Considerations on COM(2012)336 - Facility for providing financial assistance for Member States whose currency is not the euro

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dossier COM(2012)336 - Facility for providing financial assistance for Member States whose currency is not the euro.
document COM(2012)336 EN
date June 22, 2012
 
(1) In accordance with Article 143 of the Treaty, the Council, acting on a recommendation from the Commission made after consulting the Economic and Financial Committee (EFC) may grant a mutual assistance to a Member State in difficulties or seriously threatened with difficulties as regards its balance of payments. It applies only to Member States whose currency is not the euro (hereafter the non-euro area Member States). However, this provision does not define the instrument to be used for granting the envisaged mutual assistance envisaged.

(2) The unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in the government deficit and debt position of the Member States, leading a number of them to seek financial assistance.

(3) The rules for granting and monitoring financial assistance to non-euro area Member States should be consistent with the ones applicable to Member States whose currency is the euro, in particular with those provided for in the Regulation of the European Parliament and of the Council on the strengthening of economic and budgetary surveillance of Member States experiencing or threatened with serious difficulties with respect to their financial stability in the euro area, with some necessary adjustments aimed at taking into account the differences in the Treaty rules applicable to Member States whose currency is not the euro and the more limited economic and financial inter-connectedness. The Commission should for instance not have the possibility to make a Member State subject to enhanced surveillance if the Member State concerned does not receive a financial assistance.

(4) The granting of financial assistance should be linked to economic and fiscal surveillance of the Member State concerned. The intensity of this surveillance should be commensurate to the severity of the financial difficulties encountered and should take due account of the nature of the financial assistance received, which may range from a mere precautionary support based on eligibility conditions up to a full macro-economic adjustment programme involving strict policy conditionality.

(5) A Member State should be subject to enhanced surveillance when it is receiving a precautionary financial assistance, with a view to ensuring its swift return to a normal situation and to protecting the other Member States against possible negative spill over effects. This enhanced surveillance should include a wider access for the Commission to the information needed for a close monitoring of the economic, fiscal and financial situation of the Member State concerned and a regular reporting to the EFC.

(6) The surveillance of the economic and fiscal situation should be even more reinforced for Member States benefitting from a loan. It should include the setting up of a macro-economic adjustment programme. Because of the comprehensive nature of such a programme, the other processes of economic and fiscal surveillance should be suspended for its duration, with a view to avoiding a duplication of reporting obligations.

(7) Rules should be provided in order to enhance the dialogue on the implementation of this financial assistance between the Union institutions, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability.

(8) A decision regarding the non-compliance of a Member State with its macro-economic adjustment programme should also entail a suspension of payments or commitments of Union funds as provided for in Article 21(6) of Regulation (EU) No XXX laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund covered by the common strategic framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1083/2006.

(9) The power to adopt individual decisions for the application of this Regulation should be exercised by the Council as provided for by Article 143(2) of the Treaty.

(10) The scope of activity of the European Supervisory Authorities founded by Regulations (EC) No 1093/2010, (EC) No 1094/2010 and (EC) No 1095/2010 should stay within the limits set in Article 1 of each of these Regulations.

(11) For the adoption of this Regulation, which provides a framework for the granting of Union financial assistance for non-euro area Member States, the Treaty provides no powers other than those of Article 352.