BETA

31 Amendments of Paul MURPHY related to 2011/0176(COD)

Proposal for a regulation
Recital 1

(1) The European Union ~~is a major~~ provide~~r of~~s economic, financial and technical assistance to third countries. Union macro-financial assistance (hereinafter ‘macro-financial assistance’) has proved an efficient instrument for economic stabilisation and a driver for structural reforms in the beneficiary countries. In accordance with its overall policy vis-à-vis candidate, potential candidate, and neighbourhood countries, the Union should be in a position to provide macro-financial assistance to those countries with the aim of developing ~~a zone of shared stability, security, and prosperity~~living standards, sustainable and decent jobs as well as health and education facilities.

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 3

(3) A framework for delivering macro- financial assistance to third countries with which the Union has important political, economic and commercial ties should make the assistance more effective. ~~In particular, it should be possible to provide macro-financial assistance to third countries to encourage them to adopt economic policy measures likely to solve a balance of payments crisis.~~

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 7

(7) In its conclusions of 8 October 2002, the Council established criteria (the so- called Genval criteria) to guide the EU's macro-financial assistance operations. It is appropriate to ~~formalise~~review these criteria, in ~~a legal act endorsed by both the Parliament and the Council while updating and clarifying them~~particular those on complementarity, conditionality and financial discipline.

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 9

(9) The Commission should ensure that macro-financial assistance is in line with the key principles, objectives and measures taken within the different areas of external action and other relevant Union policies.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 10

(10) Macro-financial assistance should support the beneficiary countries' commitments to common values with the Union, ~~including~~first and foremost, democracy, the rule of law, good governance, respect for human rights, sustainable development and poverty reduction, as well as to the principles of ~~open, rules-based and~~ fair trade.

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 11

(11) The specific objectives of individual macro-financial assistance operations should include the strengthening of efficiency, transparency and accountability of public finance management in the beneficiary countries. The fulfilment of these objectives should be regularly monitored by the Commission, public sector trade unions and representatives of civil society in the beneficiary country.

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 13

(13) Macro-financial assistance should be complementary to the resources provided by the International Monetary Fund and other multilateral financial institutions and there should be a fair burden sharing with other donors. Macro-financial assistance should ensure the added value of the involvement of the Union.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 14

(14) In order to ensure ~~efficient protection of the Union's financial interests linked to macro-financial assistance~~the use of macro- financial assistance in the interest of the majority of the population in the beneficiary country, it is necessary to provide for appropriate measures by the beneficiary countries related to the prevention of, and the fight against, fraud, corruption and any other irregularities linked to this assistance, as well as for controls by the Commission and audits by the Court of Auditors.

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 15

(15) In order to ensure ~~uniform conditions for the implementation~~democratic oversight of this Regulation, as regards the approval and management of macro- financial assistance operations in beneficiary countries, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) 182/2011 of the European Parliament and of the Council laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powersthe ordinary legislative procedure outlined in Article 294 of the TFEU should be followed in relation to each proposal to grant MFA to a third country.

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 16

(16) The examination procedure should be used for the adoption of implementing decisions defining the amount, form, duration and general conditions of individual macro-financial assistance operations given that such decisions have substantial budgetary implications.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Recital 17

(17) The advisory procedure should be used for the adoption of the Memorandum of Understanding (MoU) laying down the economic policy measures associated with the Union's macro-financial assistance given that the MoU is not an implementing act of general scope, nor an act entailing budgetary implications or implications for third countries beyond those already entailed by the decision granting the assistance.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 1 – paragraph 2

2. Macro-financial assistance shall be an exceptional financial instrument of untied and undesignated balance-of-payments support to eligible third countries and territories. It shall aim at restoring a sustainable external finance situation for countries facing external financing difficulties. ~~It shall underpin the implementation of strong adjustment and structural reform measures designed to remedy balance of payments difficulties.~~

2012/04/11
Committee: INTA

Proposal for a regulation
Article 1 – paragraph 3

3. Macro-financial assistance may be granted on condition of the existence of a significant and residual external financing gap jointly identified with the multilateral financial institutions over and above the resources provided by the International Monetary Fund (IMF) and other multilateral institutions, despite the implementation of strong economic stabilisation and reform programmes.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 2 – paragraph 1 – point c

(c) Other third countries in exceptional and duly justified circumstances. ~~Such countries must be politically, economically and geographically close to the European Union.~~

2012/04/11
Committee: INTA

Proposal for a regulation
Article 3 – paragraph 2

2. Where macro-financial assistance takes the form of a loan, the Commission shall be empowered on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions and on-lend them to the beneficiary country, at an interest rate not to exceed the rate which the Commission has incurred.

2012/04/11
Committee: INTA

Proposal for a regulation
Article 3 – paragraph 5

5. At the request of the beneficiary country, and where circumstances permit an improvement of the interest rate of the loan, the Commission may refinance all or part of its initial borrowings or restructure the corresponding financial conditions. Refinancing and restructuring operations shall be carried out in accordance with the conditions laid down in paragraph 4 and shall not have the effect of extending the average maturity of the borrowing concerned or increasing the amount of capital outstanding at the date of the refinancing or restructuring.

2012/04/11
Committee: INTA

Proposal for a regulation
Article 5 – paragraph 1

1. The amount of the assistance shall be based on the residual external financing needs of the beneficiary country. These shall be established by the Commission in cooperation with international financial institutions, based on a comprehensive and well documented quantitative assessment. In particular, the Commission will draw on the latest balance of payments projections for the country in question produced by the IMF and take into account the expected financial contributions from multilateral donors.

2012/04/11
Committee: INTA

Proposal for a regulation
Article 5 – paragraph 2

~~2. The determination of the amounts of macro-financial assistance shall also take into account the need to ensure a fair burden sharing with other donors.~~deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 6 – paragraph 2

~~2. Macro-financial assistance shall be conditional on the existence of an IMF programme entailing the use of IMF resources.~~deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 6 – paragraph 3

3. The disbursement of the assistance shall be conditional on a satisfactory track record of an IMF programme. It shall also be conditional on the implementation, within a specific time frame, of a series of clearly defined economic policy measures focusing on structural reforms, to be agreed between the Commission and the beneficiary country and to be laid down in a Memorandum of Understanding.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 6 – paragraph 4

4. With a view to protecting the Union's financial interests and reinforcing beneficiary countries' governance, the Memorandum of Understanding shall include measures aiming at strengthening the efficiency, transparency and accountability of public finance management systems in the interest of the majority of the population.

2012/04/11
Committee: INTA

Proposal for a regulation
Article 6 – paragraph 5

5. Progress on mutual market opening, the development of rules-based and fair trade and other priorities in the context of the Union's external policy should also be duly taken into account in designing the policy measures.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 6 – paragraph 6

6. The policy measures shall be consistent with the existing partnership agreements, cooperation agreements or association agreements concluded between the Union and the beneficiary country and with the macroeconomic adjustment and structural reform programmes implemented by the beneficiary country with the support of the IMF.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 7 – paragraph 4

4. Following the approval of the decision granting macro-financial assistance, the Commission, acting in accordance with Article 14(3), shall agree the policy measures referred to in Article 6(~~3), (4), (5) and (6~~4) with the beneficiary country.

2012/04/11
Committee: INTA

Proposal for a regulation
Article 7 – paragraph 6

6. The Commission shall inform the European Parliament and the Council of developments in country-specific assistance and provide them with the relevant documents in due time.

2012/04/11
Committee: INTA

Proposal for a regulation
Article 9 – paragraph 2

~~2. The assistance shall be disbursed in successive instalments, conditional upon the fulfilment of the conditions referred to in Article 6(2) and 6(3).~~deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 9 – paragraph 3

~~3. The Commission shall verify at regular intervals that the conditions referred to in Article 6(2) and 6(3) continue to be met.~~deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 9 – paragraph 4

~~4. In case the conditions referred to in Article 6(2) and 6(3) are not met, the Commission can temporarily suspend, reduce or cancel the disbursement of the assistance.~~deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 11 – paragraph 3

3. The Memorandum of Understanding referred to in Article 6(3) shall expressly entitle the Commission and the Court of Auditors to perform audits, including document audits and on-the-spot audits such as operational assessments. The Memorandum shall also expressly authorise the Commission or its representatives to carry out on-the-spot checks and inspections, as provided for in Council Regulation (Euratom, EC) No 2185/96.deleted

2012/04/11
Committee: INTA

Proposal for a regulation
Article 11 – paragraph 5

5. Where it has been established that, in relation to the management of assistance under this Regulation, a beneficiary country has engaged in any act of fraud or corruption ~~or any other illegal activity detrimental to the financial interests of the Union~~, the Commission shall be entitled to the full repayment of the grant and/or the early repayment of the loan.

2012/04/11
Committee: INTA

Proposal for a regulation
Article 13 – paragraph 2

2. The annual report shall assess the economic situation and prospects of the beneficiary countries~~, as well as the progress made with the implementation of the policy measures referred to in Article 6(3)~~.

2012/04/11
Committee: INTA