BETA


2006/2081(INI) Towards further consolidation in the European financial services industry

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead ECON MUSCAT Joseph (icon: PSE PSE)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2006/09/29
   EC - Commission response to text adopted in plenary
Documents
2006/08/28
   EC - Commission response to text adopted in plenary
Documents
2006/07/04
   EP - Results of vote in Parliament
2006/07/04
   EP - Decision by Parliament
Details

The European Parliament adopted a resolution based on the own-initiative report drafted by Joseph MUSCAT (PES, MT) on further consolidation in the financial services industry. (Please refer to the summary of 25/04/2006.)

Documents
2006/07/04
   EP - End of procedure in Parliament
2006/07/03
   EP - Debate in Parliament
2006/05/08
   EP - Committee report tabled for plenary, single reading
Documents
2006/05/08
   EP - Committee report tabled for plenary
Documents
2006/05/05
   CSL - Resolution/conclusions adopted by Council
Details

The Council adopted the following conclusions on the cross-border consolidation in the financial sector:

The Council:

- underlines that unnecessary and unwarranted obstacles to cross-border consolidation in the financial sector should therefore be tackled in order to reap the economic benefits of integration and strengthen the global competitiveness of the EU financial industry;

- stresses the importance of sound, fair and non-discriminatory national supervisory practices to achieve a level playing field within the EU paying due attention to the appropriate balance of home/host country responsibilities; and the need for an adequate and independent financial supervision to ensure financial stability;

- invites the Committee of European Securities Regulators (CESR), Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and Committee on European Banking Supervisors (CEBS) to take into account the obstacles identified, and the FSC report on supervisory convergence, in their efforts directed at convergence of rules and practices and in particular to work on common formats for financial institutions reporting to supervisors in order to avoid duplication of costs;

- supports the Commission in its intention to make use of the powers granted to it under the Treaty to ensure the application of basic Treaty freedoms, including application of the existing provisions on competition and state aid;

- reiterates its commitment to an open and integrated EU financial market based on fair and healthy competition among financial institutions and calls for vigilance on discriminatory practices.

2006/05/05
   CSL - Council Meeting
2006/04/25
   EP - Vote in committee
Details

The committee adopted the own-initiative report by Joseph MUSCAT (PES, MT) on further consolidation in the financial services industry. The report looked at the general perspectives before examining the barriers to cross-border consolidation and commenting on the regulatory and supervisory system.

The committee noted that consolidation was one way, although not the only one, for the financial services sector to respond to growing competition at EU and global level. The aim should not be to reach a particular number of firms, and consolidation must be proportionate to competition. While it was likely to have a positive effect on competitiveness, merger activity often brought with it a fear of job losses, and MEPs called for companies involved to take account of their social obligations.

The report stressed that consolidation should not be a political objective as such, but should bring clear benefits to the economy by stimulating growth, encouraging innovation, ensuring competition, improving access to funding, allowing financial institutions to exploit synergies and cost efficiencies and by giving consumers a greater choice and better quality, while ensuring an adequate level of consumer protection. It said that these potential benefits should not be hampered by unjustifiable obstacles, such as those created by tax barriers and differing supervisory regimes.

Pointing out that different supervisory practices and standards and reporting requirements can be costly and time consuming for companies trading across borders, MEPs welcomed the progress made so far by the committees of national regulatory bodies (the ‘Level 3 committees’) and encouraged them to go further in convergence of different approaches.

Among tax obstacles, the committee highlighted issues regarding inter-group VAT and a lack of legal certainty regarding the VAT treatment of financial services. It also noted that tax systems often favour domestic rather than EU dividends.

As far as supervision was concerned, the report said that increasing consolidation of the industry meant that the supervisory framework would also have to evolve, with a clear definition of responsibilities between host and home country supervisors. In the event of a crisis, cooperation and mutual trust would be crucial, so MEPs encouraged the Commission and national authorities to develop joint proposals for effective crisis management. Lastly, the committee called for a committee of "wise men" to be set up to analyse in detail the issue of supervision of EU financial markets as consolidation progresses, to report back by the end of 2006.

2006/04/06
   EP - Committee referral announced in Parliament
2006/03/30
   EP - Amendments tabled in committee
Documents
2006/03/10
   EP - Committee draft report
Documents
2005/07/04
   EP - MUSCAT Joseph (PSE) appointed as rapporteur in ECON

Documents

Activities

Votes

Rapport Muscat A6-0170/2006 - am. 6 #

2006/07/04 Outcome: +: 345, -: 287, 0: 9
FR AT DK BE NL IT LT ES FI PT SE EE DE MT SI LU GB CY HU EL LV CZ SK IE PL
Total
66
18
13
21
22
62
12
45
14
19
12
6
91
5
7
5
72
5
20
22
9
19
13
12
51
icon: PSE PSE
178

Lithuania PSE

2

Slovenia PSE

For (1)

1

Luxembourg PSE

For (1)

1

Czechia PSE

2

Ireland PSE

1
icon: ALDE ALDE
72

Austria ALDE

1

Spain ALDE

1

Sweden ALDE

For (1)

1

Estonia ALDE

2

Slovenia ALDE

2

Cyprus ALDE

For (1)

1

Hungary ALDE

1

Latvia ALDE

1

Ireland ALDE

Abstain (1)

1
icon: Verts/ALE Verts/ALE
40

Austria Verts/ALE

2

Denmark Verts/ALE

For (1)

1

Belgium Verts/ALE

2

Netherlands Verts/ALE

Abstain (1)

3

Italy Verts/ALE

1

Finland Verts/ALE

For (1)

1

Sweden Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

United Kingdom Verts/ALE

5

Latvia Verts/ALE

1
icon: GUE/NGL GUE/NGL
36

France GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Netherlands GUE/NGL

2

Spain GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Portugal GUE/NGL

3

Sweden GUE/NGL

2

United Kingdom GUE/NGL

1

Cyprus GUE/NGL

2

Greece GUE/NGL

3
icon: NI NI
33

Austria NI

2

United Kingdom NI

Abstain (1)

4

Czechia NI

Against (1)

1

Slovakia NI

Abstain (2)

2
icon: IND/DEM IND/DEM
22

France IND/DEM

Against (1)

Abstain (1)

2

Denmark IND/DEM

1

Netherlands IND/DEM

1

Greece IND/DEM

1

Czechia IND/DEM

Against (1)

1

Ireland IND/DEM

Against (1)

1
icon: UEN UEN
28

Denmark UEN

For (1)

1

Lithuania UEN

Against (1)

2
icon: PPE-DE PPE-DE
232

Denmark PPE-DE

Against (1)

1

Lithuania PPE-DE

Against (1)

1

Finland PPE-DE

Abstain (1)

4

Estonia PPE-DE

Against (1)

1

Malta PPE-DE

Against (2)

2

Slovenia PPE-DE

4

Luxembourg PPE-DE

3

Cyprus PPE-DE

2

Latvia PPE-DE

3

History

(these mark the time of scraping, not the official date of the change)

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docs
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summary
The European Parliament adopted a resolution based on the own-initiative report drafted by Joseph MUSCAT (PES, MT) on further consolidation in the financial services industry. (Please refer to the summary of 25/04/2006.)
events/6
date
2006-07-04T00:00:00
type
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body
EP
docs
url: http://www.europarl.europa.eu/doceo/document/TA-6-2006-0294_EN.html title: T6-0294/2006
summary
The European Parliament adopted a resolution based on the own-initiative report drafted by Joseph MUSCAT (PES, MT) on further consolidation in the financial services industry. (Please refer to the summary of 25/04/2006.)
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procedure/legal_basis/0
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events/6/docs/0/url
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New
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activities
  • date: 2006-04-06T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: True committee: ECON date: 2005-07-04T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: PSE name: MUSCAT Joseph
  • date: 2006-04-25T00:00:00 body: EP committees: body: EP responsible: True committee: ECON date: 2005-07-04T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: PSE name: MUSCAT Joseph type: Vote in committee, 1st reading/single reading
  • body: CSL meeting_id: 2726 council: Economic and Financial Affairs ECOFIN date: 2006-05-05T00:00:00 type: Council Meeting
  • date: 2006-05-08T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2006-170&language=EN type: Committee report tabled for plenary, single reading title: A6-0170/2006 body: EP type: Committee report tabled for plenary, single reading
  • date: 2006-07-03T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20060703&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2006-07-04T00:00:00 docs: url: http://www.europarl.europa.eu/oeil/popups/sda.do?id=4742&l=en type: Results of vote in Parliament title: Results of vote in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2006-294 type: Decision by Parliament, 1st reading/single reading title: T6-0294/2006 body: EP type: Results of vote in Parliament
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Economic and Monetary Affairs
committee
ECON
date
2005-07-04T00:00:00
rapporteur
name: MUSCAT Joseph group: Socialist Group in the European Parliament abbr: PSE
committees/0
body
EP
responsible
True
committee
ECON
date
2005-07-04T00:00:00
committee_full
Economic and Monetary Affairs
rapporteur
group: PSE name: MUSCAT Joseph
council
  • body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 2726 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2726*&MEET_DATE=05/05/2006 date: 2006-05-05T00:00:00
docs
  • date: 2006-03-10T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE370.208 title: PE370.208 type: Committee draft report body: EP
  • date: 2006-03-30T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE371.885 title: PE371.885 type: Amendments tabled in committee body: EP
  • date: 2006-05-08T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2006-170&language=EN title: A6-0170/2006 type: Committee report tabled for plenary, single reading body: EP
  • date: 2006-08-28T00:00:00 docs: url: /oeil/spdoc.do?i=4742&j=0&l=en title: SP(2006)3801 type: Commission response to text adopted in plenary
  • date: 2006-09-29T00:00:00 docs: url: /oeil/spdoc.do?i=4742&j=1&l=en title: SP(2006)3874 type: Commission response to text adopted in plenary
events
  • date: 2006-04-06T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2006-04-25T00:00:00 type: Vote in committee, 1st reading/single reading body: EP summary: The committee adopted the own-initiative report by Joseph MUSCAT (PES, MT) on further consolidation in the financial services industry. The report looked at the general perspectives before examining the barriers to cross-border consolidation and commenting on the regulatory and supervisory system. The committee noted that consolidation was one way, although not the only one, for the financial services sector to respond to growing competition at EU and global level. The aim should not be to reach a particular number of firms, and consolidation must be proportionate to competition. While it was likely to have a positive effect on competitiveness, merger activity often brought with it a fear of job losses, and MEPs called for companies involved to take account of their social obligations. The report stressed that consolidation should not be a political objective as such, but should bring clear benefits to the economy by stimulating growth, encouraging innovation, ensuring competition, improving access to funding, allowing financial institutions to exploit synergies and cost efficiencies and by giving consumers a greater choice and better quality, while ensuring an adequate level of consumer protection. It said that these potential benefits should not be hampered by unjustifiable obstacles, such as those created by tax barriers and differing supervisory regimes. Pointing out that different supervisory practices and standards and reporting requirements can be costly and time consuming for companies trading across borders, MEPs welcomed the progress made so far by the committees of national regulatory bodies (the ‘Level 3 committees’) and encouraged them to go further in convergence of different approaches. Among tax obstacles, the committee highlighted issues regarding inter-group VAT and a lack of legal certainty regarding the VAT treatment of financial services. It also noted that tax systems often favour domestic rather than EU dividends. As far as supervision was concerned, the report said that increasing consolidation of the industry meant that the supervisory framework would also have to evolve, with a clear definition of responsibilities between host and home country supervisors. In the event of a crisis, cooperation and mutual trust would be crucial, so MEPs encouraged the Commission and national authorities to develop joint proposals for effective crisis management. Lastly, the committee called for a committee of "wise men" to be set up to analyse in detail the issue of supervision of EU financial markets as consolidation progresses, to report back by the end of 2006.
  • date: 2006-05-05T00:00:00 type: Resolution/conclusions adopted by Council body: CSL summary: The Council adopted the following conclusions on the cross-border consolidation in the financial sector: The Council: - underlines that unnecessary and unwarranted obstacles to cross-border consolidation in the financial sector should therefore be tackled in order to reap the economic benefits of integration and strengthen the global competitiveness of the EU financial industry; - stresses the importance of sound, fair and non-discriminatory national supervisory practices to achieve a level playing field within the EU paying due attention to the appropriate balance of home/host country responsibilities; and the need for an adequate and independent financial supervision to ensure financial stability; - invites the Committee of European Securities Regulators (CESR), Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and Committee on European Banking Supervisors (CEBS) to take into account the obstacles identified, and the FSC report on supervisory convergence, in their efforts directed at convergence of rules and practices and in particular to work on common formats for financial institutions reporting to supervisors in order to avoid duplication of costs; - supports the Commission in its intention to make use of the powers granted to it under the Treaty to ensure the application of basic Treaty freedoms, including application of the existing provisions on competition and state aid; - reiterates its commitment to an open and integrated EU financial market based on fair and healthy competition among financial institutions and calls for vigilance on discriminatory practices.
  • date: 2006-05-08T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2006-170&language=EN title: A6-0170/2006
  • date: 2006-07-03T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20060703&type=CRE title: Debate in Parliament
  • date: 2006-07-04T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=4742&l=en title: Results of vote in Parliament
  • date: 2006-07-04T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2006-294 title: T6-0294/2006 summary: The European Parliament adopted a resolution based on the own-initiative report drafted by Joseph MUSCAT (PES, MT) on further consolidation in the financial services industry. (Please refer to the summary of 25/04/2006.)
  • date: 2006-07-04T00:00:00 type: End of procedure in Parliament body: EP
links
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    activities
    • date: 2006-04-06T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: True committee: ECON date: 2005-07-04T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: PSE name: MUSCAT Joseph
    • date: 2006-04-25T00:00:00 body: EP committees: body: EP responsible: True committee: ECON date: 2005-07-04T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: PSE name: MUSCAT Joseph type: Vote in committee, 1st reading/single reading
    • body: CSL meeting_id: 2726 council: Economic and Financial Affairs ECOFIN date: 2006-05-05T00:00:00 type: Council Meeting
    • date: 2006-05-08T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2006-170&language=EN type: Committee report tabled for plenary, single reading title: A6-0170/2006 body: EP type: Committee report tabled for plenary, single reading
    • date: 2006-07-03T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20060703&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
    • date: 2006-07-04T00:00:00 docs: url: http://www.europarl.europa.eu/oeil/popups/sda.do?id=4742&l=en type: Results of vote in Parliament title: Results of vote in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2006-294 type: Decision by Parliament, 1st reading/single reading title: T6-0294/2006 body: EP type: Results of vote in Parliament
    committees
    • body: EP responsible: True committee: ECON date: 2005-07-04T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: PSE name: MUSCAT Joseph
    links
    other
      procedure
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      ECON/6/29598
      reference
      2006/2081(INI)
      title
      Towards further consolidation in the European financial services industry
      legal_basis
      Rules of Procedure of the European Parliament EP 052
      stage_reached
      Procedure completed
      subtype
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      INI - Own-initiative procedure
      subject