The main changes to the text of the Commission have been made following the amendments proposed by the European Parliament, almost all of which are included in the common position.

While the amendment relating to the date of implementation has not been introduced as proposed by the European Parliament, it cannot be considered to have been rejected either, since early adoption of the Directive would entail a date of implementation close to that proposed by the European Parliament.

In its first reading in last December the Parliament disagreed with the scope of the Directive as it felt that many small companies would be excluded.

The proposal provided for both the collateral taker and provider to have a capital base of more than EUR 100 million or gross assets exceeding EUR 1000 million. It therefore deleted the threshold, thereby enabling any small company to be covered as long as the counterpart was a public authority, a central bank or a financial institution.

The elimination of this threshold would also mean that it would be unnecessary to delegate to the European Commission the power to revise the thresholds and thereby modify the scope of the Directive.

The Directive will now enter into a second round of negotiations (2nd reading).
See Council Common Position.

See Commission press release

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