27 January 2003

EMAC Meeting on Pension Funds and Takeover Bids Directives

Following the major debate on the report on occupational pension requirements by Mr Karas at the last meeting, it was decided to have a further discussion on Monday 27 January during which in particular the views of the Commission and the Council will be sought.

Opening the debate Mr Karas regretted that no representative from the Council presidency could attend to the meeting. The rapporteur made clear that the starting point of the Parliaments position has to be its position of first reading. The common position is no alternative for that, he said.

Mrs Kauppi said that the common position will receive sufficient approval and amendments 4 and 10 are unnecessary. Opposing to her Mrs van den Burg said that if the common position will be adopted one has to question what the Parliament wanted to achieve in its first reading.

In contrast to Mr Herzogs point of view Mrs Villers stated that biometric risks should not be incorporated into the directive. Mr Ettl stated that social aspects have to be taken into account and the quality of the second pillar has to be improved. But Mrs Lulling stated that the intention of the directive is to create a common market for Pensions, not for the different Pension Funds products. Therefore, amendments 1, 2, 3 are unnecessary.

The deadline for tabling of amendments in Committee is set to be the 4 February. The report will be voted on by the Committee during its February meeting.

Draft recommendation second reading

Takeover Bids
Consideration of draft opinion

According to Mr Huhne the key problem with cross-border takeovers is the complexity of obstacles that management can put in their way. With regard to the multiple voting rights the different national regulations should remain as they are. The removal of multiple voting rights would entail a form of retrospective legislation concerning deals that were freely entered into by the parties at the time. This might be called expropriation and would be legally extremely complex. Furthermore, multiple voting rights have not proved an obstacle to economic integration within the EU. “There is no empirical evidence that suggests the existence of multiple voting rights prevents foreigners taking over national companies”, Mr Huhne said.

Although Mr Huhne recommended to accept the proposal without amendments, a number of Parliamentarians opposed and stated that the national differences between the member states have to be recognized and a number of open questions remain. Mr Herzog questioned whether these kind of decisions should be taken by the share holders or the executive board of a company. Mr Karas finally said that there will be amendments to the draft opinion.

Draft opinion

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