19 Amendments of Gunnar BECK related to 2021/2076(INI)
Amendment 3 #
Motion for a resolution
Recital B
Recital B
Amendment 4 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
B a. whereas this steady and predictable reduction of liabilities is threatened by persistent high inflation and an indecisive European Central Bank, which is unsure whether to maintain favorable lending conditions, or to raise interest rates closer to the level of real inflation;
Amendment 6 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
C a. Whereas interest rates rose to a worrying 2.63% at the latest Commission´s bond auction compared to 0.3% in November 2020, currently at the same level as French bonds, and much higher than German bond rates;
Amendment 10 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Stresses that NGEU is the first 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 boostincreases the size, impact and added value of the Union budget, thereby supporting the post-COVID-19 recovery and delivering on long-term EU prioritiesbut also creates a severe interest risk and raises serious questions of debt sustainability, especially under an insecure and unpredictable interest rate climate;
Amendment 12 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Regrets that the opaqueness of the EU taxonomy makes it unclear whether the money raised from the green bonds issuances will actually flow into green investments;
Amendment 15 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Underlines that the success of the borrowing strategy will be judged by its ability to raise the funds necessary for the implementation of NGEU on the capital markets in a timely and relatively low-cost manner, and to repay the debt by 2058 smoothly and predictably, especially in the light of raising interest rates and the indecisive monetary policies of the ECB; stresses that that the Union’s issuance should not upset borrowing conditions for other European issuers and should even play a positive role on capital markets, notably by meeting investors’ demand for euro-denominated assets and for new products such as green bonds;
Amendment 24 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Expresses deep concern about the fact that the Commission is not entitled to disclose information regarding the identity, purchase orders and any allotments amounts of individual institutions that have bought NGEU bonds; calls on the Commission to disclose identities, order information and allotment amounts to Member States in order to enable them to enforce the Market Abuse Regulation properly;
Amendment 25 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6 b. Calls on the national competent authorities to be very diligent in the enforcement of the Market Abuse Regulation (MAR), including when requesting relevant information or documents to Primary Dealers, when investigating possible misconduct and insider dealing with NGEU bonds; regrets that the Commission is exempt from MAR requirements in relation to the transactions, orders or behaviour carried out in pursuit of public debt management policy1a; _________________ 1a Article 6 of Regulation 596/2014/EU
Amendment 26 #
Motion for a resolution
Paragraph 6 c (new)
Paragraph 6 c (new)
6 c. Recalls that Primary Dealers have an obligation to notify the Commission of any proceedings initiated by a competent authority of a Member State in relation to their activity as credit institution/investment firms and of any conviction of a criminal charge2a; calls on the Commission to suspend and exclude Primary Dealers in case of non- compliance with their obligations without delay and report such suspensions immediately to the Committee on Budgets of the European Parliament; _________________ 2a Article 5 of Commission Decision (EU, Euratom) 2021/625
Amendment 28 #
Motion for a resolution
Subheading 3
Subheading 3
Potential positive effects of NextGenerationEU borrowing
Amendment 42 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Regrets that during the press conference following the issuance of the first tranche of green bonds on Tuesday 12 October 2021, Commissioner Johannes Hahn did not even know that the green bond standard has not yet come into force at that time;
Amendment 46 #
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8 b. Underlines that the 11-fold oversubscription in the first tranche of green bonds issued, is not an indicator of creditworthiness and yield potential, but of the firm conviction of investors that the Member States are committed to continue fiscally draining the European citizens;
Amendment 51 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Believes that in contrast to the negative image associated withjust like the initiatives taken during the euro crisis of the early 2010s, the response to NGEU shows the merits of a more ambitious, collective and democratic crisis response at EU level; calls on all EU institutions, therefore, to ensure that the political signal given by NGEU lives on, by demonstrating that the EU delivers on its promises and by offering a longer-term political visfurther transformation of the EU into a Transfer Union;
Amendment 61 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Is concerned about the sharp increases in interest rates in the last months and its effect on the repayment costs of the NGEU debt; sincerely doubts whether the 0.6% increase of the own resource ceilings will be sufficient to cover all Union liabilities resulting from NGEU borrowing;
Amendment 64 #
Motion for a resolution
Paragraph 10 b (new)
Paragraph 10 b (new)
10 b. Calls on the Commission to examine, in close cooperation with the recipient Member States concerned, the possibility of using interest rate swaps to hedge the risk of loans to Member States;
Amendment 65 #
Motion for a resolution
Paragraph 10 c (new)
Paragraph 10 c (new)
Amendment 66 #
Motion for a resolution
Paragraph 10 d (new)
Paragraph 10 d (new)
10 d. Believes that the combination of high inflation and fiscal tightening will reduce growth prospects and increase the cost of financing of the loan component, as well as the repayment of the NGEU debt; believes that this could increase debt sustainability concerns in vulnerable countries and may provide less fiscal space for economic stabilisation in the future;
Amendment 67 #
Motion for a resolution
Paragraph 10 e (new)
Paragraph 10 e (new)
10 e. Recalls that in the first quarter of 2022, the Commission has fallen short of its target to raise €50 billion; is concerned that higher interest rates may explain the € 2.5 billion shortfall; expects that larger than planned debt issues will be required to keep the Commission on track to meet its capital raising target;
Amendment 79 #
Motion for a resolution
Paragraph 14
Paragraph 14