36 Amendments of José Manuel GARCÍA-MARGALLO Y MARFIL related to 2020/2037(INI)
Amendment 15 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas the euro is currently supported as common currency by a majority of citizens in all 19 euro area Member States1a; _________________ 1aAccording to EC Flash Eurobarometer 481 of November 2019 the support for the euro has increased: two thirds of respondents think that having the euro is a good thing for their country, a proportion higher than in 2018 in 13 countries (and lower in four countries).
Amendment 16 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
Ab. whereas the euro is the official currency of the euro area, currently comprised of 19 out of 27 EU member states; whereas Bulgaria, Croatia and Denmark have anchored their currencies to the euro through the Exchange Rate Mechanism (ERM II); whereas the euro is also the official currency1b, or “de facto” currency 1c of certain non-EU territories; _________________ 1bThe euro is used as official currency, on the basis of a formal arrangement with the European Union, by the Principality of Monaco, the Republic of San Marino, the Vatican City State the Principality of Andorra, as well as by Saint-Piette-et- Miquelon and the Island of Saint- Barthelemy which are both non-EU French overseas territories 1cThe euro became a de facto domestic currency in Kosovo and Montenegro, replacing the use of German mark, which was previously used as the de facto currency in these areas.
Amendment 18 #
Motion for a resolution
Recital B
Recital B
B. whereas despite the euro area’s economic size and influence in global trade, the use of the euro lags behind the US dollar by a wide margin, yet it is still ahead of all other competing currencies; as a medium of exchange2a, store of value2b, and unit of account2c for invoicing goods at global level, but ranks almost equally compared to the dollar in terms of proportion of international payments; whereas the euro remains the second most important currency in the international monetary system, ahead of all other competing currencies; _________________ 2aAccording to the June 2020 ECB report on “the international role of the euro” the share of the euro in the stock of international debt securities amounted to 22% at the end of 2019, after declining since themid-2000s, while that of the US dollar kept on increasing, being about 64%; 2bAccording the latest IMF COFER data release (30 September 2020), in 2020 the worldwide reserves in euro amounted to 20.27%, compared to 61.26% held in US dollars and 2.05% held in renminbi; 2c The use of the euro as an invoicing currency corresponds to 30% of global trade transactions in goods, but its use is still limited when transactions do not involve the euro area, unlike the US dollar;
Amendment 37 #
Ea. whereas a broad combination of factors determines the role of international currency; on the one hand the size of the euro area economy and free movement of capital fulfil basic prerequisites allowing to strengthen international role of euro, while on the other hand financial and capital markets remain fragmented and heavily bank based, fiscal architecture of the euro area is incomplete and a reliable supply of high quality assets to be used by global investors is inadequate;
Amendment 39 #
Motion for a resolution
Recital E b (new)
Recital E b (new)
Eb. whereas the pandemic situation has accelerated the digital transformation of finance, to underpin a strong international role of the Euro it is important that Europe develops digital finance and payments, with strong European players in the lead;
Amendment 56 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
Ha. whereas the crisis has generated a unique opportunity to move towards developing a digital euro, which will make the European currency better fit for the digital world, enabling the euro to expand in the area of digital payments, becoming easier to use, less costly and more efficient;
Amendment 64 #
Motion for a resolution
Recital I
Recital I
I. whereas new powers to issue recovery debt, including green bonds – which could make the EU the world’s biggest issuer of such debt –, require adequate implementation and enforcement capacities so as to avoid undermining the long-term credibility of the euro as a safe asset currency;
Amendment 87 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Considers that, while not all the effects of the internationalisation of the euro can be easily quantified, strengthening the international role of the euro can generate benefits both in the short and long term; notes, however, that it also brings risks and responsibilities that must be taken into consideration in the process of complementing market forces with policy measures; underlines, in particular, that the international currency status of the euro can enhance monetary policy autonomy and reinforce its global transmission, make the euro more of an attractive investment, and provide exorbitant privilegeincrease the use of the euro as a reserve of value , lower external financing costs as well as provide a smooth adjustment of macroeconomic imbalances and lower exchange rate pass- through.;
Amendment 90 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Underlines that a stronger euro will provide additional choice to market operators globally; gradually create deeper, more liquid and integrated European financial markets, which would provide for more reliable access to finance for European business and governments; improving in turn the overall resilience of the international financial system and economy, making them less vulnerable to exchange rate shocks; stresses that for those benefits to materialize a well-orchestrated policy efforts at European and national levels are needed, including contribution from ECB, SRB, ESAs, EIB.
Amendment 91 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1b. Contemplates that the internationalisation of the euro could become a key factor in laying the foundation for a revitalised international monetary system, which will continue to rely on a limited number of currencies, making it more balanced and sustainable;
Amendment 96 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Points out that, in order for the potential benefits from the strengthened role of the euro to materialise, the Union has to complete the as yet unfinished infrastructure for the common currency and make more progress on its critical functions;
Amendment 109 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Recalls the progress made in building the Banking Union and takes note of the agreement reached in the Eurogroup on the reform of the European Stability Mechanism and the advancement of the entry into force of the common backstop to the Single Resolution Fund; welcomes the ongoing review by the Commission of the crisis management and deposit insurance framework to increase the efficiency, proportionality and overall coherence of the framework to manage bank crises in the EU;
Amendment 111 #
Motion for a resolution
Paragraph 3 b (new)
Paragraph 3 b (new)
3b. Recalls that the Banking Union still lacks a deposit insurance framework, as well as a mechanism to ensure that liquidity can be provided to a bank in resolution; takes note of the request by the Euro Summit of 11 December to the Eurogroup to prepare a stepwise and time-bound work plan on all outstanding elements needed to complete the Banking Union;
Amendment 112 #
Motion for a resolution
Paragraph 3 c (new)
Paragraph 3 c (new)
3c. Finalising the banking union, and most notably putting in place a system to guarantee and protect EU bank deposits and the completing the mechanism dealing with failing banks, will strengthen the international role of euro;
Amendment 115 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Underlines that making moreStresses that a stronger role of the euro requires support from deep and liquid euro denominated capital markets; underlines that progress in developing the CMU would increase both resilience to and independence from global developments and the attractiveness of euro-denominated assets; deplores the underdevelopment and segmentation of the euro area’s capital markets along national lines, which has resulted in small-sized markets; considers Brexit, in that regard, as both challenge and opportunity; calls for the reduction of national options and discretions in order to reduce cross-border barriers; further invites efforts to begin gradual and phased in minimum harmonisation of national insolvency rules;
Amendment 118 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Underlines that a stronger role of the Euro in the digital age must be underpinned by innovative digital finance solutions and effective digital payments in euro, with strong European players in the lead, and calls to promote this through implementing comprehensive strategies on digital finance and retail payments; Considers that in view of the digital transformation, the EU should put in place a framework with high standards of cybersecurity, including on the protection of privacy and on data protection, and ethically designed artificial intelligence;
Amendment 123 #
Motion for a resolution
Paragraph 4 b (new)
Paragraph 4 b (new)
4b. Takes note that crypto-assets are becoming an innovative source of funding, with the potential to be an effective tool to fill funding gaps for SME and start-ups; stresses the need to have a clear and consistent guidance at EU level on the applicability of existing regulatory and prudential processes, which will promote more innovation and improve the use of the euro; welcomes in that regard the proposal of the European Commission for an EU Regulation aiming to foster the use of crypto assets in euro by improving legal certainty in the regulatory treatment of crypto-assets, preserve consumer protection and ensure financial stability;
Amendment 131 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Emphasises the need for sustainable and sound fiscal and structural growth- enhancing policies that are based on a commitment to credible fiscal rules; calls for further reflection on the adequacy of the stability and growth pact framework despite the challenging circumstances; supports the plan outlined in Next Generation EU plan to use, in addition to monetary policy, a fiscal impulse, notably borrowing EUR 750 billion from capital markets bonds to finance the recovery and green transition, in addition to the issuance of EUR 100 billion in ‘social’ bonds under the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE), which is intendaimed ato preserveing employment; applauds the high level of interest that investors have demonstrated in European bonds; vestors' interest in European bonds; notes that an efficient and developed financial system based on a large variety of financial instruments, well developed capital markets and liquid safe assets can strengthen the international role of the currency; considers in this context, that the Next Generation EU Recovery fund can become a useful instrument to improve the functioning of currently fragmented sovereign debt markets, facilitate the completion of the Banking Union and support progress towards Capital Markets Union;
Amendment 140 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Takes note of the EU green bonds, as an important element of the Recovery Fund; reiterates that the green bonds are debt instruments whose proceeds aim at financing sustainable and environmentally friendly investments; urges the Commission and Member States to provide investors with a strong degree of legal certainty that their investment will be used to the intended ends;
Amendment 143 #
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Encourages the EIB to issue a larger number of euro-denominated bonds, which would improve the availability of risk free assets denominated in euro;
Amendment 144 #
Motion for a resolution
Paragraph 5 c (new)
Paragraph 5 c (new)
5c. Insists that the European Parliament should be granted stronger democratic role through political control in this process;
Amendment 145 #
Motion for a resolution
Paragraph 5 d (new)
Paragraph 5 d (new)
5d. The recent experience with SURE issuance confirms that the collective borrowing strengthen the trust in euro and makes it more attractive; acknowledges, therefore, that financing the recovery plan through a collective response to a common shock is the right approach;
Amendment 152 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets; underlines, therefore, the need to createconsiders that the development of adequate policy tools could facilitate the supply of European safe assets; considerbelieves that the proposed issuance of a common debt to finance recovery will provide an EU-level reserve asset benchmark and increase the supply of euro-denominated safe assets; expects the ECB to conduct in due course an assessment of the possibility of issuing certificates of deposit under its existing legal basis;
Amendment 154 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Welcomes the quick and substantial ECB monetary policy response to the COVID-19 crisis in the context of emergency and acknowledges the positive impact of such response on the economic situation of the euro area as well as on the attractiveness of the euro, by stabilising financial markets, supporting liquidity and funding conditions in the euro area economy and globally, as well as, in shoring up market confidence;
Amendment 158 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6b. Stresses the irreversible nature of the single currency; emphasises that the euro is not only a monetary project but also a political one;
Amendment 159 #
Motion for a resolution
Paragraph 6 c (new)
Paragraph 6 c (new)
6c. Draws attention to the requirement, laid down in the Treaties, for every Member State, except for Denmark, to adopt the single currency once they have met the Maastricht convergence criteria; welcomes Bulgaria and Croatia’s entry into ERMII in July 2020 and supports a swift target date for the adoption of the euro in both countries; encourages, in that regard, the European Commission to assess the potential impact of the further enlargement of the euro area on the process of strengthening the international role of euro;
Amendment 162 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Takes note of the role geopolitics plays in global currency competition in the global role of a currency; highlights the fact that the internationalisation of the euro will provide more space for the EU to influence global geopolitical decisions; which in turn will reinforce the global attractiveness of the euro; while the role of geopolitics in the global world of today should be part of the reflection on strengthening the international role of euro, in particular when currency internationalisation might produce positive security effects, the European Union should take into account its capabilities in the area of foreign and defence policy;
Amendment 173 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Is concerned that EMU’swith the lack of ability of the EMU to speak as a unified voice within international institutions can hold back the international role of euro; reiterates the need for a more streamlined and codified representation of the EU in multilateral organisations and bodies, and most notably in the International Monetary Fund to help foster the euro’s global outreach;
Amendment 196 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Notes that the global prominence of a currency is directly linked to the role that the issuing country has in global trade; stresses that the EU, as one of the world’s largest trading blocs, would benefit from a strengthened international role of its currency; underlines that stimulating the choice of the euro in trade will reduce exchange risk and other currency-related costs, especially for European SMEs; observes, however, that despite their position as large buyers and producers, European companies sometimes opt to trade in key strategic markets in US dollars or face difficulties for trading in euros due to market structures and path- dependencies; takes note of conducted studies that show that share of euro in invoicing by companies depends on many factors including the size of the company and the country it is located in, the homogeneity of goods and the existing supply chains; calls, therefore, on the Commission to foster the use of the euro in pricing and invoicing in trade transactions, and to make use of the high potential offered by financial instruments denominated in euros, by actively engaging with private stakeholders and trade partners and by promoting the use euro in EU trade agreements; points, in this context, to the potential offered by supply chains;
Amendment 198 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Stresses in that regard the importance of global green energy and commodity markets as forerunners for globally traded goods denominated in euro, where hydrogen and EUAs under the EU-ETS help strengthening the role of the euro in international trade, as well as achieving the EU climate objectives; further calls for action to facilitate new innovative contracts, in particular related to sustainable energy sources and nascent energy markets, which will provide an opportunity for more energy contracts to be traded in euro, strengthening, thus, the international role of the euro; encourages the Commission to continue conducting consultation and studies aiming at identifying the potential to increase the use and role of euro in other sectors, notably with transport means, including in particular aircraft manufacturing, agriculture and food commodities, or metals and minerals; to further support and promote the use of euro for this type of contracts, calls the Commission, in addition to private engagement, to revisit the financial market rules, including MiFID and Benchmarks Regulations;
Amendment 204 #
Motion for a resolution
Paragraph 12 b (new)
Paragraph 12 b (new)
12b. Holds that the European Commission could further promote the use of the euro in trade pricing and invoicing, and promote euro-denominated investments, by maintaining an open dialogue with private and public stakeholders, national authorities and institutional investors, providing comprehensive knowledge and understanding for its initiatives and various efforts aimed at reinforcing the attractiveness and resilience of the euro area and the euro;
Amendment 206 #
Motion for a resolution
Paragraph 12 c (new)
Paragraph 12 c (new)
12c. Finds merit in maximizing the impact of European economic diplomacy by engaging in regular exchanges with G20 partners, as well as neighbourhood and enlargement countries, to identify concrete policy actions of mutual interest;
Amendment 208 #
Motion for a resolution
Paragraph 12 d (new)
Paragraph 12 d (new)
12d. Recognises that the market for centralised clearing is highly concentrated, in particular the market for the clearing of euro denominated interest rate derivatives which heavily depends on UK CCPs; takes note of the recently adopted time-limited equivalence decision of the Commission for UK CCPs and encourages the industry to follow the European Commission’s call to reduce their excessive exposures to UK CCPs promptly; supports in that regard the efforts of the EU CCPs to build up their clearing capability as well as the efforts of the European Commission, the European Supervisory Authority and the European Central Bank to assist the industry in identifying and addressing in the coming months any technical impediment to the transfer of a significant part of the excessive exposure it has to UK CCPs into the EU;
Amendment 210 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Stresses the role the ECB plays in maintaining trust in the euro and safeguarding monetary sovereignautonomy in the global context and price stability; welcomes the prompt measures put in place by the ECB in order to cater forsafeguard the availability of euro liquidity; underlines the prominence of swap arrangements and repo lines in enhancing the international role of the euroaddressing dysfunctions in euro funding markets globally and indirectly enhancing the international role of the euro; signalling a commitment of the Eurosystem to support the liquidity and stability of the financial markets in times of crisis ,as well as, the smooth transmission of its monetary policy in the euro area; calls on the ECB, in that regard, to further expand its swap lines to non-euro area neighbouring countries and beyond;
Amendment 222 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Takes note of the ECB report on the digital euro, and of the value a digital currency can add in strengthening the international role of the euro; supportsencourages the ECB to continue its work on the digital euro and looks forward to the ECB’'s efforts in ensuring a high level of cyber resilience; next step in this process , based on its conclusions to be issued in 2021; underlines the importance of ensuring a high level of cyber resilience and security and supports the ECB’s efforts in this direction;
Amendment 227 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15a. Calls on the Commission to put forward a comprehensive strategy to strengthen Europe’s economic and financial autonomy; building on the efforts to strengthen the international role of the euro;