05 February 2002

EP: von Wogau Report adopted

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The European Parliament adopted the report of Karl von Wogau endorsing the aim of establishing a single market in financial services as soon as possible. The vote took place after Mr. Prodi made a formal declaration to the Parliament. MEPs expressed their willingness to speed up legislative procedures, wherever possible, to enable acts to be adopted at first reading.

Parliament is anxious to see the Financial Services Action Plan up and running, but at the same time safeguard Parliament's rights, especially with regard to the supervision of secondary or implementing legislation. The Lamfalussy proposals envisage a new structure designed to streamline decision making procedures in the financial area so that a single market is established by 2005.

The idea is that broad principles are established through primary legislation, under the codecision procedure, with the details left to two new specialised committees, a European Securities Committee and a European Securities Regulators Committee.

MEPs take the view that should a disagreement between the institutions occur over implementing measures, Parliament's rights are safeguarded through the convening of an informal meeting between representatives of the three institutions, with a view to reaching a balanced solution.

The resolution asks the Commission to give 'equivalent treatment' to both Council and Parliament with regard to implementing measures. This commitment was given in a formal undertaking to Parliament by Commission President Romano Prodi during the debate.

This declaration also takes note of Parliament's intention, as expressed in the resolution adopted, to provide for a revision of the Commission's delegated powers after a 4 year period and accepts this position.

Furthermore, the Commission agrees to a delay of 3 months to allow MEPs time to examine the implementing measures, albeit on the understanding that this period could be reduced for an urgent decision.

The Commission also accepts Parliament's desire for transparency and wide consultation over measures to be adopted. It accepts Parliament's wish to set up a market participants' committee under the auspices of the Regulators Committee.

MEPs also want to see a deadline of one year for the transposition of EU law into national law. In order to ensure full transparency for Parliament, the Commission has undertaken to provide as much information as possible about the work of the new committees including minutes and draft agendas. The maximum amount of information should also be made available to the public through the Internet.

Parliament would also like to send an observer to meetings of the new Securities Committee, but for legal reasons Commissioner Bolkestein said this would not be possible. Parliament, however, sees these new arrangements as temporary. For the future, it is looking forward to a review of article 202 of the Treaty, which concerns existing procedures relating to the Commission's delegated powers, at the next Intergovernmental Conference (IGC) in 2004. In his speech, President Prodi too supported a change in this Treaty article with a view to establishing an equal role for the two co-legislators (Council and Parliament) over the Commission's executive powers.

Karl von Wogau stated that Parliament had achieved considerable progress in the long and painstaking negotiations that had been taking place over the last year, notably with regard to transparency, the sunset clause, the three month time period to consider implementing measures and the Commission's commitment to treat Parliament as an equal to Council.

Christ Huhne welcomed the breakthrough in the negotiations, pointing out that the challenge now was to ensure that the Commission's promises were delivered and to work for change in the Treaty at the next IGC in 2004.

Christa Randzio-Plath chairman or the Economic and Monetary Affairs Committee, also welcomed the progress achieved but pointed out that often technical points turned out to be extremely political, hence the importance of transparency and consultation at all stages. She also raised the question of Parliament securing observer status on the new Regulators Committee, to which Commissioner Bolkenstein later replied that for constitutional reasons this was not possible.

See full von Wogau report

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