BETA

36 Amendments of France JAMET related to 2017/0242(COD)

Proposal for a decision
Recital 1

(1) Relations between the E~~uropean Union (“the Union”)~~U Member States and Georgia continue to develop within the framework of the European Neighbourhood Policy (ENP) and the Eastern Partnership. Georgia joined the EU’s Eastern Partnership in 2009, which was followed by the negotiation of an EU- Georgia Association Agreement. This agreement, which includes the gradual introduction of a Deep and Comprehensive Free Trade Area (DCFTA), was signed in June 2014 and entered into force on 1 July 2016. Parliament must, as a matter of urgency, be given a direct role in the ‘negotiations’ being conducted by the Commission. The Commission has a regrettable tendency to exclude Parliament from negotiations and present it with a fait accompli when it sees fit.

2018/01/12
Committee: INTA

Proposal for a decision
Recital 3

(3) Georgia’s fiscal deficit remains significant, and its public debt-to-GDP ratio is increasing. Georgia’s balance of payments position also remains vulnerable due to a very large current account deficit and high external debt. Georgia’s foreign exchange reserves have been stable in absolute terms, but – in the face of rising reserve needs – they have fallen below the level estimated by the International Monetary Fund (IMF) as adequate. ~~Georgia also continues to adapt to the requirements of the DCFTA with the Union~~It is not the EU Member States’ place, however, to meddle in relations between a sovereign country such as Georgia and the IMF.

2018/01/12
Committee: INTA

Proposal for a decision
Recital 5

~~(5) In view of Georgia’s residual external financing needs, the Georgian authorities requested complementary macro-financial assistance from the Union in June 2017.~~deleted

2018/01/12
Committee: INTA

Proposal for a decision
Recital 7

~~(7) Given that Georgia is a country covered by the ENP, it should be considered to be eligible to receive macro- financial assistance from the Union.~~deleted

2018/01/12
Committee: INTA

Proposal for a decision
Recital 8

(8) The Union’s macro-financial assistance should be an exceptional financial instrument of untied and undesignated balance-of-payments support, which aims at addressing the beneficiary’s immediate external financing needs and should underpin the implementation of a policy programme containing strong immediate adjustment and structural reform measures designed to improve the balance-of-payments position in the short term.limited to the emergency measures already taken;

2018/01/12
Committee: INTA

Proposal for a decision
Recital 9

(9) Given that there is still a significant residual external financing gap in Georgia’s balance of payments over and above the resources provided by IMF and other multilateral institutions, the Union macro-financial assistance to be provided to Georgia is, under the current exceptional circumstances, considered to be an appropriate response to Georgia’s request for support to the economic stabilisation, in conjunction with the IMF programme. The Union’s macro-financial assistance would support the economic stabilisation and the structural reform agenda of Georgia, supplementing resources made available under the IMF’s financial arrangement., which is a matter for the IMF and other multilateral institutions to deal with;

2018/01/12
Committee: INTA

Proposal for a decision
Recital 10

~~(10) The Union’s macro-financial assistance should aim to support the restoration of a sustainable external financing situation for Georgia thereby supporting its economic and social development.~~deleted

2018/01/12
Committee: INTA

Proposal for a decision
Recital 11

(11) The determination of the amount of the Union’s macro-financial assistance is based on a complete quantitative assessment of Georgia’s residual external financing needs, and takes into account its capacity to finance itself with its own resources, in particular the international reserves at its disposal. The Union’s macro-financial assistance should complement the programmes and resources provided by the IMF and the World Bank. The determination of the amount of the assistance also takes into account expected financial contributions from bilateral and multilateral donors and the need to ensure fair burden sharing between the Union and other donors, as well as the pre-existing deployment of the Union’s other external financing instruments in Georgia and the added value of the overall Union involvement.deleted

2018/01/12
Committee: INTA

Proposal for a decision
Recital 12

(12) Taking into consideration Georgia’s residual external financing needs, the level of its economic and social development, as measured by per capita income and the incidence of poverty, as well as its level of indebtedness, a part of the assistance should be provided in the form of grants.deleted

2018/01/12
Committee: INTA

Proposal for a decision
Recital 13

(13) The Commission should ensure that the Union’s macro-financial assistance is legally and substantially in line with the key principles, objectives and measures taken within the different areas of external action and other relevant Union policies.deleted

2018/01/12
Committee: INTA

Proposal for a decision
Recital 14

(14) ~~The Union’s macro-financial assistance should support the Union’s external policy towards Georgia. Commission services and the European External Action Serv~~It is unthinkable for an EU foreign policy to be conducted in parallel with those of the EU Member States; a real foreign policey should ~~work closely together throughout the macro- financial assistance operation in order to coordinate, and to ensure the consistency of, Union external policy.~~therefore consist of more than just ‘handouts’ in the form of one-off financial payments or grants;

2018/01/12
Committee: INTA

Proposal for a decision
Recital 15

(15) The ~~Union’s~~ macro-financial assistance ~~should support~~that has already been made available by the EU must not be used to buy Georgia’s commitment to values shared with the Union, including democracy, the rule of law, good governance, respect for human rights, sustainable development and poverty reduction, as well as its commitment to the principles of open, rules-based and fair trade. The Member States cannot endorse an EU measure which suggests that the Union is making financial assistance available to a sovereign third state in order to buy its cooperation;

2018/01/12
Committee: INTA

Proposal for a decision
Recital 16

(16) ~~A pre-condition for granting the Union’s~~The granting of EU macro- financial assistance should be that Georgia respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. In addition, the specific objectives of the Union’s macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems in Georgia, and promote structural reforms aimed at supporting sustainable and inclusive growth, employment creation and fiscal consolidation. Both the fulfilment of the preconditions and the achievement of those objectives should be regularly monitored by the Commission and the European External Action Service.cannot be made conditional on Georgia giving up aspects of its sovereignty; given that Georgia is a sovereign state which is not an EU Member State, the Union cannot and must not meddle in Georgia’s internal affairs;

2018/01/12
Committee: INTA

Proposal for a decision
Recital 17

(17) In order to ensure that the Union’s financial interests linked to the Union’s macro-financial assistance are protected efficiently, Georgia ~~should~~must take appropriate measures relating to the prevention of, and fight against, fraud, corruption and any other irregularities linked to the assistance. In addition, provision should be made for ~~the Commission~~a parliamentary mission involving Members of Parliament, whose make-up reflects the relative sizes of the political groups, to carry out checks and for the Court of Auditors to carry out audits.

2018/01/12
Committee: INTA

Proposal for a decision
Recital 19

(19) The amounts of macro-financial assistance provided in the form of grloants ~~and the amounts of the provision required for macro-financial assistance in the form of loans should~~must be consistent with the budgetary appropriations provided for in the multiannual financial framework.

2018/01/12
Committee: INTA

Proposal for a decision
Recital 20

(20) The Union’s macro-financial assistance should be managed by ~~the Commission. In order to ensure that the European~~ Parliament ~~and~~, the ~~Council are able to follow the implementation of this Decision, the Commission should regularly inform them of developments relating to the assistance and provide them with relevant documents~~only institution which enjoys legitimacy granted by the people. The Commission’s de facto powers can no longer simply increase exponentially with every new legislative proposal that is put forward.

2018/01/12
Committee: INTA

Proposal for a decision
Article premier – paragraph 1

1. The Union shall make macro- financial assistance of a maximum amount of EUR 45 million available to Georgia (“the Union’s macro-financial assistance”), with a view to supporting Georgia’s economic stabilisation and a substantive reform agenda. Of that maximum amount, up to EUR 345 million shall be provided in the form of loans ~~and up to EUR 10 million in the form of grants~~. The release of the Union’s macro-financial assistance is subject to the approval of the Union budget for the relevant year by the European Parliament and the Council. The assistance shall contribute to covering Georgia’s balance of payments needs as identified in the IMF programme.

2018/01/12
Committee: INTA

Proposal for a decision
Article premier – paragraph 2

2. In order to finance the loan component of the Union’s macro-financial assistance, the Commission shall be empowered ~~on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions and to on-lend them to Georgia. The loans shall have a maximum average maturity of 15 years.~~to work closely with the European Central Bank in order to ensure that the ECB draws up financing proposals which are consistent with the Union budget;

2018/01/12
Committee: INTA

Proposal for a decision
Article premier – paragraph 3 – subparagraph 1

The release of the Union’s macro-financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the International Monetary Fund (IMF) and Georgia, aund ~~with the key principles and objectives of economic reforms set out in the EU- Georgia Association Agreement, including the DCFTA, agreed under the European Neighbourhood Policy (ENP)~~er the direct scrutiny of the European Parliament.

2018/01/12
Committee: INTA

Proposal for a decision
Article premier – paragraph 3 – subparagraph 2

The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union’s macro-financial assistance, including disbursements thereof, and shall provide those institutions with the relevant documents in ~~due~~real time.

2018/01/12
Committee: INTA

Proposal for a decision
Article 2

1. A pre-condition for granting the Union’s macro-financial assistance shall be that Georgia respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. 2. The Commission and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the life-cycle of the Union’s macro-financial assistance. 3. Paragraphs 1 and 2 of this Article shall be applied in accordance with Council Decision 2010/427/EU8. _________________ 8Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service (OJ L 201, 3.8.2010, p. 30).Article 2 deleted

2018/01/12
Committee: INTA

Proposal for a decision
Article 3 – paragraph 1

1. The Commission, in accordance with the advisory procedure referred to in Article 7(2), shall agree with the Georgian authorities on clearly defined economic policy and financial conditions, focusing on structural reforms and sound public finances, to which the Union’s macro- financial assistance is to be subject, to be laid down in a Memorandum of Understanding (“the Memorandum of Understanding”) which shall include a timeframe for the fulfilment of those conditions. The economic policy and financial conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by Georgia with the support of the IMF.deleted

2018/01/12
Committee: INTA

2. The conditions referred to in paragraph 1 shall aim, in particular, at enhancing the efficiency, transparency and accountability of the public finance management systems in Georgia, including for the use of the Union’s macro-financial assistance. Progress in mutual market opening, the development of rules-based and fair trade, and other priorities in the context of the Union’s external policy shall also be duly taken into account when designing the policy measures. Progress in attaining those objectives shall be regularly monitored by the Commission.deleted

2018/01/12
Committee: INTA

Proposal for a decision
Article 3 – paragraph 3

3. The detailed financial terms of the Union’s macro-financial assistance shall be laid down in a Loan Agreement ~~and a Grant Agreement~~ to be concluded between the Commission and the Georgian authorities.

2018/01/12
Committee: INTA

Proposal for a decision
Article 3 – paragraph 4

4. The Commission shall verify, at regular intervals, that the conditions referred to in Article 4(3) continue to be met, including whether the economic policies of Georgia are in accordance with the objectives of the Union’s macro- financial assistance. In so doing so, the Commission shall coordinate closely with the IMF and the World Bank, and, ~~where necess~~in particulary, with the European Parliament and the Council.

2018/01/12
Committee: INTA

Proposal for a decision
Article 4 – paragraph 1

1. Subject to the conditions in paragraph 3, the Union’s macro-financial assistance shall be made available by the Commission in instalments, each of which shall consist of a loan ~~and a grant element~~. The size of each instalment shall be laid down in the Memorandum of Understanding referred to in Article 3.

2018/01/12
Committee: INTA

Proposal for a decision
Article 5 – paragraph 3

3. Where circumstances permit an improvement of the interest rate of the loan and if Georgia so requests, ~~the Commission~~Parliament may decide to refinance all or part of its initial borrowings or may restructure the corresponding financial conditions. Refinancing or restructuring operations shall be carried out in accordance with paragraphs 1 and 4 and shall not have the effect of extending the maturity of the borrowings concerned or of increasing the amount of capital outstanding at the date of the refinancing or restructuring.

2018/01/12
Committee: INTA

Proposal for a decision
Article 5 – paragraph 5

5. The Commission shall inform the European Parliament and the Council, in real time, of developments in the operations referred to in paragraphs 2 and 3.

2018/01/12
Committee: INTA

Proposal for a decision
Article 6 – paragraph 2

~~2. The implementation of the Union’s macro-financial assistance shall be under direct management.~~deleted

2018/01/12
Committee: INTA

Proposal for a decision
Article 6 – paragraph 3 – introductory part

3. The Loan Agreement ~~and the Grant Agreement~~ to be agreed with the Georgian authorities shall contain provisions:

2018/01/12
Committee: INTA

Proposal for a decision
Article 6 – paragraph 3 – point c

(c) expressly authorising the Commission, including the European Anti- Fraud Office, or its representatives to carry out checks, including on-the-spot checks and inspections; the results of these checks shall immediately be forwarded to Parliament for a decision;

2018/01/12
Committee: INTA

Proposal for a decision
Article 6 – paragraph 3 – point d

(d) expressly authorising the ~~Commission and the~~ Court of Auditors to perform audits during and after the availability period of the Union’s macro- financial assistance, including document audits and on-the-spot audits, such as operational assessments; Parliament must be informed of the findings of these audits as soon as they have been completed;

2018/01/12
Committee: INTA

Proposal for a decision
Article 6 – paragraph 3 – point e

(e) ensuring that the Union is entitled to early repayment of the loan ~~and/or to full repayment of the grant~~ where it has been established that, in relation to the management of the Union’s macro- financial assistance, Georgia has engaged in any act of fraud or corruption or any other illegal activity detrimental to the financial interests of the Union.

2018/01/12
Committee: INTA

Proposal for a decision
Article 6 – paragraph 4

4. Before the implementation of the Union’s macro-financial assistance, the Commission, subject to permanent scrutiny by Parliament, shall assess, by means of an operational assessment, the soundness of Georgia’s financial arrangements, the administrative procedures, and the internal and external control mechanisms which are relevant to the assistance.

2018/01/12
Committee: INTA

Proposal for a decision
Article 7 – paragraph 1

~~1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.~~deleted

2018/01/12
Committee: INTA

Proposal for a decision
Article 8 – paragraph 1 – point c

(c) indicate the connection between the economic policy conditions laid down in the Memorandum of Understanding, Georgia’s on-going economic and fiscal performance and ~~the Commission~~Parliament’s decisions to release the instalments of the Union’s macro-financial assistance.

2018/01/12
Committee: INTA