2014/2157(INI) | [ParlTrack]

Brando BENIFEI, Javi LÓPEZ, Sergio GUTIÉRREZ PRIETO

Draft opinion
Paragraph 1

~~1. Welcomes the decline in the EU unemployment rate, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013;~~deleted

Amendment 10 #

Draft opinion
Paragraph 1

1. ~~Welcomes the~~Takes note of the mild decline in the EU unemployment rate, ~~from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013~~but points out that EU unemployment and youth unemployment rates are still incredibly alarming (25,005 million unemployed in the EU-28 in June 2014 and 5,06 million unemployed young people in the EU-28 in July 2014); stresses, furthermore, that the differences between Member States' general and youth unemployment rates (5 % unemployment in Austria, compared with 27,3 % in Greece; 9,3 % youth unemployment in Austria, compared with 53,8 % in Spain) represent a major risk both for the EU's economic stability and for European social cohesion; stresses that the Commission has recognised in its COM 2014/400 that "the high levels of unemployment and social distress are eroding Europe´s human and social capital and call for a decisive action over time";

Amendment 11 #

Draft opinion
Paragraph 1

1. Welcomes the decline in the EU unemployment rate, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013, a decline which has not, however, been registered in most of the Member States; ;

Amendment 12 #

Draft opinion
Paragraph 1

1. ~~Welcom~~Notes the decline in the EU unemployment rate, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013; notes that these figures do not reflect the situation in all Member States and do not take into account the divergences among different regions and Member-states; points out that youth unemployment is still alarming: in September 2013 the youth unemployment rate was 23.5% in the EU28 and 24,1% in the euro area, highlights the worrying differences between Member- States (7,7% in Germany and 57,3% in Greece in July 2013);

Amendment 13 #

Draft opinion
Paragraph 1

1. ~~Welcom~~Deplores the ~~decline in the EU~~high unemployment rate~~, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of~~ in 2013;

Amendment 14 #

Draft opinion
Paragraph 1 a (new)

1a. Points out that, between 2012 and 2013, the average unemployment rate increased from 11.4% to 12.1% and it is therefore important to monitor this trend;

Amendment 15 #

Draft opinion
Paragraph 1 a (new)

1a. Notes that despite the reforms undertaken by Member States for fiscal consolidation in order to increase investor confidence, such an increase in confidence has not translated in growth and increase in employment;

Amendment 16 #

Draft opinion
Paragraph 1 a (new)

1a. Notes that the social situation, especially in countries hit by the crisis, has deteriorated sharply and that, since the onset of the crisis, social inequalities have risen in two thirds of Member States; warns that the whole of Europe is in danger of being thrown into recession by the skewed austerity measures and by political crises;

Amendment 17 #

Draft opinion
Paragraph 1 a (new)

1a. Recalls that the ECB is bound to Article 9 TFEU which states that: «In defining and implementing its policies and activities, the Union shall take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health' and that it is important to implement this horizontal clause sufficiently in all policy areas so as to achieve the objectives of Article 3 TEU;

Amendment 18 #

Draft opinion
Paragraph 2

2. ~~Welcomes the slightly positive rate of job creation in some Member States in the fourth quarter of~~Is deeply concerned by the negative evolution of the economic activity: the GDP in 2013 ~~and~~in the ~~increase in compensation per employee in almost all non-euro area Member States~~euro zone keeps decreasing for a second year in a row and unemployment rates are reaching levels so high that are even endangering the stability of some Member States of the Eurozone;

Amendment 19 #

Draft opinion
Paragraph 2

2. ~~Welcomes the slightly positiv~~Points out that the rate of job creation in some Member States in the fourth quarter of 2013 ~~and~~is due mainly to the increa~~se in compensation per employee in almost all non-euro area Member States~~tion of extremely precarious and insecure jobs with inadequate levels of pay and social protection as a result of the austerity policies imposed on Member States under the Fiscal Compact;

Amendment 2 #

Draft opinion
Paragraph 1

1. Welcomes the decline in the EU unemployment rate, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013 but also notes that according to the Commission Services´ spring 2014 forecast there was an increase in unemployment from 11.3% at the end of 2012 to 12.1% in the third quarter of 2013;

Amendment 20 #

Draft opinion
Paragraph 2

2. Welcomes the slightly positive rate of job creation in some Member States in the fourth quarter of 2013 and the increase in compensation per employee in almost all non-euro area Member States; Stresses that euro area Member States should also benefit from this increase in order to boost the demand and enhance job creation; Stresses that austerity measures and the painful budgetary adjustments, is not the way to achieve this.

Amendment 21 #

Draft opinion
Paragraph 2

2. ~~Welcomes the slightly positiv~~Notes that the rate of job creation in some Member States has been slightly positive in the fourth quarter of 2013 and ~~the increase in compensation per employee in almost all~~alongside low growth, unemployed remained elevated in the majority of non- euro area Member States;

Amendment 22 #

Draft opinion
Paragraph 2

2. Welcomes the slightly positive rate of job creation in some Member States in the fourth quarter of 2013 ~~and the increase in compensation per employee in almost all non-euro area Member States~~; notes, however, that the low-wage sector and precarious employment are expanding;

Amendment 23 #

2. Welcomes the slightly positive rate of job creation in some Member States in the fourth quarter of 2013 and the increase in compensation per employee in almost all non-euro area Member States, but it is deeply concerned by there is a decline in job quality, an increase in precarious forms of employment and a deterioration in basic labour standards; profoundly regrets that the EU is far away from achieving the employment and social targets of the EU2020 strategy, with specially the poverty reduction target lagging behind as poverty has increased by 10 million between 2010 and 2012 rather than decreasing; calls on the ECB to adopt a consistent approach in view to achieving this targets;

Amendment 24 #

Draft opinion
Paragraph 2

2. ~~Welcomes~~Points out that the slightly positive rate of job creation in some Member States in the fourth quarter of 2013 ~~and the increase in compensation per employee in almost all non-euro area Member State~~is principally the result of the creation of precarious, temporary, part-time and therefore low- quality jobs;

Amendment 25 #

Draft opinion
Paragraph 2 a (new)

2a. Notes that this would appear to indicate a better performance by countries outside the euro area;

Amendment 26 #

Javi LÓPEZ, Brando BENIFEI, Sergio GUTIÉRREZ PRIETO

Draft opinion
Paragraph 2 a (new)

2a. Acknowledges that the ongoing process of balance sheet adjustment in the financial and non-financial sectors, combined with high unemployment and ongoing fiscal consolidation, continued to dampen economic activity in the euro area in 2013;

Amendment 27 #

Draft opinion
Paragraph 2 a (new)

2a. Notes about the large differences in unemployment rates between Member States with figures ranging from 5% of Germany to 24% of Spain; whereas the figures for youth unemployment are even higher;

Amendment 28 #

Draft opinion
Paragraph 2 a (new)

2a. Regrets that between 2006 and 2011, inequality has increased in approximately two thirds of EU Member States;

Amendment 29 #

Draft opinion
Paragraph 2 b (new)

2b. Would nevertheless be pleased to know whether the same applies in the Member States belonging to the euro area;

Amendment 3 #

Draft opinion
Paragraph 1

1. ~~Welcomes~~Expresses its surprise at the decline in the EU unemployment rate, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013;

Amendment 30 #

Javi LÓPEZ, Sergio GUTIÉRREZ PRIETO

Draft opinion
Paragraph 2 b (new)

2b. Believes that poor balance sheets not only affects banks, but also has a negative knock on effect on businesses and other private actors, as a lack of capital and finance inhibits a business’s ability to remain competitive, grow and ultimately maintain and create jobs;

Amendment 31 #

Draft opinion
Paragraph 2 b (new)

2b. Is concerned by the fact that there has been a continuous decrease in total employment and also in the number of hours worked in 2013; urges the ECB to focus on policies which can reverse this trend and help Member States reach their EU2020 employment targets;

Amendment 32 #

Draft opinion
Paragraph 2 c (new)

2c. Believes that the transferring of bad debt to the ECB balance sheet is not an appropriate solution and unfairly burdens EU taxpayers; believes that this is not a sustainable solution to reduce the EU unemployment rate;

Amendment 33 #

Draft opinion
Paragraph 3

Amendment 34 #

Draft opinion
Paragraph 3

Amendment 35 #

Draft opinion
Paragraph 3

Amendment 36 #

Draft opinion
Paragraph 3

Amendment 37 #

Draft opinion
Paragraph 3

Amendment 38 #

Draft opinion
Paragraph 3

Amendment 39 #

Draft opinion
Paragraph 3

3. Agrees with the ECB’s recommendation that ~~growth-friendly fiscal consolidation over the medium term should ensure compliance with the fiscal compact, while at the same time~~fiscal strategies should ensure growth- friendly fiscal consolidation which combines boosting potential growth and generating employment opportunities;

Amendment 4 #

Draft opinion
Paragraph 1

1. Welcomes the decline in the EU unemployment rate recorded in the ECB Annual Report, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013;

Amendment 40 #

Draft opinion
Paragraph 3

3. Agrees with the ECB’s recommendation that growth-friendly fiscal consolidation over the medium term should ensure compliance with the fiscal compact, while at the same time boosting potential growth and generating employment opportunitiesStrongly advises that pro-growth tax consolidation implies the maximum flexibility of fiscal rules, on one hand for those Member States who must make fiscal consolidation processes and, on the other hand those Member States with enough fiscal space and positive trade balances who should make public investment in order to improve growth potential and quality job creation;

Amendment 41 #

Draft opinion
Paragraph 3

3. ~~Agrees with~~Notes the ECB’'s recommendation that growth-friendly fiscal consolidation over the medium term should ensure compliance with the fiscal compact, while at the same time boosting potential growth and generating employment opportunities; Regrets that the focus of current policies stays solely on economic growth without acknowledging the need for an inclusive, rights-based and sustainable approach; stresses that growth benefits need to be spread throughout society for it to become sustainable;

Amendment 42 #

Draft opinion
Paragraph 3

3. Agrees with the ~~ECB’s~~ recommendation that ~~growth-friendly~~ fiscal consolidation ~~over the medium term should ensure compliance with the fiscal compact~~must continue in a growth friendly and differentiated manner, while at the same time boosting potential growth and generating employment opportunities; calls for greater flexibility margins in order to boost quality job creation; takes the view, however, that some of the structural reforms promoted by the ECB– especially labour reforms, wage devaluation, pension reforms, etc. – may result in the same contractionary effects on the economy or on internal demand as the excessive austerity conducted up to now; calls on the ECB, therefore, to assess the economic and social impact of such policies before recommending them;

Amendment 43 #

Draft opinion
Paragraph 3

3. Agrees with the ECB’s recommendation that growth-friendly fiscal consolidation over the medium term should ensure compliance with the fiscal compact~~, while at the same time~~ and points out that an increase in public and private investment would boost~~ing~~ potential growth and generat~~ing~~e employment opportunities;

Amendment 44 #

Draft opinion
Paragraph 3 a (new)

3a. Hopes that ECB loans to European banks will benefit the real economy and companies that invest, result in stable and high-quality jobs and facilitate environmental transition;

Amendment 45 #

Draft opinion
Paragraph 3 a (new)

3a. Underlines that monetary policy could be an important tool to boost the EU economy, believes that the ECB should make use of it in order to give liquidity to the EU real economy, increase demand and enhance quality investments and sustainable job creation;

Amendment 46 #

Draft opinion
Paragraph 3 a (new)

3a. Welcomes the acknowledgement by the ECB that all four programme countries made significant progress in reducing their economic imbalances by addressing structural rigidities, especially in their labour markets;

Amendment 47 #

Draft opinion
Paragraph 3 a (new)

3a. Notes the speech by the President of the ECB at the annual central bank symposium in Jackson Hole on 22 August 2014; calls on policy makers to draw the right conclusions with regard to monetary, budgetary and structural reform policies with the aim of creating growth and quality jobs; recalls the balanced remarks stating: "a coherent strategy to reduce unemployment has to involve both demand and supply side policies, at both the euro area and the national levels. And only if the strategy is truly coherent can it be successful";

Amendment 48 #

Draft opinion
Paragraph 3 a (new)

3a. Is concerned that the level of public and private investment in the euro area has remained significantly lower than in years prior to the current crisis, whereas the annual growth rate has continued to decline and the credit to the private sector has moved into negative figures, with an annual growth rate of -2.4% in December 2013 compared to -0.2% in December 2012, it is necessary to implement unconventional policies as the ones developed by the ECB have proven to be entirely inadequate. Believes it is of great importance to create the conditions for an upturn in investment in the euro area and notes it is crucial to gradually increase investment levels, both public and private, to pre-crisis level by 2020;

Amendment 49 #

Draft opinion
Paragraph 3 b (new)

3b. Welcomes the reductions in interest rates by the European Central Bank (ECB) in May and November 2013, reducing the rate of the main refinancing operations to 0.25%; is however concerned that these actions have until now not produced the effect intended in terms of increasing employment and job creation;

Amendment 5 #

Javi LÓPEZ, Brando BENIFEI, Sergio GUTIÉRREZ PRIETO

Draft opinion
Paragraph 1

1. ~~Welcomes the decline in~~Notes with great concern the situation of the labour market and the EUhigh unemployment rate~~, from 20.8 % in the first quarter~~ in the EU, where unemployment in the euro area has increased from a severe 11.3% by the end of 20102 to ~~12.1 % in the third quarter of~~about 11,9% by the end of 2013, and could continue to maintain at a high level of 11.8% in 20134;

Amendment 50 #

Draft opinion
Paragraph 3 c (new)

3c. Shares the ECB's call for continued improvement of the institutional framework of Economic and Monetary Union (EMU) as part of the main problems in the euro zone go derived from a dysfunctional institutional design of the currency area. In this context, ex ante coordination of major economic reform plans should be equitable and balanced;

Amendment 51 #

Draft opinion
Paragraph 3 d (new)

3d. Notes that the fiscal consolidation undertaken by Member States has created a fiscal drag and a downturn in public sector employment which added to the ongoing contraction in employment in other sectors of the economy;

Amendment 52 #

Javi LÓPEZ, Jutta STEINRUCK

Draft opinion
Paragraph 3 e (new)

3e. Believes that in order to fight the growing levels of unemployment in Europe, more focus should be put on aggregate demand policies: notes that fiscal consolidation policies have not produced the results intended;

Amendment 53 #

Draft opinion
Paragraph 3 f (new)

3f. Believes that more focus on growth and public investment (such as the 300 billion investment package proposed by the Commission's President Jean Claude Juncker) would be complementary of the ECB's policy efforts to increase employment and growth in Europe;

Amendment 54 #

Draft opinion
Paragraph 3 g (new)

3g. Strongly believes that in light of future demographic changes and changes in the global economy, for the EU to be competitive over the next generations, focus should be given to the creation of high quality jobs whilst maintaining the integrity of our social model;

Amendment 55 #

Draft opinion
Paragraph 4

4. Notes the ECB’s call for continuous improvement of the institutional setting of the Economic and Monetary Union (EMU), and reiterates in this context its call for ex ante coordination of major economic reform plansat 2013 saw a continuation of intense cooperation among EU institutions and bodies including the ECB; highlights the point that experience with the 2013 European Semester showed that implementation of policy recommendations, in particular with regard to structural reforms, is still an issue that warrants stronger monitoring;

Amendment 56 #

Draft opinion
Paragraph 4

4. Notes the ECB’s call for continuous improvement of the institutional setting of the Economic and Monetary Union (EMU), implying a further loss of sovereignty for the Member States, and reiterates in this context its call for ex ante coordination of major economic reform plans;

Amendment 57 #

Draft opinion
Paragraph 4

4. Notes the ECB’s call for continuous improvement of the institutional setting of the Economic and Monetary Union (EMU), and reiterates in this context its call for ex ante review and coordination of major economic reform plans so as to assess whether they are useful and necessary in this period of crisis;

Amendment 58 #

Draft opinion
Paragraph 4

4. ~~Notes~~Warns about the ECB’'s call ~~for continuous improvement of the institutional setting~~on Member States to undertake reforms in the labour market and the optimization of the Econ~~omic and Monetary Union (EMU), and reiterates in this context its call for ex ante coordination of major economic reform plans~~ditions for businesses for job creation; these reforms cannot be implemented at the expense of increased casualization, temporary or internal devaluation;

Amendment 59 #

Draft opinion
Paragraph 4

4. Notes the ECB’s call for continuous improvement of the institutional setting of the Economic and Monetary Union (EMU), and reiterates in this context its call for ex ante coordination of major economic reform plans; Stresses that this should only be done in a way that ensures democratic accountability and transparency;

Amendment 6 #

Draft opinion
Paragraph 1

1. ~~Welcomes the decline in the EU unemployment rate, from 20.8 % in the first quarter of 2010 to~~Notes that, despite an improvement in the EU unemployment rate, the percentage it was still 12.1 % in the third quarter of 2013;

Amendment 60 #

Brando BENIFEI, Javi LÓPEZ, Sergio GUTIÉRREZ PRIETO

Draft opinion
Paragraph 4

4. Notes the ECB’'s call for continuous improvement of the institutional setting of the Economic and Monetary Union (EMU), and reiterates in this context its call for ex ante coordination of major economic reform plans together with social impact assessments and associated solidarity mechanisms; calls for such coordination to be supported by a comprehensive ex-ante and ex-post social and gender impact assessment;

Amendment 61 #

Draft opinion
Paragraph 4

4. Notes the ECB’s call for continuous improvement of the institutional setting of the Economic and Monetary Union (EMU), and reiterates in this context its call for ex ante coordination of major economic reform plans; highlights the need to develop EMU-wide automatic stabilising mechanisms to address symmetric and asymmetric economic shocks, such as an unemployment benefit scheme, as a means to maintain social cohesion, support internal demand and strengthen the sustainability of the single currency;

Amendment 62 #

Draft opinion
Paragraph 4

4. Notes the ECB’s call for continuous improvement of the institutional setting of the Economic and Monetary Union (EMU)~~, and reiterates in this context its call for ex ante coordination of major economic reform plans~~; stresses the importance of the expedition and completion of the banking union; notes that approval of the three pillars of the banking union and implementation of new rules for credit institutions and insurance companies can help to restore the resilience of the European financial sector; believes that completion of the banking union must be achieved by means of an insurance and markets union; reiterates that the cost of failure of banking institutions should be borne by the banking sector itself;

Amendment 63 #

Draft opinion
Paragraph 4 a (new)

4a. Calls for a true «social pillar’ to be implemented within economic and monetary union (EMU) as part of the process of improving economic governance mechanisms, so as to reduce unemployment, poverty and social exclusion, overcome social dumping and prevent competition for the lowest social standards in the EU;

Amendment 64 #

Draft opinion
Paragraph 5

5. Welcomes the ECB’s call on Member States to carry out the necessary labour market reforms, in particular through increasing flexibility and optimising the conditions for businesses to create jobs;deleted

Amendment 65 #

Draft opinion
Paragraph 5

5. Welcomes the ECB’s call on Member States to carry out the necessary labour market reforms~~, in particular through increasing flexibility~~ and optimising the conditions for businesses to create jobs;

Amendment 66 #

Draft opinion
Paragraph 5

5. Welcomes the ECB’s call on Member States to ~~carry out the necessary~~push ahead with labour market reforms, in ~~particular through~~order to improve competitiveness, raise potential growth, generate employment opportunities in particular by increasing flexibility and optimising the conditions for businesses to create jobs;

Amendment 67 #

Draft opinion
Paragraph 5

5. ~~Welcom~~Deplores the ECB’s call on Member States to carry out the necessary labour market reforms, in particular through increasing flexibility and optimising the conditions for businesses to create jobs;

Amendment 68 #

Draft opinion
Paragraph 5

5. Welcomes the ECB’s call on Member States to carry out the necessary labour market reforms, in particular through increasing ~~flexibility~~the quality of jobs and optimising the conditions for businesses to create jobs;

Amendment 69 #

Draft opinion
Paragraph 5

5. W~~elcomes the~~arns ECB’'s call on Member States to ~~carry out the necessary labour mar~~undertaket reforms, in ~~particular through increasing flexibility~~the labour market and the optimi~~sing~~zation of the conditions for businesses ~~to create jobs~~for job creation that they cannot be at the expense of increased insecurity, temporary or internal devaluation;

Amendment 7 #

Draft opinion
Paragraph 1

1. ~~Welcomes the decline in the EU unemployment rate, from 20.8 % in the first quarter of 2010 to 12.1 % in the third quarter of 2013~~Recognizes that the EU unemployment level has reached a high mark in 2013 and that the general economic situation remains very difficult;

Amendment 70 #

Draft opinion
Paragraph 5

5. Welcomes the ECB’s call on Member States to carry out the necessary labour market reforms, in ~~particular through increasing flexibility and optimising the conditions for businesses to create jobs;~~order to make them more inclusive.

Amendment 71 #

Draft opinion
Paragraph 5

5. ~~Welcom~~Notes the ECB’s call on Member States to carry out the necessary labour market reforms, ~~in particular through increasing flexibility and optimising the conditions for businesses to create jobs~~but recalls that restoring EU competitiveness through an excessive adjustment of unit labour costs via salary reductions has sharply eroded the purchasing power of many EU workers, lowered household incomes and depressed internal demand, further fuelling unemployment and social exclusion, particularly in those countries hit hardest by the crisis; underlines that wages are not merely a tool for economic adjustment, but above all the income that workers need to live on; calls on the ECB to ensure that recommendations in the field of wages do not increase in-work poverty or wage inequalities within Member States, or harm low-income groups but that are aimed to address labour market fragmentation;

Amendment 72 #

Javi LÓPEZ, Jutta STEINRUCK

Draft opinion
Paragraph 5

5. ~~Welcom~~Deplores the ECB’s call on Member States to carry out the necessary labour market reforms~~, in particular~~ through increasing flexibility and optimising the conditions for businesses to create jobs, and calls for labour market reforms that foster the creation of productive, stable jobs;

Amendment 73 #

Draft opinion
Paragraph 5 a (new)

5a. Strongly believes that any increased flexibility brought about by these reforms should be accompanied by a comparable increase in workers' rights;

Amendment 74 #

Draft opinion
Paragraph 6

~~6. Welcomes the fact that the pattern of reduced working hours appears to have reversed by the end of 2013, indicating a possible gradual improvement in the labour market;~~deleted

Amendment 75 #

Draft opinion
Paragraph 6

~~6. Welcomes the fact that the pattern of reduced working hours appears to have reversed by the end of 2013, indicating a possible gradual improvement in the labour market;~~deleted

Amendment 76 #

Draft opinion
Paragraph 6

6. W~~elcomes the fact that the pattern of reduced working hours appears to have reversed by the end of 2013, indicating a possible gradual improvement in the labour market~~arns about the economic damage to aggregated demand and social harm in terms of impoverishment caused by internal devaluation in several countries in the Euro zone and indicates its counterproductive effects in the medium- term;

Amendment 77 #

Draft opinion
Paragraph 6

6. ~~Welcomes the fact~~Notes that the pattern of reduced working hours appears to have reversed by the end of 2013, indicating a possible gradual improvement in the labour market; stresses, nonetheless, that this development does not reflect the real situation on the labour market;

Amendment 78 #

Draft opinion
Paragraph 6

6. ~~Welcom~~Underlines the fact that ~~the pattern of reduced working hours appears to have reversed by the end of 2013, indicating a possible gradual improvement in the labour mar~~investment is important, as it works on the supply and demand side of the economy creating jobs, generating incomes for households, increasing tax revenue, helping governments consolidate and boosting growth; reiterates the need to adopt investor-friendly policies, cut red-tape and reduce administrative burden; calls on the next European Commission to enhance European investment by € 300 billion as announced in the political guidelines by Jean-Claude Juncketr;

Amendment 79 #

Draft opinion
Paragraph 6

6. ~~Welcomes~~Takes the view that despite the fact that the pattern of reduced working hours appears to have reversed by the end of 2013, ~~indicating a possible gradual improvement in the labour market~~the labour market is still characterised by an ever-increasing level of job insecurity;

Amendment 8 #

Draft opinion
Paragraph 1

1. ~~Welcomes the~~Notes the minor decline in the seasonally-adjusted EU unemployment rate, ~~from 2~~that was 10.81 % in ~~the first quarter of 2010 to 12.1 % in the third quarter of~~September 2014, down from 10.8 % in September 2013;.

Amendment 80 #

Draft opinion
Paragraph 6 a (new)

6a. Calls for the financing of an effective European infrastructural job creation plan and an increase in appropriations for implementation of the 'Youth Guarantee' programme;

Amendment 81 #

Draft opinion
Paragraph 6 a (new)

6a. Notes that this reduction in working time was probably due to an increase in part-time work, reflecting growing insecurity;

Amendment 82 #

6a. Regrets that for young people the employment rate declined from 37% in 2008 to 32% in the first quarter of 2014 and more than 40% of young employees are on a temporary contract while nearly 25% work part time;

Amendment 83 #

Draft opinion
Paragraph 7

Amendment 84 #

Draft opinion
Paragraph 7

7. Notes the results of the first wave of the Eurosystem Household Finance and Consumption Survey, and stresses the importance of this survey for the monitoring of the euro area’s economic and social structure. , in view of the imperative need to highlight the stagnation and crisis from which the internal market is suffering;

Amendment 85 #

Draft opinion
Paragraph 7

7. Notes the results of the first wave of the Eurosystem Household Finance and Consumption Survey, and ~~stre~~calls for a survey to assess the ~~importance of this survey for the monitoring of the euro area’s economic and social structure~~number of households living below the poverty line and suffering from social exclusion.

Amendment 86 #

Brando BENIFEI, Javi LÓPEZ, Sergio GUTIÉRREZ PRIETO

Draft opinion
Paragraph 7 a (new)

7a. Stresses its concern about the continued decline of the inflation rate in the euro area since 2011 and warns against the serious risk of deflation;

Amendment 87 #

7a. Considers it necessary that any future revision of the Treaties and the ECB's statutes establishes price stability together with full employment as the two objectives, on an equal footing, of monetary policy in the eurozone;

Amendment 88 #

Javi LÓPEZ, Jutta STEINRUCK

Draft opinion
Paragraph 7 b (new)

7b. Recalls ECB's dual-target mandate on monetary policy as recognized in Treaties is not only to safeguard price stability (article 2 of the Statute of the ECB) but also to pursue the promotion of sustainable economic and social progress and full employment (article 3 of the Maastricht Treaty);

Amendment 9 #

Draft opinion
Paragraph 1

source: 541.528

2014/11/19 ECON 209 amendments...

Amendment 1 #

Motion for a resolution
Citation 1 a (new)

- having regard to the Statute of the European System of Central Banks and of the European Central Bank, in particular Article 15 thereof,

Amendment 10 #

Motion for a resolution
Recital C

C. whereas there are major disparities among the unemployment rates in different Member States, with figures varying between 5 % and 268 %; whereas percentages for youth unemployment are ~~even~~much higher;, peaking at 58.3 % in Greece in 2013.

Amendment 100 #

Motion for a resolution
Paragraph 10

10. Welcomes the measures announced by the ECB in June 2014 aimed at enhancing the functioning of the monetary policy transmission mechanism; acknowledges that the TLTRO introduces, for the first time, a link between loans to the non- financial private sector granted by banks and the amount of refinancing the banks can claim; hopes that the satisfactory results in the AQR will enhance the use of the TLTRO by European banks.

Amendment 101 #

Motion for a resolution
Paragraph 10

10. Welcomes the measures announced by the ECB in June 2014 aimed at enhancing the functioning of the monetary policy transmission mechanism; acknowledges that the TLTRO introduces, for the first time, a link between loans to the non- financial private sector granted by banks and the amount of refinancing the banks can claim; encourages the ECB to create further incentives for the banks to transfer liquidity to the real economy;

Amendment 102 #

Motion for a resolution
Paragraph 10 a (new)

10a. Is in that perspective of the opinion that the conditionality dimension of the TLTROs should be strengthened as the current TLTRO setting allow banks to benefit from new long term cheap liquidity provision even if some of these do not increase their credit provision to the real economy already in the first year of eligibility to the programme; Recalls its position on the CRD IV negotiation process to impose additional conditions to institutions having benefited from ECB liquidity support;

Amendment 103 #

Ernest URTASUN, Ernest URTASUN, Molly SCOTT CATO

Motion for a resolution
Paragraph 10 a (new)

10a. Calls ECB to support governments efforts to raise equity for companies - especially for SMEs - possibly by funding venture capital, private equity and other financial vehicles which aim to increase equity level in the European Economy

Amendment 104 #

Amendment 105 #

Motion for a resolution
Paragraph 11

11. Notes that the ECB has announced that it will purchase asset-backed securities (ABS) and covered bonds in order to empower the credit-easing impact of the TLTROs; stresses that such interventions on ABS market must be conducted in a transparent manner ~~that does not create excessive risks for the ECB’s balance sheet~~while limiting to the maximum extent possible risks transfers to the ECB's balance sheet as these would amount to implicit subsidies for the originators of the ABSs; is of the opinion that any ABS purchase should be strictly limited to the most senior tranches of the most simple and transparent products and that purchases of mezzanine tranches should be avoided while originators should retain at least retain 20% of original risks;

Amendment 106 #

Motion for a resolution
Paragraph 11

Amendment 107 #

Motion for a resolution
Paragraph 11

11. ~~Notes~~Welcomes the announcement that the ECB has announced that it will purchase asset-backed securities (ABS) and covered bonds in order to empower the credit- easing impact of the TLTROs; stresses that such interventions on ABS market must be conducted in a transparent manner ~~that does not create excessive risks for the ECB’s balance sheet~~;

Amendment 108 #

Motion for a resolution
Paragraph 11

Amendment 109 #

Motion for a resolution
Paragraph 11

Amendment 11 #

Motion for a resolution
Recital C

C. whereas there are major disparities among the unemployment rates in different Member States, with figures varying between 5 % and 26 %; whereas percentages for youth unemployment are even higher; notices that the difference in unemployment rates causes further economic divergence amongst Member States;

Amendment 110 #

Motion for a resolution
Paragraph 11

Amendment 111 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 11

Amendment 112 #

Thomas MANN

Amendment 113 #

Motion for a resolution
Paragraph 11

11. Notes with concern that the ECB has announced that it will purchase asset- backed securities (ABS) and covered bonds in order to empower the credit-easing impact of the TLTROs; stresses that ~~such~~, in practice, interventions ~~on ABS market must be conducted in a transparent manner that does not create excessive risks for the ECB’s balance sheet~~represent a potential vehicle for purchasing toxic assets held by the financial sector;

Amendment 114 #

Ernest URTASUN

Motion for a resolution
Paragraph 11 a (new)

11a. Remains worried by the significant levels of non-marketable assets and asset- backed securities put forward as collateral to the eurosystem in the framework of its refinancing operations; reiterates its request to the ECB to provide information on which central banks have accepted such securities as well as to disclose valuation methods regarding such assets; underlines that such disclosure would be beneficial for the purpose of parliamentary scrutiny of supervisory tasks conferred to the ECB;

Amendment 115 #

Motion for a resolution
Paragraph 12

12. Stresses its concern regarding the considerable fragmentation of lending conditions for SMEs across the eurozone countries, and by the existing gap between financing rates granted to SMEs and those granted to bigger companies; insists that these long-standing problems are not appropriately addressed by the recent measures announced by ECB to boost bank lending~~, and that the ECB should study the possibility of launching a specific programme to support SMEs access to credit~~;

Amendment 116 #

Motion for a resolution
Paragraph 12

12. Stresses its concern regarding the considerable fragmentation of lending conditions for SMEs across the eurozone countries, and by the existing gap between financing rates granted to SMEs and those granted to bigger companies; insists that these long-standing problems are not appropriately addressed by the recent measures announced by ECB to boost bank lending, and that the ECB should study the ~~possibility of launching a specific programme to support~~underlying factors hindering SMEs' access to credit;

Amendment 117 #

Motion for a resolution
Paragraph 12

12. Stresses its concern regarding the considerable fragmentation of lending conditions for SMEs across the eurozone countries, and by the existing gap between financing rates granted to SMEs and those granted to bigger companies; insists that these long-standing problems are not appropriately addressed by the recent measures announced by ECB to boost bank lending, and that the ECB should study the possibility of launching a specific programme to support SMEs access to credit; calls the ECB to investigate if this gap has any correlation with concentration in the banking sector;

Amendment 118 #

Motion for a resolution
Paragraph 13

Amendment 119 #

Motion for a resolution
Paragraph 13

13. ~~Underlin~~Notes that, with the measures announced in June 2014, the ECB balance sheet is expected to move towards the size it used to have at the beginning of 2012; ~~not~~urges th~~at this projected increase requires strong vigilance by the ECB with respect to~~e ECB, in view of the possible risks for its budget, to exercise the cgre~~dit risks it ultimately bears~~atest vigilance in this respect;

Amendment 12 #

Motion for a resolution
Recital C

Amendment 120 #

Motion for a resolution
Paragraph 13

13. Underlines that, with the measures announced in June 2014, the ECB balance sheet is expected to move towards the size it used to have at the beginning of 2012; notes that this projected increase requires strong vigilance by the ECB with respect to the credit risks it ultimately bears; asks in that perspective the Commission and the ECB itself to assess the amount of implicit subsidies that has been provided since the beginning of the crisis to the banking sector in the form of funding advantage including inter alia carry-trade operations in comparison with what would have been required by the markets or by means of potential mispricing of assets that the ESCB has accepted as collateral;

Amendment 121 #

Motion for a resolution
Paragraph 13

13. ~~Underlines~~Welcomes the fact that, with the measures announced in June 2014, the ECB balance sheet is expected to move towards the size it used to have at the beginning of 2012; ~~notes that this projected increase requires strong vigilance by the ECB with respect to the credit risks it ultimately bears~~remains confident that under the ECB vigilance, credit risk will be properly assessed and minimized;

Amendment 122 #

Andreas SCHWAB

Motion for a resolution
Paragraph 13

Amendment 123 #

Motion for a resolution
Paragraph 13 a (new)

13a. Considers that the idea of buying corporate bonds should be rule out, as due to the use of buybacks by big enterprises would probably have little effect on stimulating investment and internal demand.

Amendment 124 #

Motion for a resolution
Paragraph 13 a (new)

13a. Is of the opinion that the overall amount of implicit subsidies provided so far should be gradually recovered for the benefit of taxpayers once normal economic conditions return;

Amendment 125 #

Motion for a resolution
Paragraph 14

14. ~~Welcomes the fact that the ECB has repeatedly stated its readiness to use additional unconventional instruments within~~Stresses that, notwithstanding any unconventional monetary policies, the ECB its ~~mandate, and to alter the size or composition of its interventions, in the event of an excessively lengthy period of low inflation~~required to operate strictly within its mandate;

Amendment 126 #

Motion for a resolution
Paragraph 14

14. ~~Welcom~~Notes the fact that the ECB has repeatedly stated its readiness to use additional unconventional instruments within its mandate, and to alter the size or composition of its interventions, in the event of an excessively lengthy period of low inflation;

Amendment 127 #

Motion for a resolution
Paragraph 14

14. Welcomes the fact that the ECB has repeatedly stated its readiness to use additional unconventional instruments within its mandate, and to alter the size or composition of its interventions, in the event of an excessively lengthy period of low inflation; underlines that the overall price stability objective in the Euro area is not undermined by non-conventional policies implemented by the ECB given that an expansion of reserves in excess of compulsory requirement does not give banks more resources to expand lending nor represent idle resources but merely changes the composition of liquid assets of the banking system;

Amendment 128 #

Motion for a resolution
Paragraph 14

Amendment 129 #

Motion for a resolution
Paragraph 14 a (new)

14a. Deems that it would be useful if along with its assessment of monetary and financial conditions the ECB could provide in its statement following the monthly ECB Council of Governors meeting its assessment of the output gap extent;

Amendment 13 #

Motion for a resolution
Recital C a (new)

Ca. Whereas the success of the OMT program in lowering borrowing interest rates should not be used by Member States as an opportunity to avoid structural reforms to enhance growth potential and achieve fiscal sustainability in the medium term.

Amendment 130 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 15

15. Stresses that the impact of the unconventional monetary policy measures currently in use on the real economy should not be overestimated; stresses that such measures are transitory in nature and that their main advantage is that they can give Member States time to consolidate their fiscal situation and implement structural reforms that will create conditions for economic activity to rebound;deleted

Amendment 131 #

Motion for a resolution
Paragraph 15

15. Stresses that the ~~impact of the unconventional monetary policy~~failure of what are known as unconventional measures, c~~urrently in use on the real economy should not be over~~ombined with the austerity policiest im~~ated; stresses that such measures are transitory in nature and that their main advantage is that they can give Member States time to consolid~~posed on the Member States, is still standing in the way of genuine policies to combate the~~ir fiscal situation and implement structural reforms that will create conditions for~~ crisis and reinvigorate economic activity ~~to rebound~~;

Amendment 132 #

Motion for a resolution
Paragraph 15

15. Stresses that the impact of the unconventional monetary policy measures currently in use on the real economy should not in no way be overestimated; stresses that such measures are transitory in nature and that their main advantage is that they can give Member States time to consolidate their fiscal situation and implement structural reforms that will create conditions for economic activity and that the necessary structural reform cannot be replaced by monetary policy measures; stresses that such measures are merely transitional in nature;

Amendment 133 #

Motion for a resolution
Paragraph 15

15. Stresses that the impact of the unconventional monetary policy measures currently in use on the real economy should not be overestimated~~; stresses that such measures are transitory in nature and that their main advantage is that they can give Member States time to conso~~ and that the value of implicit subsidies that such measures provide to the banking sector should not be underestimated; stresses that such measures are transitory in nature and that their claimed purpose is to facilidtate the~~ir fiscal situation and implement structural reforms that~~ management of the debt overhang as wiell as create some of the necessary conditions for economic activity to rebound;

Amendment 134 #

Motion for a resolution
Paragraph 15

15. Stresses that the impact of ~~the~~ unconventional monetary policy measures ~~currently in use on the real economy should not be overestimated~~should not be overestimated and that should not be conducted for an extended period of time; stresses that such measures are transitory in nature and that the~~ir main advantage is that they can give Member States time to consolidate their fiscal situation and implement structural reforms that will create conditions for economic activity to rebound~~y should be paired with appropriate fiscal policies and structural reforms in order to stimulate economic growth and improvements in the labour market;

Amendment 135 #

Motion for a resolution
Paragraph 15

15. Stresses that the impact of the unconventional monetary policy measures currently in use on the real economy should not be overestimated; stresses that such measures are transitory in nature and that the~~ir main advantage is that they can give~~y aim at giving Member States time to consolidate their fiscal situation and implement structural reforms that will create conditions for economic activity to rebound;

Amendment 136 #

Esther DE LANGE

Motion for a resolution
Paragraph 15

Amendment 137 #

Motion for a resolution
Paragraph 16

16. Notes that conducting non-standard monetary policies for an extended period of time creates distortions on the capital market; asks the ECB to strike the right balance between the risk of exiting its accommodative monetary policy prematurely and the risks associated with further delaying such a departure;deleted

Amendment 138 #

Motion for a resolution
Paragraph 16

Amendment 139 #

Motion for a resolution
Paragraph 16

16. Notes that conducting non-standard monetary policies for an extended period of time ~~creates~~might exacerbate the distortions on the capital market; asks the ECB to strike the right balance between the ~~risk~~severe risks and costs of exiting its accommodative monetary policy prematurely and the risks a~~ssociated with further delaying such a departure~~nd costs resulting from the distortions that such policies might carry; asks therefore the ECB to calibrate non- standard policies so as to limit such distortions;

Amendment 14 #

Motion for a resolution
Recital C a (new)

Ca. whereas current projections put in evidence that nearly half of all Member States will not achieve their National EU2020 targets on education schemes and greenhouse gas reductions by 2020 and that trends regarding employment and poverty reduction are even worse moving away rather than towards the National EU2020 targets;

Amendment 140 #

Motion for a resolution
Paragraph 16

16. Notes that conducting non-standard monetary policies ~~for an extended period of time~~ creates distortions on the capital market; asks the ECB to strike the right balance between the risk of exiting its accommodative monetary policy prematurely and the risks associated with further delaying such a departure;

Amendment 141 #

Miguel VIEGAS, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 16 a (new)

16a. Points out as illustrated by the leaked discussions of the ECB Council of Governors on the solvency of Cypriot banks that the concept of 'insolvency' underpinning the provision of central bank liquidity to institutions in the Euro area lacks a sufficient level of clarity as the concept refers both to a situation arising in a bank after a judicial determination of insolvency or alternatively as the situation where competent supervisory authorities determine that an institution does not comply with minimum requirements defined in the CRD/CRR framework; underlines that such a lack of clarity needs to be addressed so as to guarantee legal certainty and foster financial stability;

Amendment 142 #

Motion for a resolution
Paragraph 17

17. ~~Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate fiscal and structural national reforms and policie~~Stresses that a single monetary policy aimed at guaranteeing price stability, without any objectives in terms of economic growth, job creation and higher wages, is not capable of tackling the highly diverse economic situations in the Member States and is, on the contrary, one of the causes of the current crisis;

Amendment 143 #

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate fiscal and structural national reforms and that monetary policy can under no circumstances replace these necessary policies;

Amendment 144 #

Lorenzo FONTANA

Motion for a resolution
Paragraph 17

17. Recalls that a sound monetary policy ~~alone cannot~~can help to stimulate aggregate demand ~~unless~~when it is complemented by adequate fiscal and structural national reforms and policies;

Amendment 145 #

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot stimulate aggregate demand ~~unless it is complemented by adequate fiscal and structural national reforms and policies~~in a liquidity trap environment;

Amendment 146 #

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot be effective in stimulateing aggregate demand and boosting economic growth unless it is complemented by a~~dequate fiscal and structural national reforms and~~n expansionary fiscal policy involving a significant increase in public spending and an immediate halt to ruinous fiscal consolidation policies;

Amendment 147 #

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate fiscal and structural national reforms and policies; accordingly takes the view that the EU as such, or at any rate the euro area, needs to have a revenue-raising power enabling it to pursue a countercyclical economic policy, which in turn implies a need to increase own resources through taxes established at pan-European level;

Amendment 148 #

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate fiscal and structural national reforms and policies that ultimately target the underlying reasons for the sluggish development;

Amendment 149 #

Esther DE LANGE

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate fiscal and structural national reforms and policies, which have not yet been sufficiently implemented in many Member States;

Amendment 15 #

Motion for a resolution
Recital D a (new)

Da. whereas lowered real interest rates have not been translating neither into looser credit for households and businesses, nor into GDP growth and job creation;

Amendment 150 #

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate fiscal stimulus and structural national reforms ~~and policies~~;

Amendment 151 #

Thomas MANN

Motion for a resolution
Paragraph 17

17. Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate ~~fiscal~~budget rationalisation throughout and structural national reforms and policies;

Amendment 152 #

Motion for a resolution
Paragraph 17 a (new)

17a. Considers that the TARGET 2 system should be improved in the medium term, taking the model of the Federal Reserve as a template in order to reduce excessive risk taking and improve the financial safety of the euro system;

Amendment 153 #

Motion for a resolution
Paragraph 17 a (new)

17a. Stresses as illustrated by the experience in the years ahead of the crisis that stable inflation rates, in line with the medium term rate objective defined by the ECB, might be associated with unsustainable private debt dynamics, underlying the importance to manage asset bubbles and the growth of credit even when price stability is guaranteed;

Amendment 154 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 17 b (new)

17b. Is concerned by the persistent inflation differentials within the Euro area; recommends that the ECB follow a proactive macroprudential approach associated with its monetary policy instruments so as to deal with regional asset bubbles and imbalances; asks the ECB to explore whether regional fine- tuning regarding collateral, haircut and reserve requirements may be appropriate for coping with asymmetric shocks, thereby enhancing financial stability within the monetary union while preserving price stability;

Amendment 155 #

Motion for a resolution
Paragraph 18

18. Recalls that the independence of the ECB in the conduct of its monetary policy, as enshrined in the Treaties, is ~~crucial to the objective of safeguarding price stability~~preventing the adoption of genuine measures to exit the crisis;

Amendment 156 #

Motion for a resolution
Paragraph 18

18. Recalls that the independence of the ECB in the conduct of its monetary policy, as enshrined in the Treaties, is ~~crucial~~indispensable to the objective of safeguarding price stability;

Amendment 157 #

Motion for a resolution
Paragraph 18

18. Recalls that the independence of the ECB in the conduct of its monetary policy, as enshrined in the Treaties, is crucial to the objective of safeguarding price stability; recalls that all governments and public national authorities should also refrain from asking for actions or commenting on decisions which the ECB takes;

Amendment 158 #

Motion for a resolution
Paragraph 18

18. Recalls that the independence of the ECB in the conduct of its monetary policy, as enshrined in the Treaties, is crucial to the objective of safeguarding price stability and keeping inflation close by below 2%;

Amendment 159 #

Motion for a resolution
Paragraph 18 a (new)

18a. Reminds that all members of the ECB's General Council are committed to the decisions taken which remain confidential, unless a decision has been taken to make them public;

Amendment 16 #

Motion for a resolution
Recital D a (new)

Da. whereas the consolidated financial statement of the Eurosystem reached EUR 2.285 trillion at the end of 2013, representing a decrease of approximately 25% over the course of 2013;

Amendment 160 #

Motion for a resolution
Paragraph 18 a (new)

18a. Calls the ECB to make a step backwards in its role inside the Troika in order to reinforce its independence from political decisions;

Amendment 161 #

Miguel VIEGAS, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 18 a (new)

18a. Recalls that the ECB's objective is also to support the general economic policies in the Union, as stated in Article 282 TFEU; underlines in this respect, the importance of the monetary dialogue;

Amendment 162 #

Motion for a resolution
Paragraph 18 a (new)

18a. Maintains that the Statute, guidelines and sham independence of the ECB need to be changed, allowing all Member States to be represented on an equal footing in its governing body, so as to ensure that every Member State can control its national central bank and monetary policy, with a view to promoting economic growth and employment;

Amendment 163 #

Motion for a resolution
Paragraph 18 a (new)

18a. Stresses that a clear separation between monetary and fiscal policy implies that the monetary authority should not provide subsidies to institutions benefiting from liquidity provision as such subsidy provision amounts to fiscal policy;

Amendment 164 #

Molly SCOTT CATO, Ernest URTASUN

Motion for a resolution
Paragraph 18 b (new)

18b. Underlines in the same rationale that a proper separation between fiscal and monetary policy implies that the fiscal authority is not supposed to interfere with the specific decisions taken by monetary authority and conversely that the monetary authority should in principle refrain from commenting on fiscal policy and requesting any specific reform or fiscal stance as counterparty to its own policy as was unfortunately the case with the letters sent by the former ECB President to the Spanish, Italian and Irish government;

Amendment 165 #

Motion for a resolution
Paragraph 18 c (new)

18c. Deplores the fact that the ECB has exceeded its Treaty based mandate as illustrated in the aforementioned letters;

Amendment 166 #

Motion for a resolution
Paragraph 19

19. Considers that the complexity of monetary policy instruments makes it difficult for the citizen of the euro area to understand the ECB’s actions; asks the ECB to strengthen its communication efforts in order to make its actions more transparentWelcomes the step forward brought by the ECB in order to publish the minutes of its meeting and looks forward to the beginning of this practice in January 2015. Is satisfied that this demand from the last European Parliament reports has been acknowledged by the ECB governing council;

Amendment 167 #

Motion for a resolution
Paragraph 19

19. Considers that the complexity of monetary policy instruments makes it difficult for the citizen of the euro area to understand the ECB’s actions; asks the ECB to strengthen its communication efforts in order to make its actions more transparent; welcomes the announcement that the European Central Bank will publish non-attributed minutes of its governing council meetings, in line with the transparency policies adopted by UK, US and Japan Central Banks;

Amendment 168 #

Motion for a resolution
Paragraph 19a (new)

19a. Points out that, if monetary policy action is to be effective, thought needs to be given as of now to revising Article 123 of the TFEU in order to allow the ECB to launch government bond purchase programmes;

Amendment 169 #

Ernest URTASUN, Ernest URTASUN, Molly SCOTT CATO

Motion for a resolution
Paragraph 19 a (new)

19a. believes that central banks worldwide should work actively to avoid any policy that would generate negative spillovers on others; notes that some central banks call on other central banks to take on board potential negative spillovers of monetary policies long after they have unilaterally implemented their own policies;

Amendment 17 #

Motion for a resolution
Recital D b (new)

Db. whereas non-marketable assets represented the largest component of assets put forward as collateral to the Eurosystem in the course of 2013, amounting to around 25% of the total; whereas non-marketable securities, together with asset-backed securities, represent around 40 % of total assets put forward as collateral;

Amendment 170 #

Motion for a resolution
Paragraph 19 a (new)

19a. Believes that recent information that has come to the public light underline the importance of a prudent use of ELA in the future. It cannot be accepted again that a Member State's banking sector indebts itself for a relevant %of its GDP in this way;

Amendment 171 #

Motion for a resolution
Paragraph 19 b (new)

19b. Encourages the ECB to keep improving its gender policy in its nominations in order to eliminate the current gap. Welcomes the nomination of Ms Daniel Nouy to head the supervision of the European Banking sector, particularly for her high merits and strong resumé;

Amendment 172 #

Motion for a resolution
Paragraph 19 a (new)

19a. Asks the ECB to disclose to the European Parliament the secret 'Agreements on Net Financial Assets' between the National central banks and the ECB regarding inter alia the amounts of different classes of assets, including government bonds that an Euro area central bank can hold in its balance sheet;

Amendment 173 #

Motion for a resolution
Paragraph 19 b (new)

19b. Welcomes the decision by the Council of Governors to publish its minutes from 2015 onwards; believes that such disclosure will increase the accountability and transparency of the ECB modus operandi; recalls its request that the annual ECB report should include a feedback to the inputs provided in the annual European Parliament report;

Amendment 174 #

Motion for a resolution
Paragraph 19 c (new)

19c. Recalls its request to improve the gender balance within the institution as well as to diversify the theoretical background of its staff; welcome the gender-quota system that has been introduced; believes that the ongoing crisis has highlighted the need to increase theoretical diversity within central banks; requests the ECB to report in its next annual report on how it intends to proceed in order to diversify the analytical background of its staff;

Amendment 175 #

Motion for a resolution
Paragraph 20

20. Welcomes the fact that the Single Supervisory Mechanism (SSM), the first pillar of the Banking Union, became fully operational on 4 November 2014; notes that this major step in European financial integration was achieved thanks to the successful completion of the preparatory work, including the Asset Quality Review (AQR); stresses that the supervisory and monetary functions of the ECB must under no circumstances be allowed to merge;

Amendment 176 #

Motion for a resolution
Paragraph 20

20. Welcomes the fact that the Single Supervisory Mechanism (SSM), the first pillar of the Banking Union, became fully operational on 4 November 2014; notes that this major step in European financial integration was achieved thanks to the successful completion of the preparatory work, including the Asset Quality Review (AQR); thanks the ECB for using its credibility to support the European banking system, particularly because some national supervisors where the banking sector was bailed-out were already widely discredit;

Amendment 177 #

Motion for a resolution
Paragraph 20

20. ~~Welcome~~Asserts the fact that the Single Supervisory Mechanism (SSM), the first pillar of the Banking Union, became fully operational on 4 November 2014; notes that this major step in European financial integration was achieved ~~thanks to the successful~~after the completion of the preparatory work, including the Asset Quality Review (AQR);

Amendment 178 #

Motion for a resolution
Paragraph 20

20. ~~Welcom~~Notes the fact that the Single Supervisory Mechanism (SSM), the first pillar of the Banking Union, became fully operational on 4 November 2014; notes that this major step in European financial integration was achieved thanks to the successful completion of the preparatory work, including the Asset Quality Review (AQR);

Amendment 179 #

Motion for a resolution
Paragraph 20 a (new)

20a. Notes that the AQR and the stress test conducted by the European Banking Authority (EBA) in cooperation with the SSM, have revealed remaining fragilities in the European Banking System;

Amendment 18 #

Motion for a resolution
Recital E

E. whereas, according to the Commission services’ spring 2014 forecast, the average inflation rate in the euro area was 1.3 % in 2013, down from 2.5 % in 2012; whereas inflation in the euro area has continued to be on a downward path since the beginning of 2014, reaching a low of 0.3 % in September; whereas the overall HICP inflation rate went down to 0% in Portugal, -0.1% in Italy and -0.3% in Spain in September 2014;

Amendment 180 #

Motion for a resolution
Paragraph 20 b (new)

20b. Calls for improvements in the methodology used for the AQR and the stress test; highlights that the exclusion of high-risk investments, especially of derivatives, from the AQR, leads to underestimate threats to financial stability;

Amendment 181 #

Motion for a resolution
Paragraph 20 a (new)

20a. Hopes that the results of the AQR have adequately taken into account all risks, in order to avoid the japanification of European banking and the ever- greening of loans impossible to repay;

Amendment 182 #

Motion for a resolution
Paragraph 20 b (new)

20b. Believes that the ECB should go forward in the codification of common accounting standards for all European banks, avoiding distortions;

Amendment 183 #

Motion for a resolution
Paragraph 20 c (new)

20c. Encourages the ECB to use its capacity to give banking licenses to those who demand in order to start new banking projects and to open up competition in the Member States with the most concentrated banking sectors;

Amendment 184 #

Motion for a resolution
Paragraph 20 d (new)

20d. Considers that the ECB has great responsibility in ensuring that future bank recapitalizations will be done through the bail-in scheme, when access to markets is difficult or impossible;

Amendment 185 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Rina Ronja KARI, Marisa MATIAS

Motion for a resolution
Paragraph 20 e (new)

20e. Calls the ECB to ensure in its daily practices the complete ring-fencing between monetary policy and its role as banking supervisor;

Amendment 186 #

Motion for a resolution
Paragraph 21

21. Emphasises that the SSM contributes to ensuring confidence in the euro area banking sector, and thus to financial stability; recalls that democratic accountability of the new SSM towards Parliament is crucial to ensuring the credibility of the new supervisory regime; stresses, therefore, the importance of the Interinstitutional Agreement between Parliament and the ECB, concluded in November 2013, on the practical modalities of the exercise of democratic accountability over the SSM, and of its full implementationrepresents a further step in the process of taking fundamental supervisory mechanisms away from countries and citizens;

Amendment 187 #

Motion for a resolution
Paragraph 21

21. Emphasises that the SSM ~~contributes to~~aims at ensuring confidence in the euro area banking sector, and thus ato financial stability; recalls that democratic accountability of the new SSM towards European and national Parliaments is crucial to ensuring the credibility of the new supervisory regime; stresses, therefore, the importance of the Interinstitutional Agreement between Parliament and the ECB, concluded in November 2013, on the practical modalities of the exercise of democratic accountability over the SSM, and of its full implementation;

Amendment 188 #

Motion for a resolution
Paragraph 21

21. Emphasises that the SSM should contributes to ~~ensur~~increasing confidence in the euro area banking sector, and thus to financial stability; recalls that democratic accountability of the new SSM towards Parliament is crucial to ensuring the credibility of the new supervisory regime; stresses, therefore, the importance of the Interinstitutional Agreement between Parliament and the ECB, concluded in November 2013, on the practical modalities of the exercise of democratic accountability over the SSM, and of its full implementation;

Amendment 189 #

Motion for a resolution
Paragraph 21 a (new)

21a. Believes that, in line with its new responsibilities, the ECB should act as a lender of last resort, in an effort to restore confidence in the financial markets and thus strengthening stability;

Amendment 19 #

Motion for a resolution
Recital E

E. whereas, according to the Commission services~~’ spring~~' autumn 2014 forecast, the average inflation rate in the euro area was 1.34 % in 2013, down from 2.5 % in 2012; whereas inflation in the euro area has continued to be on a downward path since the beginning of 2014, reaching a low of 0.3 % in September;

Amendment 190 #

Motion for a resolution
Paragraph 21 a (new)

21a. Supports the idea that in order to make bail-in more credible and effective, the European legislation should advance to separate the more risky investment activities from traditional banking;

Amendment 191 #

Motion for a resolution
Paragraph 21 b (new)

21b. Believes that the current structure of the Banking Union should be complemented in the future by a common European Deposit Guarantee that avoids capital flight to safety in the event of a future banking crisis;

Amendment 192 #

Motion for a resolution
Paragraph 21 a (new)

21a. Is of the opinion that placing the SSM under the aegis of the ECB is clearly a second best solution, largely due to the current EU treaties constraints; underlines that such solution has led to an undesirable concentration of powers in the ECB, with the potential for conflicts of interest; points out moreover that conglomerates of large insurance companies and banks cannot be effectively supervised by the ECB for legal reasons;

Amendment 193 #

Motion for a resolution
Paragraph 21 b (new)

21b. Is of the opinion that a Treaty change is required for enabling the creation of a truly independent authority for common banking supervision;

Amendment 194 #

Motion for a resolution
Paragraph 21 c (new)

21c. Is of the opinion that the latest stress tests deliver a clear cut illustration of the limits of the current interinstitutional setting as a scenario of deflation was not contemplated in the stress tests even though such deflation risks are far from being anecdotal;

Amendment 195 #

Motion for a resolution
Paragraph 22

22. Notes that, despite relatively low profitability, euro area banks have steadily continued to strengthen their capital positions through a combination of capital increases and reductions in risk-weighted assets; acknowledges that in several cases capital increases were carried out in the context of financial assistance programmes from the Member States;

Amendment 196 #

Motion for a resolution
Paragraph 22

22. Notes that, despite relatively low profitability, euro area banks have ~~steadily~~ continued to strengthen their capital positions through a combination of capital increases and reductions in risk-weighted assets and also public support;

Amendment 197 #

Motion for a resolution
Paragraph 23

23. Is concerned by the remaining dependence on central bank funding and public recapitalization in many banks of the euro area;

Amendment 198 #

Esther DE LANGE

Motion for a resolution
Paragraph 23 a (new)

23a. Points out that consolidation of good governance in banks enhances confidence in the banking sector, thereby contributing also to financial stability;

Amendment 199 #

Motion for a resolution
Paragraph 23 a (new)

23a. Considers auspicable the creation of a Capital Market Union, in order to reduce the excessive dependence of the economies of the euro zone on the banking system;

Amendment 2 #

Motion for a resolution
Recital A

A. whereas, according to the Commission services’' spring 2014 forecast, GDP in the euro area fell by 0.4 % in 2013 after a decline of 0.7 % in 2012~~, and whereas the Commission services expect a reco~~; whereas according to Eurostat the euro area expanded only slightly over the three first quarters of 2014; whereas the Commission services' autumn 2014 forecasts foresee a very, w~~ith GDP rising by 1.2 % in~~eak return to growth for 20145 a~~nd by 1.7 % in 2015~~ll over the EMU with prevailing downside risks;

Amendment 20 #

Motion for a resolution
Recital E

E. whereas, according to the Commission services’ ~~spring~~autumn 2014 forecast, the average inflation rate in the euro area was 1.34 % in 2013, down from 2.5 % in 2012; whereas inflation in the euro area has continued to be on a downward path since the beginning of 2014, reaching a low of 0.3 % in September;

Amendment 200 #

Lorenzo FONTANA

Motion for a resolution
Paragraph 24

24. Points out that activity on government securities continues to be a major source of profit for banks of the euro area, ~~even though~~deplores the fact that credit to the non-financial private sector remains sluggish and calls for practical action to reverse this trend;

Amendment 201 #

Motion for a resolution
Paragraph 24

24. Points out that activity on government securities continues to be a major source of profit for banks of the euro area, even though credit to the non-financial private sector remains sluggish; underlines that several banks used LTRO lines for carry trade operations while reducing their credit provision to the real economy which amounts to facilitating recapitalization of the banking sector with taxpayer resources;

Amendment 202 #

Motion for a resolution
Paragraph 24

24. Points out that activity on government securities continues to be a major source of profit for banks of the euro area, even though credit to the non-financial private sector remains sluggish; considers that technical and legislative work on risks linked to sovereign debt should be accelerated;

Amendment 203 #

Motion for a resolution
Paragraph 24

24. Points out that activity on government securities continues to be a major source of profit for banks of the euro area, even though credit to the non-financial private sector remains sluggish; calls the ECB to warn on those banks that keep increasing their holdings of government bonds while decreasing credit to the private sector.

Amendment 204 #

Motion for a resolution
Paragraph 24 a (new)

24a. Welcomes the legislative proposal on Banking Structural Reform from the European Commission; notices that similar reforms have already been introduced in several Member States; invites the ECB to collaborate with the other relevant institutions towards sustainable structural reform on a European level that ends subsidies to trading activities of large financial institutions and levels the playing field for financial services;

Amendment 205 #

Motion for a resolution
Paragraph 25

25. Recalls that the Single Resolution Mechanism (SRM), the second pillar of the Banking Union, will come into force by the beginning of 2015; ~~stresses the need to continue developing the third pillar of the Banking Union;~~

Amendment 206 #

Motion for a resolution
Paragraph 25

25. Recalls that the Single Resolution Mechanism (SRM), the second pillar of the Banking Union, will come into force by the beginning of 2015; stresses the need to continue developing the third pillar of the Banking Union; accordingly considers it essential to enhance the credibility of the Single Resolution Fund (SRF) by providing it with additional resources commensurate with the ECB’s role of imposing penalties where the supervision of financial entities is concerned;

Amendment 207 #

Motion for a resolution
Paragraph 25

25. Recalls that the Single Resolution Mechanism (SRM), the second pillar of the Banking Union, will come into force by the beginning of 2015; stresses the ~~need to continue developing~~urgency of developing the Deposit Guarantee Scheme, the third pillar of the Banking Union;

Amendment 208 #

Motion for a resolution
Paragraph 25 a (new)

25a. Calls, in connection with the SSM, for the outcome of the comprehensive assessment of banks' balance sheets to be reviewed in order to take account of the risks attached to investing in highly non- transparent instruments such as some types of derivative;

Amendment 209 #

Motion for a resolution
Paragraph 25 a (new)

25a. Believes that the task of the ECB would be greatly complemented by the existence of an eurozone fiscal capacity, and some kind of eurobills able to help to absorb asymmetric shocks;

Amendment 21 #

Motion for a resolution
Recital E

Amendment 22 #

Motion for a resolution
Recital E

Amendment 23 #

Motion for a resolution
Recital E

Amendment 24 #

Motion for a resolution
Recital E

E. whereas, according to the Commission services~~’ s~~' Spring 2014 forecast, the average inflation rate in the euro area was 1.3 % in 2013, down from 2.5 % in 2012; whereas inflation in the euro area has continued to be on a downward path since the beginning of 2014, reaching a low of 0.34 % in ~~Septembe~~October with core inflation stalled around 0.7% over the last year;

Amendment 25 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Recital E

E. whereas, according to the Commission services’ spring 2014 forecast, the average inflation rate in the euro area was 1.3 % in 2013, down from 2.5 % in 2012; whereas inflation in the euro area has continued to be on a downward path since the beginning of 2014, reaching a worrying low of 0.3 % in September; whereas recent economic forecasts and expectations point to there being a major risk of deflation in the eurozone;

Amendment 26 #

Motion for a resolution
Recital E

Amendment 27 #

Motion for a resolution
Recital E a (new)

Ea. whereas low energy prices, particularly oil, have been one of the main contributors on the decrease in inflation rates in the eurozone.

Amendment 28 #

Motion for a resolution
Recital F

F. whereas the level of ~~public and~~ private investment in the euro area has been stagnating at levels significantly below those registered before the start of the crisis;

Amendment 29 #

Motion for a resolution
Recital F

F. whereas the level of public and private investment in the euro area has been stagnating at levels significantly below those registered before the start of the crisis; whereas it has been common among big enterprises to use the environment of cheap money to realize self-serving buybacks instead of new investments.

Amendment 3 #

Motion for a resolution
Recital A

A. whereas, according to the Commission services’ spring 2014 forecast, GDP in the euro area fell by 0.4 % in 2013 after a decline of 0.7 % in 2012, and whereas the Commission services expected a recovery, with GDP rising by 1.2 % in 2014 and by 1.7 % in 2015; whereas the Commission services' autumn 2014 forecast revised growth projections downward, with GDP rising by only 0.8 % in 2014 and 1.1 % in 2015;

Amendment 30 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Recital F

F. whereas the level of public and private investment in the euro area has been stagnating at levels significantly below those registered before the start of the crisis; whereas the relative share of investments in GDP has been declining steadily even before the crisis;

Amendment 31 #

Motion for a resolution
Recital F

F. whereas the level of public and private investment in the euro area has been stagnating at levels significantly below those registered before the start of the crisis and needs to be given a fresh boost as a matter of urgency;

Amendment 32 #

Motion for a resolution
Recital G

G. whereas the annual growth rate of M3 has continued to slow down, from 3.5 % in December 2012 to a worrying 1 % in December 2013;

Amendment 33 #

Motion for a resolution
Recital H

H. whereas credit to the private sector has moved further into negative territory, with an annual rate of change of -2.4% in December 2013, compared with -0.2% in December 2012; whereas the lack of ~~credit affecting SMEs in some Member States is one of the main problems delaying the~~trust and transparency in the banking system as well as the persistent need for balance sheet adjustments affect the availability of credit for SMEs in some Member States; whereas this dampens economic ~~recover~~activity;

Amendment 34 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Recital H

H. whereas credit to the private sector has moved further into negative territory, with an annual rate of change of -2.4% in December 2013, compared with -0.2% in December 2012; whereas the lack of credit affecting SMEs in some Member States is one of the main problems delaying the economic recovery; whereas the drop in lending to SMEs has been of around 35% between 2008 and 2013;

Amendment 35 #

Motion for a resolution
Recital H

H. whereas credit to the private sector has moved further into negative territory, with an annual rate of change of -2.4% in December 2013, compared with -0.2% in December 2012, demonstrating the failure of the central bank’s policy, in particular its unconventional operations; whereas the lack of credit affecting SMEs in some Member States is one of the main problems delaying the economic recovery;

Amendment 36 #

Motion for a resolution
Recital H a (new)

Ha. whereas facilitating credit flow to SMEs is fundamental as they employ 72% of the eurozone's labour force and have a higher gross job creation than large enterprises;

Amendment 37 #

Motion for a resolution
Recital I

I. whereas financial fragmentation is still ~~a major problem~~present, with SMEs ~~suffer~~facing much higher borrowing costs depending on the country of the eurozone in which they are situated, ~~creating distortions in the single market~~representing deeper underlying structural differences among Member States;

Amendment 38 #

Motion for a resolution
Recital I

I. whereas financial fragmentation is still a major problem, with SMEs suffering much higher borrowing costs ~~depending on the~~, in particular in countryies of the eurozone ~~in which they are situated, creating distortions in the single market~~already affected by severe economic conditions, creating distortions in the single market, slowing the recovery and amplifying divergence;

Amendment 39 #

Motion for a resolution
Recital I a (new)

Ia. whereas the results of the comprehensive assessment of European banks should have a positive impact on current monetary policies and the bank's willingness to increase their lending activities, particularly to the real economy;

Amendment 4 #

Motion for a resolution
Recital A

A. whereas, according to the Commission services’ ~~spring~~autumn 2014 forecast, GDP in the euro area fell by 0.4 % in 2013 after a decline of 0.7 % in 2012, and whereas the Commission services expect a recovery, ~~with~~real GDP ~~rising by 1.2 % in~~growth is expected to reach 0.8% in the euro area for 2014 and ~~by 1.7~~ 1.1% in 2015;

Amendment 40 #

Motion for a resolution
Recital J

J. whereas the size of the euro system’'s balance-sheet has declined steadily over the course of 2013, reflecting re~~ceding financial fragmentation~~imbursement of LTRO funds by banks;

Amendment 41 #

Motion for a resolution
Recital J

J. whereas the size of the euro system’s balance-sheet has declined steadily over the course of 2013, reflecting receding financial fragmentation; however, this decreasing financial fragmentation has not had effect on loans to SMEs and households;

Amendment 42 #

Motion for a resolution
Recital J

J. whereas the size of the euro system’s balance-sheet has declined steadily over the course of 2013, whereas it is unclear whether this reflect~~ing~~s receding financial fragmentation;

Amendment 43 #

Motion for a resolution
Recital K a (new)

Ka. whereas the effects of a possible Quantitative Easing in the eurozone, would probably be dampened by the excessive credit intermediation of the banking sector;

Amendment 44 #

Motion for a resolution
Recital K b (new)

Kb. whereas the European credit markets need to diversificate through the gradual increase of the share on credit intermediation through financial instrum ents. This diversification would render monetary policy more effective;

Amendment 45 #

Motion for a resolution
Recital K c (new)

Kc. whereas current evidence suggests that Quantitative Easing doesn't have any substantial effect on bank lending, and beyond a change in inflation expectations, its main effect is to raise the price of assets and more specifically stock markets;

Amendment 46 #

Motion for a resolution
Recital L

L. whereas Article 282 TFEU states that the primary objective of the ECBuropean System of Central Banks (ESCB) is to maintain price stability; whereas article 127 TFEU states that without prejudice to such primary objective, the ESCB shall support the general economic policies in the Union; whereas Article 123 TFEU and Article 21 of the Statute of the European System of Central Banks and of the ECB prohibit the ~~monetary financing of government~~direct purchase of debt instruments issued by EU or National public authorities or bodies;

Amendment 47 #

Motion for a resolution
Recital L

L. whereas Article 282 TFEU states that the primary objective of the ECB is to maintain price stability, but the ECB’s objectives also encompass growth and jobs; whereas Article 123 TFEU and Article 21 of the Statute of the European System of Central Banks and of the ECB prohibit the monetary financing of governments;

Amendment 48 #

Motion for a resolution
Recital L

L. whereas Article 282 TFEU states that the primary objective of the ECB is to maintain price stability; whereas Article 123 TFEU and Article 21 of the Statute of the European System of Central Banks and of the ECB prohibit the monetary financing of governments; recalls that this was a sine qua non condition for several Member States to go into the European Monetary Union.

Amendment 49 #

Motion for a resolution
Recital L

L. whereas Article 282 TFEU states that the primary objective of the ECB is to maintain price stability and to support the general economic policies of the Union; whereas Article 123 TFEU and Article 21 of the Statute of the European System of Central Banks and of the ECB prohibit the monetary financing of governments;

Amendment 5 #

Motion for a resolution
Recital A

A. whereas, according to the Commission services~~’ spring~~' autumn 2014 forecast, GDP in the euro area fell by 0.4 % in 2013 after a decline of 0.7 % in 2012, and whereas the Commission services expect a recovery, with GDP rising by ~~1.2~~0.8 % in 2014 and by 1.71 % in 2015;

Amendment 50 #

Motion for a resolution
Paragraph 1

1. ~~Welcom~~Acknowledges the swift reaction of the ECB in the face of a very challenging environment, and the fact that monetary policy has succeeded in reducing the level of stress in financial markets of the euro area, and in restoring investors’' confidence in the s~~oundness of the single currency~~ingle currency; welcomes the readiness of the ECB to do whatever it takes to save the Euro; underlines and welcomes the fact that the ECB Governing Council considers explicitly that its mandate allows it to fight excessive borrowing costs for Euro area Member States; notes that this was reflected in the general reduction of long- term domestic yields – notably in the most indebted countries of the euro area – to unprecedented levels since the beginning of the crisis;

Amendment 51 #

Motion for a resolution
Paragraph 1

1. Welcomes the ~~swift~~ reaction of the ECB in the face of a very challenging environment, and ~~the fact that monetary policy has succeeded~~its efforts in reducing the level of stress in financial markets of the euro area, and in restoring investors’ confidence in the ~~soundness of the~~ single currency; notes that th~~is was reflected in th~~e positive general reduction of long-term domestic yields – notably in the most indebted countries of the euro area ~~– to unprecedented levels since the beginning of the crisis~~; highlights that low yields have not resulted into job creation and growth and that the lack thereof poses threats to financial stability; encourages further efforts by the ECB aimed at reviving aggregate demand and facilitate growth;

Amendment 52 #

Motion for a resolution
Paragraph 1

1. ~~Welcomes the swift~~Notes the reaction of the ECB in the face of a very challenging environment, and the fact that monetary policy hwas ~~succeed~~aimed inat reducing the level of stress in financial markets of the euro area, and inat restoring investors’ confidence in the soundness of the single currency; notes that this was reflected in the general reduction of long-term domestic yields – notably in the most indebted countries of the euro area – to unprecedented levels since the beginning of the crisis;

Amendment 53 #

Motion for a resolution
Paragraph 1 a (new)

1a. Notes that the high level of public and private indebtedness in some Member States are obstacles for the correct transmission of monetary policy;

Amendment 54 #

Motion for a resolution
Paragraph 1 a (new)

1a. Points out however that the announcement 'to do whatever it takes' to save the euro was overdue and that should such announcement be made earlier it would have alleviated substantially taxpayers costs in Member States experiencing financial difficulties;

Amendment 55 #

Motion for a resolution
Paragraph 1 b (new)

1b. Notes that the recourse to the main refinancing operations, the medium and long-term refinancing operations with full allotment at fixed rates, the recourse to the marginal lending facility, the ELAs and the deposit facility remained all at significantly high levels throughout 2013 signalling an ongoing impairment of the monetary transmission mechanism and the Eurozone interbank lending market, albeit the situation improved significantly in comparison with the previous years as put in evidence by the stabilization of spreads a gradual normalization in interbank markets and the reduction of TARGET II imbalances;

Amendment 56 #

Motion for a resolution
Paragraph 1 c (new)

1c. Is encouraged by the stabilization of the levels of TARGET II imbalances all over 2013 underlines that the TARGET II settlement system has played a crucial role for safeguarding the integrity of the euro area financial system;

Amendment 57 #

Motion for a resolution
Paragraph 1 d (new)

1d. Is of the opinion that the ECB readiness to do whatever it takes to save the euro should ultimately lead the ECB to assume a role of lender of last resort for Member States with an implied need for real common economic and financial policy that may require Treaty change;

Amendment 58 #

Motion for a resolution
Paragraph 2

2. Remains deeply concerned by the fact that economic activity remains extremely sluggish, with the euro area posting negative GDP growth in 2013, for the second year in a row, and with particularly high unemployment rates in many euro- area Member States reaching levels that threaten the stability of the eurozone, and that there are prospects of economic stagnation in 2015;

Amendment 59 #

Motion for a resolution
Paragraph 2

2. Remains deeply concerned by the fact that economic activity remains sluggish, with the euro area posting negative GDP growth in 2013, for the second year in a row, and with high unemployment rates in many euro-area Member States reaching levels that threaten the stability of the eurozone and undermines popular and political support to the European Project;

Amendment 6 #

Motion for a resolution
Recital B

B. whereas, according to the same forecast, unemployment in the euro area rose from 11.3 % at the end of 2012 to 121.9 % at the end of 2013, and may fall slightly to 11.86 % in 2014;

Amendment 60 #

Motion for a resolution
Paragraph 2

2. Remains deeply concerned by the fact that economic activity remains sluggish, with the euro area posting negative GDP growth in 2013, for the second year in a row, with GDP growth being extremely weak over the first three quarters of 2014 and with high unemployment rates in many euro-area Member States reaching levels that threaten the stability of the eurozone;

Amendment 61 #

Motion for a resolution
Paragraph 2 a (new)

2a. Remains deeply concerned by the fact that economic activity remains sluggish, with the euro area posting negative GDP growth in 2013, for the second year in a row, with economic activity being extremely weak over the first three quarters of 2014 and with high unemployment rates in many euro-area Member States reaching levels that threaten the stability of the eurozone;

Amendment 62 #

Motion for a resolution
Paragraph 3

3. Stresses its deep concern regarding the continuous fall in the inflation rate in the euro area since 2011; stresses that the important gap observed today~~, with~~ between the ECB’'s ~~aim~~explicit target of keeping inflation rates below but close to 2% in the medium term~~, could lead to a disanchoring in medium- to longer-term inflation expectation~~ and the current inflation rates which are close to zero and even below zero in several euro area Member States; is worried, as acknowledged by the ECB President that current deflationary trends have led in practice to a disanchoring in medium- to longer-term inflation expectations as put in evidence in expectations embedded in 5y5y swap rates which do not foresee inflation in the euro area to reach rates below but close to 2% over the next 10 years;

Amendment 63 #

Motion for a resolution
Paragraph 3

3. Stresses its concern regarding the continuous fall in the inflation rate below the level ensuring the price stability in the euro area since 20113; stresses that the important gap observed today, with the ECB’'s aim of keeping inflation rates below but close to 2% in the medium term, could lead to ~~a disa~~entrenchoring ~~in medium- to longer-term in~~deflationary expectations;

Amendment 64 #

Motion for a resolution
Paragraph 3

3. Stresses its concern regarding the continuous fall in the inflation rate in the euro area since 2011 and the inflation rate differentials between Member States; stresses that the important gap observed today, with the ECB’s aim of keeping inflation rates below but close to 2% in the medium term, could lead to a disanchoring in medium- to longer-term inflation expectations;

Amendment 65 #

Motion for a resolution
Paragraph 4

4. Warns against the risk of deflation estimated by the IMF as being currently of around 30%; recalls that an inflation rate of close to zero in the euro area hampers the effectiveness of monetary policy~~; understands that the ECB attributes the reason for a very low inflation to short-term effects, and that it is confident that the medium-term objective will be met without a deflationary phase~~, worsen the deleveraging burden and makes adjustment more difficult in crisis hit countries; understands that the ECB expects that the package of measures it has announced in combination with a greater role played by fiscal policy should help to achieve the medium-term objective without a deflationary phase; welcomes the ECB President acknowledgement that there is a lack of aggregate demand in the euro area and that the ECB stands ready to adjust its policy stance further, including the purchase of assets, should activity and inflation indicators warrant so;

Amendment 66 #

Motion for a resolution
Paragraph 4

4. Warns against the risk of deflation; recalls that an inflation rate of close to zero in the euro area hampers the effectiveness of monetary policy; ~~understands that the ECB attributes the reason for a very low inflation to short-term effects, and that it is confident that the medium-term objective will be met without a deflationary phase~~notices that inflation expectations for 2015 and 2016 were revised downwards further by the ECB by between 0.1 and 0.2%;

Amendment 67 #

Motion for a resolution
Paragraph 4

Amendment 68 #

Andreas SCHWAB

Motion for a resolution
Paragraph 4

4. ~~Warns against th~~Is closely observing the possible risk of deflation; recalls that an inflation rate toof close to zero in the euro area hampers the effectiveness of monetary policy; understands that the ECB attributes the reason for a very low inflation to short- term effects, and th~~at it is confident~~erefore expects that the medium-term objective will soon be met once more without a deflationary phase;

Amendment 69 #

Werner LANGEN

4. ~~Warns against the risk of deflation; r~~Recalls that an inflation rate of close to zero in the euro area hampers the effectiveness of monetary policy; understands that the ECB attributes the reason for a very low inflation to short- term effects, and that it is confident that the medium-term objective will be met without a deflationary phase;

Amendment 7 #

Motion for a resolution
Recital B

B. whereas, according to the same forecast, unemployment in the euro area rose from 11.3 % at the end of 2012 to 121.9 % at the end of 2013, and may fall slightly to 11.89 % in 2014;

Amendment 70 #

Motion for a resolution
Paragraph 4 a (new)

4a. Points out that in the perspective of further accommodative policies such as quantitative easing and having in mind the current legal challenges regarding the OMT programme it is crucial to have legal clarity and certainty for allowing these instruments to be effectively implemented;

Amendment 71 #

Motion for a resolution
Paragraph 4 a (new)

4a. Points out that the below-target level of inflation foreseen for the next years will have an impact on the debt reduction programmes of several Member States;

Amendment 72 #

Motion for a resolution
Paragraph 4 a (new)

4a. Believes that the low risk premium paid by many eurozone Member States in the last months, it is not so linked to the action of their governments but the success of the OMT program and the existing close to zero inflation;

Amendment 73 #

Motion for a resolution
Paragraph 4 b (new)

4b. Stresses that low borrowing costs by Member States are running hand in hand with rising public debts, close or beyond 100% of GDP in many cases, and warns that a new crisis could start a reassessment of risk by financial markets;

Amendment 74 #

Motion for a resolution
Paragraph 5

5. Points out that the ECB forecasts published in 2013 had not anticipated the actual conjunction of a flat growth and a very low inflation and even deflationary signs; calls, against this background, for the current forecasts of stronger economic growth and higher inflation in 2015 and 2016 to be read with caution;

Amendment 75 #

Amendment 76 #

Motion for a resolution
Paragraph 5

5. Points out that the ECB forecasts published in 2013 had not anticipated the actual conjunction of a flat growth and a very low inflation; calls, against this background, for the current forecasts of stronger economic growth and higher inflation in 2015 and 2016 to be read with caution; recommends in that perspective the ECB to proceed to a thorough and independent assessment of the robustness and fitness of its models and theoretical background and to publish such assessment in its next annual report; stresses the need to avoid devising fiscal and monetary policy under overoptimistic assumptions and scenarios which may result in self-defeating and pro-cyclical effects;

Amendment 77 #

Motion for a resolution
Paragraph 6

6. Considers that it is of utmost importance to create conditions for a rebound in investment in the euro area; calls on the ECB, in this context, to pursue its actions in order to maintain favourable financing conditions and to reduce the financial fragmentation that remains highly penalising for private borrowers in many Member States; calls on the Member States to carry out the structural reforms required in order to re-create a favourable business environment, and in particular to act on the country-specific recommendations;

Amendment 78 #

Motion for a resolution
Paragraph 6

6. Considers that it is of utmost importance to create conditions for a rebound in investment in the euro area; ~~calls on the ECB, in this~~ taking into account~~ext, to~~ that despite the ECB pursueing its actions in order to maintain favourable financing conditions ~~and to reduce the financial fragmentation that remains highly penalising for private borrowers in many Member Stat~~investments have not picked up yet; calls on the Member States, in this context, to work on the underlying causes of the financial fragmentation such as diverging risk structures that make lending more costly in respective countries;

Amendment 79 #

Motion for a resolution
Paragraph 6

6. Considers that it is of utmost importance to create conditions for a rebound in investment in the euro area, both public and private; calls on the ECB, in this context, to pursue its actions in order to maintain favourable financing conditions and to reduce the financial fragmentation that remains highly penalising for private borrowers in many Member States;

Amendment 8 #

Motion for a resolution
Recital B

B. whereas, according to the ~~same~~autumn forecast, unemployment in the euro area rose from 11.3 % at the end of 2012 to 121.9 % at the end of 2013, and may fall slightly to 11.86 % in 2014;

Amendment 80 #

Motion for a resolution
Paragraph 6 a (new)

6a. Encourages the ECB to consider in its balance sheet expansion policy the buying of EIB project bonds, which fund some of the more productive investments in the eurozone, particularly from those projects chosen by the Commission as having European added value after a cost-benefit analysis, particularly TEN-T projects in energy and transport;

Amendment 81 #

Motion for a resolution
Paragraph 7

7. Underlines that Mario Draghi, in his speech at the annual central bank symposium in Jackson Hole on 22 August 2014, stated that we need action on both sides of the economy, noting that: aggregate demand policies have to be accompanied by national structural reforms and policies; on the demand side, monetary policy can and should play a central role, which currently means an accommodative monetary policy for an extended period of time; there is scope for fiscal policy to play a greater role alongside monetary policy; and no amount of fiscal or monetary accommodation can compensate for the necessary action on the supply side through structural reforms in the euro area;deleted

Amendment 82 #

Motion for a resolution
Paragraph 7

Amendment 83 #

Motion for a resolution
Paragraph 7

7. Underlines that Mario Draghi, in his speech at the annual central bank symposium in Jackson Hole on 22 August 2014, stated that we need action on both sides of the economy, noting that: aggregate demand policies have to be accompanied by national structural reforms and policies; on the demand side, monetary policy can and should play a central role, which currently means an accommodative monetary policy for an extended period of time; there is scope for fiscal policy to play a greater role alongside monetary policy; and ~~no amount of fiscal or monetary accommodation can compensate for the necessary action on the supply side through structural reforms in the euro area~~, while structural reforms are necessary in order to boost growth in the medium term, the emphasis in the short term needs to be laid on fiscal policy, from the perspective of the euro area as a whole, and on monetary policy;

Amendment 84 #

Motion for a resolution
Paragraph 7

7. Underlines that Mario Draghi, in his speech at the annual central bank symposium in Jackson Hole on 22 August 2014, stated that we need action on both sides of the economy, noting that: aggregate demand policies have to be accompanied by national structural reforms and policies; on the demand side, monetary policy can and should play a central role, which currently means an accommodative monetary policy for an extended period of time; there is little scope for fiscal policy to play a greater role alongside monetary policy especially since the sustainability of public debt needs to be taken into account; and no amount of fiscal or monetary accommodation can compensate for the necessary action on the supply side through structural reforms in the euro area;

Amendment 85 #

Motion for a resolution
Paragraph 7

7. ~~Underlines~~Takes note that Mario Draghi, in his speech at the annual central bank symposium in Jackson Hole on 22 August 2014, stated that we need action on both sides of the economy, noting that: aggregate demand policies have to be accompanied by national structural reforms and policies; on the demand side, monetary policy can and should play a central role, which currently means an accommodative monetary policy for an extended period of time; there is scope for fiscal policy to play a greater role alongside monetary policy; and no amount of fiscal or monetary accommodation can compensate for the necessary action on the supply side through structural reforms in the euro area;

Amendment 86 #

Motion for a resolution
Paragraph 7 a (new)

7a. Agrees with President Draghi that the existing flexibility within the Stability and Growth Pact rules could be used to better address the weak recovery and to make room for the cost of needed structural reforms;

Amendment 87 #

Motion for a resolution
Paragraph 7 b (new)

7b. Agrees with President Draghi that there is leeway to achieve a more growth- friendly composition of fiscal policies and to lower the tax burden in a budget- neutral way;

Amendment 88 #

Motion for a resolution
Paragraph 7 c (new)

7c. Agrees with President Draghi that complementary action at the EU level would also seem to be necessary to ensure both an appropriate aggregate position and a large public investment programme;

Amendment 89 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Rina Ronja KARI, Marisa MATIAS, Fabio DE MASI, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 7 d (new)

7d. Stresses that there cannot be recovery without a revamp of public investments to both trigger private investments and to facilitate the implementation of national structural reforms;

Amendment 9 #

Motion for a resolution
Recital B

B. whereas, according to the same forecast, unemployment in the euro area rose from 11.3 % at the end of 2012 to 12 % at the end of 2013, and ~~may fall slightly to 11.8 %~~remains at a high level in 2014;

Amendment 90 #

Motion for a resolution
Paragraph 8

8. ~~Notes~~Welcomes cautiously that in addition to the lowering of its key interest rates and the increase in its refinancing operations, the ECB has adopted innovative instruments such as forward guidance and the targeted longer- term refinancing operations (TLTROs);

Amendment 91 #

Motion for a resolution
Paragraph 8 a (new)

8a. Calls the ECB to consider the possibility of easing access to its liquidity to non-monetary financial institutions such as regional public banks;

Amendment 92 #

Motion for a resolution
Paragraph 9

9. Considers that the ~~transmission mechanism is not functioning properly, and that the~~ monetary policy tools used by the ECB since the beginning of the crisis, while providing a welcome relief in distressed financial markets, have not been fully effective in fighting against financial fragmentation, stimulating growth or improving the situation on the labour market; ~~encourages the ECB to ensure that its policies are better attuned to the real economy, in particular with regard to SME~~stresses, in this connection, the need for the Member States to carry out appropriate structural reforms in accordance with the European Semester recommendations;

Amendment 93 #

Thomas MANN

Motion for a resolution
Paragraph 9

9. Considers that the transmission mechanism is not functioning properly, and that the monetary policy tools used by the ECB since the beginning of the crisis, while providing a welcome relief in distressed financial markets, have not been effective in fighting against financial fragmentation, stimulating growth or improving the situation on the labour market, where responsibility at national level is also of decisive importance; encourages the ECB to ensure that its policies are better attuned to the real economy, in particular with regard to SMEs; points out that the effectiveness of the transmission mechanism also depends on whether the private sector reacts to changes in long-term interest rates;

Amendment 94 #

Amendment 95 #

Motion for a resolution
Paragraph 9 a (new)

9a. Believes that regarding the collateral framework, bonds issued by regional governments with legislative and tax collection powers should have the same haircut as central government bonds, as otherwise the current gap creates distortions between layers of government;

Amendment 96 #

Motion for a resolution
Paragraph 9 b (new)

9b. Believes the ECB should improve its collateral framework in order to reduce excessive pro-cyclicality of haircuts on eligible assets;

Amendment 97 #

Motion for a resolution
Paragraph 10

10. ~~Welcomes~~Doubts that the measures announced by the ECB in June 2014 aimed at enhancing the functioning of the monetary policy transmission mechanism~~; acknowledg~~ will have a tangible impact on the real economy and on growth; notes that the TLTRO introduces, for the first time, a link between loans to the non- financial private sector granted by banks and the amount of refinancing the banks can claim, but stresses that, as President Draghi acknowledged in his answer to parliamentary question L/MD/14/424, no specific requirements regarding lending to the real economy have been laid down;

Amendment 98 #

Motion for a resolution
Paragraph 10

10. Welcomes the measures announced by the ECB in June 2014 aimed at enhancing the functioning of the monetary policy transmission mechanism; acknowledges that the TLTRO introduces, for the first time, a link between loans to the non- financial private sector granted by banks and the amount of refinancing the banks can claim; regrets that such 'funding for lending' link was not made earlier as requested by the European Parliament in particular at the occasion of the LTRO operations of December 2011 and February 2012;

Amendment 99 #