Randzio-Plath demands voice for MEPs on new finance laws

By Peter Chapman

Date: 26/02/04

CHRISTA Randzio-Plath, the chairwoman of the European Parliament's economic and monetary affairs committee, has spelt out the assembly's demands in return for approving plans to shake-up lawmaking in the EU's multi-trillion euro banking, insurance and pension markets.

The German told European Voice that MEPs will demand "guarantees" from Romano Prodi, the Commission president, and the Council of Ministers, ensuring the views of Parliament are taken into account when rules are fine-tuned and implemented.

She was responding to the moves by EU leaders and the Commission to put in place a fast-track procedure for setting and implementing laws covering these vital financial services sectors.

The controversial system, proposed by a panel of 'wise men' led by Alexandre Lamfalussy, has already been put in place for laws covering the EU securities market.

Under it, the Parliament and Council agree jointly on the framework laws covering broad policy goals in specific sectors.

Once these are in place, most of the responsibility for fleshing out the laws goes to senior officials drawn from member states. National regulators in a series of committees then have the job of ensuring the rules are implemented in a uniform way.

This system has prompted suspicion in Parliament that important decisions about citizens' investments would be left in the hands of governments, technocrats and the Commission - and that MEPs would be robbed of the opportunity of tabling any amendments.

Randzio-Plath insisted it is too soon to "rush into" extending the Lamfalussy system to banking, insurance and pensions, a mere two years after the process was launched to tackle a raft of technical securities market laws. "We don't have a full picture of the effects of Lamfalussy," Randzio-Plath explained.

The German MEP said there were concerns over the way the largest industry organizations, with large lobbying budgets, would wield too much power in the way the fine details are worked out once the general framework laws have been adopted.

She said member states were also given too much leeway to interpret how they would implement the detailed rules.

But instead of blocking the proposal, MEPs would insist they were kept in the loop when key decisions are made, she said.

First, she said, deputies must have a "call-back" right, giving them the chance to oppose the implementation of measures they do not like.

MEPs will also impose a "sunset clause", that limits the delegation of powers to the Commission to use the new system on various laws to four years, subject to renewal.

Moreover, she says, finance ministers must promise "not to go against a decision of a majority in the Council", instead of pressing ahead if there is a "predominant position" - a situation which could see the EU's heavyweights grabbing too much control of lawmaking in the financial sector.

"We want assurances [on these points] from Mr Prodi and finance ministers," Randzio-Plath insisted.

She said the main political groups in the Parliament had signalled their support for her report on the issue, which needs to be formally rubber-stamped by Parliament.

Lamfalussy told the economic and monetary affairs committee this week that he supported the extension of his system - designed to ensure EU laws can be more quickly put in place and adapted to meet market needs.

But Randzio-Plath said he, too, supported the need for Parliament to have the chance to raise the red flag.

Interview with Christa Randzio-Plath in which the German MEP said that MEPs would demand 'guarantees' from European Commission President Romano Prodi and the Council of the European Union, ensuring the views of the Parliament are considered when rules for the EU's insurance and pension markets are revised.