38 Amendments of Luke Ming FLANAGAN related to 2018/0213(COD)
Amendment 1 #
Proposal for a regulation
Recital 1
Recital 1
(1) IRegrettably, in accordance with Articles 120 and 121 of the Treaty on the Functioning of the European Union ('the Treaty'), Member States are required to conduct their economic policies with a view to contributing to the achievement of the objectives of the Union and in the context of the broad guidelines that the Council formulates. The coordination of the economic policies of the Member States is therefore a matter of common concern.
Amendment 2 #
Proposal for a regulation
Recital 2
Recital 2
(2) Regrettably, Article 175 of the Treaty provides, inter alia, that Member States should coordinate their economic policies in such a way as to attain the objectives on economic social and territorial cohesion set out in Article 174.
Amendment 3 #
(3) ARegrettably, at Union level, the European Semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation. Member States should develop their own national multiannual investment strategies in support of those reform priorities. Those strategies should be presented alongside the yearly National Reform Programmes as a way to outline and coordinate priority investment projects to be supported by national and/or Union funding. They should also serve to use Union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the programmes supported by the Union under the European Regional Development Fund, the Cohesion fund, the European Social Fund, the European Maritime and Fisheries Fund and the European Agricultural Fund for Rural Development, the European Investment Stabilisation Function and InvestEU, where relevantdependent of those reform priorities.
Amendment 6 #
Proposal for a regulation
Recital 4
Recital 4
(4) The economic and financial crisis has shown that developing sound and resilient economies and financial systems built on strong economic and social structures helps Member States to respond more efficiently to shockconclusively that the launch of the euro when so many structural flaws were inbuilt was and recover more swiftly from them. The implementation of structural reforms is among the Union’s policy priorities because such reforms seek to set the recovery on a sustainable path, unlock the growth potential, strengthen the adjustment capacity and support the process of upward convergence. Pursuing structuipe for certain disaster, the subsequent rapid near- bankruptcy of several preforms can also contribute to strengthening economic and social cohesion, boosting productivity and investment viously solidly solvent Member States proof positive of the mandy creating good conditions for sustainable growth and employment in the Unionalamitous weaknesses in the new currency.
Amendment 9 #
Proposal for a regulation
Recital 5
Recital 5
(5) Structural reforms can contribute to achieving a high degree of resilience of domestic economies and sustainable convergence among Member States, which is crucial for successful and smooth participation in the Economic and Monetary Union. That high degree of sustainable convergence is particularly important for Member States, whose currency is not the euro, in their process of preparation to join the euro areahave come too late for most eurozone countries, their economies laid to waste by the absence of those structures in the euro currency as launched, their national debt increased to hitherto unheard-of and now unsustainable levels in those Member States, the public services in such as Ireland, Greece etc. reduced to a mere shadow of what existed before the year 2000.
Amendment 11 #
Proposal for a regulation
Recital 6
Recital 6
(6) The degree of implementation of structural reforms in the Member States ias still not sufficient across the Union. Experience wordained by the Trinity of the Commission, the Council and in support of both of those, the ECB, despithe the implementationsuffering imposed ofn the economic policy coordination mechanism under the European Semester shows that, in general, the implementation of structural reforms has been slow and uneven and that national reform efforts should be reinforced and incentivisedpeople across the euro area by the many austerity measures, is still not sufficient across the Union in the eyes of those Union Institutions, and never will be, given that the hugely-inflated national debt of those Member States can never be brought back to sustainable levels under those same austerity measures.
Amendment 12 #
Proposal for a regulation
Recital 7
Recital 7
(7) Regulation (EU) 2017/825 of the European Parliament and the Council19 established the Structural Reform Support Programme (SRSP) for the period 2017 to 2020, with a budget of EUR 142 800 000. The SRSP was established to strengthen the capacity of Member States to prepare and implement growth-sustaining administrative and structural reforms, including through assistance for the efficient and effective use of the Union funds, but is in fact simply paper to cover the cracks. Technical support under that programme is provided by the Commission, upon request from a Member State, and can cover a wide range of policy areas. Initial experience with the SRSP has shown a demand for technical support in the order of four times (in 2017) and five times (in 2018) its annual available budget. _________________ 19 Regulation (EU) 2017/825 of the European Parliament and of the Council of 17 May 2017 on the establishment of the Structural Reform Support Programme for the period 2017 to 2020 and amending Regulations (EU) No 1303/2013 and (EU) No 1305/2013 (OJ L 129, 19.5.2017, p. 1)
Amendment 13 #
Proposal for a regulation
Recital 8
Recital 8
(8) Other Union instruments and programmes also provide a significant contribution to improving conditions underpinning certain investments in Member States, which can be conducive to or be part of such reforms. In particular, the Union Funds covered by Regulation (EU) No YYY/XX of the European Parliament and of the Council [CPR] link investment to enabling conditions (formerly known as ex-ante conditionalities), foresee a macroeconomic governance mechanism and may finance costs of structural reforms linked to investments in policy areas relevant for cohesion policy. However, currently, no instrument foresees direct financial support that provides incentives for the Member States to implement reforms in all policy areas, in response to challenges identified in the European Semester. Moreover, there is currently no instrument providing specific and targeted financial and technical support to Member States whose currency is not the euro in their efforts to implement reforms that are relevant for joining the euro areamore paper to cover even more cracks.
Amendment 14 #
Proposal for a regulation
Recital 9
Recital 9
(9) The Commission's Communication of 6 December 201720 , part of a package of initiatives to deepen the Economic and Monetary Union, proposed to create a reform delivery tool and a convergence facility as new budgetary instruments. The objective of such instruments was to strengthen resilience of domestic economies and unleash positive spillover effects across Member States by providing incentives for the implementation of structural reforms that contribute to those objectives and are essential for the stability of the Economic and Monetary UnionIn fact it is simply making a bad situation worse. _________________ 20 Communication from the Commission to the European Parliament, the European Council, the Council and the European Central Bank, new budgetary instruments for a stable euro area within the Union framework, COM(2017) 822 final
Amendment 15 #
Proposal for a regulation
Recital 10
Recital 10
(10) Against that background, it is necessary to strengthen the current framework for the provision of support to Member States by offering direct financial support, alongmassidve technical support. To that end, a new Reform Support Programme ('the Programme') should be established to provide effective incentives to step up the implementation of structural reforms in the Member States. The Programme should be comprehensive and should also benefit from the experience gained by the Commission and the Member States from the use of the other instruments and programmes. The Programme should also continue the actions and the mode of operation of the SRSP, since they have been proven very useful, and have been appreciated by Member States, for strengthening the administrative capacity of national authorities in various policy domains. Tsovereign debt write-off to every eurozone Member State (including Germany) afflicted by the flaws in the currency, and direct financial support, alongside technical support. To that end, a new Reform Support Programme ('the Programme') should also include targeted support for reforms in Member States whose currency is not the euro and which have taken demonstrable steps towards adopting the single currency within a given time-frambe established. The Programme should be comprehensive.
Amendment 16 #
Proposal for a regulation
Recital 13
Recital 13
(13) The Programme's overall objective is the enhancement of social and economic cohesion, competitiveness, productivity, sustainable growth, and gainful employment which respects all Union labour standards. For that purpose, it should provide financial incentives for addressing challenges of a structural nature, and should help to strengthen the administrative capacity of the Member States insofar as their institutions and economic and social sectors are concerned.
Amendment 19 #
Proposal for a regulation
Recital 19
Recital 19
(19) With regard to the reform delivery tool, it is necessary to identify the types of reforms that should be eligible for financial support. To ensure their contribution to the objectives of the Programme, the eligible reforms should be those addressing the challenges identified in the context of the European Semester of economic policy coordination, including those proposed to address the country- specific recommendations.
Amendment 21 #
Proposal for a regulation
Recital 20
Recital 20
(20) In order to ensure a meaningful incentive for Member States to complete structural reforms, it is appropriate to establish a maximum financial contribution available for them under the instrument for each stage of allocation and under each call. These structural reforms shall not include privatisation of existing vital public services such as water, energy, health, communications etc. That maximum contribution should be calculated on the basis of the population of Member States. To ensure that the financial incentives are spread throughout the whole period of application of the Programme, the allocation of funds to the Member States should be made in stages. In the first stage lasting twenty months, half (EUR 11 000 000 000) of the overall financial envelope of the reform delivery tool should be made available to Member States, during which they could receive up to their maximum allocation by submitting proposals for reform commitments.
Amendment 22 #
Proposal for a regulation
Recital 22
Recital 22
(22) It is necessary to establish a process for the submission of proposals for reform commitments by the Member States, and the content thereof. With a view to ensuring the expediency of procedures, a Member State should submit the proposal for reform commitments together with its national reform programme, but in the form of a separate annex, which may also be submitted at a different point in time. While pParticipation in the Programme is voluntary, Member States experiencing excessive imbalances should be particularly encouraged to come forward with reform proposals under the reform delivery tool, which address the problems that led to such excessive imbalances.
Amendment 24 #
Proposal for a regulation
Recital 23
Recital 23
Amendment 25 #
Proposal for a regulation
Recital 24
Recital 24
Amendment 27 #
Proposal for a regulation
Recital 26
Recital 26
(26) In order to contribute to the preparation of high quality proposals and assist the Commission in the assessment of the proposals for reform commitments submitted by the Member States and in the assessment of the degree of their achievement, provision should be made for the use of peer counselling and expert advice. In addition, the Council for Economic Policy Committee of the Council dealing with the European Semester, in consultation, where appropriate, with relevant Treaty-based committees, should be able to provide an opinion on the proposals for reform commitments as submitted by Member States. In the interest of simplification, the reporting by Member States on the progress made in the implementation of reform commitments should be made within the framework of the European Semester.
Amendment 30 #
Proposal for a regulation
Recital 33
Recital 33
(33) The technical support instrument under the Programme should continue to support, the implementation of reforms undertaken at the initiative of the Member States, reforms in the context of economic governance processes or actions related to the implementation of Union law, and reforms in relation to the implementation of economic adjustment programmes. It should also provide technical support for the preparation and implementation of reforms to be undertaken under the other Programme instruments.
Amendment 32 #
Proposal for a regulation
Recital 38
Recital 38
(38) The convergence facility should aim at providing both financial support and technical support to Member States (in addition to that already available under the two other instruments of the Programme), whose currency is not the euro and which have taken demonstrable steps towards adopting the single currency within a given time-frame, with a view to helping them prepare for membership in the euro area. To that effect, "demonstrable steps" should consist of a formal letter from the government of the Member State concerned to the Commission stating its clear commitment to join the euro area within a reasonable and defined timeframe and presenting a credible, time-bound roadmap, after consultation with the Commission, for implementing concrete measures to prepare for successful participation in the euro area, including steps to ensure full alignment of its national legislation with the requirements under Union law (including the Banking Union). However, any such expansion of the eurozone area should be put on hold until such time as all the necessary reforms and structures to support a currency are finally in place, including but not confined to a eurozone common Deposit Guarantee scheme. Additionally, and on the flip side, legislative measures should now be put in train to facilitate any Member State which wishes to leave the eurozone area, with similar financial measures in place to assist those Member States who take that decision - a divergence facility.
Amendment 34 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
1. ‘technical support’ means measures that help Member States to carry out institutional, administrative and growth- sustaining structural reforms, providing such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc., and including measures that help Member States, whose currency is not the euro, to prepare for participation in the euro area;
Amendment 35 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
2. ‘financial support’ means a financial contribution to a Member State for the purpose of the implementation of structural reforms identified in the context of the European Semester process in accordance with Article 2-a of Council Regulation (EC) No 1466/9728 (providing such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc.), and for the purpose of implementation of reforms that are relevant for preparation for participation in the euro area; _________________ 28 Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (OJ L 209, 2.8.1997, p. 1)
Amendment 36 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) to contribute to addressing national reform challenges of a structural nature aimed at improving the performance of the national economies and at promoting resilient economic and social structures in the Member States, including by means of major national debt write-offs’, thereby contributing to cohesion, competitiveness, productivity, sustainable growth, and gainful employment which respects all existing Union labour rights; and
Amendment 41 #
Proposal for a regulation
Article 5 – paragraph 2 – point a
Article 5 – paragraph 2 – point a
(a) as regards the reform delivery tool, the Programme shall provide Member States with financial incentives with a view to achieving the milestones and targets of the structural reforms as set out in the reform commitments entered into by Member States with the Commission, providing such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc.
Amendment 42 #
Proposal for a regulation
Article 5 – paragraph 2 – point c – point ii
Article 5 – paragraph 2 – point c – point ii
(ii) support the efforts of national authorities of eligible Member States in improving their administrative capacity to design, develop and implement reforms relevant for preparation for euro-area participation (providing such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc.), including through exchange of good practices, appropriate processes and methodologies and more effective and efficient human resources management.
Amendment 44 #
Proposal for a regulation
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
(b) institutional reform and efficient and service-oriented functioning of public administration and e-government, including, where appropriproviding such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc., but including through the simplification of rules (where appropriate), effective rule of law, reform of the justice systems and reinforcement of the fight against fraud, corruption and money laundering;
Amendment 46 #
Proposal for a regulation
Article 6 – paragraph 1 – point c
Article 6 – paragraph 1 – point c
(c) business environment, including for small and medium-sized enterprises, re- industrialisation, private sector development, product and service markets, investment, public participation in enterprises, privatisation processes, trade and foreign direct investment, competition and public procurement, sustainable sectoral development and support for research and innovation and digitisation;
Amendment 50 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
Pursuant to the objectives set out in point (a) of Article 4 and point (a) of Article 5(2), structural reforms eligible for financing under the Programme shall be those reforms aimed at addressing challenges identified in the context of the European Semester of economic policy coordination, providing such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc.
Amendment 51 #
1. A Member State wishing to receive support under the reform delivery tool shall submit a proposal for reform commitments to the Commission. That proposal shall set out a detailed set of measures for the implementation of structural reforms in response to challenges identified in the European Semester processproviding such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc., and shall contain milestones, targets and a timetable for the implementation of the reforms over a maximum period of three years.
Amendment 52 #
Proposal for a regulation
Article 11 – paragraph 3 – point a
Article 11 – paragraph 3 – point a
Amendment 53 #
Proposal for a regulation
Article 11 – paragraph 7 – point a – point 1
Article 11 – paragraph 7 – point a – point 1
Amendment 54 #
Proposal for a regulation
Article 12 – paragraph 3 – subparagraph 2
Article 12 – paragraph 3 – subparagraph 2
The decision shall lay down the period for implementation of the reform commitments, which shall be no later than three years after the adoption of the decision. It shall also establish: the detailed arrangements and timetable for implementation of the reform commitments and reporting thereon by the Member State concerned within the European Semester process; the relevant indicators relating to the fulfilment of the milestones and targets; and the modality for providing access by the Commission to the underlying relevant data.
Amendment 55 #
Proposal for a regulation
Article 14
Article 14
Amendment 56 #
Proposal for a regulation
Article 19 – paragraph 3 – subparagraph 1
Article 19 – paragraph 3 – subparagraph 1
Taking into account the principles of transparency, equal treatment and sound financial management, and further to a dialogue with the Member State, including in the context of the European Semester, the Commission shall analyse the request for support referred to in paragraph 1 based on the urgency, breadth and depth of the problems identified, support needs in respect of the policy areas concerned, analysis of socioeconomic indicators and general administrative capacity of the Member State.
Amendment 57 #
Proposal for a regulation
Article 21 – paragraph 1 a (new)
Article 21 – paragraph 1 a (new)
1a. Member State national debt write- offs related to the euro launch and the subsequent and predictably consequent banking crisis, particularly the bank bailout costs, can be negotiated at Council and Commission level with and through the European Central Bank;
Amendment 58 #
Proposal for a regulation
Article 24 – paragraph 1 – introductory part
Article 24 – paragraph 1 – introductory part
1. The convergence facility for euro- area membership is available to any eligible Member State as referred to in Article 2(6), but shall be suspended until such time as all necessary reform and structures for the currency are finally put in place. Support shall consist of the following two components:
Amendment 59 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
Structural reforms eligible for financing under the convergence facility shall be reforms that help eligible Members States in their preparation to join the euro area, providing such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc. Those reforms shall be aimed at addressing challenges identified in the context of the European Semester of economic policy coordination.
Amendment 60 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. An eligible Member State shall submit a proposal for reform commitments under the financial support component of this convergence facility, in accordance with Article 11, providing such reforms do not include the privatisation of vital public services such as water, energy, health, communications infrastructure etc.
Amendment 61 #
Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 2
Article 35 – paragraph 2 – subparagraph 2