision – and broadened scope – of the Agreement on Government Procurement (GPA) that was agreed on during the last WTO Ministerial Conference on 15 December 2011, and the commitments made by China on that occasion, even though they are still insufficient; encourages, therefore, China to offer to join the agreement on terms comparable with those of other parties to the Agreement, in line with its commitment in its protocol on accession to the WTO; calls on the Commission rapidly to develop, if possible in 2012, a European instrument to ensure reciprocity as regards openness in public procurement markets; considers that it is also crucial to reinforce instruments aimed at encouraging, coordinating and supporting market access for European SMEs on priority markets such as China;

12.  Notes that the export credits granted by the Chinese authorities and banks promote trade distortions; calls on China, therefore, to comply with the OECD Arrangement on Guidelines for Officially Supported Export Credits; calls on the Commission to support OECD efforts to involve China in this Arrangement; in addition, encourages China to become a signatory to the OECD Anti-Bribery Convention;

13.  Points out that the main form in which foreign companies are allowed to set up in China is through joint ventures – a mechanism which is very restrictive and too often associated with strategic technology transfers that may favour the competitive development of China to the detriment of European industry in fields in which the EU is at the forefront; is convinced that further openness by China on the joint venture mechanism, combined with better protection of intellectual property rights (IPR), would benefit both sides, and would favour greater access for European businesses to the Chinese market;

14.  Calls on the EU, in the event of China engaging in illegal trade practices, to make wherever use necessary of such trade defence instruments as are consistent with WTO rules, such as anti-dumping, anti-subsidy and safeguard measures, and to also make greater use of the WTO dispute settlement mechanism in order to ensure a level playing field for EU-China trade; is concerned by China's increasing use of anti-dumping measures targeting EU exports as well as price dumping measures and state subsidies; invites, therefore, China to ensure that its anti-dumping measures are consistent with WTO rules;

Defending the interests of European industry

15.  Deplores the inadequate protection of IPR in China, and regrets the lack of specific means available to European businesses, and particularly SMEs, to counter IPR infringements effectively; welcomes the Commission's decision to propose a review of the directive on the enforcement of IPR; calls on the Commission and Member States to defend IPR better in all multilateral organisations where China is a member (the WTO, the World Health Organisation(WHO) and the World Intellectual Property Organisation (WIPO)); wants China to continue to transpose into its national legislation current international law on the protection of IPR and, more specifically, to combat counterfeiting and piracy, and urges the Chinese authorities to ensure enforcement, especially at a regional level; regrets that China has not taken part in the negotiations on the Anti-Counterfeiting Trade Agreement (ACTA); urges the Commission and the Member States to step up customs cooperation in the EU and with third countries, particularly with China, on the seizure of counterfeit goods, and to simplify customs procedures; asks the Commission and the Member States to cooperate more closely with third countries on copyright issues and licensing;

16.  Is convinced that better protection of intellectual property rights and effective implementation of related rules in China would greatly promote the EU's and other foreign investors' objective of investing, sharing new technological capabilities and updating existing technologies in that country;

17.  Notes that China produces 97 % of the rare earths used in the world and calls on it to guarantee its trading partners sustainable production methods and fair market access; calls on the Commission to pay particular attention to any potential restrictions by China on the export of its raw materials; recalls in this context the WTO ruling against China of 5 July 2011, upheld on appeal, for having placed restrictions on the export of certain raw materials; calls on the Commission to develop a European strategy for the proper management of raw materials, involving increased energy efficiency, recycling, more efficient use of resources and the development of industrial cooperation in the green economy growth and innovation sectors; calls for negotiations aimed at adopting common rules and principles on trade in raw materials, thereby creating a framework for the use of export restrictions at the WTO as well at the G20, as this issue mainly concerns industrialised countries and China;

18.  Urges the Commission to negotiate an ambitious and balanced EU-China investment agreement that seeks to create better environment for EU investors in China, and to guarantee transparency regarding governance of Chinese companies which invest within the EU whilst increasing the level of reciprocal capital flows; calls on the Council to elaborate its mandate for a future investment agreement with China, taking fully into account Parliament's views and positions, as set out in the resolution of 6 April 2011 on the future European international investment policy;

19.  Welcomes the inauguration of the EU Centre for European Union Small and Medium Enterprises (EU SME Centre) in Beijing in November 2010, which opened its door to SMEs in March 2011and which provides competences on helping European SMEs to overcome the challenges they face when operating on the Chinese market, in particular at their early stages of business development; welcomes also that the Centre seeks areas of opportunities for EU SMEs in China and helps them with the Chinese regulatory environment;

20.  Stresses the importance of business-to-business cooperation, and the setting up of partnerships between Chinese universities and EU companies, in order to enhance innovation in China; calls on the advantages offered by the EU Market Access Database which contains information for EU businesses on market access conditions, such as import tariffs, product requirements, trade barriers, formalities and documents and statistics; welcomes the activity of the European Chamber of Commerce in China;

21.  Believes that the setting up, by the Commission, of a mechanism for exchanging information on intergovernmental agreements between Member States and third countries in the field of trade with China will facilitate a coherent approach to China;

Alleviating currency competition

22.  Points out that China holds sovereign debt of Member States in the eurozone; stresses that this fact has taken on a new political dimension as a result of the serious debt problems within the eurozone; calls on the Commission to start discussions with the European Central Bank (ECB) and Member States on the creation of a coordinated system to identify which parties hold sovereign debt; is concerned that the EU's negotiating capabilities in trade negotiations with China are being undermined by the latter's contribution to the financial stabilisation of the eurozone;

23.  Emphasises that the alleged undervaluation and non-convertibility of the yuan might give Chinese exports an unfair competitive advantage, as China holds one-third of the world's foreign exchange reserves; calls for the international financial regulations applicable to – and the macroeconomic coordination between – G20 countries to be strengthened, as economic stability and global trade would otherwise be at risk; calls on China to allow the yuan to appreciate to reach an appropriate exchange rate; points out that it is laid down in the European Treaties that the EU can, in the case of unsustainable global monetary imbalances, adopt an exchange rate policy;

24.  Calls on the Commission to encourage China to liberalise its current accounts; calls on the Commission to present evidence on how the fixed exchange rate regime damages EU competitiveness and, having done that, to consider appropriate priorities for action;

Towards a new institutional framework for EU-China trade relations

25.  Calls on the Member States, using appropriate monitoring mechanisms, to ensure that foreign enterprises operating in the EU respect all legislation in force in the Single Market, including social and environmental standards, ensure the protection of patents and contribute to efforts promoting the sustainability of employment when they purchase European businesses or set up subsidiaries in the EU; asks the Commission and Member States to set up a body entrusted with the ex ante evaluation of foreign strategic investment, along the lines of the Committee on Foreign Investment in the United States (CFIUS), in order to obtain a clear picture of businesses operating and investing in the territory of the EU, and to report to the parliament on a regular basis;

26.  Calls on the EU to act within all appropriate international organisations, such as the WHO, the International Labour Organization (ILO) and the United Nations (UN), in order to initiate a process of reform geared at including binding social, environmental and health standards into the rules on the organisation of trade governed by the WTO;

27.  Deplores the fragmented and uncoordinated institutional framework of the EU-China trade relations; calls on the Commission urgently to revise the bilateral relations organisational chart, to pursue better coordination and to eliminate the redundancies at the level of the countless working groups, dialogues and other formal – and informal – bodies active in this area; calls on the Member States, individual regions and municipalities to coordinate better their own China policies, and to take urgent steps towards reaching an operational consensus that further common EU objectives;

28.  Asks the EU to develop a strategy to avoid compulsory technology transfers; seeks, in this respect, the rapid conclusion of the enhanced cooperation procedure for the Community Patent;

29.  Demands strict compliance with European rules and standards for all goods in circulation on the internal market, and calls on the Commission promptly to propose a scenario in line with WTO rules for the gradual introduction of a trade conditionality mechanism and/or a set of border adjustment measures for goods originating in third countries that do not comply with these standards;

Assessing China's global role

30.  Emphasises China's growing influence in the theatre of international trade; calls on the EU, therefore, to remain vigilant concerning the political, economic, social and environmental impact of increasing Chinese investment in developing countries, particularly in Africa and Latin America;

31.  Reaffirms the need for Chinese investments in Latin America and Africa, particularly in Special Economic Zones (SEZ), to contribute to the economic development of the countries concerned, and to the development of local production chains through the use of local labour;

32.  Is concerned that some European companies invest in China mainly because of the low cost of production caused by lower social, environmental and human rights standards; strongly recommends that the Commission and the Member States promote effective corporate social responsibility (CSR) practices by European companies in China, and encourage the dissemination and publicity of best practices of CSR initiatives; furthermore, requests that the Commission assesses how CSR provisions could be included in the future EU-China investment agreement;

33.  Considers that seeing Chinese engagement in developing countries as unfair competition, and pursuing a conflictual, response will be unproductive for , above all, the developing countries themselves; emphasises that, in the best interests of developing countries as well as of broader global competition and growth, EU enterprises and actors seeking to compete with China in trade and economic relations with developing countries should work to present offers that are the most attractive in terms of long-term sustainability and benefit, including environmental, social, human rights and governance aspects;

34.  Draws attention to the fact that China is the world's largest emitter of greenhouse gases; calls on the EU to propose within international organisations that ecological aspects and climate change targets should be included in discussions relating to international trade; considers that China's economic strength and its capacity to foster technological innovation should be used in support of the global fight against climate change;

35.  Considers that the efforts made by the Chinese authorities concerning certain basic rights in China, particularly social and labour rights, do not go far enough; encourages, therefore, the EU and China to develop a closer and more responsible strategic dialogue based on mutual understanding;

Reinforcing the EU to cope with global competition

36.  Calls on the EU to develop an ambitious common industrial policy based on research and innovation that benefits from innovative financing arrangements such as project bonds and that supports the development of SMEs, particularly via access to public procurement, in order to maintain its competiveness vis-à-vis new major players in industry and research; calls on the EU to enhance the value of European production by providing better quality information to consumers, particularly through the adoption of the regulation on origin marking (‘made-in’) of products imported into the EU.

37.  Urges the EU to strengthen its economic, budgetary, fiscal and political governance to give it a credible and weighty voice on the international stage; calls on the Council and the Commission to speak with one voice in order to prevent partnerships and bilateral agreements weakening the EU position; urges the Commission to cooperate closely with Member states when defining their commercial policies and their policies towards China; demands that the EU implements a long-term strategy with regard to China, ensuring the operational coordination both between the EU institutions and between the EU and the Member States;

38.  Emphasises the need to adopt a balanced approach towards China; calls on the Commission and Member States to build up extensive cooperation with China in areas of joint research such as product safety and human health, and to establish further scientific, technological and cultural exchanges;

39.  Many trade issues with China concern regulatory quality and implementation in various areas of policy, including industrial policy, environmental policy, crisis measures, financial stability and consumer protection; calls for such cases to be resolved through increased bilateral co-operation or dispute settlement in the WTO;

o
o   o

40.  Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ C 67 E, 18.3.2010, p. 132. (2) Texts adopted, P7_TA(2011)0412. (3) OJ C 184 E, 6.8.2009, p. 16. (4) Texts adopted, P7_TA(2011)0364. (5) Texts adopted, P7_TA(2011)0565. (6) Texts adopted, P7_TA(2011)0141. (7) OJ C 99 E, 3.4.2012, p. 101. (8) OJ C 99 E, 3.4.2012, p. 31. (9) OJ C 99 E, 3.4.2012, p. 94. (10) OJ C 259 E, 29.10.2009, p. 77. (11) Texts adopted, P7_TA(2011)0380. (12) OJ C 67 E, 18.3.2010, p. 101.

Proposal adopted by the European Parliament on 23 May 2012 for a regulation of the European Parliament on the detailed provisions governing the exercise of the European Parliament's right of inquiry and repealing Decision 95/167/EC, Euratom, ECSC of the European Parliament, the Council and the Commission (2009/2212(INI))(1)

P7_TA(2012)0219 A7-0352/2011

-----------------------

PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT
on the detailed provisions governing the exercise of the European Parliament's right of inquiry and repealing Decision 95/167/EC, Euratom, ECSC of the European Parliament, the Council and the Commission

THE EUROPEAN PARLIAMENT,

Having regard to the Treaty on the Functioning of the European Union, and in particular the third paragraph of Article 226 thereof,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

After transmission of the draft legislative act to the national parliaments,

Having regard to the consent of the Council(2),

Having regard to the consent of the Commission(3),

Acting in accordance with a special legislative procedure,

Whereas:

(1)  The Treaty of Lisbon created conditions for a renewed and enhanced institutional balance within the Union, allowing its institutions to function more efficiently, openly and democratically. In this context the European Parliament's functions in relation to political control were reinforced and extended. Therefore, in accordance with both national parliamentary practice and the requirements under the Treaty on European Union, the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community (hereinafter ‘the Treaties’), the European Parliament's committees of inquiry should be reinforced and should be granted specific, genuine and clearly delimited powers which are more in line with its political stature and competences, while respecting the principle of proportionality as set out in Article 5 of the Treaty on European Union. The powers of the committees of inquiry, which are exceptional instruments of political control, should be without prejudice to the responsibilities of other institutions.

(2)  On 19 April 1995 the European Parliament, the Council and the Commission adopted Decision 95/167/EC, Euratom, ECSC(4), which laid down the detailed provisions governing the exercise of the European Parliament's right of inquiry. That decision alluded to the possibility that its provisions might be revised in the light of experience.

(3)  With a view to the renewed institutional balance created by the Treaty of Lisbon and to the experience gained from the work of the European Parliament's committees of inquiry, Decision 95/167/EC, Euratom, ECSC should be repealed and replaced by a new regulation.

(4)  In line with the principle of utility as recognised by the case-law of the Court of Justice(5), the powers which are indispensable in order to carry out the tasks flowing from the right of inquiry should be conferred on the European Parliament and its committees of inquiry. To that end, it is also essential that the institutions and bodies of the Union as well as the Member States take all steps to facilitate the performance of those tasks.

(5)  No committee of inquiry should be set up where the alleged facts are being examined before a court and while the case is still subject to legal proceedings. However, in order to avoid any conflict between inquiries of a political nature and those of a judicial nature, the European Parliament should be able to examine whether it is necessary to suspend the investigation of a committee of inquiry if, after it has been set up, legal proceedings bearing a relation to the alleged facts are initiated.

(6)  It flows from the principles of openness, good governance and democratic accountability that proceedings of committees of inquiry and in particular hearings should take place in public. On the other hand, provision should also be made for the possibility of in-camera proceedings and appropriate rules on confidentiality in order to ensure the efficiency of the inquiries, the protection of the vital interests of Member States, the protection of privacy and the integrity of an individual, in particular in line with Union legislation on the protection of personal data, or the protection of commercial interests of a natural or legal person.

(7)  The right of inquiry, as an important element of parliamentary supervisory powers, is aimed at determining the way in which the existing body of law has been implemented in the past. It is thus essential that a committee of inquiry be able to rely on factual evidence gathered in the course of its investigation. For this purpose, a committee of inquiry should be able to hear members of Union institutions and members of governments of Member States, obtain evidence from officials and other servants of the Union or of Member States, obtain evidence from any other individual residing in the Union, request experts' reports, request documents and conduct on-the-spot investigations.

(8)  Investigations should be conducted with full respect for human rights and fundamental freedoms, in particular the principle of fairness, and for the right of persons involved to express their views on the facts concerning them.

(9)  Committees of inquiry should respect in full the rights of those called on by them to testify, in accordance with the European Convention for the Protection of Human Rights and Fundamental Freedoms and the Charter of Fundamental Rights of the European Union.

(10)  Investigations should also take into account the principle that the conclusions of an inquiry should be based solely on elements which have evidential value. To that end, a committee of inquiry should be able in particular to have access to any relevant documents in the possession of the Union's institutions or bodies, of Member States or, if the document is considered pertinent for the success of the inquiry, of any other natural or legal person.

(11)  In line with the principle of sincere cooperation and with the commitment to contribute to the upholding of the legal order of the Union, the Union's institutions and bodies or the Member States should designate the officials or other servants whom they authorise to appear before a committee of inquiry when the committee invites them to do so. Furthermore, it should be possible for a committee of inquiry to hear the Members of the Commission responsible for the matter under investigation if their testimony is considered to be of material importance and necessary for a thorough appraisal of the matter under investigation.

(12)  However, in order to ensure that a committee of inquiry can be certain that its conclusions are based on elements which have evidential value, it should also have the right to request the hearing of any individual who is resident in the Union as a witness who should be obliged to answer questions willingly, fully and truthfully. Moreover, if officials and other servants of the Union are not authorised pursuant to Articles 17 and 19 of the Staff Regulations of officials of the European Union, laid down in Council Regulation (EEC, Euratom, ECSC) No 259/68(6), and Article 11 of the Conditions of employment of other servants of the European Union, laid down in the same Regulation, to obey the summons by the committee, to attend for examination and to submit statements and give evidence in person, the official or authority responsible for denying the authorisation should appear before the committee and should explain the reasons therefor.

(13)  In ratifying the Treaty on the Functioning of the European Union, the Member States also agreed to confer on the European Parliament the right to investigate alleged contraventions or maladministration in the implementation of Union law. Consequently, they should undertake that their national authorities, in conformity with the provisions of national law, give the necessary support to enable committees of inquiry to fulfil their task.

(14)  With a view to strengthened democratic control at Union level, the provisions of this Regulation grant extended powers to committees of inquiry. In order to give effect to those provisions, to increase the efficiency of inquiries and to bring them more in line with national parliamentary practice, this Regulation should provide for the possibility of effective, proportionate and dissuasive sanctions in well-defined cases. It should be up to Member States to ensure that certain infringements are subject to appropriate sanctions under their national law and that they bring appropriate proceedings against the perpetrators of such infringements.

(15)  The doctrine of the separation of powers, should be respected, according to which, in order to prevent power from being abused, the legislature (parliament), the executive (government) and the judiciary (the law courts) should be separate from one another.

(16)  This Regulation respects fundamental rights and observes the principles recognised by the Charter of Fundamental Rights of the European Union,

HAS ADOPTED THIS REGULATION:

Section 1

Subject matter and general rules on the establishment of committees of inquiry

Article 1

Subject-matter

1.  This Regulation lays down detailed provisions governing the exercise of the European Parliament's right, in the course of its duties, to investigate, without prejudice to the powers conferred by the Treaties on other institutions or bodies, alleged contraventions or maladministration in the implementation of Union law by an institution or a body of the Union, by a public administrative body of a Member State or by any person empowered by Union law to implement that law.

2.  Provisions governing the internal organisation of the committees of inquiry shall be laid down in the European Parliament's Rules of Procedure.

Article 2

Setting-up and mandate of committees of inquiry

1.  Subject to the conditions and limitations laid down by the treaties, the European Parliament may set up temporary committees of inquiry.

2.  The European Parliament may set up such committees of inquiry at the request of one quarter of its component members.

3.  The decision to set up a committee of inquiry shall specify its mandate, comprising in particular:

Article 3

Cessation of existence of committees of inquiry

Article 4

Renewed inquiries

A committee of inquiry may not be set up or re-established with regard to matters into which an inquiry has already been held by a committee of inquiry until at least 12 months have elapsed since the earlier committee of inquiry ceased to exist pursuant to point (a) or point (b) of Article 3, unless any new facts have emerged. A committee of inquiry may be set up in any case where new and serious facts have emerged that are deemed likely to alter substantive findings.

Section 2

General procedural rules

Article 5

Incompatibilities

1.  A committee of inquiry may not investigate alleged facts which are being examined before a court for as long as the case is still subject to legal proceedings.

2.  If after the setting-up of a committee of inquiry legal proceedings bearing a relation to the alleged facts are initiated, the European Parliament shall examine whether it is necessary to suspend the committee's investigation for the duration of such proceedings in accordance with Article 226 of the Treaty on the Functioning of the European Union.

The period of the suspension shall not be counted in the time referred to in Article 2(3), point (c).

3.  Within a period of two months either of the setting up of a committee of inquiry or of the Commission being informed of an allegation made before a committee of inquiry of a contravention of Union law by a Member State, the Commission may notify the European Parliament that a matter to be examined by a committee of inquiry is the subject of a Union pre-litigation procedure. In such cases the committee of inquiry shall take all necessary steps to enable the Commission fully to exercise the powers conferred on it by the Treaties.

Article 6

Public nature of proceedings

1.  Proceedings of the committee of inquiry, and in particular hearings conducted by the committee, shall take place in public.

2.  Exceptionally, proceedings shall take place in camera if this is requested by one quarter of the members of the committee of inquiry, by an institution or a body of the Union or by national authorities concerned. Where a person giving evidence or an expert requests to be heard in camera, the committee of inquiry shall consider that request and the alleged reasons for it in camera.

Confidential information as referred to in Article 8, shall be examined in camera.

Article 7

Persons named in the course of an inquiry

The committee of inquiry shall inform any person named in the course of an inquiry to whom this might prove prejudicial. It shall hear such a person if that person so requests.

Article 8

Confidentiality

1.  The information obtained by the committee of inquiry shall be used solely for the performance of its duties. It may not be disclosed if it contains material of a confidential nature. Confidential information shall be handled and protected by the European Parliament in compliance with its internal rules applicable to ‘EU classified information’ and non-classified ‘other confidential information’.

2.  Paragraph 1 applies accordingly to information disclosure of which would:

3.  The members of the committee of inquiry and any other persons who, by reason of their duties, have become acquainted with facts, information, knowledge, documents or objects in respect of which secrecy must be observed pursuant to provisions adopted by a Member State or by a Union institution shall be required, even after their duties have ceased, to keep them secret from any unauthorised person and from the public.

Article 9

Cooperation

The institutions and bodies of the Union and the national authorities of the Member States, acting in conformity with provisions of Union and national law, shall assist the committee of inquiry in carrying out its tasks in accordance with the principle of sincere cooperation.

Article 10

Communications

Any communication addressed to the national authorities of the Member States for the purposes of applying this Regulation shall be made through their Permanent Representations to the Union.

Article 11

Results of inquiries

1.  The final report of the committee of inquiry shall be submitted to the European Parliament.

2.  The final report of the committee of inquiry may include minority conclusions provided that such conclusions are supported by at least one quarter of the committee's members.

3.  The European Parliament may forward to the institutions or bodies of the Union or to the Member States for transmission to the competent authorities any recommendations which it adopts on the basis of the final report.

Section 3

Investigation

Article 12

Conduct of investigation

1.  In order to carry out investigations, within the limits of its mandate and subject to Articles 14 to 18, the committee of inquiry may:

2.  The committee of inquiry may ask national authorities for assistance in the course of its investigations.

3.  Where alleged contraventions or maladministration in the implementation of Union law involve possible responsibility on the part of a body or authority of a Member State, the committee of inquiry may ask the parliament of the Member State concerned to cooperate in the investigation.

To that end, the European Parliament may conclude interparliamentary agreements with the parliaments of the Member States.

Article 13

On-the-spot investigations

The committee of inquiry may conduct on-the-spot investigations. These shall be conducted where appropriate in cooperation with the national authorities, in conformity with the provisions of national law.

Article 14

Requests for documents

1.  At the request of the committee of inquiry addressed to the Union's institutions and bodies, any relevant document in their possession shall be made available to the committee.

2.  At the request of the committee of inquiry addressed to Member States' authorities, any relevant document in their possession shall be made available to the committee in conformity with the provisions of national law, subject to the rules set out in points (a) and (b) of Article 346(1) of the Treaty on the Functioning of the European Union.

3.  The committee of inquiry may ask any other legal or natural person concerned to make available such documents as it may consider pertinent for the success of its inquiry. Such persons shall, without prejudice to their obligations arising from Union and national law, comply with the committee's request. They may claim the rights which they would enjoy under national law in the case of seizure of objects by national law-enforcement authorities.

4.  Requests for documents shall state the legal basis and the purpose of the request and shall specify what documents are required and fix the time-limit within which the documents are to be provided. They shall also state the possible consequences of groundless refusal to provide the documents requested.

Article 15

Witnesses

1.  For the purpose of this Regulation, ‘individual’ means a natural person who gives evidence at a hearing of a committee of inquiry pursuant to the provisions of this Article.

The committee of inquiry may request any person who is resident in the Union to participate in a hearing before it, if this is necessary in order for it to be able to fulfil its tasks.

Every request shall contain the name, forenames and address of the individual concerned and state precisely about what subject and for what reasons the committee of inquiry wishes to hear that individual. It shall be forwarded by the committee to the competent national authority of the Member State where the individual is resident in conformity with Article 10. In accordance with the principle of sincere cooperation and the relevant legal provisions, the competent national authority shall summon the individual to appear before the committee of inquiry.

2.  Individuals shall willingly, fully and truthfully answer questions put to them by members of the committee of inquiry. They may claim the right to refuse to give evidence which they would enjoy if requested to be heard by a parliamentary committee of inquiry or similar body in their Member State of residence or, in the absence of such committee or body, in the Member State where the hearing is held.

Individuals shall be informed in advance of their rights and obligations and of the possible consequences of groundless refusal of the request to be heard, of giving false evidence and of the bribing of individuals.

Article 16

Testimony by members of Union institutions and members of governments of Member States

The committee of inquiry may invite the institutions of the Union, with the exception of the Court of Justice of the European Union, or governments of Member States to designate one or more of their members to take part in its proceedings if their testimony is considered to be of material importance and necessary for a thorough appraisal of the matter under investigation.

Upon a request under the first paragraph, the Commission shall designate one or more Member of the Commission responsible for the matter under investigation to appear before the committee of inquiry.

Article 17

Officials and other servants of the Union and of the Member States

1.  The committee of inquiry may invite the Union's institutions or bodies to designate one or more of their officials or other servants to take part in its proceedings.

The Union's institutions or bodies shall designate the officials or other servants whom they authorise to appear before the committee of inquiry.

2.  The committee of inquiry may summon a specific official or other servant of the Union to testify in a matter associated with his or her professional duties if it considers that the hearing of that person is necessary in order to enable it to fulfil its task. If the official or other servant concerned is not authorised pursuant to Articles 17 and 19 of the Staff Regulations of officials of the European Union and Article 11 of the Conditions of employment of other servants of the European Union to obey the summons by the committee, to attend for examination and to submit statements and give evidence in person, the official or authority responsible for denying the authorisation shall appear before the committee of inquiry and shall explain the reasons therefor.

3.  The committee of inquiry may request Member States to designate one or more of their officials to take part in its proceedings.

4.  The Member State concerned shall designate the officials whom it authorises to appear before the committee of inquiry, subject to the law of that Member State .

The officials in question shall speak on behalf of, and as instructed by, their government. They shall continue to be bound by the obligations arising from the law to which they are subject.

If any such official concerned is not authorised to give evidence to the committee of inquiry, a representative authorised to commit the government of the Member State concerned shall appear before the committee and shall explain the reasons therefor.

Article 18

Experts

1.  The committee of inquiry may decide that reports be obtained from one or more experts. Its decision in that regard shall define the experts' task and set the time-limit within which the report is to be made.

2.  Experts may give an opinion only on points which have been expressly referred to them.

3.  At the proposal of an expert, the committee of inquiry may request the hearing of any person residing in the Union in accordance with Articles 15 to 17.

4.  After having made a report, an expert may be heard by the committee of inquiry.

Article 19

Sanctions

1.  Formal note shall be taken of any refusal or failure to comply with the obligations laid down by this Regulation.

The President of the European Parliament may announce, in full or in part, the points of which formal note has been taken and arrange for the announcement to be published in the Official Journal of the European Union.

2.  Member States shall ensure that the following infringements of this Regulation are subject to appropriate sanctions under their national law:

Those sanctions shall be effective, proportionate and dissuasive and shall reflect the sanctions for corresponding infringements in relation to the work of committees of inquiry in the national parliaments.

3.  Where a person is reasonably suspected of having committed any of the infringements specified in paragraph 2, the Member State in which that person is resident shall bring appropriate proceedings against him or her under its national law.

Article 20

Costs

The travel and accommodation expenses of members and officials or other servants of the Union institutions and bodies shall be borne by those institutions and bodies. Travel and accommodation expenses of other persons who appear before a committee of inquiry shall be reimbursed by the European Parliament in accordance with the ceilings fixed for hearings of experts.

Section 4

Final provisions

Article 21

Repeal

Decision 95/167/EC, Euratom, ECSC is hereby repealed.

Article 22

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall apply from...(7).

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at ,

For the European Parliament

The President

(1) Parliament decided to postpone the vote on the motion for a resolution, pursuant to the third paragraph of Rule 41 (A7-0352/2011). (2) OJ ... (3) OJ ... (4) OJ L 78, 6.4.1995, p. 1. (5) Judgment in Joined Cases 281, 283 to 285 and 287/85 Germany, France, Netherlands, Denmark and United Kingdom v Commission [1987] ECR 3203, at paragraph 28. (6) OJ L 56, 4.3.1968, p. 1. (7) * OJ: Please insert the date: twelve months after the entry into force of this Regulation.