39 Amendments of Marco VALLI related to 2018/0212(COD)
Amendment 57 #
Proposal for a regulation
Recital 5
Recital 5
(5) In orderthe absence of rebalancing mechanisms to facilitate macroeconomic adjustment and cushion large asymmetric shocks in the current institutional set-up, Member States whose currency is the euro and other Member States that participate in the exchange rate mechanism (ERM II) have to rely more heavily on remaining instruments of economic policy, such as automatic fiscal stabilisers and other discretionary fiscal measureshave to conduct consistently tight fiscal policy, making the adjustment more difficult overall. The sequence of the crisis in euro area also suggests a strong reliance on the single, "one size fits all", monetary policy to provide for macro-economic stabilisation in severe macro-economic circumstances, which is by definition not suitable to address country-specific shocks.
Amendment 81 #
Proposal for a regulation
Recital 9
Recital 9
(9) In its initial implementation, EISF should not only benefit Member States whose currency is the euro but also other Member States that participate in the exchange rate mechanism (ERM II). , which are more vulnerable to asymmetric shocks due to the flawed set-up of the Euro area. The extension to other Member States that participate in the exchange rate mechanism (ERM II) shall be assessed in the context of the review referred to in Article 22 of this Regulation.
Amendment 85 #
Proposal for a regulation
Recital 10
Recital 10
(10) EISF should be a Union instrument which complements national fiscal policies. It should bThe response to the recalled that Member States should pursue sound fiscal policies and build up fiscal buffers in favourable economic timesonomic crisis has highlighted the need to allow Member States facing an economic downturn to conduct well-designed expansionary fiscal policies supporting aggregate demand in order to absorb economic shocks and counter deflation.
Amendment 97 #
Proposal for a regulation
Recital 12
Recital 12
Amendment 103 #
Proposal for a regulation
Recital 13
Recital 13
(13) EISF support should be given in case one or several Member States whose currency is the euro or other Member States that participate in the exchange rate mechanism (ERM II) are confronted with a large asymmetric shock. Changes in unemployment rates are highly correlated with business cycle fluctuations in such Member States. Strong increases in national unemployment rates above their long-term European Union averages are a clear indicator of a large shock in a specific Member State. Asymmetric shocks affect one or several Member States significantly more strongly than the average of Member States.
Amendment 111 #
Proposal for a regulation
Recital 14
Recital 14
(14) The activation of EISF support should therefore be determined by a double activation trigger based on both the level of national unemployment rate compared to its pastthe EU average and the change in unemployment compared to a certain threshold.
Amendment 112 #
Proposal for a regulation
Recital 15
Recital 15
Amendment 123 #
Proposal for a regulation
Recital 16
Recital 16
Amendment 128 #
Proposal for a regulation
Recital 17
Recital 17
Amendment 154 #
Proposal for a regulation
Recital 24
Recital 24
(24) The amount of EISF loan should also be automatically determined on the basis of a formula which firstly takes into account the maximum level of eligible public investment that can be supported under EISF and secondly the severity of the large asymmetric shock. The support determined on the basis of that formula should also be scaled in function of the severity of the shock by means of a factor (β). That factor is determined such that for a shock that increases unemployment by more than 2.5 percentage points, the maximum support is made available to the Member State concerned. An EISF loan could be increased up to the maximum level of eligible public investment in case the asymmetric shock is particularly severe as reflected by other indicators of the Member State's position in the economic cycle (e.g. confidence surveys) and a deeper analysis of the macroeconomic situation (as conducted in particular in the context of the macroeconomic forecast and the European Semester). With a view to ensure that as many Member States as possible could qualify for support under EISF, the loan to a Member State should not exceed 30 percent of the remaining available means under the ceiling set for calibrating the loan, such as youth unemployment, confidence surveys, rate of companies' bankruptcies and large declines in economic output or exports in goods uander EISF to the available means in the Union budget services.
Amendment 163 #
Proposal for a regulation
Recital 26
Recital 26
(26) A Stabilisation Support Fund should be established to finance the interest rate subsidy. The Stabilisation Support Fund should be endowed with national contributions from Member States whose currency is the euro and other Member States that participate in the exchange rate mechanism (ERM II).
Amendment 167 #
Proposal for a regulation
Recital 27
Recital 27
(27) Both the determination of the amount of the national contributions to the Stabilisation Support Fund and their transfer should be governed by an intergovernmental agreement to be concluded between Member States whose currency is the euro and other Member States that participate in the exchange rate mechanism (ERM II). That agreement should provide that the national contributions for all the Member States are calculated based on the share of the national central banks of those Member States whose currency is the euro in the monetary income of the Eurosystem. For Member States which participate in ERM II a specific key should be foreseen to determine the national contributions. The Commission should assist the Member States for the calculation of those contributions. To that end, the European Central Bank (ECB) should communicate to the Commission the amount of monetary income the national central banks of the Eurosystem are entitled to.
Amendment 183 #
Proposal for a regulation
Recital 31
Recital 31
Amendment 190 #
Proposal for a regulation
Recital 33
Recital 33
(33) EISF should be considered as a first step in the development over time of a fully-fledged insurancestabilisation mechanism to cater for macro-economic stabilisationrebalancing within the Euro area. Currently, EISF would be based on loans and granting of interest rate subsidies. In parallel, it is not excluded that the ESM or its legal successor would be involved in the future by providing financial assistance to Member States whose currency is the euro facing adverse economic conditions in to support of public investment. Moreover, a voluntary insurance mechanism with a borrowing capacity based on voluntary contributions by Member States could be set up in the future to provide for a powerful instrument for the purpose of macro- economic stabilisation against asymmetric shocks.
Amendment 194 #
Proposal for a regulation
Recital 33 a (new)
Recital 33 a (new)
(33a) Financial assistance should also be provided in order to support automatic stabilisers by means of an unemployment insurance scheme. In addition, a Euro area macro-economic rebalancing mechanism, based on contributions by Member States with current account surpluses in excess of 4% of national GDP, should be established to provide for a powerful instrument for the purpose of offsetting losses in competitiveness through public investments and addressing asymmetric shocks arising from macroeconomic imbalances.
Amendment 199 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation establishes a European Investment Stabilisation Function (EISF) in the euro area.
Amendment 204 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The EISF shall provide swift financial assistance in the form of loans and interest rate subsidies for public investment to a Member State whose currency is the euro which is experiencing a large asymmetric shock.
Amendment 211 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
3. EISF support shall be available for Member States whose currency is the euro and for other Member States that participate in the exchange rate mechanism referred to in Article 140(1) of the Treaty on the Functioning of the European Union.
Amendment 215 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) 'agreement' means the intergovernmental agreement concluded between all Member States whose currency is the euro and other Member States that participate in the exchange rate mechanism (ERM II) determining the calculation and the transfer of their financial contributions to the Stabilisation Support Fund;
Amendment 219 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
(3) 'eligible public investment' means: (a) the public investment in support of policy objectives as defined in Regulation (EU) No [XX] of [XX] [insert reference to new Common Provisions Regulation]16 and (b) any expenditure in areas of research and development, public health, education and training as defined in Annex A to Regulation (EU) No 549/2013 and not covered in point (a); _________________ 16 [Insert correct reference to new version [Insert correct reference to new version of Common Provisions Regulation]
Amendment 234 #
Proposal for a regulation
Article 3
Article 3
Amendment 284 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) the quarterly national unemployment rate in the Member State concerned exceeded the average unemployment rate in the Member State concernedEU over a period of 6015 quarters preceding the quarter during which the request is made;
Amendment 293 #
Proposal for a regulation
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) the quarterly national unemployment rate increased above onehalf percentage point in comparison to the unemployment rate observed in same quarter of the previous year.
Amendment 317 #
Proposal for a regulation
Article 5 – paragraph 1 – subparagraph 2
Article 5 – paragraph 1 – subparagraph 2
Amendment 320 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
Amendment 331 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1
Article 6 – paragraph 1 – subparagraph 1
Where a Member State fulfils the eligibility criteria referred to in Article 3 andwhose currency is the euro is experiencing the largean asymmetric shock referred to in Article 4, it may request the Commission once a year to receive EISF support. The Member State shall indicate its needs for support.
Amendment 336 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1 a (new)
Article 6 – paragraph 1 – subparagraph 1 a (new)
The Member State shall nevertheless also be entitled to request the EISF support in case the activation criteria referred to in Article 4 are not triggered, where an asymmetric shock is detected by the following criteria: (a) large increase in youth unemployment; (b) significant increase of companies’ bankruptcies; (c) sharp decline in economic output, including by industry sector; (d) sharp drop in exports of goods and services, except where the moving average of the current account balance expressed in percent of GDP in the Member State concerned exceeded 4 % in the previous three years;
Amendment 337 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 2
Article 6 – paragraph 1 – subparagraph 2
The Commission shall assnswer the requests and answer the requests in the order it receives them. Itin the order it receives them. Where the activation criteria set in Article 4 of this Regulation are triggered, it shall activate the EISF support automatically. In case the activation criteria are not triggered, but the Member State submitted a request on the basis of the additional indicators referred to in Article 6 - paragraph 1 - subparagraph 1 a (new), the Commission shall assess the request and shall act without undue delay.
Amendment 351 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
The outstanding amount of loans granted to Member States under this Regulation shall be limitedamount at least to EUR 3100 billion in principal.
Amendment 378 #
Proposal for a regulation
Article 8 – paragraph 1 – subparagraph 4
Article 8 – paragraph 1 – subparagraph 4
The Commission may nevertheless increase the amount of an EISF loan up to the amount of IS in case of particular severity of the large asymmetric shock experienced by the Member State concerned, taking into account other indicators of the Member State’s position in the economic cycle such as increases in youth unemployment and companies’ bankruptcies, declines in output across sectors or sharp drops in exports of goods and services, except where the moving average of the current account balance expressed in percent of GDP in the Member State concerned exceeded 4 % in the previous three years.
Amendment 391 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
Amendment 400 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
Amendment 404 #
Proposal for a regulation
Article 10
Article 10
Amendment 417 #
2. After the Commission has adopted a decision in accordance with Article 6(2), tThe Commission is authorised to borrow on the capital markets or from financial institutions at the most appropriate time in between planned disbursements so as to optimise the cost of funding and preserve its reputation as issuer in the markets. Funds raised but not yet disbursed shall be kept at all times on a dedicated cash or securities account which are handled in accordance with the rules applying to off- budget operations and cannot be used for any other goal than to provide financial support to Member States under the present mechanism.
Amendment 440 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
Amendment 454 #
Proposal for a regulation
Article 22 – paragraph 5 – subparagraph 2 – point c
Article 22 – paragraph 5 – subparagraph 2 – point c
(c) the contribution of this Regulation to the achievement of the Union’s strategy for sustainable growth and jobs;
Amendment 457 #
Proposal for a regulation
Article 22 – paragraph 5 – subparagraph 2 – point d
Article 22 – paragraph 5 – subparagraph 2 – point d
(d) the appropriateness of developing a voluntaryn European unemployment insurance mechanismscheme serving the purpose of macroeconomic stabilisation.stabilisation and the need to further support automatic stabilisers at the national level;
Amendment 460 #
Proposal for a regulation
Article 22 – paragraph 5 – subparagraph 2 – point d a (new)
Article 22 – paragraph 5 – subparagraph 2 – point d a (new)
(da) the appropriateness of endowing the Stabilisation Support Fund with national contributions from Member States calculated based on a share of the national current account surplus in excess of 4% of the country’s GDP, for the purpose of achieving an automatic current account adjustment mechanism to cater for macroeconomic stabilisation within the Euro area.
Amendment 461 #
Proposal for a regulation
Article 22 – paragraph 5 – subparagraph 2 – point d b (new)
Article 22 – paragraph 5 – subparagraph 2 – point d b (new)
(db) the appropriateness to provide for a permanent exemption for eligible net public investment as defined in this Regulation from the relevant budgetary targets under both the preventive and the corrective arm of the Stability and Growth Pact.