2008/2107(INI) | [ParlTrack]

Motion for a resolution
Citation 6

~~– having regard to the Commission Communication on EMU@10: successes and challenges after 10 years of Economic and Monetary Union (COM(2008)0238),~~deleted

Amendment 10 #

Motion for a resolution
Paragraph 2

2. ~~Emphasises the importance of the~~Acknowledges the full independence of the ECB and welcomes the fact that by means of the Treaty onf Lisbon, the ECB will become an EU institution with legal personality and a clearly established independent political and financial status, believes that recognition of the European Central Bank as a European institution increases the responsibility of Parliament, and, in particular, its Committee on Economic and Monetary Affairs, as an institution to which the European Central Bank is accountable for its decisions on monetary policy;

Amendment 11 #

Motion for a resolution
Paragraph 3

~~3. Welcomes Cyprus and Malta to the EMU and takes note of their successful entry;~~deleted

Amendment 12 #

Motion for a resolution
Paragraph 3 a (new)

3a. Recalls that effective regulation and strong financial supervision are needed as the function of lender of last resort of the ECB can lead to moral hazard;

Amendment 13 #

Motion for a resolution
Paragraph 4

4. Recognises th~~e excellent work of the ECB in managing the financial turmoil triggered by the US sub-prime mortgage crises, in particular~~at the operation launched by the ECB on 9 August 2007, which provided liquidity in the amount of EUR 95 billion to the markets as a fixed-rate tender at 4,00 %, following the same procedure as normal ECB market operations was necessary to manage the financial turmoil triggered by the US sub- prime mortgage crisis; notes that the operation, together with fine-tuning operations and the following abundant weekly refinancing operations, succeeded in stabilising the very short-term interest rates; considers this, once again, to show the value of a common monetary policy as provided for by the ECB, stabilising the economy in periods of instability; takes the view, however, that the issue of "moral hazard" in the management of crises, in the context of the current EU framework for regulation and supervision, needs to be addressed thoroughly;

Amendment 14 #

Motion for a resolution
Paragraph 4 a (new)

4a. Shares the views of the ECB that the growing complexity of financial instruments and the opacity of exposures of financial institutions can give rise to increased uncertainty regarding the degree of risk involved, the ultimate bearer of the risk, and the extent of potential losses; agrees that this complexity and opacity may prompt a further propagation of initial shocks and a more generalised contagion; reasserts, in this context, the need to reinforce substantially the EU framework for regulation and supervision in order to preserve financial stability;

Amendment 15 #

Motion for a resolution
Paragraph 4 b (new)

4b. Shares also the concerns of the European Central Bank, expressed on various occasions, about the risks of activities of hedge funds in times of financial tension; agrees that the lack of transparency causes difficulties for the proper analysis of financial stability; stresses, inter alia, the need to improve investors' credit risk assessment on hedge funds as a way to tackle the systemic risk associated with hedge funds, i.e. the risk of overall destabilisation of financial markets stemming from the failure of larger hedge funds or a chain of failures involving several smaller hedge funds;

Amendment 16 #

Motion for a resolution
Paragraph 4 c (new)

4c. Emphasises the need to set up a EU framework for financial supervision, stresses that although the Treaty does not entrust the European Central Bank with any direct responsibility related to the prudential supervision of credit institutions and the stability of the financial system, there is a need to involve closely the ECB in supervision, while ensuring clear conditions of political accountability, given its role of lender of last resort;

Amendment 17 #

Motion for a resolution
Paragraph 4 a (new)

4a. Believes that the European Central Bank has been strengthened by its successful handling of the current financial crisis; welcomes the European Central Bank’s enhanced credibility and international recognition; calls on the Eurogroup to follow the example of the European Central Bank and to step up its expertise and coordination in matters relating to the regulation and supervision of financial markets;

Amendment 18 #

Motion for a resolution
Paragraph 5

5. Highlights the increased need for cooperation between central banks and supervisory authorities, in order to uphold stability in the financial markets, in particular taking into account the increasingly integrated financial systems; asks the ECB to continue to push for improved integration and communication on an intra-EU level as well as in its relationship with other central banks and relevant institutions~~, in particular as regards the relationship with the Bank of England, since London is the most important financial centre within the European Union;~~ ;calls on the ECB to take an active role in the various forums discussing changes in supervision, such as the Lamafalussy follow-up;

Amendment 19 #

Motion for a resolution
Paragraph 6

6. Recognises that major central banks such as the ECB and the US Federal Reserve warned against underestimating the risks in the economy prior to the IT- bubble in 2000 and the sub-prime crises in 2007; notes that the financial markets failed adequately to respond to those warnings effectively; asks the ECB, therefore, to analyse that response and suggest how to improve the correlation between such forward-looking warnings and market reactions; calls on the ECB, in the light of recent financial turmoil, to analyse and evaluate the aftermaths of the financial crisis and examine whether it has sufficient instruments for handling a cross- border European financial crisis, and which powers it needs in order to improve macro- prudential supervision in the euro area;

Amendment 2 #

Motion for a resolution
Recital C a (new)

Ca. whereas statements made by the International Monetary Fund and the Organisation for Economic Co-operation and Development call for a very cautious approach to the raising of interest rates in the euro area,

Amendment 20 #

Motion for a resolution
Paragraph 6 a (new)

6a. Recalls that increased competition resulting from globalisation has led to downward pressure on wages; regrets, however, that the ECB mainly clings to the idea that it is up to the social partners to avoid second-round inflationary effects, by means of wage restraint; underlines that inflation is currently mainly caused by the price increase of assets such as derivatives, housing and commodities; expresses its concerns about the effects of speculation with food commodities on hunger, poverty and purchasing power;

Amendment 21 #

Motion for a resolution
Paragraph 6 b (new)

6b. Considers, therefore, that workers should not be primarily responsible for making efforts to prevent inflation through wage restraint, but that inflation and the loss of purchasing power triggered by the increase of the price of oil price and other commodities should be addressed, in particular, by distributing purchasing power more evenly; urges the European Central Bank to add its voice to those advocating a fairer distribution of wealth in line with its objective of price stability;

Amendment 22 #

Motion for a resolution
Paragraph 7

7. Notes the ongoing discussion on how to define price stability, in regard to which some argue in favour of a direct inflationary targeting; believes, however, that a two-pillar system based on M3 is the most suitable way of measuring price stability; calls on the ECB to take measures for a continuous improvement of that system; recognises the added value of the additional information and early warning of inflationary risk and the operational discretion that such a system provides;

Amendment 23 #

Motion for a resolution
Paragraph 8

8. Highlights that the risks of asymmetric economic developments within the euro area ~~could~~is increas~~e with an enlarged membership as the differences in size and maturity between member economies grow~~ing and calls on the European Central Bank, therefore, to pay particular attention to the challenging economic situation;

Amendment 24 #

Motion for a resolution
Paragraph 8

8. Highlights that the risks of asymmetric economic developments within the euro area could increase with an enlarged membership as the differences in size and maturity between member economies grow, calls on the ECB to tackle those risks at an early stage and to communicate them to the Member States;

Amendment 25 #

Motion for a resolution
Paragraph 9

9. Calls upon all Member States participating in the euro area, the Member States that have opted out, as well as the applicant Member States to take note of those challenges and therefore fully respect the criteria of the Stability and the Growth pact and fulfil the Maastricht criteria, as appropriate, as this, together with fiscal consolidation ~~and wage moderation~~, taxation and wage policy in line with developments as regards growth and productivity, provides the strongest protection against challenges presented by asymmetric developments;

Amendment 26 #

Motion for a resolution
Paragraph 9 a (new)

9a. Emphasises that against the background of the recent correction of growth expectation, any further raising of interest rates should be undertaken with caution in order not to endanger economic growth; points out that, in order to support the economic recovery, Member States must implement both the necessary structural reforms and investment activities;

Amendment 27 #

Motion for a resolution
Paragraph 10 a (new)

10a. Recalls that the Treaty entrusts responsibility for exchange rate policy to the Council to address global imbalances; urges, therefore, for better coordination of exchange rate policy between the Eurogroup, the Commission and the European Central Bank;

Amendment 28 #

Motion for a resolution
Paragraph 11

11. Takes note of the appreciation of the euro especially with respect to the US dollar; underlines the goal of price stability, but recognises that strong and rapid changes in the euro exchange rate ~~may~~should not impede the ECB's ability to manage its monetary policy ~~and that a deprecating euro coul~~, confronted bey a source of inflation, or, alternatively, ~~excessive appreciation could threaten the~~difficult growth perspectives for the export -dependent countries; asks the ECB to monitor this development and to take action if deemed necessary and invites the Eurogroup, the Commission and the ECB to step up coordination of their action in the sphere of exchange rate policy;

Amendment 29 #

Olle SCHMIDT

Motion for a resolution
Paragraph 11 a (new)

11a. Recognises the increasing upward pressure on inflation to which food and energy prices contribute in particular; calls on the European Central Bank to strengthen its dialogue with national central banks on the issue to promote a strong focus on price stability globally;

Amendment 3 #

Motion for a resolution
Recital E a (new)

Ea. whereas financial stability and supervision in the world in general and in the European Union in particular is becoming increasingly complex and difficult to achieve, one reason being that financial institutions are becoming increasingly international, having affiliates in many different countries under different regulators and supervisors, another being that financial institutions are increasingly becoming financial conglomerates which engage in banking, insurance and capital markets acting on a multinational or even global basis,

Amendment 30 #

Motion for a resolution
Paragraph 12

12. Recalls the ongoing call for more transparency in the ECB and appreciates the efforts already implemented; recognises, in this respect, the difficulties in making the minutes of the ECB Governing Council's meetings available to the public, as differences in individual positions could be interpreted as representing national interests, leading to pressure from Member State governments on Governing Council membersasks the ECB to provide Parliament and the public with an annual summary of measures taken to improve its performance in line with this Resolution;

Amendment 31 #

Motion for a resolution
Paragraph 12

12. Recalls the ongoing call for more transparency in the ECB which would result in increased credibility and predictability, and appreciates the efforts already implemented; recognises, in this respect, the difficulties in making the minutes of the ECB Governing Council's meetings available to the public, as differences in individual positions could be interpreted as representing national interests, leading to pressure from Member State governments on Governing Council members;

Amendment 32 #

Motion for a resolution
Paragraph 12 a (new)

12a. Considers that the monetary policy dialogue between Parliament and the European Central Bank has been a success, and one which should be built on further; emphasises that the ex-post accountability of the ECB is of primordial importance for confidence, and hence stability, on the financial markets; considers that it is important for the unity of the Executive Board and the Governing Council to continue to be confident in their public presentation; supports a targeted information policy on the part of the European Central Bank towards Parliament, the Council, the Eurogroup and the Commission; is disappointed by the low level of commitment that the European Central Bank has demonstrated in its response to Parliament’s resolution of 12 July 2007 on the ECB annual report for 20061; strongly stresses that the call for improvements to the European Central Bank's communication policy must be seen only in the context of the simultaneous preservation of the independence of the European Central Bank and its bodies;

Amendment 33 #

Motion for a resolution
Paragraph 13

13. ~~Despite this, c~~Calls upon the ECB, in its statements following decisions taken by its Governing Council, to elaborate clearly about whether, in the course of discussions, a consensus was reached easily or if divergent views persisted, since this would provide markets with more information without hampering the common European perspective for the decision of the ECB's Governing Council;

Amendment 34 #

Motion for a resolution
Paragraph 14

14. Calls on the ECB to present~~, once again, a proposal~~ its ideas for reforming the structure of its Governing Council, the proposal presented in 2003 having been rejected by Parliament; notes that with the increasing number of euro area countries reforms will become even more necessary; supports the ECB's earlier suggestion that the economic weight of participating Member States should be treated as the most significant factor for the rotating voting rights, and that the number of decision makers should be kept low in order to ensure efficiency;

Amendment 35 #

Zsolt László BECSEY

Motion for a resolution
Paragraph 14

14. Calls on the ECB ~~to present, once again,~~as the number of governors is expected to exceed 15 from 1 January 2009 to present a proposal for reforming the structure of its Governing Council, the proposal presented in 2003 having been rejected by Parliament; notes that with increasing number of euro area countries reforms will become even more necessary; supports the ECB earlier suggestion that the economic weight of participating Member States should be treated as the most significant factor for the rotating rights, and the number of decision makers should be kept low in order to ensure efficiency;

Amendment 36 #

Motion for a resolution
Paragraph 14 a (new)

14a. Considers that the independence of the European Central Bank, including the procedure for appointing the members of its Executive Board, has proved its worth; stresses that Article 112(2)(b) of the EC Treaty provides for the members of the Executive Board to be appointed from among persons of recognised standing and professional experience in monetary or banking matters, and emphasises that their nationality should be irrelevant and that they will continue to be judged by the strict criteria set out in the Treaty, such as that of their qualifications; considers that ex-ante democratic accountability and transparency would improve if the Council evaluated several potential candidates and if the candidate proposed by the Council were then subject to a vote of approval by Parliament;

Amendment 37 #

Motion for a resolution
Paragraph 14 b (new)

14b. Believes that given the European Central Bank’s status of institution under the Treaty of Lisbon, Parliament’s role in appointing members of the Executive Board should be enhanced; stresses its willingness, together with the other institutions, to explore possible improvements of the procedure before the next renewal of the Executive Board in 2010;

Amendment 38 #

Motion for a resolution
Paragraph 15

15. ~~Recognises the increasing role of~~Takes the view that any increase in the potential for growth in the Eeuro ~~Group and~~area its President for setting a major part of the economic agenda within the European Union, in particular the more formal structure and central role in coordinating the economic policy within the Euro Group, as set out in Article 136 EC Treaty, also for Member States not participating in the euro area; supports a strengthening of the development of the euro area speaking with one voice in international forums as provided by the role of the President of the Euro Group as the spokespersoncontingent on effective macroeconomic fine-tuning; advocates more active macroeconomic dialogue between the Council, the ECB and the European social partners and supports the Eurogroup's efforts to bring about such dialogue;

Amendment 39 #

Olle SCHMIDT

Motion for a resolution
Paragraph 15

15. Recognises the increasing role of the Euro Group and its President for setting a major part of the economic agenda within the European Union, in particular the more formal structure and central role in coordinating the economic policy within the Euro Group, as set out in Article 136 EC Treaty, as amended by the Treaty of Lisbon, also for Member States not participating in the euro area; supports a strengthening of the development of the euro area speaking with one voice in international forums as provided ~~by the role of~~for in Article 138 of EC Treaty, as amended by the Treaty of Lisbon, and by the President of the Euro Group ~~as the spokesperson~~;

Amendment 4 #

Motion for a resolution
Recital E b (new)

Eb. whereas the present structure and systems of supervision in the European Union, on the basis of which it is increasingly difficulty to meet those new challenges, make a strong case for enhancing the supervisory role of the European Central Bank, while ensuring political accountability, given the lack of a single EU supervisor, its responsibility for financial stability in general and its function of lender of last resort in particular,

Amendment 40 #

Motion for a resolution
Paragraph 17

17. Welcomes the ~~successful~~ start of Target 2 operations and the finalised migration activities to the single shared platform; considers that it is an important step in the direction of financial integration and reduction of clearing and settlement costs; believes that it is urgent that the European Central Bank now propose a governance structure for operations and activities;

Amendment 41 #

Motion for a resolution
Paragraph 18

18. Notes a steady rise in the status of the euro as an international currency; points out that the European Union's representation concerning economic and monetary affairs in international forums poorly reflects the true economic weight of the euro area and that this may be seen as an obstacle for an increased influence in international financial affairs; calls, therefore, for concrete steps to be taken towards a unified euro area representation within international financial institutions such as the IMF;

Amendment 42 #

Motion for a resolution
Paragraph 19

19. Encourages the ECB to continue moving towards strengthening its prolecess of coordination in international financial contexts; believes that an internationally stronger status for the euro will lead to benefits for the euro area which will encourage Member States currently not participating, to seek full membership;

Amendment 43 #

Motion for a resolution
Paragraph 20

20. Instructs its President to forward this resolution to the Council, the Eurogroup, the Commission and the European Central Bank.

Amendment 5 #

Olle SCHMIDT

Motion for a resolution
Recital F

F. whereas it is expected that inflation will rise to between 2,0% and 3,0% in 2009 in the euro area, largely reflecting the assumed path of oil and food prices, before ~~moderat~~falling to a more moderate range between 1,2% and 2,4% in 2009,

Amendment 6 #

Motion for a resolution
Recital F

F. whereas it is expected that inflation will rise to between 2,0% and 3,0% in 2009 in the euro area, largely reflecting the ~~assumed path of oil and food~~current trend of increased commodity prices, before moderating to a range between 1,2% and 2,4% in 2009,

Amendment 7 #

Motion for a resolution
Recital F a (new)

Fa. Whereas the main objective of the European Central Bank and of the European System of Central Banks is to maintain price stability while supporting the general economic policies of the Community, as defined in Article 2 of the EC Treaty; acknowledging the full independence of the European Central Bank and the European System of Central Banks in this context.

Amendment 8 #

Motion for a resolution
Recital F a (new)

Fa. whereas the European Central Bank has the dilemma of having to meet the challenges of rising inflation and the first signs of an economic slowdown due to the financial turmoil of the last months,

Amendment 9 #