COUNCIL OF THE EUROPEAN UNION latest

Council of the European Union      31/5/2017 | Conservation of Atlantic tunas: international measures become EU law On 31 May 2017 the Council agreed with the European Parliament on how to incorporate into EU legislation measures adopted by the International Commission for the Conservation of Atlantic Tunas (ICCAT).  The agreed regulation laying down management, conservation and control measures applicable in the Convention Area of ICCAT not only covers all ICCAT recommendations since 2008, with the exception of the multiannual recovery plan for bluefin tuna in the eastern Atlantic and Mediterranean which is subject to a separate transposition process, but also takes account of developments in EU legislation, for instance in the fields of controls and illegal, unreported and unregulated fishing. Fisheries continues to be a high priority for the Maltese presidency. With this agreement we make sure that important decisions on highly migratory species in international fora are fully part of EU law. Hon. Roderick Galdes, Maltese parliamentary secretary for agriculture, fisheries, and animal rights The International Commission for the Conservation of Atlantic Tunas is an inter-governmental fishery organisation responsible for the conservation of tunas and tuna-like species in the Atlantic Ocean and adjoining seas. The European Union has been a contracting party since 1997.  Next steps  The agreement still needs to be approved by the Council's Permanent Representatives Committee (Coreper). After formal endorsement by the Council, the new  legislation will be submitted to the European Parliament for a vote at first reading and to the Council for final adoption. 29/05/2017 Council agrees stricter car emissions rules Council agreed new rules that improve control of car emissions tests. Under new rules, the cars would be tested in real-world driving conditions and not only in laboratories. There would be more checks on cars and fines for emissions cheating. The Council agreed on a general approach to reform the system of type-approval and market surveillance for motor vehicles. This major reform will modernise the current system, adapt it to new technologies available on the market and improve control tests on car emissions data. "Public health, air quality and innovation are at the core of this agreement. The only way to restore and increase trust in the European automobile industry is to help to develop clean and safety technologies. Reliable control tests for cars will be established so that emission irregularities that happened in the past cannot reappear in the future”, said Chris Cardona, Chair of the Council and Minister for the Economy, Investment and Small Business of Malta. The aim of the reform is to achieve a high level of safety and environmental performance of motor vehicles and to address the main shortcomings identified in the existing type-approval system. The Council general approach will have to be negotiated with the European Parliament before becoming law. The Parliament voted its position on 4 April. Important changes will be introduced in three areas by strengthening: the quality of testing that allows a car to be placed on the market through improved technical services market surveillance to control the conformity of cars already available on the market, with the possibility for member states and the Commission to carry out spot-checks on vehicles in order to detect failures at an early stage the oversight of the type-approval process, in particular through the establishment of a Forum for the exchange of information on enforcement, made up of representatives of national approval and market surveillance authorities All member states agreed to improve the harmonised implementation of the rules across the EU so as to reduce the possible differences in interpretation and application by national type-approval authorities and technical services. They also agreed that more effective market surveillance rules should apply to better detect non-compliance at an early stage. A minimum number of cars to be checked The new market surveillance obligations agreed by the Council would require every country to conduct a minimum number of checks on cars each year. This minimum number of checks will be 1 in every 50,000 new vehicles registered in that country the previous year. The checks will include verification of emissions under real driving conditions. The general approach foresees an obligation for member states to finance market surveillance activities. The fees for type-approval activities would be levied on manufacturers who have applied for type-approval. Those countries with fewer resources to carry out the required tests will be able to ask other countries to carry out the tests on their behalf. More robust oversight to detect failures The Commission will be empowered to carry out tests and inspections of vehicles to verify compliance and react to irregularities immediately. This will increase the independence and quality of the EU type-approval system. The Commission could also impose fines for infringements on manufacturers and importers of up to €30 000 per non-compliant vehicle. An audit system based on peer reviews will be established. The type-approval authorities would be peer-reviewed by two type-approval authorities of other member states at least once every five years. The Commission will be able to participate in peer evaluation teams and should draw up a summary of the outcomes of peer evaluations and make them public. Type-approval authorities however would not be subject to peer evaluation when they designate all their technical services on the basis of accreditation of internationally recognised standards. Furthermore, an advisory Forum for exchange of information on enforcement measures would be established with the purpose to harmonise different interpretations and practises among the member states. This Forum should also examine the outcomes of peer evaluations. In addition, the national authorities will have to submit each year to the Forum a comprehensive overview of their planned market surveillance checks. As far as technical services are concerned, the Council text proposes the involvement of the national accreditation bodies in the assessment of the technical services and the establishment of joint assessment teams. The position of technical services vis-à-vis manufacturers will be strengthened, and will include the right and duty to carry out unannounced factory inspections and to conduct physical or laboratory tests. The technical services will carry out the tests for type-approval under the responsibility of type-approval authorities. The proper functioning of technical services is crucial for ensuring a high level of safety and environmental protection and so maintain consumer confidence in the system. Background The draft regulation to modernise the type-approval system of motor vehicles was presented by the Commission on 27 January 2016. It will replace the EU's current legal framework which is set out in directive 2007/46/EC. It preserves the general purpose of directive 2007/46/EC to facilitate the free movement of motor vehicles in the internal market and apply the principle of mutual recognition by laying down harmonised type-approval requirements. A fundamental overhaul of the existing system, which was designed ten years ago, was already foreseen in the EU's work programme. However, irregularities discovered on the use of illegal defeat devices by certain car manufacturers have made public opinion, authorities and economic operators aware of the need to implement robust provisions on type-approval, as well as to improve testing methods with respect to pollutant emissions from vehicles, to prevent similar cases in the future. General approach on a draft regulation on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles Presidency report Capital markets union: agreement reached on securitisation On 30 May 2017, the presidency reached agreement with European Parliament representatives on proposals aimed at facilitating the development of a securitisation market in Europe.  A framework for securitisation is one of the main elements of the EU's 2015 plan to develop a fully functioning capital markets union by the end of 2019. Developing a securitisation market will help create new investment possibilities and provide an additional source of finance, particularly for SMEs and start-ups.  “This initiative will encourage financial market integration in Europe and make it easier to lend to households and businesses", said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency. "Tonight's agreement with MEPs will allow us to relaunch the securitisation market, defining a model for simple, transparent and standardised securitisations." The agreement will be submitted to EU ambassadors for endorsement on behalf of the Council, following technical finalisation of the text. Parliament and Council will then be called on to adopt the proposed regulation at first reading. Securitisation is the process by which a lender - typically a bank - refinances a set of loans or assets, such as mortgages, automobile leases, consumer loans or credit card accounts, by converting them into securities. The repackaged loans are divided into different risk categories, tailored to the risk/reward appetite of investors.  Following the US subprime cirisis of 2007-08, public authorities took steps to make securitisation transactions safer and simpler, and to ensure that incentives are in place to manage risk. As a result of these reforms, all securitisations in the EU are now strictly regulated. However, in contrast to the United States where markets have recovered, European securitisation markets have remained subdued. This despite the fact that EU securitisation markets withstood the crisis relatively well.  Building on what has been put into place to address risk, the proposals differentiate simple, transparent and standardised (STS) products. The concept of 'simple, transparent and standardised' refers not to the underlying quality of the assets involved, but to the process by which the securitisation is structured.  Issues resolved  One of the main political issues resolved relates to a so-called risk retention requirement. This refers to the interest in the securitisation that originators, sponsors or original lenders of securitisations need to retain themselves. The requirement will ensure that securitised products are not created solely for the purpose of distribution to investors.  The negotiators agreed to set the risk retention requirement at 5%, in accordance with existing international standards and in line with the Council's negotiating position.  Other elements agreed with the Parliament include:  the creation of a data repository system for securitisation transactions, which will increase market transparency; a light-touch authorisation process for third parties that assist in verifying compliance with STS securitisation requirements. The aim is to prevent conflicts of interest. The text makes clear that, even when a third party is involved in the STS certification process, liability for compliance with the rules remains completely with originators, sponsors, original lenders and securitisation special purpose entities. Two regulations  The agreement with the Parliament covers two draft regulations:  one setting rules on securitisations and establishing criteria to define STS securitisation; the other amending regulation 575/2013 on bank capital requirements.  The first brings together rules that apply to all securitisations, including STS securitisation, that are currently scatttered amongst different legal acts. It thus ensures consistency and convergence across sectors (such as banking, asset management and insurance), and streamlines and simplifies existing rules. It also establishes a general and cross-sector regime to define STS securitisation.  The text amending regulation 575/2013 sets out capital requirements for positions in securitisation. It provides for a more risk-sensitive regulatory treatment for STS securitisations. The regulations require a qualified majority for adoption by the Council, in agreement with the European Parliament. (Legal basis: article 114 of the Treaty on the Functioning of the European Union.) Council Conclusions on the Commission Action Plan on building a Capital Markets Union Council conclusions on a space strategy for Europe 30/05/2017 | 12:05 The Council held a debate on space policy and adopted conclusions on a space strategy for Europe. Read the full text of Council conclusions