Activities of Claude GRUFFAT related to 2022/2188(INI)
Shadow opinions (1)
OPINION on the implementation report on the EU-UK Trade and Cooperation Agreement
Amendments (14)
Amendment 3 #
Draft opinion
Recital B
Recital B
B. whereas the TCA is rightly underpinned by provisions that ensure a level playing field and respect for human rights; whereas these provisions are intended to prevent unfair competition and ensure that both the EU and the UK maintain high standards in areas such as labour rights, environmental protection, taxation and State aid;
Amendment 5 #
Draft opinion
Recital C a (new)
Recital C a (new)
Ca. whereas equivalence decisions are the only lever the EU has to prevent the UK's deregulation policy from creating an uneven playing field, unfair competition and regulatory arbitrage against the interests of the EU;
Amendment 14 #
Draft opinion
Paragraph 1
Paragraph 1
1. Notes that the Subsidy Control Act 1 2022 , which establishes a framework for meeting the UK’s international commitments on subsidy control, including those arising under the TCA, has received Royal Assent after being passed by the UK Parliament; expresses its concern about stated plans to introduce ‘free ports’, which risk contravening these commitments and could constitute impermissible State aid under the TCA2 as national hubs to promote global trade and investments, while ignoring the risks they pose as conduits for money laundering, tax evasion and criminal activity; recalls that the establishment of “Free Ports” would risk contravening these commitments and could constitute impermissible State aid under the TCA2 ; stresses that, due to the secrecy and anonymity they offer, free ports are easily exploited by criminals as a storage for ill- gotten gains and high value goods and should therefore be subject to stringent oversight and due diligence controls; calls for the Commission to monitor the situation closely and commence without delay further infringement proceedings, if necessary; _________________ 1 Legislation.gov.uk, ‘The Subsidy Control Act 2022: Chapter 23’, 28 April 2022. 2 The Financial Times, ‘EU to raise concerns over UK’s freeports scheme’, 30 November 2022.
Amendment 21 #
Draft opinion
Paragraph 3
Paragraph 3
3. NoteRegrets the limited nature of the TCA in relation to financial services; recognises that this absence is a consequence of the UK’s unwillingness to discuss other areas of mutual interest as part of the TCA negotiations; notes that there are plans to establish a joint EU-UK financial regulatory forum to facilitate dialogue and cooperation on financial services issues3 ; recalls that this forum would not constitute a formal part of the TCA and will not provide the same level of access or cooperation as a comprehensive financial services agreement; _________________ 3 Reuters, ‘EU restarts work on EU-UK regulatory forum after Northern Ireland deal’, 8 March 2023.
Amendment 23 #
Draft opinion
Paragraph 4
Paragraph 4
4. Reiterates the fact that decisions on equivalence are not reciprocal and do not form part of the TCA; nunilateral, discretionary, have a temporary nature, and do not form part of the TCA, although they could require reciprocity; recalls in particular that equivalence decisions are not subject to negotiation and can be amended or revoked at any time depending on third country’s regulatory developments and taking into account any significant financial and consumer risks to the EU; Notes also the UK’s decisions on equivalence in respect of the EU and also in respect of other non-EU countries such as Switzerland, where mutual recognition status has been agreed; rRecalls that decisions on equivalence could benefit EU firms in terms of greater access to the UK market, including for banking and insurance; n, but they could also pose significant risks in terms of financial stability, consumer protection and undermine the level playing field in case of significant regulatory divergences in other areas, including in the field of taxation and anti-money laundering; Notes that the EU has only granted the UK equivalence status in one area –- central counterparties –- on a time- limited basis, recently extended until 2025; calls for further equivalence decisions to be consideredCalls for further equivalence decisions to be carefully considered in light of future regulatory developments and their implications on financial stability, market integrity, investor and consumer protection and the functioning of the internal market; calls for equivalence decisions to be fully consistent with EU standards and objectives in the area of anti-money laundering and terrorist financing, tax good governance and targeted financial sanctions; nNotes that as of October 2021, the EU had granted 22 equivalence decisions to the United States compared to one in the case of the UK4 ; sSupports the Commission’s position that decisions on equivalence should be made when they are in the EU’s interests; e. Encourages the Commission to discuss further equivalence decisions in a forward- looking and strategic manner in order to provide greater market access benefits to both EU and UK firms; _________________ 4 European Affairs Committee of the House of Lords, ‘1st Report of Session 2022–23: The UK-EUrelationship in, while preserving the level playing field and consistency with EU key objectives in the area of financial services’, 23 June 2022. legislation;
Amendment 28 #
Draft opinion
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Reiterates its position that in case of concerns about financial stability, market integrity or consumer and investor protection, EU supervisors should be granted direct and enhanced supervisory powers over certain third country entities recognised under the EU equivalence framework;
Amendment 29 #
Draft opinion
Paragraph 5
Paragraph 5
5. Is concerned about British government plans to undertake an aggressive deregulatory strategy in the area of financial services legislation and loosen common regulatory and supervisory standards with the aim to strengthen UK role as a financial hub and attract more investments; underlines the potential negative repercussions of such initiatives on the financial stability, market integrity, consumer protection and the level playing field with respect to the EU; Notes the desire of the British Government to adopt divergent regulation from the EU in respect of financial services, including by way of the Financial Services and Markets Bill5 , which proposes to repeal, replace, or amend retained EU law in the area of financial services and to delegate greater responsibility to UK regulators; wunderlines that provisions stemming from the EU law such as the Solvency II Directive and MiFID could be repealed with the adoption of this Bill; stresses the need for continuous monitoring of any possible digression of UK rules from EU standards with a view to avoiding undue competitive advantages and regulatory arbitrage based on regulatory divergence for UK-based undertakings and ensuring a level playing field; Welcomes the EU’s recent progress on legislation in respect of financial services, even where this may result in regulatory divergence from the UK, including with respect to cryptocurrencie- assets, taxonomy, listing, and anti-money laundering; a. Acknowledges that the UK and the EU may adopt different regulatory approaches in the area of financial services and may not necessarily maintain a harmonised regulatory regime; s. Supports the EU’'s legislative progress in this area, even where this may result in regulatory divergence from the UK; stresses, however, the need and benefits of future regulatory cooperation; _________________ 5 UK Parliament, ‘Financial Services and Markets Bill’, 11 May 2023.and supervisory cooperation;
Amendment 35 #
Draft opinion
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Notes the ambition of the UK to establish itself as a global centre for digital finance and crypto assets, through a number of regulatory and supervisory initiatives; stresses the importance of developing a coordinated approach and enhanced cooperation in the area of crypto regulation and supervision in order to effectively address and mitigate the risks for consumer protection, market integrity and money laundering, as well as their environmental impact, and in order to prevent regulatory arbitrage;
Amendment 44 #
Draft opinion
Paragraph 7
Paragraph 7
7. Supports the aims of the Commission’s proposed review of the European Market Infrastructure Regulation in respect of improving EU-based capacity and infrastructure in the area of euro clearing; recognisewarns that the majority of euro clearing taking place outside the EU represents a strategic risk; recognises alsonotes that any forced relocation could risk disruption, market fragmentation, retaliatory measures, loss of competitiveness and reduced liquidity; calls for the co-legislators to support action in this area in a manner that is effective, proportionate and without disruption; advocates for a balanced approach that addresses the strategic risks of euro clearing outside the EU, while minimising potential disruptions to the market;
Amendment 52 #
Draft opinion
Paragraph 9
Paragraph 9
9. Supports continued cooperation between the EU and the UK in areas related to economic and monetary affairs that are of mutual interest, including tackling money laundering, terrorist financing and customs fraud, countering harmful tax regimes, implementing sanctions and promoting global financial stability; stresses that regulatory and supervisory cooperation in these areas is a priority and constitutes an essential condition for ensuring a level playing field;
Amendment 57 #
Draft opinion
Paragraph 9 a (new)
Paragraph 9 a (new)
9a. Regrets that the UK is still allowing “letter box” companies with minimal oversight and transparency on ownership that enables international money laundering and tax avoidance; notes that any stringent rules on the EU side would be undermined if the UK provides easy ways to circumvent them;
Amendment 66 #
Draft opinion
Paragraph 12
Paragraph 12
12. Regrets the lack of specific structures for dialogue and engagement between the EU and the UK in the area of financial services and the absence of tax measures in any dispute resolution mechanism or rebalancing mechanism; recalls the commitment, in the first Joint Declaration accompanying the TCA, to signing an MoU on financial services regulatory cooperation between the EU and the UK, which would not be a legal document but would provide a basis for regular, structured engagement and the sharing of information on regulatory developments and supervisory actions as well as analysis on macro-prudential developments, consumer protection and financial stability risks, especially on cross-border issues; notes that this mMemorandum has not yet been signed;
Amendment 70 #
Draft opinion
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Reiterates that any third country having strong economic ties with the EU is screened by the Council as part of the EU listing process identifying non- cooperative tax jurisdictions for tax purposes; therefore demands that the Council promptly adds the UK to the list of regularly assessed countries to ensure the commitments of the joint political declaration on countering harmful tax regimes are respected;
Amendment 72 #
Draft opinion
Paragraph 13
Paragraph 13
13. Welcomes the successful signing of bilateral MoUs between EU and UK regulators and supervisors at both EU and Member State levels, including between the Financial Conduct Authority and the European Banking Authority and the European Securities and Markets Authority, a multilateral MoU with EU and European Economic Area national competent authorities and individual MoUs with national competent authorities9 ; calls for an MoU establishing a forum for regulatory cooperation in the area of financial services between the EU and the UK to be signed in order to preserve financial stability, market integrity, the protection of investors and consumers and a level playing field; recognises that such a mMemorandum would provide a structured platform for addressing any regulatin a timely manner any regulatory and supervisory issues that may arise in the future; _________________ 9 The Financial Conduct Authority, ‘MoUs with European authorities in the areas of securities, investment services and asset management, insurance and pensions, and banking’, 4 January 2021.