Activities of Margarida MARQUES related to 2021/2076(INI)
Plenary speeches (1)
Borrowing strategy to finance NextGenerationEU (debate)
Shadow reports (1)
REPORT on the implementation of the borrowing strategy to finance NextGenerationEU, the Union’s recovery instrument
Amendments (15)
Amendment 11 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Stresses that NGEU is the firlargest EU common borrowing programme which not only grants loans to Member States, but also provides direct Union budget expenditure embedded in genuine EU programmes and policies; underlines that common Union debt managed by the Commission boosts the size, impact and added value of the Union budget, thereby supporting the post-COVID-19 recovery and delivering on long-term EU priorities;
Amendment 19 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Supports the diversifiedAcknowledges the funding strategy adopted by the Commission, offering a wide range of products (bonds and bills) and maturities (from three months to 30 years) through various issuance methods (syndicated transactions and auctions) and on a regular schedule;
Amendment 21 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5 a. Notes the Commission’s choice to rely on a large Primary Dealers’ Network (PDN), which are important partners in ensuring well-functioning primary and secondary markets and reporting to the Commission on market conditions; reminds the Commission of the importance to ensure that banks meet their legal requirements and to seek finding a better geographical balance both in the PDN membership and in the leadership of syndicated transactions; calls on the Commission to make sure that sufficient incentives and obligations are in place for PDN members to play their role; regrets that available information on fees paid to the Primary Dealers are not publicly known, together with a breakdown of all costs incurred by the Union in issuing debt;
Amendment 33 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Underlines that large volumes of EU-level debt might benefit the resilience of the euro area and of the EU capital markets; however underlines to fully reap the benefits of EU borrowing, NGEU should have to be made a permanent instrument and fully integrated in the EU budget so that it provides a long-term safe asset and benchmark yield curve;
Amendment 35 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7 b. Notes the high demand for and smooth integration of the EU’s debt on capital markets; calls on the Commission to consolidate the standing of EU debt by diversifying the investor profile, stimulating secondary markets and removing technical obstacles, such as the ECB’s purchase limitations and higher haircut applied to EU bonds over national sovereign bonds within its collateral framework; for transparency purposes further calls on the Commission to swiftly and systematically inform the European Parliament on all charges incurred in issuing EU debt;
Amendment 38 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Highlights, in particular, that the Union could setan be a benchmarks-setter and role model for sustainable and green investment as the largest global issuer of green bonds, as well as by diversifying its investor base and securing lower borrowing costs; stresses the important role of green bonds in financing assets needed for the low-carbon transition; welcomes that the Green Bond framework used by the Commission observes high sustainability standards; urges the Commission to ensure harmonisation of standards for green bonds issuance; at the same time, underlines the importance to prevent any kind of “greenwashing ” in the context of the issuance of green bonds and that the funds raised by green bonds should be fully allocated to projects which are entirely aligned with the EU taxonomy.
Amendment 40 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Notes that, despite its scale, NGEU has so far successfully mitigated the risk of crowding out demand for other European sovereign bonds; emphasises that, by making the Euro area sovereign market more attractive especially to non- EU investors, NGEU issuance may be impacting positively on demand for securities issued by other European market players; invites the Commission to continue coordinating closely with Member State debt agencies and with the ECB, the EIB and the ESM; regrets, however, that the Commission is not fully implementing the Capital Markets Union principles by spreading the trading of EU debt through other stock exchanges besides Luxembourg;
Amendment 45 #
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8 b. Argues further that NGEU is having a positive impact on the attractiveness and sustainability of Member State debts, by offering AAA- rated borrowing conditions to all Member States through RRF loans, having a significant lowering effect on sovereign yields and by discounting grants from the calculation of national debt as well as by conveying a strong message to financial markets about the resilience and cohesion of the Euro area and the EU; calls on the Commission to swiftly provide to the European Parliament disaggregated costs Member States incur on taking RRF Loans, and Commission’s charges to EURI as administrative costs;
Amendment 48 #
Motion for a resolution
Paragraph 8 c (new)
Paragraph 8 c (new)
8 c. Asks the Commission to develop instruments allowing EU citizens to have access to EU debt directly in primary market in a simple and transparent manner; notes that this practice already exists in several EU member states; believes that the economic benefits would be relevant and outweigh the implementation costs;
Amendment 54 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9 a. Notes with concern the steeply rising inflation interest rates that affect sovereign issuers; however recalls that the Commission has so far been issuing EU debt at very good interest rates and initial calculations for the costs of EURI repayment where made on the basis of various scenarios; cautions that the costs of funding have recently increased significantly due to the challenging market conditions and that massive uncertainties on the long-term interest landscape are expected; calls on the Commission to closely monitor the situation and to regularly inform the budgetary authority; acknowledges that the Commission evolves in a very uncertain market, outside of the 99% confidence interval; recalls that all payments of financial contributions to Member States should be made by 31 December 2026, as established under the EURI and RRF Regulations, but acknowledges that changes to this deadline could be needed; underlines that such change requires amending both the RRF and EURI regulations, accordingly;
Amendment 62 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Regrets the systematic creation and use of instruments, funds and common borrowing programmes, such as NGEU, outside of the EU Budget and without scrutiny or control of the Budgetary Authority; therefore, calls for the budgetisation of borrowing and lending operations and of all future EU programs or instruments; requests, in case they should nevertheless be created outside of the EU Budget that at least Parliament’s consent should be required;
Amendment 70 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. IUnderlines that with NGEU the EU’s borrowing and lending capacity has expanded considerably; insists on the need to involve the budgetary authority at all stages of this process; recalls that under the Own Resources Decision, the Commission is required to publish a regularly updated plan of expected principal and interest payments, to be discussed with Parliament and Council in the regular interinstitutional meetings on the topic of NGEUNGEU; notes that insofar annual debt limits and existing debt levels are defined solely by the Commission, side-lining the Budgetary Authorities; calls on the Commission to consider integrating in each annual budgetary cycle clear debt limits and limits on issued debt and to bring greater democratic accountability and scrutiny into the process;
Amendment 72 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Recalls its demand that the budgetary appropriations for the EURI repayment costs should be entered in the EU budget over and above the MFF ceilings, in order to safeguard the margins and flexibility mechanisms for their intended purposes; asks to make the pertinent modifications in the MFF regulation in the context of the MFF midterm revision;
Amendment 82 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Notes, however, that the estimated proceeds from these three own resources would not suffice to cover for the NGEU borrowing debt, in particular in the years from 2028 to 2032; calls, therefore, on the Commission to make a proposal for the second basket of new own resources before December 2023 in order to ensure sufficient resources for NGEU debt repayments, as agreed in the legally binding roadmap established under the Inter-Institutional Agreement; moreover, also in view of recent economic challenges, asks the Commission to reflect beyond and to be even more ambitious than under the already existing OR roadmap and not to exclude adding innovative, new and preferably genuine own resources to be proposed in the future, such as an EU solidarity tax, a wealth tax, a tax on cryptocurrencies or other revenues flowing into the EU budget, including revenues coming from EU borrowing or lending operations;
Amendment 83 #
Motion for a resolution
Paragraph 14 b (new)
Paragraph 14 b (new)
14 b. Notes that windfall profits from sectors that received EU funding and investments are not being taken into account to finance a sustainable and resilient social and economic EU recovery, notably from pharmaceutical and energy sectors; calls on the Commission to assess and inform the Budgetary Authority how windfall profits from such sectors can duly contribute to an European recovery and to mitigate crisis impact on people, households and SME’s and to follow this up with a concrete proposal; further calls on the Commission to consider including profit sharing clauses in its contracts;