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Europaudvalget 2009-10
Ekstraordinært økofin 9/5-10 Bilag 2
Offentligt

Final 2:15

Council Regulation establishing a European financial stabilization mechanism

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular

Article 122 (2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) Article 122 (2) of the Treaty foresees the possibility of granting Union financial

assistance to a Member State in difficulties or seriously threatened with severe difficulties

caused by exceptional occurrences beyond its control.

(2)

Such difficulties may be caused by a serious deterioration in the international

economic and financial environment.

(3) The unprecedented global financial crisis and economic downturn that have hit the

world over the last two years have seriously damaged economic growth and financial

stability and provoked a strong deterioration in the deficit and debt positions of the

Member States.

(4) The deepening of the financial crisis has led to a severe deterioration of the borrowing

conditions of several Member States beyond what can be explained by economic

fundamentals. At this point, this situation, if not addressed as a matter of urgency, could

present a serious threat to the financial stability of the European Union as a whole.

(5) In order to address this exceptional situation beyond the control of the Member States,

it appears necessary to put in place immediately a Union stabilization mechanism to

preserve financial stability in the European Union. Such a mechanism should allow the

Union to respond in a coordinated, rapid and effective manner to acute difficulties in a

particular Member State. Its activation will be in the context of a joint EU/IMF support.

(6) Given their particular financial implications, the decisions to grant Union financial

assistance pursuant to this Regulation are implementing powers which should be conferred

on the Council.

(7) Strong economic policy conditions should be imposed in case of activation of this

mechanism with a view to preserving the sustainability of the public finances of the

beneficiary Member State and restoring its capacity to finance itself on the financial

markets.

(8) The Commission should regularly review whether the exceptional circumstances

threatening the financial stability of the European Union as a whole still exist.

(9) The existing facility providing medium-term assistance for non-euro-area Member

States as established by Council Regulation (EC) No 332/2002 should remain in place.

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Article 1

Aim and scope

With a view to preserving the financial stability of the European Union, this Regulation

establishes the conditions and procedures under which Union financial assistance may be

granted to a Member State which is experiencing or is seriously threatened with a severe

economic or financial disturbance caused by exceptional occurrences beyond its control,

taking into account the possible application of the existing facility providing medium-term

financial assistance for non euro area Member States' balances of payments as established

by Council Regulation (EC) No 322/2002.

Article 2

Form of the Union financial assistance

1. Union financial assistance for the purposes of this Regulation shall take the form of a

loan or of a credit line granted to the Member State concerned.

To this end, in accordance with a Council decision pursuant to Article 3, the Commission

shall be empowered on behalf of the European Union to contract borrowings on the capital

markets or with financial institutions.

2. The outstanding amount of loans or credit lines to be granted to Member States under

this Regulation shall be limited to the margin available under the own resources ceiling for

payment appropriations.

Article 3

Procedure

1. The Member State seeking Union financial assistance shall discuss with the

Commission in liaison with the ECB an assessment of its financial needs and submit a

draft economic and financial adjustment programme to the Commission and the Economic

and Financial Committee.

2. Union financial assistance shall be granted by a decision adopted by the Council, acting

by a qualified majority on a proposal from the Commission.

3. The decision to grant a loan shall contain:

(a) the amount, the average maturity, the pricing formula, the maximum number of

instalments, the availability period of the Union financial assistance and the other detailed

rules needed for the implementation of the assistance;

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(b) the general economic policy conditions which are attached to the Union financial

assistance with a view to re-establishing a sound economic or financial situation in the

beneficiary Member State and to restoring its capacity to finance itself on the financial

markets; these conditions will be defined by the Commission, in consultation with the

ECB;

meet the economic conditions attached to the Union financial assistance.

4. The decision to grant a credit line shall contain:

(a) the amount, the fee for the availability of the credit line, the pricing formula applicable

for the release of funds and the availability period of the Union financial assistance and the

other detailed rules needed for the implementation of the assistance;

(b) the general economic policy conditions which are attached to the Union financial

assistance with a view to re-establishing a sound economic or financial situation in the

beneficiary Member State, to be defined by the Commission, in consultation with the

ECB;

meet the economic conditions attached to the Union financial assistance

5. The Commission and the beneficiary Member State shall conclude a Memorandum of

Understanding detailing the general economic policy conditions laid down by the Council.

The Commission shall communicate the Memorandum of Understanding to the European

Parliament and to the Council.

6. The Commission shall re-examine, in consultation with the ECB, the general economic

policy conditions referred to in paragraphs (3) (b) and (4) (b) at least every six months and

discuss with the beneficiary Member State the changes that may be needed to its

adjustment programme.

7. The Council, acting by a qualified majority on a proposal from the Commission, shall

decide on any adjustments to be made to the initial general economic policy conditions

and shall approve the revised adjustment programme as prepared by the beneficiary

Member State.

8. If a financing outside the Union subject to economic policy conditions is envisaged,

notably from the IMF, the Member State concerned shall first consult the Commission.

The Commission shall examine the possibilities available under the Union financial

assistance facility and the compatibility of the envisaged economic policy conditions with

the commitments taken by the Member State concerned for the implementation of the

Council recommendations and Council decisions adopted on the basis of Article 121,

Article 126 and Article 136 of the Treaty. It shall inform the Economic and Financial

Committee.

Article 4

Disbursement of the loan

1. The loan shall as a rule be disbursed in instalments.

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2. The Commission shall verify at regular intervals whether the economic policy of the

beneficiary Member State accords with its adjustment programme and with the conditions

laid down by the Council pursuant to Article 3(3) (b). To this end, that Member State shall

provide all the necessary information to the Commission and give the latter its full

cooperation.

3. On the basis of the findings of such verification, the Commission shall decide on the

release of further instalments.

Article 5

Release of funds

1. The beneficiary Member State shall inform the Commission in advance of its intention

to draw down funds from its credit line. Detailed rules shall be laid down in the decision

referred to in Article 3 (4).

2. The Commission shall verify at regular intervals whether the economic policy of the

beneficiary Member State accords with its adjustment programme and with the conditions

laid down by the Council pursuant to Article 3(4)(b). To this end, the Member State shall

provide all the necessary information to the Commission and give the latter its full

cooperation.

3. On the basis of the findings of such verification, the Commission shall decide on the

release of the funds.

Article 6

Borrowing and lending operations

1. The borrowing and lending operations referred to in Article 2 shall be carried out in

euro.

2. The characteristics of the successive instalments released by the Union under the

financial assistance facility shall be negotiated between the beneficiary Member State and

the Commission.

3. Once the decision on a loan has been made by the Council, the Commission is

authorised to borrow on the capital markets or from financial institutions at the most

appropriate time in between planned disbursements so as to optimise cost of funding and

preserve its reputation as the Union's issuer in the markets. Funds raised but not yet

disbursed shall be kept at all times on dedicated cash or securities account which are

handled in accordance with rules applying to off budget operations and cannot be used for

any other goal than to provide financial assistance to Member States under the present

mechanism.

4. Where a Member State receives a loan carrying an early repayment clause and decides

to exercise this option, the Commission shall take the necessary steps.

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5. At the request of the beneficiary Member State and where circumstances permit an

improvement in the interest rate on the loan, the Commission may refinance all or part of

its initial borrowing or restructure the corresponding financial conditions.

6. The Economic and Financial committee shall be kept informed of the developments in

the operations referred to in paragraph 5.

Article 7

Costs

The costs incurred by the Union in concluding and carrying out each operation shall be

borne by the beneficiary Member State.

Article 8

Administration of the loans

1. The Commission shall establish the necessary arrangements for the administration of

the loans with the ECB.

2. The beneficiary Member State shall open a special account with its National Central

Bank for the management of the Union financial assistance received. It shall also transfer

the principal and the interest due under the loan to an account with the European Central

Bank fourteen TARGET2 business days prior to the corresponding due date.

3. Without prejudice to Article 27 of the Statute of the European System of Central Banks

and of the European Central Bank, the European Court of Auditors shall have the right to

carry out in the beneficiary Member State any financial controls or audits that its considers

necessary in relation to the management of that assistance. The Commission, including the

European Anti-Fraud office, shall in particular have the right to send its officials or duly

authorised representatives to carry out in the beneficiary Member State any technical or

financial controls or audits that it considers necessary in relation to that assistance.

Article 9

Review and adaptation

1. The Commission shall forward to the Economic and Financial Committee and to the

Council, within six months following the entry into force of this Regulation and where

appropriate every six months thereafter, a report on the implementation of this Regulation

and on the continuation of the exceptional occurrences that justify the adoption of this

Regulation.

2. Where appropriate, the report shall be accompanied by a proposal for amendments to

this Regulation with a view to adapting the possibility of granting financial assistance

without affecting the validity of decisions already adopted.

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Article 10

Entry into force

This Regulation shall enter into force on the day following that of its publication in the

Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member

States.

Done at Brussels,

For the Council,

The President