Activites

• 2013/10/25 Final act published in Official Journal
  • Decision 2013/1025
  • OJ L 283 25.10.2013, p. 0001
• 2013/10/22 Final act signed
• 2013/10/22 Decision by Parliament, 2nd reading
  • T7-0426/2013 summary

    The European Parliament adopted, at second reading of the ordinary legislative procedure, the Council position at first reading with a view to the adoption of a decision of the European Parliament and of the Council providing macro-financial assistance to the Kyrgyz Republic. The act is adopted in accordance with the Council position. It should be noted that a proposal to reject the Council position presented by the EFD group was rejected in plenary by 48 votes to 434, with 59 abstentions.

• 2013/10/17 Committee recommendation tabled for plenary, 2nd reading
  • A7-0334/2013 summary

    The Committee on International Trade adopted the recommendation for second reading on the Council position at first reading with a view to the adoption of a decision of the European Parliament and of the Council providing macrofinancial assistance to the Kyrgyz Republic. The committee recommended that Parliament approve, unamended, the Council position at first reading.

• 2013/10/14 Vote in committee, 2nd reading
• 2013/10/10 Committee referral announced in Parliament, 2nd reading
• 2013/09/25 Council position published
  • 11703/1/2013 summary

    The Council presented its position at first reading with a view to the adoption of a Decision of the European Parliament and of the Council providing macrofinancial assistance to the Kyrgyz Republic. A number of amendments were introduced: Geographical scope: the Council recalls that the Kyrgyz Republic is not a candidate or potential candidate country nor a country or territory covered by the European Neighbourhood Policy. It underlines however that given its strategic importance for the Union, as well as the determining role it plays in regional stability, the Kyrgyz Republic should exceptionally be considered eligible to receive Union macro-financial assistance. A new recital has been introduced in this regard. Amount and form of the assistance: while there are no changes to the amounts proposed by the Commission (up to EUR 15 million in the form of loans and up to EUR 15 million in the form of grants), the Council Position specifies the criteria for the determination of the amount of the assistance and its form in loans and grants. The determination of the amount of the Union's macro-financial assistance should be based on a complete quantitative assessment of the Kyrgyz Republic's residual external financing needs, and takes into account its capacity to finance itself with its own resources, in particular the international reserves at its disposal. The determination of the amount of the assistance also takes into account expected financial contributions from multilateral donors and the need to ensure fair burden sharing between the Union and other donors, as well as the pre-existing deployment of the Union's other external financing instruments in the Kyrgyz Republic and the added value of the overall Union involvement. It is also stated that taking into consideration the Kyrgyz Republic's residual external financing needs, the level of its economic development and poverty ratios, a part of the assistance should be provided in the form of grants. Possibility to reduce, suspend or cancel European assistance: a new clause has been introduced whereby the Commission, acting in accordance with the advisory procedure, shall reduce the amount of the assistance or suspend or cancel it, where the financing needs of the Kyrgyz Republic decrease fundamentally during the period of disbursement of the Union's macro-financial assistance compared to the initial projections. Conditionality: as regards the pre-condition for the assistance, namely that the Kyrgyz Republic respects effective democratic mechanisms, including a multi-party parliamentary system and the rule of law and guarantees respect for human rights, the Council introduces the requirement for the Commission to monitor the fulfilment of this pre-condition throughout the life cycle of the assistance. Technical amendments have been introduced: to the conditions to which the assistance should be subject, which are to be laid out in a Memorandum of Understanding; as regards the obligation for the Commission to temporarily suspend or cancel the disbursement of the assistance when the relevant conditions are not met. Comitology: on 9 July 2013, the European Parliament and the Council adopted Decision 778/2013/EU providing further macro-financial assistance to Georgia. In a joint Declaration adopted together with the above decision, the European Parliament and the Council: agreed that the adoption of the decision on providing further macro-financial assistance to Georgia should be seen in the wider context of the need for a framework that should secure sound and effective decisions on providing macro-financial assistance to third countries; agreed that the adoption of decisions on macro-financial assistance operations should be based on the considerations and the principles set out in the joint Declaration for the granting of Union macro-financial assistance to eligible third countries and territories, without prejudice to the right of legislative initiative and the legal form that a future instrument formalising these considerations and principles might take; committed to fully reflect these considerations and principles in the future individual decisions on granting the Union's macro-financial assistance. In that context, amendments have been introduced in the proposal for a decision providing macro-financial assistance to the Kyrgyz Republic to fully reflect the considerations and principles set out in the joint Declaration. New provisions are made for the adoption of the Memorandum of Understanding referred to in the proposed Decision and for the decision to reduce, suspend or cancel the assistance.  The Commission is to be assisted by a Committee in accordance with Regulation (EU) No 182/2011. The Commission is to act in accordance with the advisory procedure. The choice of procedure is explained in a recital that includes the objectives of the aforementioned joint Declaration. Reporting: amendments have also been introduced as regards the reporting requirements for the Commission to European Parliament and to the Council. In conclusion: the Council position at first reading reflects the compromise reached in negotiations between the Council and the European Parliament, facilitated by the Commission. The Chair of the Committee on International Trade sent a letter to the Chair of Coreper indicating that, should the Council transmit its position as attached to the letter of the Committee, he would recommend to the plenary that Parliament, in its second reading, accept the Council position without any amendments, subject to verification by the lawyer linguists of both institutions.

• #3257
• 2013/09/23 Council Meeting
• 2012/12/11 Results of vote in Parliament
  • Results of vote in Parliament
  • T7-0466/2012 summary

    The European Parliament adopted by 541 votes to 42, with 74 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council on providing macro-financial assistance to the Kyrgyz Republic. The European Parliament’s position adopted at first reading following the ordinary legislative procedure amends the Commission proposal as follows: part of a sentence is deleted from a recital referring to the Memorandum of Understanding laying down the economic policy conditions attached to the granting of macro-financial assistance. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Kyrgyz authorities under the supervision of the Committee of the Member States foreseen by Regulation (EU) No 182/2011. Parliament rejects the justification foreseen in the recital that states “the fact that the assistance is of a limited maximum amount provides for the due justification required by the second sentence of Article 2(3) of Regulation (EU) No 182/2011 to subject the adoption of the Memorandum of Understanding to the advisory procedure”.

• 2012/12/10 Debate in Parliament
  • Debate in Parliament
• 2012/06/25 Committee report tabled for plenary, 1st reading/single reading
  • A7-0208/2012 summary

    The Committee on International Trade adopted the legislative report by Vital MOREIRA (ALDE, PT) on the proposal for a decision of the European Parliament and of the Council on providing macro-financial assistance to the Kyrgyz Republic. The committee recommends that the European Parliament’s position in first reading following the ordinary legislative procedure should amend the Commission proposal as follows: the committee deleted a sentence from a recital referring to the adoption of the Memorandum of Understanding through the advisory procedure as a result of the assistance being of a limited maximum amount.

• 2012/06/21 Vote in committee, 1st reading/single reading
• 2012/01/17 Committee referral announced in Parliament, 1st reading/single reading
• 2011/12/20 Legislative proposal published
  • COM(2011)0925 summary

    PURPOSE: to provide a macro-financial assistance to the Kyrgyz Republic for an amount of €30 million. PROPOSED ACT: Decision of the European Parliament and of the Council. BACKGROUND: the marked deceleration in growth experienced by the Kyrgyz economy in 2009 (GDP slowed down from an average rate of 8.5% in 2007-08 to 2.3% in 2009) was a consequence of several external shocks, including a fall in remittances from migrant workers, lower demand for exports and shrinking direct and other foreign investments. Before the dramatic events of 2010, economic growth was expected to rebound in 2010 to 4.5-5.5%. However, the 2010 April popular revolt and, more importantly, the escalation of the ethnic conflict in June led to a serious deterioration in the economic outlook. Economic activity contracted by 10% in the second quarter of 2010. In response to last year's political events and their economic implications, the international community organised a High Level Donors Meeting for the Kyrgyz Republic on 27 July 2010 in Bishkek. At this conference, donors committed to provide USD 1.1 billion in emergency support by the end of 2011. The EU was among the major donors, pledging €117.9 million for support in a number of critical areas. The IMF in June 2011 agreed with the Kyrgyz authorities on an Extended Credit Facility (ECF) of SDR 66.6 million (USD 106 million) in support of a three-year programme of macroeconomic adjustment and structural reforms. In 2010, the President and the Minister of Finance of the Kyrgyz Republic formally requested the EU macro-financial assistance (MFA) to complement the support from the IMF. In this context, the Commission has assessed the macroeconomic situation and financing needs of the Kyrgyz Republic. The main conclusions of the assessment are that last year’s tragic political events and the related social and reconstruction expenditure have left important external and fiscal financing needs for the period 2011-12. While these needs are being partly covered by the international community, there are still substantial residual needs. In order to supplement the resources made available by the IMF, the Commission proposes providing a MFA in the amount of up to EUR 30 million to the Kyrgyz Republic to be disbursed half in loans and half in grants. IMPACT ASSESSMENT: according to the impact assessment, the MFA and the economic adjustment and reform programme attached to it will help alleviate the Kyrgyz Republic's short-term financing needs while supporting policy measures aimed at strengthening medium-term balance of payments and fiscal sustainability and raising sustainable growth as agreed with the IMF. It will notably help improve the efficiency and transparency of public finance management. LEGAL BASIS: Article 209 of the Treaty on the Functioning of the European Union (TFEU). CONTENT: it is proposed that the European Union shall make macro-financial assistance available to the Kyrgyz Republic for a maximum amount of €30 million, with a view to supporting the country's economic stabilisation and covering its balance of payments needs as identified in the current IMF programme. Of this amount, up to €15 million shall be provided in the form of loans and up to €15 million in the form of grants. The release of the proposed macro-financial assistance is subject to the approval of the 2012 Budget by the budgetary authority. The conditions attached the granting of the macro-financial assistance shall be consistent with the principles and fundamental objectives of the Union policy as regards this country. These are as follows: the Commission is empowered to borrow the necessary resources on behalf of the European Union in order to finance the loan component of the Union's macro-financial assistance; the loan shall have a maximum maturity of 15 years; the assistance shall be made available for two years; the release of the Union's financial assistance shall be managed by the Commission; specific provisions on the prevention of fraud and other irregularities, consistent with the Financial Regulation, are applicable; the disbursement of the first instalment is expected to take place in the first semester of 2012. The second instalment, conditional on a number of policy measures, could be disbursed in the second semester of 2012; the disbursements would be conditional on successful programme reviews under the IMF's financial arrangement (the ECF); the Commission and the Kyrgyz authorities would agree on specific structural reform measures in a Memorandum of Understanding. It should be noted that the decision to disburse half of the proposed assistance in grants and the other half in loans is justified by Kyrgyz level of development (as measured by its per-capita income) and debt indicators. BUDGETARY IMPLICATIONS: the grant element of the assistance (€15 million) would be financed from commitment appropriations of the 2012 budget, under the budget line 01 03 02 (Macroeconomic assistance), with payments taking place in 2012. In line with the Guarantee Fund Regulation, the provisioning of the Guarantee Fund is expected to take place in 2014 and to amount to a maximum of €1.35 million. This corresponds to 9% of the €15 million loan expected to be disbursed in 2012.

  • DG {'url': 'http://ec.europa.eu/dgs/economy_finance/index_en.htm', 'title': 'Economic and Financial Affairs'}, REHN Olli

Documents

• Legislative proposal published: COM(2011)0925
• Committee report tabled for plenary, 1st reading/single reading: A7-0208/2012
• Debate in Parliament: Debate in Parliament
• Results of vote in Parliament: Results of vote in Parliament
• Decision by Parliament, 1st reading/single reading: T7-0466/2012
• Council position published: 11703/1/2013
• Committee recommendation tabled for plenary, 2nd reading: A7-0334/2013
• Decision by Parliament, 2nd reading: T7-0426/2013
• : Decision 2013/1025
• : OJ L 283 25.10.2013, p. 0001

History

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