Activities of Liadh NÍ RIADA related to 2017/0333R(APP)
Plenary speeches (1)
Establishment of the European Monetary Fund (debate) GA
Shadow reports (1)
INTERIM REPORT on the proposal for a Council Regulation on the establishment of the European Monetary Fund PDF (182 KB) DOC (73 KB)
Amendments (31)
Amendment 16 #
Motion for a resolution
Citation 5 a (new)
Citation 5 a (new)
- having regard to the Five Presidents' Report which refers that euro "requires solidarity in times of crisis and respect for commonly agreed rules from all members",
Amendment 17 #
Motion for a resolution
Citation 5 b (new)
Citation 5 b (new)
- having regard to the European Court of Auditors reports 18/2015 of 26 January 2016 on financial assistance provided to countries in difficulties and 17/2017 of 16 November 2017 on the Commission intervention in the Greek financial crisis,
Amendment 27 #
Motion for a resolution
Recital A
Recital A
A. whereas the introduction of the euro is one of the European project’s most significant political achievedevelopments and a cornerstone of EMU constructionthe EMU, there remains no clear route towards real convergence, social inclusion, and a cooperative and complementary economy within the EU. The detrimental impact of the EMU is further exacerbated by the monetary policy of the ECB and the economic restrictions of the Growth and Stability Pact;
Amendment 34 #
Motion for a resolution
Recital B
Recital B
B. whereas the financial and economic crisis has revealed the weaknesses of the euro architecture, highlighting the need for the swift completion of the EMUreform of the economic architecture, in order to off-set the external imbalances within the Eurozone, and correct the internal divergences, which creates a structured disadvantage for the countries on the European periphery;
Amendment 39 #
Motion for a resolution
Recital B
Recital B
B. whereas the financial and economic crisis has revealed the weaknesses of the euro architecture, highlighting the need for the swift completion and urgent democratisation of the EMU;
Amendment 41 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
B a. whereas the current EU economic governance framework proved inadequate to prevent and deal in a sufficient and timely way with the economic and financial crisis since 2010, leaving the space for IMF’s austerity-oriented policies, which resulted in further inequalities, unemployment and poverty in the countries following adjustment programmes;
Amendment 54 #
Motion for a resolution
Recital C
Recital C
C. whereas membership of a common currency area requires common rules and obligations, as well as common tools to respond to symmetric and asymmetric shocks and for the promotion of solidarity and socioeconomic upward convergence; whereas risk reduction and risk sharing should go hand in hand in deepening and enforcing democratic accountability of the EMU;
Amendment 55 #
Motion for a resolution
Recital C
Recital C
C. whereas membership of a common currency area requires common rules and obligations, as well as common tools to respond to symmetric and asymmetric shocks and for the promotion of solidarity and socioeconomic upward real convergence; whereas risk reduction and risk sharing should go hand in hand in deepening the EMU in terms of investment, unemployment rate or income and wealth distribution;
Amendment 63 #
Motion for a resolution
Recital D
Recital D
D. whereas the creation of the European Financial Stability Facility (EFSF) and its later transformation into the European Stability Mechanism (ESM) have represented, despite its intergovernmental nature, an important step towards the creation of a European crisis management mechanism, trying to helping to respond to the weaknesses of the EMU and providing financial assistance to several European countries affected by the crisis;
Amendment 66 #
Motion for a resolution
Recital D a (new)
Recital D a (new)
D a. whereas the European Court of Auditors' reports on financial crisis and assistance have underlined in many cases delays and insufficient results of the proposed measures, presenting valuable recommendations;
Amendment 83 #
Motion for a resolution
Recital H
Recital H
H. whereas in the short term, the ESM reform should contribute in particular to the banking union, providing a proper common financial backstop for the Single Resolution Fund (SRF), witfinancial sustainability of the banking sector, ensuring the social function of credit, preventingany socialisation of losses, making sure shareholders and big creditors are not bail-out at the expense of taxpayers; this might imply the asset conversion of banks into public ownership. The ESF shoutld prejudice to the need to establish a European Deposit Insurance Scheme (EDIS)ovide financing to endowing a financial basis for a European Deposit Insurance Scheme (EDIS), or make punctual public interventions possible in order to recover valuable assets and protecting useful employment;
Amendment 85 #
Motion for a resolution
Recital H
Recital H
H. whereas in the short term, the ESM reform should contribute in particular to the banking union, providing a proper common financial backstop for the Single Resolution Fund (SRF), without prejudice to the need to establish a fully insured European Deposit Insurance Scheme (EDIS) as proposed by the European Commission proposal (2015)586 on 24 November 2015;
Amendment 96 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the Commission’s proposal of 6 December 2017 for a Council Regulation on the establishment of the European Monetary Fund and considers it a useful contribution to the ongoing debate on the future of Europe, the completion of the EMU and the ESM reform, in a way that the EU economic governance is more democratic and efficient;
Amendment 109 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights that the proper functioning of an EMU depends on the existence of an institution serving as a ‘lender of last resort’; acknowledgnotes, in this context, the positivecontroversial contribution of the ESM, despite its intergovernmental nature, towards addressing the weaknesses of the institutional setting of the EMU, namely by providing financial assistance to several Member States affected by the financial crisis and the Great Recession, subject to recessive fiscal measures, cuts to wages and public services resulting in severe socio- economic conditions, increasing unemployment, poverty and inequalities;
Amendment 110 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights that the proper functioning of an EMU depends on the existence of an institution serving as a ‘lender of last resort’; acknowledges, in this context, the positive contribution of the ESM, despite its intergovernmental nature, towards addressing the weaknesses of the institutional setting of the EMU, namely by providing financial assideplores that the ECB is not allowed to play this role, giving priority, for instance, to several Member States affected by the financial crisis and the Great Recessionfinance the private financial sector instead the public sector;
Amendment 123 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Recalls its previous positions in favour of the incorporation of the ESM into the EU legal framework, which would make it a fully-fledged EU body, subject to democratic accountability and transparency rules; insists that this incorporation should continue to be understood as part of the EMU completion project; believes that such an integration wshould allow for management in accordance with the Community method, ensure the full consistency of fiscal rules and obligations, facilitate economic and fiscal policy coordination away from restrictive fiscal policies, and enhance democratic legitimacy and accountability through the European Parliament;
Amendment 141 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Notes that the Commission’s proposal has generated a lively discussion on its political, financial and legal implications, and that discussions continue on a number of important issues; stresses, however, that this debate on the long-term vision of the ESM’s institutional setting should not delay the steps urgently required to strengthen and enforce democratic accountability of the EMU and its capacity to promote financial stability and respond to economic shocks, alongside inclusive growth, economic, social and regional cohesion; calls, therefore, for a meaningful ESM reform in the short term by means of a revision of the ESM Treaty, without prejudice to more ambitious developments in the future;
Amendment 148 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Underlines that the primary mission of the new ESF should continue to be to provide transitional financial assistance to Member States in need, on the basis of the agreed adjustment programmes; stresses that the ESF must have adequate firepower for that purpose; opposes, therefore, any attempt to turn the reformed ESM into an instrument for banks only, or to reduce its financial capacity to support Member Statf intervening in the private banking sector, and having an appropriate European Deposit Insurance Scheme or an equivalent system to coordinate the existing national deposit insurance schemes; stresses that the ESF must have adequate firepower for that purpose; opposes, therefore, any attempt to turn the reformed ESM into an instrument to protect the interest of private banks, or for delivering the financial support to Member States to rescue private banks, overloading the productive classes with higher and more regressive taxes, or cutting public expenditure for social policies and public services; recalls that financial assistance provided to Member States under the new ESF has to be complemented by other fiscal capacity tools, including precautionary instruments, to promote economic and financial stabilisation, to promote investment and upward socioeconomic convergence in the euro area;
Amendment 149 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Underlines that the primary mission of the new ESF should continue to be to provide transitional financial assistance to Member States in need, on the basis of the agreed adjustment programmes based on lessons learned by austerity measures imposed to member states by Troika and IMF; stresses that the ESF must have adequate firepower for that purpose; opposes, therefore, any attempt to turn the reformed ESM into an instrument for banks only, or to reduce its financial capacity to support Member States; recalls that financial assistance provided to Member States under the new ESF has to be complemented by other fiscal capacity tools, including precautionary instruments, to promote economic and financial stabilisation, public investment and upward socioeconomic convergence in the euro area as part of a new more sustainable inclusive and democratic economic governance framework;
Amendment 167 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Believes that the reformed ESM should play a more prominent role in the management of financial assistance programmes, alongside the Commission and in close cooperation with the ECB, ensuring that the EU institutional framework has more autonomy whenever needed, without prejudice to appropriate partnerships with other institutions, namely the International Monetary Fund;
Amendment 172 #
Motion for a resolution
Paragraph 8
Paragraph 8
Amendment 176 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Stresses that evaluation of the financial assistance requests made by the ESF, as well as its decision-making on the design of the adjustment programmes, in cooperation with other institutions, should in no way replace, duplicate or overlap the normal macroeconomic and fiscal surveillance provided for in the EU’s financial rules and regulations, which must remain the Commission’s exclusive competence; the evaluation should take into consideration reports and opinions being produced by the European Parliament, respective National Parliaments and the European Economic and Social Committee;
Amendment 183 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. The EMF should report regularly to the European Parliament as well as to national parliaments on its undertaking activities, with a view to achieving greater democratic control;
Amendment 188 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Highlights the need for an efficient, balanced and democratic decision-making procedure in the reformed ESM, particularly in the case of urgent situations where inclusive dialogue with all interested parties and with respect to national particularities, transparency, accountability and simplicity will be ensured;
Amendment 197 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Calls for a swift ESM reform that also redefines its role, functions and financial tools, so that the new ESF can offer adequate liquidity support in case of resolution and serve as a financial backstop for the SRF, without recessive and austerity policies conditionality; calls for the SRF to be made operational as soon as possible and, in any case, before 2024;
Amendment 198 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Calls for a swift ESM reform that also redefines its role, functions and financial tools, so that the new ESF can offer liquidity support in case of resolution and serve as a financial backstop for the SRF; calls for the SRF to be made operational as soon as implementation of an coordinated Deposit Insurance Scheme, and to address any banking crisis in a manner which protects ordinary citizens and ensures that those resposnsible and, in any case, before 2024for triggering such crises do not benefit from the subsequent policy responses;
Amendment 213 #
Motion for a resolution
Paragraph 11
Paragraph 11
Amendment 220 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Underlines the risks arising from the delay in completing the banking union; welcomes, in this context, the European Council’s commitment to a common backstop for the SRF and recalls the need also to establish the EDISa fully-insured EDIS, as proposed by the European Commission in its (2015)586 proposal of 24 November 2015;
Amendment 231 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Invites the ESM to establish a protocol for a Memorandum of Cooperation (MoC) with the European Parliament, with immediate effect, to further promote institutional dialogue, consultation and enhance the ESM’s transparency, accountability and democratic legitimacy in line with the further deepening of interinstitutional cooperation on the economic governance of the euro area;
Amendment 235 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Calls for the increasing role of the national parliaments in all stages of the EMF activities, well beyond addressing their observations, asking questions and simply exchanging of views with the EMF Managing Director in relation to the progress made regarding the implementation of the financial stability support programs;
Amendment 237 #
Motion for a resolution
Paragraph 12 b (new)
Paragraph 12 b (new)
12 b. Denounces the Council proposal that the Managing Director shall hold confidential oral discussions behind closed doors with the Chair and Vice- Chairs of the competent Committees of the European Parliament concerning its tasks, including social impact assessment, the implementation of financial stability support and the provision of credit lines or setting of guarantees in support of the SRB; calls therefore this dialogue to kick- off to the European Parliament, enforcing democratic accountability and transparency;