BETA


2018/2758(DEA) EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union: Iran

Progress: Awaiting Council decision on delegated act

RoleCommitteeRapporteurShadows
Lead BUDG ARTHUIS Jean (icon: ALDE ALDE)
Lead committee dossier:
Legal Basis:
RoP 111-p03

Events

2018/08/14
   EP - Delegated act not objected by Parliament
2018/07/04
   EP - Results of vote in Parliament
2018/07/04
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament rejected, by 93 votes to 573 with 11 abstentions, a motion for a resolution tabled by the EFDD group, which objected to the Commission Delegated Decision of 6 June 2018 amending Annex III to Decision No 466/2014/EU of the European Parliament and of the Council granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union, as regards Iran

In support of their objection, Members behind the motion for a resolution argued that the entry into force of the delegated decision would expose the European Union to a significant financial risk, particularly as Iran is currently listed among the high-risk third countries with strategic Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) deficiencies.

Members emphasised that Iran remains a significant state sponsor of terrorism, is a Prohibited Jurisdiction on the EIB’s list of Non-Compliant Jurisdictions, that granting the EIB the ability to lend to Iran in breach of US sanctions is likely to undermine investor confidence in the EIB, that lending to Iran would make it more difficult for the EIB to raise money on the international financial markets and restrict the ability of the EIB to use the US dollar payments system.

Accordingly, Members concerned believed it was likely that the EIB would default on its financial obligations to pay investors and creditors in foreign currency, which would in turn trigger the general default provisions contained in other EIB financing arrangements.

They considered that approval of the delegated decision at this time is likely to lead to a political and diplomatic backlash from the United States. The EIB and the European Union could be subject to retaliatory action by the US authorities.

The motion for a resolution stressed Iran’s human rights violations, and its consistent violations of its international obligations regarding its nuclear deterrent and its aggressive foreign policy that undermines the peace and security of the Middle East.

Members in question felt that the EU should at least wait and see what the political and practical outcome of the US sanctions being reintroduced will be, before taking any further decisions on this issue. They considered that it would be imprudent to grant the EU guarantee for EIB lending in Iran without carrying out a comprehensive risk assessment on potential consequences for the EIB’s borrowing and lending within its statutory mission.

2018/06/28
   EP - Motion for a resolution objecting delegated act
Documents
2018/06/22
   EP - Responsible Committee
2018/06/13
   EP - Committee referral announced in Parliament, 1st reading/single reading
2018/06/06
   EC - Non-legislative basic document
Documents
2018/06/06
   EC - Non-legislative basic document published
Documents
2018/06/06
   EP/CSL - Initial period for examining delegated act 2 month(s)

Documents

Votes

B8-0313/2018 - résolution 04/07/2018 11:58:05.000

2018/07/04 Outcome: -: 573, +: 93, 0: 11
?? CY PL DK LV LU MT SK EE FI LT HR SI BE EL IE SE BG NL CZ AT HU GB PT RO ES IT FR DE
Total
1
5
46
12
6
6
6
12
6
13
9
10
8
21
18
10
16
17
24
19
17
18
59
20
29
44
64
69
91
icon: ECR ECR
64

Cyprus ECR

1

Latvia ECR

For (1)

1
2

Lithuania ECR

1

Croatia ECR

For (1)

1

Greece ECR

Abstain (1)

1

Sweden ECR

2

Bulgaria ECR

2

Netherlands ECR

For (1)

1

Czechia ECR

1

Romania ECR

Against (1)

2

Italy ECR

2
icon: NI NI
14

NI

Against (1)

1

Denmark NI

1

United Kingdom NI

Against (1)

3

France NI

Against (1)

1

Germany NI

Against (1)

1
icon: EFDD EFDD
37

Lithuania EFDD

Against (1)

1

Czechia EFDD

For (1)

1

Germany EFDD

For (1)

1
icon: ENF ENF
33
2

Belgium ENF

Against (1)

1

Netherlands ENF

Against (1)

4

Germany ENF

For (1)

1
icon: GUE/NGL GUE/NGL
43

Cyprus GUE/NGL

2

Denmark GUE/NGL

Against (1)

1

Finland GUE/NGL

Against (1)

1
4

Sweden GUE/NGL

Against (1)

1

Netherlands GUE/NGL

3

Czechia GUE/NGL

2

United Kingdom GUE/NGL

Against (1)

1

Italy GUE/NGL

2
icon: Verts/ALE Verts/ALE
45

Denmark Verts/ALE

Against (1)

1

Latvia Verts/ALE

Against (1)

1

Luxembourg Verts/ALE

Against (1)

1

Estonia Verts/ALE

Against (1)

1

Finland Verts/ALE

Against (1)

1

Lithuania Verts/ALE

Against (1)

1

Croatia Verts/ALE

Against (1)

1

Slovenia Verts/ALE

Against (1)

1

Belgium Verts/ALE

2

Sweden Verts/ALE

3

Netherlands Verts/ALE

2

Austria Verts/ALE

3

Hungary Verts/ALE

2

United Kingdom Verts/ALE

5
3

Italy Verts/ALE

Against (1)

1
5
icon: ALDE ALDE
61

Denmark ALDE

2

Latvia ALDE

1

Luxembourg ALDE

Against (1)

1

Estonia ALDE

3

Croatia ALDE

2

Slovenia ALDE

Against (1)

1

Ireland ALDE

Against (1)

1

United Kingdom ALDE

Against (1)

1

Portugal ALDE

1

Romania ALDE

Against (1)

1
4
icon: S&D S&D
180

Cyprus S&D

2
3

Luxembourg S&D

Against (1)

1

Malta S&D

For (1)

Against (2)

3

Estonia S&D

Against (1)

1

Finland S&D

2

Lithuania S&D

2

Croatia S&D

Against (1)

1

Slovenia S&D

Against (1)

1

Ireland S&D

Against (1)

1

Netherlands S&D

3

Czechia S&D

4
icon: PPE PPE
199

Denmark PPE

Against (1)

1

Latvia PPE

3

Luxembourg PPE

For (1)

Against (2)

3

Estonia PPE

Against (1)

1

Finland PPE

For (1)

3

Lithuania PPE

Against (1)

1

Sweden PPE

2

United Kingdom PPE

2

History

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

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      • The European Parliament rejected, by 93 votes to 573 with 11 abstentions, a motion for a resolution tabled by the EFDD group, which objected to the Commission Delegated Decision of 6 June 2018 amending Annex III to Decision No 466/2014/EU of the European Parliament and of the Council granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union, as regards Iran

        In support of their objection, Members behind the motion for a resolution argued that the entry into force of the delegated decision would expose the European Union to a significant financial risk, particularly as Iran is currently listed among the high-risk third countries with strategic Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) deficiencies.

        Members emphasised that Iran remains a significant state sponsor of terrorism, is a Prohibited Jurisdiction on the EIB’s list of Non-Compliant Jurisdictions, that granting the EIB the ability to lend to Iran in breach of US sanctions is likely to undermine investor confidence in the EIB, that lending to Iran would make it more difficult for the EIB to raise money on the international financial markets and restrict the ability of the EIB to use the US dollar payments system.

        Accordingly, Members concerned believed it was likely that the EIB would default on its financial obligations to pay investors and creditors in foreign currency, which would in turn trigger the general default provisions contained in other EIB financing arrangements.

        They considered that approval of the delegated decision at this time is likely to lead to a political and diplomatic backlash from the United States. The EIB and the European Union could be subject to retaliatory action by the US authorities.

        The motion for a resolution stressed Iran’s human rights violations, and its consistent violations of its international obligations regarding its nuclear deterrent and its aggressive foreign policy that undermines the peace and security of the Middle East.

        Members in question felt that the EU should at least wait and see what the political and practical outcome of the US sanctions being reintroduced will be, before taking any further decisions on this issue. They considered that it would be imprudent to grant the EU guarantee for EIB lending in Iran without carrying out a comprehensive risk assessment on potential consequences for the EIB’s borrowing and lending within its statutory mission.

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      • The European Parliament rejected, by 93 votes to 573 with 11 abstentions, a motion for a resolution tabled by the EFDD group, which objected to the Commission Delegated Decision of 6 June 2018 amending Annex III to Decision No 466/2014/EU of the European Parliament and of the Council granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union, as regards Iran

        In support of their objection, Members behind the motion for a resolution argued that the entry into force of the delegated decision would expose the European Union to a significant financial risk, particularly as Iran is currently listed among the high-risk third countries with strategic Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) deficiencies.

        Members emphasised that Iran remains a significant state sponsor of terrorism, is a Prohibited Jurisdiction on the EIB’s list of Non-Compliant Jurisdictions, that granting the EIB the ability to lend to Iran in breach of US sanctions is likely to undermine investor confidence in the EIB, that lending to Iran would make it more difficult for the EIB to raise money on the international financial markets and restrict the ability of the EIB to use the US dollar payments system.

        Accordingly, Members concerned believed it was likely that the EIB would default on its financial obligations to pay investors and creditors in foreign currency, which would in turn trigger the general default provisions contained in other EIB financing arrangements.

        They considered that approval of the delegated decision at this time is likely to lead to a political and diplomatic backlash from the United States. The EIB and the European Union could be subject to retaliatory action by the US authorities.

        The motion for a resolution stressed Iran’s human rights violations, and its consistent violations of its international obligations regarding its nuclear deterrent and its aggressive foreign policy that undermines the peace and security of the Middle East.

        Members in question felt that the EU should at least wait and see what the political and practical outcome of the US sanctions being reintroduced will be, before taking any further decisions on this issue. They considered that it would be imprudent to grant the EU guarantee for EIB lending in Iran without carrying out a comprehensive risk assessment on potential consequences for the EIB’s borrowing and lending within its statutory mission.

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