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European Parliament2019-2024

Committee on Economic and Monetary Affairs

2019/2028(BUD)

26.8.2049

BUDGET AMENDMENTS2020 Budget (2019/2028(BUD))

Committee on Economic and Monetary Affairs

Rapporteur: Siegfried Mureşan

AB\1187562EN.docx PE640.607v01-00

EN United in diversity EN

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Draft amendment 6100 === ECON/6100 ===

Tabled by Siegfried Mureşan, rapporteur, Committee on Economic and Monetary Affairs

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SECTION III — COMMISSION

Article 01 04 05 — Provisioning of the EFSI guarantee fund

Amend figures as follows:Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount

Commitments Payments Commitments Payments Commitments Payments Commitments Payments Commitments Payments

01 04 05 166 879 000 1 000 000 000 152 852 000 1 088 216 000 62 852 000 1 088 216 000 90 000 000 152 852 000 1 088 216 000

Reserve

Total 166 879 000 1 000 000 000 152 852 000 1 088 216 000 62 852 000 1 088 216 000 90 000 000 152 852 000 1 088 216 000

Justification:Restore Draft Budget (DB).

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Article 13 08 01 — Structural Reform Support Programme – Operational technical assistance transferred from H1b (ESF, ERDF and CF)



13 08 01 30 723 000 14 111 754 74 793 000 33 700 000 49 569 145 33 700 000 25 223 855 74 793 000 33 700 000

Reserve

Total 30 723 000 14 111 754 74 793 000 33 700 000 49 569 145 33 700 000 25 223 855 74 793 000 33 700 000


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Article 01 01 01 — Expenditure related to officials and temporary staff in the ‘Economic and financial affairs’ policy area



01 01 01 70 205 554 70 205 554 72 126 934 72 126 934 71 901 128 71 901 128 225 806 225 806 72 126 934 72 126 934

Reserve

Total 70 205 554 70 205 554 72 126 934 72 126 934 71 901 128 71 901 128 225 806 225 806 72 126 934 72 126 934


3

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Item 01 01 02 01 — External personnel



01 01 02 01 3 353 018 3 353 018 3 474 883 3 474 883 3 390 508 3 390 508 84 375 84 375 3 474 883 3 474 883

Reserve

Total 3 353 018 3 353 018 3 474 883 3 474 883 3 390 508 3 390 508 84 375 84 375 3 474 883 3 474 883


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Item 01 01 03 01 — Expenditure related to information and communication technology equipment and services, and specific expenditure



01 01 03 01 4 706 639 4 706 639 4 731 358 4 731 358 4 573 293 4 573 293 158 065 158 065 4 731 358 4 731 358

Reserve

Total 4 706 639 4 706 639 4 731 358 4 731 358 4 573 293 4 573 293 158 065 158 065 4 731 358 4 731 358


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Article 03 01 01 — Expenditure related to officials and temporary staff in the ‘Competition’ policy area



03 01 01 90 896 459 90 896 459 96 583 056 96 583 056 96 357 250 96 357 250 225 806 225 806 96 583 056 96 583 056

Reserve

Total 90 896 459 90 896 459 96 583 056 96 583 056 96 357 250 96 357 250 225 806 225 806 96 583 056 96 583 056

4


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03 01 02 01 5 224 050 5 224 050 5 328 380 5 328 380 5 244 005 5 244 005 84 375 84 375 5 328 380 5 328 380

Reserve

Total 5 224 050 5 224 050 5 328 380 5 328 380 5 244 005 5 244 005 84 375 84 375 5 328 380 5 328 380


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Article 03 01 03 — Expenditure related to information and communication technology equipment and services of the ‘Competition’ policy area



03 01 03 6 093 774 6 093 774 6 335 622 6 335 622 6 177 557 6 177 557 158 065 158 065 6 335 622 6 335 622

Reserve

Total 6 093 774 6 093 774 6 335 622 6 335 622 6 177 557 6 177 557 158 065 158 065 6 335 622 6 335 622


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Article 12 01 01 — Expenditure related to officials and temporary staff in the ‘Financial stability, financial services and capital markets union’ policy area



12 01 01 37 554 590 37 554 590 38 484 250 38 484 250 38 258 444 38 258 444 225 806 225 806 38 484 250 38 484 250

5

Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount


Reserve

Total 37 554 590 37 554 590 38 484 250 38 484 250 38 258 444 38 258 444 225 806 225 806 38 484 250 38 484 250


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12 01 02 01 3 370 779 3 370 779 3 442 293 3 442 293 3 357 918 3 357 918 84 375 84 375 3 442 293 3 442 293

Reserve

Total 3 370 779 3 370 779 3 442 293 3 442 293 3 357 918 3 357 918 84 375 84 375 3 442 293 3 442 293


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Article 12 01 03 — Expenditure related to information and communication technology equipment and services of the ‘Financial stability, financial services and capital markets union’ policy area



12 01 03 2 517 691 2 517 691 2 524 477 2 524 477 2 366 412 2 366 412 158 065 158 065 2 524 477 2 524 477

Reserve

Total 2 517 691 2 517 691 2 524 477 2 524 477 2 366 412 2 366 412 158 065 158 065 2 524 477 2 524 477


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Article 14 01 01 — Expenditure related to officials and temporary staff in the ‘Taxation and customs union’ policy area



14 01 01 50 112 654 50 112 654 52 015 810 52 015 810 51 790 004 51 790 004 225 806 225 806 52 015 810 52 015 810

Reserve

Total 50 112 654 50 112 654 52 015 810 52 015 810 51 790 004 51 790 004 225 806 225 806 52 015 810 52 015 810


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14 01 02 01 5 480 105 5 480 105 5 589 707 5 589 707 5 505 332 5 505 332 84 375 84 375 5 589 707 5 589 707

Reserve

Total 5 480 105 5 480 105 5 589 707 5 589 707 5 505 332 5 505 332 84 375 84 375 5 589 707 5 589 707


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Article 14 01 03 — Expenditure related to information and communication technology equipment and services of the ‘Taxation and customs union’ policy area



14 01 03 3 359 594 3 359 594 3 412 116 3 412 116 3 254 051 3 254 051 158 065 158 065 3 412 116 3 412 116

Reserve

Total 3 359 594 3 359 594 3 412 116 3 412 116 3 254 051 3 254 051 158 065 158 065 3 412 116 3 412 116


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Article 29 01 01 — Expenditure related to officials and temporary staff in the ‘Statistics’ policy area



29 01 01 70 803 557 70 803 557 72 002 792 72 002 792 71 776 986 71 776 986 225 806 225 806 72 002 792 72 002 792

Reserve

Total 70 803 557 70 803 557 72 002 792 72 002 792 71 776 986 71 776 986 225 806 225 806 72 002 792 72 002 792


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29 01 02 01 5 562 895 5 562 895 5 671 989 5 671 989 5 587 614 5 587 614 84 375 84 375 5 671 989 5 671 989

Reserve

Total 5 562 895 5 562 895 5 671 989 5 671 989 5 587 614 5 587 614 84 375 84 375 5 671 989 5 671 989


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Article 29 01 03 — Expenditure related to information and communication technology equipment and services of the ‘Statistics’ policy area



29 01 03 4 746 729 4 746 729 4 723 214 4 723 214 4 565 149 4 565 149 158 065 158 065 4 723 214 4 723 214

Reserve

Total 4 746 729 4 746 729 4 723 214 4 723 214 4 565 149 4 565 149 158 065 158 065 4 723 214 4 723 214


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Tabled by Manon Aubry, Committee on Economic and Monetary Affairs

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Article 14 01 01 — Expenditure related to officials and temporary staff in the ‘Taxation and customs union’ policy area



14 01 01 50 112 654 50 112 654 52 015 810 52 015 810 51 790 004 51 790 004 225 806 225 806 52 015 810 52 015 810

Reserve

Total 50 112 654 50 112 654 52 015 810 52 015 810 51 790 004 51 790 004 225 806 225 806 52 015 810 52 015 810

Justification: This amendment restores the original annual profile of the budget line for staff of the "Taxation and Customs Union" policy. This policy includes the fight against tax evasion, which costs European citizens 825 billion euros each year, depriving our public services, the ecological transition and the fight against inequalities of funding. The European Union must actively contribute to fighting this phenomenon. As a result, cuts in the personnel of this policy are not acceptable.

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Tabled by Jonás Fernández, Eider Gardiazabal Rubial, Committee on Economic and Monetary Affairs, Nils Torvalds, Gilles Boyer, Stéphanie Yon-Courtin, Sven Giegold, Ernest Urtasun

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Add: 14 03 77 04Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount


14 03 77 04 1 500 000 1 250 000 1 500 000 1 250 000

Reserve

Total 1 500 000 1 250 000 1 500 000 1 250 000

Heading:Preparatory action — EU Tax and Financial Crimes Observatory - Capacity building to support Union policymaking in the area of taxation

Remarks:Add following text:

The abundance of money laundering, tax evasion and avoidance revelations over the last few years has significantly shaken the confidence of European citizens, businesses and trade unions in the robustness and fairness of EU rules against money laundering, tax evasion and tax avoidance. When 3 out of 4 citizens expect the European Union to do more on taxation, it is essential to ensure that public interests and interests of all stakeholders are taken into account in designing initiatives aiming at strengthening European rules against financial crimes, tax evasion and tax avoidance

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This Preparatory Action aims at creating a specialized and independent observatory on EU tax and financial crime matters, with its main functions being:

– create a publicly-available repository of data on tax evasion and tax avoidance in the EU and the effects of policy reform in these domains;

– disseminate the available data in a user-friendly manner and inform the wider public of issues related to tax fairness, including related issues like anti-money laundering rules, for business and individual taxpayers and the wider public.

– ensure secretarial and management functions for a future multi-stakeholder expert forum (to be created); Amongst other, the forum would be a consultative body in charge of methodological guidance in the area of taxation and financial crime.

– based on the work of the forum, produce evidence and recommendations related to fighting tax evasion, tax avoidance, and financial crime;

– participate in Union policymaking in the area of taxation and financial crime, with a view to providing policymakers with robust and diversified expertise;

– liaise with different international organisations and national administrations on issues related to EU tax and anti-money laundering policy making (i.e. anti-money laundering legislation is necessary to counter tax evasion)

Given the role of this Observatory, we suggest that the leadership for the implementation of this preparatory action is taken by Directorate General (DG) TAXUD within the European Commission, in close collaboration with other relevant DGs.

Legal basis:Add following text:

Preparatory action within the meaning of Article 54(2) of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

Justification:It is essential to have a body with a specific mandate to follow EU decision-making in the area of taxation and financial crime, provide new elements of information and representing voices which are currently absent from the debate. The current lack of quality data specific to the EU and absence of a broad range of stakeholders, currently limited to the business sector, tax administrations (trade unions), or NGOs having a narrow mandate to discuss EU taxation policies (related to the environment, development or the fight against corruption) call for the set up of this body.

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Tabled by Jonás Fernández, Committee on Economic and Monetary Affairs

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Article 12 02 06 — European Securities and Markets Authority (ESMA)



12 02 06 27 235 160 27 235 160 24 017 376 24 017 376 24 017 376 24 017 376 1 200 869 1 200 869 25 218 245 25 218 245

Reserve

10

Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount


Total 27 235 160 27 235 160 24 017 376 24 017 376 24 017 376 24 017 376 1 200 869 1 200 869 25 218 245 25 218 245

Justification:The revision of the ESAs architecture will increase the responsibilities of ESMA. ESMA is, in particular, given a coordinating role of national actions in the areas of Financial Technologies (FinTech) and promoting sustainable finance, including when conducting union wide stress tests to identify which activities could have a negative effect on the environment. Those new missions will require additional resources which is why it is proposed to increase ESMA appropriation by 5%.

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Article 01 03 05 — European Union guarantee for European Investment Bank loans and loan guarantees for operations in third countries

Amend remarks as follows:Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount


01 03 05 p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.

Reserve

Total p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.

Remarks:After paragraph:

This article constitutes the structure for the guarantee .......... a debtor default on the loans granted by the EIB.

Add following text:

In order to honor its obligations, notably climate change adaptation and mitigation and transition to climate resilient low-carbon societies in particular by supporting the implementation of the Paris Agreement and the Sustainable Development Goals both internally and externally to the EU, the guarantee shall not be triggered shall the project(s) involved be linked with the extraction, transport or use of any kind of fossil fuels.

Justification:The EU formally ratified the Paris Agreement in 2016 and has committed to implement the Sustainable Development Goals both in its internal and external policies, therefore all its investments tools should be in line with this ratification. In addition, the European Commission called for a climate-neutral Europe by 2050, a call followed by a majority of EU Member States and by the European Parliament.

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Article 12 02 04 — European Banking Authority (EBA)



12 02 04 19 158 256 19 158 256 18 973 718 18 973 718 18 973 718 18 973 718 2 000 000 2 000 000 20 973 718 20 973 718

Reserve

Total 19 158 256 19 158 256 18 973 718 18 973 718 18 973 718 18 973 718 2 000 000 2 000 000 20 973 718 20 973 718

Justification:Amended Regulations establishing ESAs and Regulations on financial markets was adopted on April 2019. New responsibilities of EBA such as preventing money-laundering and terrorist financing (AML/CTF) will require, according to EBA estimates, approximately EUR 2 000 000 to cover for 12 total FTE, a minimum to ensure newly assigned tasks are efficiently performed. Currently and collectively, the ESAs have 2.2 full time staff working directly on AML/CFT issues, of which 1.8 are at the EBA

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Tabled by Sven Giegold, Committee on Economic and Monetary Affairs

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Article 01 02 01 — Coordination and surveillance of, and communication on, the economic and monetary union, including the euro

Amend figures and conditions for releasing the reserve as follows:Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount


01 02 01 11 730 000 11 500 000 12 000 000 11 000 000 12 000 000 11 000 000 -2 000 000 -2 000 000 10 000 000 9 000 000

Reserve 2 000 000 2 000 000 2 000 000 2 000 000

Total 11 730 000 11 500 000 12 000 000 11 000 000 12 000 000 11 000 000 12 000 000 11 000 000

Conditions for releasing the reserve:Add following text:

The reserve should be released on the condition that the European Commission prepares a new communication strategy to respond in a compelling way and with factual arguments to criticism against the euro, in all European languages.

Justification:The reserve should be released on the condition that the European Commission prepares a new communication strategy to respond in a compelling way and with factual arguments to criticism against the euro, in all European languages.

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Article 01 04 05 — Provisioning of the EFSI guarantee fund



01 04 05 166 879 000 1 000 000 000 152 852 000 1 088 216 000 62 852 000 1 088 216 000 -90 000 000 62 852 000 998 216 000

Reserve 90 000 000 90 000 000 90 000 000 90 000 000

Total 166 879 000 1 000 000 000 152 852 000 1 088 216 000 62 852 000 1 088 216 000 90 000 000 152 852 000 1 088 216 000


The reserve is to be released under the condition that the European Commission/EIB presents a report to the European Parliament on the measurement of the additionality of projects supported under EFSI and how they address sub-optimal investment situations and market gaps.

Justification:The reserve is to be released under the condition that the European Commission/EIB presents a report to the European Parliament on the measurement of the additionality of projects supported under EFSI and how they address sub-optimal investment situations and market gaps.

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Article 12 02 03 — Standards in the fields of financial reporting and auditing



12 02 03 8 615 000 8 515 000 8 788 000 8 739 500 8 788 000 8 739 500 -2 000 000 -2 000 000 6 788 000 6 739 500

Reserve 2 000 000 2 000 000 2 000 000 2 000 000

Total 8 615 000 8 515 000 8 788 000 8 739 500 8 788 000 8 739 500 8 788 000 8 739 500


The reserve is to be released under the condition that the requests made in the European Parliament (Stolojan) initiative report on IAS evaluation and the activities of the IFRS Foundation, EFRAG and the PIOB (2016/2006(INI)) are fulfilled by the IFRS Foundation and the PIOB. In addition, the Commission should report to Parliament's request to assess the possibility of turning EFRAG into a public agency.

Justification:The reserve is to be released under the condition that the requests made in the European Parliament (Stolojan) initiative report on IAS evaluation and the activities of the IFRS Foundation, EFRAG and the PIOB (2016/2006(INI)) are fulfilled by the IFRS Foundation and the PIOB. In addition, the Commission should report to Parliament's request to assess the possibility of turning EFRAG into a public agency.

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Article 12 02 04 — European Banking Authority (EBA)



12 02 04 19 158 256 19 158 256 18 973 718 18 973 718 18 973 718 18 973 718 1 897 372 1 897 372 20 871 090 20 871 090

Reserve

Total 19 158 256 19 158 256 18 973 718 18 973 718 18 973 718 18 973 718 1 897 372 1 897 372 20 871 090 20 871 090

Justification:The appropriations of EBA are to be increased by 10% given EBA's new and outstanding role and tasks in the European fight against money laundering and terrorist financing and new tasks in the area of consumer protection.

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Article 12 02 05 — European Insurance and Occupational Pensions Authority (EIOPA)



12 02 05 12 374 234 12 374 234 10 762 303 10 762 303 10 762 303 10 762 303 1 076 230 1 076 230 11 838 533 11 838 533

Reserve

Total 12 374 234 12 374 234 10 762 303 10 762 303 10 762 303 10 762 303 1 076 230 1 076 230 11 838 533 11 838 533

Justification:EIOPA's appropriations are to be increased by 10% due to its newly assigned tasks and powers in the area of consumer protection and internal models.

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Article 12 02 06 — European Securities and Markets Authority (ESMA)



12 02 06 27 235 160 27 235 160 24 017 376 24 017 376 24 017 376 24 017 376 2 401 738 2 401 738 26 419 114 26 419 114

Reserve

Total 27 235 160 27 235 160 24 017 376 24 017 376 24 017 376 24 017 376 2 401 738 2 401 738 26 419 114 26 419 114

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Justification:ESMA's appropriations are to be increased by 10% due to its newly assigned tasks and powers in the areas of third country investment firms, EU critical benchmarks, third country benchmarks and consumer protection.

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12 02 77 10 300 000 150 000 300 000 150 000

Reserve

Total 300 000 150 000 300 000 150 000

Heading:Pilot project — Analysing the consequences of common ownership by institutional investors


Over the last few years, a shift of money from actively managed funds to index funds that passively track established benchmark indices can be observed. There are multiple reasons for this recent development. First, private pension has become more important and investors are seeking for products with low costs as offered by passively managed funds in order to maximize their profits. Second, MiFID II has entered into force and introduces stricter governance, accountability and transparency requirements that large investment firms can more easily meet.

Since the index funds industry is highly concentrated in three large investment firms located outside the Union, the high growth of index funds leads to a concentration of ownership in European publicly listed corporations. Additionally, the shift to passively managed index funds increases the market power of the small group of virtually unstudied index providers setting the criteria for the inclusion of companies in key benchmark indices. This situation, first and foremost, causes concerns for the corporate governance of European firms including but not limited to co-determination, long-term investments and location choice. Furthermore, the ‘common ownership’ causes competition concerns. Moreover, the ongoing concentration process within the asset management industry may also have potentially negative consequences for financial stability in the Union.

The pilot project should thus aim at conducting an in-depth analysis of the developments and resulting consequences in the area of index funds and index providers. The analysis should be broad-based, examining (1) parameters of competition with actively managed funds, including the cost and fee structure, the current market and distribution structure and the reasons why money is shifted to index funds, (2) an empirical mapping of common ownership in European publicly listed corporations by institutional investors and its and (3) an analysis of voting behaviour, conflicts of interest, the impact on corporate governance, competition and financial stability in the Union.


Pilot project within the meaning of Article 54(2) of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the

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general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

Justification:Currently, we can observe a concentration of ownership in European publicly listed corporations driven by a rise of passively managed index funds. This pilot project aims at conducting the first analysis of the consequences of common ownership by institutional investors in particular with regard to corporate governance in the Union.

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14 03 77 05 200 000 170 000 200 000 170 000

Reserve

Total 200 000 170 000 200 000 170 000

Heading:Pilot project — Monitoring the amount of wealth hidden by individuals in offshore financial centres and impact of recent internationally agreed standards on tax transparency on the fight against tax evasion


With an original timeframe of two years (2019-2020) this pilot project is complementary to ongoing research implemented by the European Commission. In order to be able to better evaluate the impact of new international and European standards of automatic exchange of information on the amount of wealth hidden by individual in offshore financial centres , it is important to renew this study for a second year. This will help to understand possible evolutions and compare geographical and statistical information to determine trends for the fight against tax evasion in the Union.

Payments (€170000) include outstanding payments for 2018 (€70000) and half of proposed commitments for 2019 (€100000).


Pilot project within the meaning of Article 54(2) of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

Justification:New tax standards have been recently agreed and implemented to increase automatic exchange of tax information among tax authorities in order to fight tax evasion. This pilot project aims at measuring to what extent these measures are effective in curbing international tax evasion as tax evaders might find new loopholes or shift their wealth to less compliant jurisdictions.

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Article 29 02 01 — Providing quality statistical information, implementing new methods of production of European statistics and strengthening the partnership within the European Statistical System



29 02 01 72 185 000 56 000 000 74 000 000 71 000 000 74 000 000 71 000 000 -4 000 000 -4 000 000 70 000 000 67 000 000

Reserve 4 000 000 4 000 000 4 000 000 4 000 000

Total 72 185 000 56 000 000 74 000 000 71 000 000 74 000 000 71 000 000 74 000 000 71 000 000


The reserve should be released on the condition that Eurostat presents a strategy to improve the quality of its website to make it more user-friendly with easily accessible information in all EU languages and with the possibility to produce graphics and visualisation of data.

Justification:The reserve should be released on the condition that Eurostat presents a strategy to improve the quality of its website to make it more user-friendly with easily accessible information in all EU languages and with the possibility to produce graphics and visualisation of data.

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Item 33 02 03 01 — Company law



33 02 03 01 900 000 950 000 900 000 1 300 000 900 000 1 300 000 400 000 400 000 1 300 000 1 700 000

Reserve

Total 900 000 950 000 900 000 1 300 000 900 000 1 300 000 400 000 400 000 1 300 000 1 700 000

Justification:This budget line covers company, corporate governance and anti-money laundering and countering terrorist financing. Given increased work within the Commission to check the implementation of AMLD5, assess the risk posed by third countries in terms of their strategic deficiencies and look into the possibility of an anti-money laundering regulation, this budget line should be increased by €400000.

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33 03 77 09 750 000 875 000 750 000 875 000

Reserve

Total 750 000 875 000 750 000 875 000

Heading:Preparatory action — Capacity building, programmatic development and communication in the context of the fight against money laundering and financial crimes


Payments include outstanding payments from 2018 (€500,000) and half of the proposed commitments for 2019.


Preparatory action within the meaning of Article 54(2) of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

Justification:In the light of the challenges revealed by the Panama and Paradise Papers scandals and the fifth revision of the anti-money laundering directive, it is apparent that the Union-level capacity of a wide range of organisations (e.g. NGOs, trade unions and academic communities) in this field needs to be boosted.

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Tabled by David Cormand, Sven Giegold

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33 03 77 10 500 000 250 000 500 000 250 000

Reserve

Total 500 000 250 000 500 000 250 000

Heading:Pilot project — Feasibility study for a European asset registry in the context of the fight against money laundering and tax evasion


As demonstrated by recent tax and money laundering media investigations like the Panama and Paradise Papers, the use of ‘offshore’ structures, like companies, trusts, foundations and financial instruments held in or via other jurisdictions, allows not only the real ownership of wealth to remain hidden, but also

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its location and perhaps its very existence. In the short to medium term, this secrecy allow for this wealth to escape taxation but also creates fertile ground for financial crimes such as corruption, money laundering, tax evasion and avoidance, and the funding of terrorism. In the longer term, this secrecy helps fuelling inequality as approximately 50% of the wealth hidden offshore (wealth held offshore and not reported to authorities) belongs to the top 0.01% of the wealthiest people in the world. Offshore wealth is likely therefore to be a key factor responsible for exacerbating wealth inequality if it remains under-taxed.

Several progress have been made in the past to tackle this secrecy, especially at the European level. Many Member States have land registries, they adopted the directive on administrative cooperation to automatically exchange financial information among themselves (including bank accounts) and with the revision of the anti-money laundering directive, they will soon all have public registries of beneficial owners of companies and registries of trusts’ beneficial owners accessible to persons with a legitimate interest to obtain this information

However, there are still gaps in the availability of important information in order to properly be able to tax wealth in the European Union and fight money laundering. Having a less fragmented approach across the 28 Member States would be beneficial. The European Union should consider the feasibility and modalities of creating an EU-wide registry where details of ownership of certain type of assets are recorded, to ensure the necessary linkages between the existing transparency mechanisms and with the view to add new key information necessary to fight tax evasion and money laundering.

With this pilot project, we would like the Commission to explore how to better collect and link full beneficial ownership information (e.g. registries of land, companies, trusts and foundations; and central depositories of securities ownership) and analyse areas for further work (design, scope, capacity constraints...) for such EU registry. The Commission should especially pay attention to the scope for other assets that could be included in such registry (e.g. bitcoins, art, gold, real estate), to the IT requirements and take into consideration privacy issues.

Through a mapping of existing information (in a public and non-public form) and exchanges with experts in the relevant field (taxation, corruption, money laundering, financial markets, IT and legal experts), this pilot project aims at providing recommendations for the possible creation of an asset registry, which could be turn into policy action in the future, if technical and political conditions are met.



Justification:The use of offshore structures allows the ownership of wealth to remain hidden, undermining the EU's effort to fight tax evasion and money laundering. While initiatives exist to access information about beneficial owners (land registries, upcoming beneficial owner registries for companies and trusts), there are still gaps in terms of accessing available and obtaining new necessary information. Having a centralised system for all EU Member States to have key information about asset ownership would help law enforcers and policy makers in these areas.

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Tabled by José Guilherme Figueiredo Nobre De Gusmão, Committee on Economic and Monetary Affairs

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Article 13 08 01 — Structural Reform Support Programme – Operational technical assistance transferred from H1b (ESF, ERDF and CF)

Amend figures, remarks and legal basis as follows:Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount


13 08 01 30 723 000 14 111 754 74 793 000 33 700 000 49 569 145 33 700 000 -49 569 145 -33 700 000 p.m. p.m.

Reserve

Total 30 723 000 14 111 754 74 793 000 33 700 000 49 569 145 33 700 000 -49 569 145 -33 700 000 p.m. p.m.

Remarks:Delete following text:

This appropriation is intended to cover expenses for the implementation of the Structural Reform Support Programme in order to contribute to institutional, administrative and growth-sustaining structural reforms in the Member States by providing support to national authorities for measures aimed at reforming and strengthening institutions, governance, public administration, and economic and social sectors in response to economic and social challenges, with a view to enhancing cohesion, competitiveness, productivity, sustainable growth, job creation; investment and social inclusion and to contributing to real convergence in the Union, which may also prepare for participation in the euro area, in particular in the context of economic governance processes, including through assistance for the efficient, effective and transparent use of the Union funds.

This support will aim in particular to:

– assist national authorities with their initiatives to design their reforms according to priorities, taking into account initial conditions and expected socio-economic impacts,

– support the national authorities by enhancing their capacity to formulate, develop and implement reform policies and strategies and to pursue an integrated approach ensuring consistency between goals and means across sectors,

– support the efforts of national authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing similar situations, and

– assist the national authorities to enhance the efficiency and effectiveness of human resources management, where appropriate, through definition of clear responsibilities and increase in professional knowledge and skills.

Legal basis:Delete following text:

Regulation (EU) 2017/825 of the European Parliament and of the Council of 17 May 2017 on the establishment of the Structural Reform Support Programme for the period 2017 to 2020 and amending Regulations (EU) No 1303/2013 and (EU) No 1305/2013 (OJ L 129, 19.5.2017, p. 1).

Justification:The guidelineas and measures for 'structural reforms' are all a matter of liberalisation rather than reasonable social reform. There reforms put pressure on labour and social rights, impoverish the poorest Member States in particular, and challenge the member States' right of self-determination.

The SRSP always lead to more liberalisation to the benefit of the multinational companies, and to the detriment of the average citizen.

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Item 02 04 02 03 — Increasing innovation in small and medium-sized enterprises (SMEs)



02 04 02 03 46 542 776 46 379 796 50 601 570 45 197 000 46 601 570 45 197 000 4 000 000 50 601 570 45 197 000

Reserve

Total 46 542 776 46 379 796 50 601 570 45 197 000 46 601 570 45 197 000 4 000 000 50 601 570 45 197 000


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Article 13 08 02 — Structural Reform Support Programme – Operational technical assistance transferred from H2 (EAFRD)

Amend figures, remarks and legal basis as follows:Budget 2019 Draft budget 2020 Council's position 2020 Difference New amount


13 08 02 48 653 000 25 888 246 10 002 000 21 100 000 10 002 000 21 100 000 -10 002 000 -21 100 000 p.m. p.m.

Reserve

Total 48 653 000 25 888 246 10 002 000 21 100 000 10 002 000 21 100 000 -10 002 000 -21 100 000 p.m. p.m.

Remarks:Delete following text:

This appropriation is intended to cover expenses for the implementation of the Structural Reform Support Programme in order to contribute to institutional, administrative and growth-sustaining structural reforms in the Member States by providing support to national authorities for measures aimed at reforming and strengthening institutions, governance, public administration, and economic and social sectors in response to economic and social challenges, with a view to enhancing cohesion, competitiveness, productivity, sustainable growth, job creation,, investment and social inclusion and to contributing to real convergence in the Union, which may also prepare for participation in the euro area, in particular in the context of economic governance processes, including through assistance for the efficient, effective and transparent use of the Union funds.

This support will aim in particular to:

– assist national authorities with their initiatives to design their reforms according to priorities, taking into account initial conditions and expected socio-economic impacts,

– support the national authorities by enhancing their capacity to formulate, develop and implement reform policies and strategies and to pursue an integrated approach ensuring consistency between goals and means across sectors,

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– support the efforts of national authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing similar situations, and

– assist the national authorities to enhance the efficiency and effectiveness of human resources management, where appropriate, through definition of clear responsibilities and increase in professional knowledge and skills.

Legal basis:Delete following text:

Regulation (EU) 2017/825 of the European Parliament and of the Council of 17 May 2017 on the establishment of the Structural Reform Support Programme for the period 2017 to 2020 and amending Regulations (EU) No 1303/2013 and (EU) No 1305/2013 (OJ L 129, 19.5.2017, p. 1).

Justification:The guidelines and measures for ‘structural reforms’ reflect neoliberal policies from a ‘one size fits all’ perspective. This is inadequate, as the difference in structure between the Member States makes central planning impossible. The SRSP disregards subsidiarity and self-determination. For this reason, it would be better to end the programme.

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01 02 77 02 500 000 500 000 500 000 500 000

Reserve

Total 500 000 500 000 500 000 500 000

Heading:Pilot project — Tackling the socio-economic consequences of climate change


This pilot project will finance multi-disciplinary studies and reasearch focussing on the economic consequences of climate change. It will also identify means to change current economic strcutures and policies in order to better adapt to climate change. Furthermore it will finance the dialogue between policy makers and the civil society.



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Justification:Large scale climate change is becoming reality. Its socio-economic consequences (mass migration, changes in production) are likely to be devastating and will have major impacts on Europe's economy. Europe needs to prepare now for the changes that climate change will bring and to adapt its economy accordingly.

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