51997IP0105

A4-0105/97

Resolution on the report from the Commission to the Council and the European Parliament: Review of the facility providing medium-term financial assistance for Member States' balances of payments - Council Regulation 88/1969/EEC (COM(96)0545 - C4-0588/96)

The European Parliament,

- having regard to the Report from the Commission to the Council and the European Parliament (COM(96)0545 - C4-0588/96),

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinion of the Committee on Budgets (A4-0105/97),

A. whereas the facility for Member States' balances of payments can, and from time to time does, perform a useful stabilising function,

B. whereas Member States which are not part of EMU from 1 January 1999 may continue to require support in stabilizing their balances of payments,

C. whereas a possibility of support for balance of payments problems will continue to be required by new Member States joining the European Union which do not immediately join EMU,

D. whereas the costs of the balances of payment facility are borne in their entirety by the beneficiary countries, while thanks to the guarantee from the Community's budget the interest payable is exceptionally low,

E. whereas the EC Treaty has opened up the possibility of a Community loan instrument for the third stage of EMU but whereas the preparatory work has not yet been carried out by the Commission,

F. whereas the instruments available to the Union and the Member States for cushioning economic shocks in EMU are not excessive, and whereas a Community loan facility similar to the facility for assistance for balances of payments would be useful and is necessary,

1. Recommends to the Council that the current facility for assistance for balance of payments be retained even when EMU commences;

2. Calls on the Commission to draw up and submit to Parliament and the Council, pursuant to Article 103a(2) of the EC Treaty, a regulation for an assistance facility to help a Member State in difficulties or seriously threatened with severe difficulties;

3. Recommends to the Commission that when drawing up an assistance facility to promote economic and monetary stability it be guided by the existing facility for assistance for balances of payments, but that it make the maximum level of the facility dependent on a percentage of the GDP of the participating Member States;

4. Instructs its President to forward this resolution to the Commission and the Council.