Select Committee on European Communities Report


5.  EC FINANCIAL REGULATION : AMENDMENTS TO SOLVENCY AND CAPITAL ADEQUACY DIRECTIVES

Letter from Helen Liddell MP, Economic Secretary to the Treasury, to Lord Tordoff, Chairman of the Committee

  I wrote to you on 10 November 1997[3] to explain that the Luxembourg Presidency was seeking to obtain political agreement to three amending directives[4] covering capital requirements for credit institutions and investment firms. Political agreement was reached at ECOFIN on 17 November but the Council could not move to common position as the European Parliament had yet to complete its first reading of the amendment to the Capital Adequacy Directive (CAD2).

  The European Parliament completed its first reading in December and we expect the Commission to adopt its amended CAD2 proposal incorporating the European Parliament's amendments in the next few days. This will allow the Council to formally move to common position on all three directives.

  There are no substantive differences between the European Parliament's amendments, the Commission's amended proposal and the political agreement text on CAD2. There is a small drafting change in the last sub-paragraph of point seven in Annex VIII—the wording now reads ". . . institutions shall notify promptly, and in any case no later than within five working days, the competent authorities . . .". In addition, the three texts have been tidied up by jurists/linguists and as such there is some re-ordering of paragraphs.

  As Presidency, we would like to move to common position on all three amending directives at the first available Council following the adoption of the Commission's amended proposal. This could be as early as the Telecoms Council on 26 February but hopefully no later than ECOFIN on 9 March. My officials will send the relevant texts to the Clerk of your committee as soon as they are available.

16 February 1998


3   CAD2 directive-doc no 9406/97 COM(97)71: "Expanded matrix" directive-doc nos 7441/96 COM(96)183 and 9578/97 COM(97)285; "Mortgages" directive-doc no 5743/96 COM(96)709. Back

4   Printed in Correspondence with Ministers, 11th Report, Session 1997-98, p29. Back


 
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