Explanatory Memorandum to COM(2017)734 - Amendment of Regulation (EU) No 1093/2010 as regards the location of the seat of the European Banking Authority - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2017)734 - Amendment of Regulation (EU) No 1093/2010 as regards the location of the seat of the European Banking Authority. |
|---|---|
| source | COM(2017)734  |
| date | 29-11-2017 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The European Banking Authority (EBA) has been established by Regulation (EU) No 1093/2010. In accordance with Article 7 of that Regulation, EBA is located in London, United Kingdom.
On 29 March 2017 the United Kingdom notified to the European Council its intention to leave the Union, pursuant to Article 50 of the Treaty on European Union.
On 20 November 2017, the 27 remaining Member States, in the margins of the General Affairs Council (Article 50), selected Paris, France, as the new seat for the European Banking Authority.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The act to be amended being based on Article 114 of the Treaty on the Functioning of the European Union ("TFEU"), the amending act should equally be founded on that basis.
• Choice of the instrument
This proposal seeks the amendment of Regulation (EU) No 1093/2010. The corresponding amendment is therefore proposed as an amending Regulation.
• Subsidiarity and Proportionality
The issue of the location of the seat of the Agency falls within the exclusive competence of the Union. The measure is proportionate to the purpose of the proposed Regulation, namely to confirm the new seat of the Agency within Regulation (EU) No 1093/2010.
3. BUDGETARY IMPLICATIONS
The relocation of the European Banking Authority will have budgetary implications, in particular in view of the costs related to the early termination of its current rental contract in London as a consequence of the withdrawal, the costs related to the move itself and the costs related to the installation in the new premises in Paris. As set out in the negotiation directives of the Council of 22 May 2017 for the negotiation of an agreement with the United Kingdom setting out the arrangements for its withdrawal from the European Union, the United Kingdom should fully cover the specific costs related to the withdrawal process, such as the relocation of the agencies based in the United Kingdom.
Some of the relocation costs may have to be pre-financed by the EU budget, prior to the financial settlement. In this respect, the Commission will assess possible additional funding needs to be channelled through the EU budget in cooperation with the European Banking Authority. As necessary, the Commission will present relevant proposals to the European Parliament and the Council in the context of the annual budgetary procedure for 2019, and if necessary for 2018. This concerns for instance the costs related to the move itself. In addition, the costs related to the installation in the new premises will also be presented in the context of the building procedure set out in Article 203 of the Financial Regulation 1 , which requires prior approval from the European Parliament and the Council before contracts related to building projects are concluded. This procedure is expected to be launched as soon as possible (at the latest in early 2018).