Читать книгу The economic policy of the european union in the context of the covid-19 crisis - Francisco Jesús Carrera Hernández - Страница 21

Although the EIB has its own personality in terms of the development of the internal market, the statutes governing it can be amended under a special legislative procedure involving EU institutions such as the Council, the European Parliament (hereinafter EP) and the EC. In other words, as a counterweight to the role of the EIB, any amendment to the Bank’s statutes requires the consent of the Council, acting unanimously, in accordance with a special legislative procedure, at the request of the EIB and after consulting the EP and the EC, or on a proposal from the EC, after consulting the EP and the EIB (art. 308 of the TFEU).

Meanwhile, the EP monitors the activities of the EIB on an annual basis. In the Rules of Procedure of the EP, monitoring and control functions are assigned to three permanent parliamentary committees. These include EIB financial activities that are not part of European economic governance50, monitoring of the EIB financial activities51 and relevant EIB financial activities that are part of the European economic governance in the euro area52.

Regarding the monitoring of the EIB’s annual activities, it is necessary to highlight the two resolutions drafted by the EP, adopted on July 9, 2020: a) European Annual Report on the Financial Activities of the EIB (hereinafter Activity Report) and b) European Annual Report on the Control of the Financial Activities of the EIB (hereinafter Activity control report). Although the reports analyzed the activities from 2018 and 2019, that is, prior to the pandemic crisis, I believe that some of the recommendations sent deserve to be highlighted so that, regardless of the current situation, areas so important for development continue to be addressed. The following are the points that I have considered relevant to highlight from both reports:

a) European Annual Report on Financial Activities of the EIB53:

Communications related to “The European Green Deal” of December 11, 2019, and in the field of sustainable development, such as the “Sustainable Europe Investment Plan” of January 14, 202054, and the “Action Plan” to finance this type of development55, among other documents and regulations related to the functions of the EIB, were highlighted. As well as “the commitment of the presidency of the Commission to turn some sessions of the EIB into a climate bank, as well as the principles of the European Green Deal and the decision of the EIB Board of Directors to increase the percentages to at least 50% of EIB financing dedicated to climate action and environmental sustainability no later than 202556”, and the increased financing aimed “to address the technological transition, support the development of capacities adapted to current and future needs of the labor market57”.

Meanwhile, it was reported that the European Ombudsman gave its recommendation on how the EIB handled a claim in relation to the non-compliance of various environmental, health and safety requirements in a project financed by it58.

In addition, in terms of accountability, the EIB Group was requested to guarantee a higher level of transparency and accountability regarding its economic operations59, as well as the reinforcement of communication through its liaison offices in the Member States. Its instruments target public and private agents at national and local levels so that local communities and citizens are duly consulted before and during project implementations60. It was requested to improve accountability to maintain a quarterly dialogue with the relevant EP committees to ensure participation in the EIB investment strategy as well as adequate monitoring. It was also highlighted the importance of the EP exercising greater control over the decisions of the EIB Board of Directors, as well as the possibility of the EP having observer status at the Board of Directors’ meetings to ensure a better flow of information. The EC was asked to increase its transparency towards the EP on the positions it adopts in the EIB Board of Directors. A memorandum of understanding was requested between the EIB and the EP to improve access to EIB documents and data related to strategic orientation and financing policies in the future, in order to strengthen accountability61.

In terms of auditing, it was considered that the rights of the Court of Auditors should be strengthened and cover all its operations and that the audits should include the evaluation of the cost-effectiveness of the EIB’s investment efforts and the additionality of its projects; EIB investment, as well as its projects, had to be published. The EIB was requested to intensify its collaboration with the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO), and to report all possible cases of fraud to the national authorities. It was considered that, in the future, the EPPO should have the competence to prosecute criminal activities with regard to EIB funds in the Member States of the Union belonging to EPPO62.

Regarding tax evasion, it was requested to reinforce this policy, as well as the use of hybrid asymmetries, preferential treatment of intellectual property rights or the use of low-tax or no-tax jurisdictions to transfer benefits. The other European financial institutions were asked to apply equivalent standards. The EIB was also asked to use its full range of anti-tax avoidance tools for risk-sensitive projects in its duty of tax due diligence, and to resort to offshoring obligations when necessary. Finally, it is worth highlighting the request for an update in accordance with the Fifth Anti-Money Laundering Directive, in force since January 2020, in terms of cooperation between authorities, sanctions against infringements of the law and strict regulations on financial intermediaries63.

b) European Annual Report on the Control of Financial Activities of the EIB64:

Regarding the activities of the EIB, the report addresses issues related to governance, accountability and transparency for 2018. It made recommendations regarding a) reviewing the Code of Conduct of the Management Committee and the Board of Directors, b) strengthen internal control frameworks to prevent tax evasion, money laundering, fraud and corruption, c) increasing the transparency of government agencies and projects financed by the Bank, and d) increasing the control of the EP and the Court of Auditors over EIB’s operations.

Furthermore, the aforementioned report indicates that EIB’s operations evolved and diversified due to the growth of EFSI’s activities. Members also called for the EIB to take a leading role in developing a climate-neutral economy at national level.

As can be seen, the recommendations issued in both reports are far-reaching, the action and investment plans developed in such important matters as development, climate, environmental sustainability and technological transition contribute greatly to the purposes for which the EIB was created, which is the development of the States of the Union. As for recommendations to respect environmental requirements, as well as those made in matters of auditing, tax evasion and the fight against fraud, they are so relevant that they must continue to be addressed regardless of the crisis situation due to COVID-19, which does not mean, however, that their follow-up can be reduced.

Likewise, the recommendations issued for the control of financial activities must be addressed immediately, due to their importance, thus avoiding the hearing of transparency or accountability and the prevention of economic crimes.