Tag Archives: european parliament

From the Archive: Farage Taken to Task for Lack of Work

This is a blog from November 22nd of last year.  Following a typically pompous and offensive speech by Nigel Farage in the plenary chamber in Strasbourg former Belgian Prime Minister Guy Verhofsadt gave us a few home truths.  It’s a great bit of footage and well worth seeing again to remind ourselves of some of the very serious questions about Farage’s UKIP and how much work they actually do in the interest of the United Kingdom.

Farage Taken to Task for Lack of Work

Guy Verhofstadt, the former Belgium Prime Minister and current leader of the Group of the Alliance of Liberals and Democrats for Europe (ALDE), took Nigel Farage to task today for his lack of work in the parliament.  Mr Verhofstadt pointed out to Mr Farage that it his salary was the greatest waste of tax payers money as he has failed to attend a singe sitting of his committee (the fisheries committee) in two years.

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European Parliament cracks down on bankers’ bonuses

Changes approved by the European Parliament this week will cap bankers’ bonuses to curb speculative risk-taking, step up capital provisions to help banks cope better with crises and stiffen supervision.

This EU banking reform package, scheduled to come into force on 1 January 2014, should also spur growth by making it easier for banks to lend to small firms that drive the real economy.

 The new set of rules is the furthest-reaching banking regulation in the EU to date.

 Bankers’ bonuses

To curb speculative risk-taking, the basic salary-to-bonus ratio will be 1:1. This could be raised to a maximum of 1:2, if approved by at least 66% of shareholders owning half the shares represented, or by 75% of votes if there is no quorum.

 To encourage bankers to take a long-term view, a minimum of 25 % of any bonus exceeding 100% of salary, must be deferred for at least five years.

 Capital requirements and buffers

EU banks will be required to set aside more and better capital as a cushion against hard times, i.e. a minimum of 8% good-quality capital, of which just over half must be Tier 1, the highest-quality, lowest-risk form (a doubling of today’s Tier 1 requirement). This capital must be reasonably liquid, i.e. readily convertible into cash needed to pay depositors and creditors in an emergency.

Banks will also be required to hold a “capital conservation buffer” to absorb losses and protect their capital, and a “countercyclical capital buffer” to ensure that in times of economic growth, they accumulate a sufficient capital base to enable them to continue supplying a stable supply of credit in stress periods.

 Lending to the real economy

To encourage banks to lend to small and medium-sized enterprises (SMEs), the new rules will reduce the nominal risk that they must assign to these loans. This in turn will reduce the amount of capital that they must set aside to cover loans that could turn bad, thus making more available for lending.

Disclosure and supervision

The legislation will require banks to disclose profits made, taxes paid and subsidies received country by country, as well as turnover and number of employees. From 2014, these figures should be reported to the European Commission and from 2015 made fully public.

 Banks will be supervised by EU member states’ competent authorities, in collaboration with the European Banking Authority (EBA), whose supervisory powers will be expanded.

 Regulation and Directive

The package consists of a Capital Requirements Regulation (CRR), and a fourth edition of the Capital Requirements Directive (CRD IV).

The CRR introduces the first single set of prudential rules for banks across the EU. It applies directly to all banks in EU member states. It should help to ensure that the Basel III international standards for bank capital adequacy are fully respected in all EU member states.

The CRD IV allows EU member states some flexibility, such as the right to require their domestic banks to set aside more capital than is required by the legislation, e.g.  to cushion them against property price crashes.

The CRR was approved by 595 votes to 40, with 76 abstentions and the CRD IV by 608 votes to 33, with 67 abstentions.

 However, please note that the new rules must be approved by the Council of Ministers to apply from 1 January 2014.

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Launch of the European Workplace Innovation Network

This week I hosted an event at the Parliament with the Commission to launch the European Workplace Innovation Network (EUWIN).

What became clear during the meeting was that Europe’s businesses are confronted with multiple challenges stemming from increased global competition, the fast pace of technological progress and demographic trends. The recent economic and financial crisis, which hit all Member States and regions in the Union, has compounded the situation.

The meeting discussed the dramatic effect bad working practices can have, not just on the profits and efficiency of the businesses, but the psychological and physical health of employees and employers.  

The European Workplace Innovation Network hopes to be a concrete tool for that purpose. EUWIN will stimulate workplace innovation in Europe by connecting stakeholder from all relevant backgrounds possible, such as businesses; trade unions and employers’ federations; politicians and decision-makers at EU level, in countries and in regions; academic communities; consulting firms; chambers of commerce and industry; business schools and other relevant stakeholders. In that perspective, building on existing structures (national/regional networks, universities’ communities) and pro-actively disseminating their know-how.

While tackling socio-economic problems is primarily the responsibility of national and local government, the EU can play a role in identifying barriers to change and ways of overcoming them, ensuring that existing EU level rules are complied with, stimulating sharing of good practice and mutual learning, and supporting social innovation and Europe-wide approaches.

Workplace innovations are often underappreciated. Yet, they can be very important for the competitiveness of a company, especially small and medium size enterprises.

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Match Fixing Must Become A Crime Throughout the EU

The European Parliament, led by my S&D colleagues Emine Bozkurt and Petra Kammerevert, has urged EU countries to explicitly ban match-fixing in their national criminal law.

It seems incredible, but in many countries throughout Europe, there are no explicit laws against match-fixing like the ones you find in the United Kingdom.

This comes off the back of the Europol investigation which revealed widespread fraud in sport, with 680 football matches across the world believed to have been affected by match fixing
MEPs also called on sports organisations to adopt a zero-tolerance policy on corruption, including a ban on participants betting on their own matches, an obligation to report match-fixing and adequate protections for whistleblowers.

The results of the Europol investigation have made it clear that match-fixing is not simply about cheating. It is about criminal organisations making and laundering money on a global scale through the online gambling market – as we have seen in Germany, Finland, Hungary, Slovenia and Austria.

These criminals know exactly where to go to find the least scrutiny and oversight from public authorities, and which countries still do not have match-fixing on their radar.

The European Parliament has made it clear that we cannot afford to wait until the Council of Europe’s match-fixing convention is signed at the end of 2014 before taking action. This would mean that we have to sit idly by while citizens are threatened and the integrity of sport is undermined – and while criminals have time to invest in new avenues for their criminal operations.

I along with my S&D colleagues, urge the European Commission has to speak out on what they will do today to help safeguard the integrity of sport.

The current scandal exposed by Europol documented a new level of corruption. The protection of sporting integrity can only be achieved through international collaboration.

Match-fixing, corruption and illegal gambling must be tackled consistently and across borders, because organised crime operates worldwide. Therefore member states have to explicitly include match-fixing in their national criminal law and include appropriate sanctions.

Furthermore, regulatory bodies must be set up to identify and combat illegal activities and corruption in sports.

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Women are facing a silent, pernicious crisis

The European Parliament’s Committee on Women’s Rights and Gender Equality has called for a halt to budget cuts,  particularly cuts in social expenditure that affect women more than men.

In a resolution the Committee approved a set of proposals to address the impact of the crisis on gender equality including investing in lifelong training and new jobs, public transport, and developing child care facilities.

Women have been punished twice since the start of the economic crisis, by losing their jobs and working part-time. Austerity measures and cuts in the public budget, unemployment, temporary work and low salaries affect women more than men.

The resolution’s rapporteur told the Women’s Committee that women are facing a silent, pernicious crisis which worsens their condition. Even before the crisis more women than men were affected by unemployment, precarious work, part-time work, low wages and slow careers. Today, as a result of austerity policies, they suffer a double punishment. This is an issue at the heart of political equality and employment. 

Women leaving employment or reducing their hours as a result of cuts in social security benefits and welfare infrastructure, such as education, childcare, health and care services, have further feminised poverty. Part-time employment has a long term impact, not only diminishing income, but pensions as well. Committee members believed that despite unemployment rates for men and women being comparable, the crisis affects the latter differently: working conditions for women have become considerably more insecure, their income has diminished, part-time and fixed-term jobs have grown to the detriment of more stable employment.

MEPs called on the European Commission to oppose budget cuts, especially in the public sector, to social security benefits and social welfare, education and childcare services. We also called for an action plan for better childcare, developing company and inter-company crèches. The Committee also reiterated its demand for the promotion of female entrepreneurship by facilitating women’s access to microcredits as well as for improving public transport policy to enable women to be truly mobile and to achieve a better work-life balance.

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The European Parliament approves EU-wide unitary patent rules

Inventors across the European Union will soon be able to get a unitary patent. After over 30 years of talks, a new regime will cut the cost of an EU patent by up to 80%, making it more competitive compared to the US and Japan.

The European Parliament today approved the so-called “EU patent package” (unitary patent, language regime and unified patent court).

Intellectual property obviously does not stop at borders. Today’s vote is good news for EU economy and especially for European small and medium enterprises (SMEs).

As a member of the European Parliament Legal Affairs Committee, I know that people in China are telling us that we cannot have a single market without a unitary patent. With the new rules a lot of obstacles for SMEs will be overcome.

The new patent will be cheaper and more effective than current systems in protecting the inventions of individuals and firms. Any inventor will be able to apply to the European Patent Organisation (EPO, a non-EU body) for an EU unitary patent valid in all 25 EU member states taking part. Patents will be made available in English, French and German. Applications will have to be made in English, German or French. If made in another language, they will have to be accompanied by a translation into one of these three languages. Renewal fees, which account for a large share of total costs, will be set at a level that takes account of the special needs of small firms, so that they can benefit fully from lower costs.

The international agreement creating a unified patent court will enter into force on 1 January 2014 or after thirteen contracting states ratify it, provided that UK, France and Germany are among them. The other two acts would apply from 1 January 2014, or from the date when the international agreement enters into force, whichever is the latest. Spain and Italy are currently outside the new regime, but could decide to join in at any time.

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The EU budget explained

We are hearing a lot at the moment about the EU Budget and the wrangling surrounding it.  I thought it would be a good time to write a blog about what the EU Budget actually is and what could happen if no agreement is reached.

There are two different budgets in the European Union; one is the annual budget which sets spending levels each year.  The next, and the one causing the current controversy, is the Multiannual Financial Framework (MFF), which is a seven year spending plan for the EU. It defines the maximum amounts for each major category of spending (e.g. structural funds, agriculture, research and innovation and development spending).  The current MFF (2007-2013) is due to expire and an agreement must be reached on the new MFF by the end of the year. 

Though the negotiations are ongoing, the final budget, if it is agreed, will be in the region 0.8-1trillion euros for the entire seven year period.

That is a lot of money, but still only amounts to around 1% of the EU’s GDP; this is especially low when you consider that, at the national level, budgets in the EU average 50% of GDP.  Also, something worth pointing out is that none of this money is borrowed and contributes in no way to any national debt.

The budget is proposed by the European Commission and is then amended and approved by the European Council and European Parliament.  The European Council must pass the budget unanimously for it to go through.

At the moment the Commission is proposing what they call a “freeze” in the next MFF, using the 2013 maximum expenditure level plus 2% inflation. The Commission have also placed some items, for instance the Global Monitoring for Environment and Security (GMES), “off budget”, which will have to be paid for by the member states. 

The Council is split on the issue with the many of the net recipients wanting to go along with the Commission proposal (or higher) and the net contributors who want a smaller budget. Two groups emerged in the Council – “Friends of better spending” and “Friends of Cohesion”. The current Council proposal is for a EUR 79 billion cut compared to the Commission’s draft budget. The consequence of that would be to reduce the amount for structural funds (used to address inequalities between member states) from EUR 354 billion (2007-2013) to EUR 309 billion (2014-2020). CAP would also be reduced.

The European Parliament, which must approve the budget for it to pass, has made its position on the MFF clear. It believes that the level proposed by the Commission is not sufficient. The EP calls for an increase of at least 5% above the 2013 ceilings. The EP also voted in favour of scrapping rebates and correction mechanisms and reform of the own resources system (e.g. linking the EU budget to a financial transaction tax and new VAT tax).  The Labour members of the European Parliament, myself included, voted against the proposed 5% increase , preferring to support a real terms freeze.

As things stand now, if a compromise cannot be found, the maximum expenditure level, plus inflation, for the 2013 budget rolls over until an agreement can be reached.  This would result in a budget far exceeding the proposed real terms freeze.

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No modern democracy without gender equality

A new coalition of MEPs has just been established with the aim of achieving a 50/50 gender balance across the European institutions. Supported by the European Women’s Lobby, the grouping intends to make sure there is parity between women and men after the 2014 European Elections.

Women make up over half the population of the EU, yet they are not represented equally in decision-making at the European level. Less than 35% of MEPs are women; the same figure applies to Commissioners. As the 50/50 declaration states, “a modern and genuine democracy requires gender equality; the equal representation of women and men in the making of decisions that affect their lives.”

MEPs are being asked to sign the following declaration. I very much hope there will be a strong response so we can look forward to success for 50/50 parity.

NO MODERN EUROPEAN DEMOCRACY WITHOUT GENDER EQUALITY

Introduction: Why is there a need for a cross-party coalition for 50/50 gender balance in all European institutions and a 50/50 campaign ahead of the EU 2014 elections?

In 2014, Europeans will elect a new European Parliament. Will there be gender balance among the MEPs? Will the President of the European Parliament be a woman after 13 years with male presidents?

We will also see a new European Commission led by its President. Will the Commission consist of 50% women and 50% men? Will the President be a woman for the first time?

Women represent more than half of the population of the EU, but they are not represented equally in decision-making at all European levels.

This current and lingering under-representation is a serious obstacle to the democratic legitimacy of the European Union. The EU states that equality between women and men is one of its main objectives and a fundamental value.

Moreover, gender equality in decision-making is mentioned as one of the priorities in the European Strategy for Equality between Women and Men 2010-2015 as well as in The European Pact for Gender Equality (2011-2020).

 Who are we and what are our aims?

To achieve 50/50 gender balance in the European institutions after the elections in 2014, a cross-party coalition of MEP’s came together with the support of the European Women’s Lobby (EWL) to make parity become a reality in the European institutions.

A modern and genuine democracy requires gender equality; the equal representation of women and men in the making of decisions that affect their lives. We are convinced it is high time for concrete actions ahead of the European elections in 2014! We believe that gender equality is a condition for modernising our political systems, so that women and men in their diversity equally share rights, responsibilities, and power. Gender equality should be at the heart of European initiatives to engage citizens in decision-making, to increase the legitimacy of the European Union, and to progress towards policies that reflect the needs and aspirations of all Europeans.

Our demands

We call for all decision-makers, individuals and organisations interested in the promotion of democracy and justice to support this campaign at all levels and across the boundaries of countries and political parties.

Each Member State should nominate one female and one male candidate for theCommissioner’s post as well as for all top jobs/positions in the EU institutions

Member States and the European Council are asked to promote and ensure gender parity in the executive board and in top positions of the European Central Bank

The European Parliament political groups are called upon to nominate one female and one male candidate for the president elections of the European Parliament, and to ensure gender parity in the nomination of chairpersons within the committees, as well as in the composition of their Bureaux.

The European political parties are called upon to promote and ensure gender representation in their bureaux/decisional bodies and promote women candidates for decision-making positions in the European Parliament

In view of the European elections 2014, national political parties are called upon to compose their electoral lists in a way that will ensure gender parity in outcome 

The European Council has to put women in policy decision-making/parity as a high level issue on the agenda. 

At the moment, less than 35% of Members of the European Parliament are women. The European Parliament has been chaired by a woman only twice. After themid-term elections 2012, only three of the 14Vice-Presidents of the Parliament are women. The President of the European Parliament is man. Nine out of 27 Commissioners are women.

Charter of Fundamental Rights of the European Union, Chapter III, Article 23 

Equality between men and women must be ensured in all areas, including employment, work and pay. The principle of equality shall not prevent the maintenance or adoption of measures providing for specific advantages in favour of the under-represented sex. TEU, Article 3.  It shall combat social exclusion and discrimination, and shall promote social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child.

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Farage Taken to Task for Lack of Work

Guy Verhofstadt, the former Belgium Prime Minister and current leader of the Group of the Alliance of Liberals and Democrats for Europe (ALDE), took Nigel Farage to task today for his lack of work in the parliament.  Mr Verhofstadt pointed out to Mr Farage that it his salary was the greatest waste of tax payers money as he has failed to attend a singe sitting of his committee (the fisheries committee) in two years.

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Annual Report 2012

I have recently published my annual report, detailing all the work I’ve done in the last year.  I’ve included it as a tab at the top of the of my blog, but you can read it by following the link here.  I’ve also incuded the Sribd reader below and you can dowload the PDF by following this link: Annual Report 2012.

If you would like a hard copy, please contact my office in London.

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