For the EU institutions the summer break is about to start. For MEPs parliamentary work in Brussels and Strasbourg has come to a standstill and will take up again on 27 August. In the Council the last meeting of the financial services working party is scheduled for 25th of July and the Commission will slow down by the end of the month as well. As every year this is the moment to finalise what needs to be done before the summer hole.
In the EP the co-rapporteurs on the revision of the European Supervisory Authorities have published and presented to colleagues their long awaited draft report earlier this week. MEPs in committee also adopted the report on relations with third countries regarding financial services.
At the Council, the Austrian Presidency has picked up the baton from their Bulgarian predecessors with a very intense meeting schedule including whole day meetings on the ESA review, NPLs, covered bonds, CCP supervision, RRM, EDIS, sustainable finance and sovereign bond backed securities.
The EU Commission on its side is expected these days top adopt a delegated regulation on depositaries safekeeping duties and an implementing act on shareholder rights. The EU institutions also started trilogue negotiations among themselves to find agreement on a common version of the four legislative texts known as the risk reduction measures (CRR 2, CRD 5, BRRD 2 SRMR2). This is currently expected to be the case by the end of the year.
After the summer break and the well-deserved holidays of the respective lawmakers, the legislative train is going to pick up significant speed. Indeed the end of the European legislature is approaching (in practical terms April 2019) and quite a number of open files – including the above – need to be wrapped up by then.
Specifically we are expecting for September the draft reports on cross-border distribution of investment funds and the committee vote on the Pan-European Pension Product (PEPP) in the European Parliament but also discussion of amendments on the ESA review and an exchange of views on the Commission’s covered bonds proposals. In Council the issues discussed in July will be picked up again with further urgency (or not depending on the perspective). At least we are not expecting any more new legislative proposals from the Commission whose officials are busy enough following up their previous proposals and doing their own lobbying with the legislators.
By Antoine Kremer, ABBL & ALFI Head of European Affairs