you're reading...
Economic and Social Policies, EU Financing / Budgetary Affairs, PUBLICATIONS

Solvency Support Instrument [EU Legislation in Progress]

Written by Marcin Szczepański (1st edition),

© Richard Villalon / Adobe Stock

In May 2020, the European Commission adopted a proposal on a Solvency Support Instrument. The aim is to support otherwise viable companies in the Union that face solvency difficulties as a result of the coronavirus crisis, and to mitigate possible distortions to the single market and its level playing field. Such distortions are to be expected given the differing degree to which the Member States are affected and the likely unevenness of their responses, which may depend on their fiscal capacity and level of debt. The Commission proposes to increase the guarantee provided to the European Investment Bank under the European Fund for Strategic Investments and to use it to support financial intermediaries, which will then select companies eligible for solvency help.

At the European Council meeting in July 2020, EU Heads of State or Government did not take up the idea of the solvency support instrument. Both the European Parliament and Commission President, Ursula von der Leyen, have expressed regret at this. Continuing the examination of the proposal in Parliament, the co-rapporteurs have published a draft report in which they propose to widen the scope of eligible companies and ensure fair geographical distribution.

Versions

Proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2015/1017 as regards creation of a Solvency Support Instrument
Committee responsible: Economic and Monetary Affairs (ECON)
Budgets (BUDG) jointly under Rule 58
COM(2020) 404
29.5.2020
Rapporteur: José Manuel Fernandes (EPP, Spain)
Irene Tinagli (S&D, Italy)
Nils Torvalds (Renew Europe, Finland)
2020/0106 (COD)
Shadow rapporteurs: Frances Fitzgerald (EPP), Victor Negrescu (S&D), Billy Kelleher (Renew Europe), Gunnar Beck (ID), Hélène Laporte (ID), Claude Gruffat (Greens/EFA), Henrike Hahn (Greens/EFA), Bogdan Rzońca (ECR), Johan Van Overtveldt (ECR), José Gusmão (GUE/NGL), Dimitrios Papadimoulis (GUE/NGL) Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Adoption of report in joint committee

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,381 other followers

RSS Link to Members’ Research Service

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2019. All rights reserved.

%d bloggers like this: