Law on financial participation in the European Stability Mechanism (ESM-Funding Act-ESMFinG)

Unofficial table of contents

ESMFinG

Date of completion: 13.09.2012

Full quote:

" ESM-Funding Act of 13 September 2012 (BGBl. I p. 1918), which is defined by Article 1 of the Law of 29 November 2014 (BGBl. I p. 1821, 2193).

Status:

Amended by Art. 1 G v. 29.11.2014 I 1821, 2193

For more details, please refer to the menu under Notes

Footnote

(+ + + Text proof: 19.9.2012 + + +) 

  

Unofficial table of contents

§ 1 The acquisition of the German share in the capital stock of the European Stability Mechanism; changes in the consolidated lending volume of the European Stability Mechanism and the European Financial Stability Facility

(1) In order to comply with the obligations arising from accession to the European Stability Mechanism, the Federal Republic of Germany shall participate in the total amount of the European Stability Mechanism to be paid in the amount of EUR 80 billion. Euro with an amount of EUR 21.71712 billion and the total amount of callable capital of the European Stability Mechanism of 620 billion euros, with an amount of EUR 168,30768 billion. (2) Federal Ministry of Finance is authorized, for the callable capital, in the amount of 168,30768 To take over billions of euros of warranties. Payments to the callable capital are to be made within the framework of the federal budget

1.

in accordance with Article 9 (2) of the Treaty establishing the European Stability Mechanism, in order to restore the original amount of the paid-in capital if the paid-in capital is paid by the compensation of a default in payment to agreed sum of EUR 80 billion;

2.

in accordance with Article 9 (3) of the Treaty establishing the European Stability Mechanism, in order to avoid a delay in the European stability mechanism in the fulfilment of its payment obligations;

3.

pursuant to Article 25 (2) of the Treaty establishing the European Stability Mechanism, in the context of a temporarily revised increased capital call;

4.

pursuant to Article 9 (1) of the Treaty establishing the European Stability Mechanism, on the basis of a unanimous decision of the Board of Governors of the European Stability Mechanism.

(3) The Federal Government shall be authorized by its representative on the Board of Governors to take a decision pursuant to Article 10 (1) of the Treaty establishing the European Stability Mechanism for the modification of the consolidated lending volume of The European Stability Mechanism and the European Financial Stability Facility, within the meaning of Article 39 of the Treaty establishing the European Stability Mechanism, shall be approved in so far as the financial resources allocated to the implementation of the European Financial Stability Facility by 30 March 2012 shall not be deducted from the calculation of the consolidated lending volume within the meaning of Article 39 of the Treaty establishing the European Stability Mechanism, up to an amount of EUR 200 billion be brought. Unofficial table of contents

§ 2 Granting of stability assistance through the European Stability Mechanism

The European Stability Mechanism shall be entitled, under the conditions laid down in the Treaty establishing the European Stability Mechanism, and in accordance with the procedure laid down in that Treaty, to a Contracting Party to the European Stability mechanism to provide stability assistance where this is essential to maintain the financial stability of the monetary union as a whole and its Member States. The instruments of stability assistance available to the European Stability Mechanism are pre-order grants, financial aid for the recapitalisation of financial institutions of a contracting party, loans and the purchase of bonds issued by a Party on the primary or secondary market. Grants for the recapitalisation of financial institutions may be granted to a Contracting Party or to its application directly to financial institutions of that Contracting Party. Unofficial table of contents

Section 3 Budgetary and Stability Responsibility

(1) The German Bundestag shall, in matters of the European Stability Mechanism, assume its responsibility for the budget and for the existence and further development of the stability of the Economic and Monetary Union, in particular in accordance with the conditions laid down by the (2) The German Bundestag advises and decides on templates according to this law within a reasonable period of time. In doing so, it shall take account of the deadlines set for decision-making at the level of the euro area. Unofficial table of contents

Section 4 Parliament's reservation for decisions in the European Stability Mechanism

(1) In matters of the European Stability Mechanism, which relate to the overall fiscal responsibility of the German Bundestag, it shall be exercised by the plenum of the German Bundestag. Overall responsibility for budgetary policy is particularly affected

1.

in the case of the decision referred to in Article 13 (2) of the Treaty establishing the European Stability Mechanism, a Contracting Party to the European Stability Mechanism, at the request of the European Stability Mechanism, stability assistance in the form of a Treaty establishing the European Stability Mechanism to grant the financial assistance facility provided for by the European Stability Mechanism;

2.

on the adoption of an agreement on the financial assistance facility referred to in the third sentence of Article 13 (3) of the Treaty establishing the European Stability Mechanism, a consent to a corresponding memorandum of understanding referred to in Article 13 (4) of the Treaty establishing the European Stability Mechanism and, in the case of the granting of financial assistance directly to financial institutions, in the event of the adoption of an institution-specific agreement,

3.

in the case of decisions taken under the European Stability Mechanism to modify the authorised capital stock and the maximum lending volume referred to in Article 10 (1) of the Treaty establishing the European Stability Mechanism; Article 2 Paragraph 1 of the Law on the Treaty of 2 February 2012 establishing the European Stability Mechanism remains unaffected,

4.

in the case of decisions taken within the framework of the European Stability Mechanism, on the establishment and modification of the limits of the total resources available for a given financial assistance instrument.

(2) In cases relating to overall fiscal responsibility, the Federal Government may only agree to a proposal for a decision on matters of the European Stability Mechanism by its representative, or in the case of a decision-making after the plenary has adopted a decision to approve it. Without such a decision by the plenary, the German representative must reject the proposal for a decision. The representative of the Federal Government has to participate in the decision-making process. (3) In accordance with Article 5 (6) (m) of the Treaty establishing the European Stability Mechanism, the Board of Governors shall be transferred to the Executive Board, § § 3 to 6 shall apply accordingly. Unofficial table of contents

§ 5 Participation of the Budget Committee of the German Bundestag

(1) In all other matters of the European Stability Mechanism, which affect the budgetary responsibility of the German Bundestag, in which a decision of the plenary is not provided for in accordance with § 4, the Committee on Budgets of the European Parliament shall be responsible for the German Bundestag is involved. The Committee on Budgets supervises the preparation and implementation of the agreements on stability assistance. (2) The prior approval of the Committee on Budgets requires:

1.

decisions on the provision of additional instruments without changing the overall financing volume of an existing financial assistance facility or substantial changes to the terms of the financial assistance facility;

2.

Decisions on the retrieval of capital referred to in Article 9 (1) of the Treaty establishing the European Stability Mechanism and the adoption or substantial modification of the arrangements and conditions applicable to the capital calls referred to in Article 9 (4) of the Treaty establishing the European Stability Mechanism,

3.

the adoption or substantial amendment of the guidelines for the implementing procedures of each of the European Stability Mechanism, in accordance with Articles 14 to 18 of the Treaty establishing the European Stability Mechanism, and in accordance with a Decision pursuant to Article 19 of the Treaty establishing the European Stability Mechanism, financial assistance instruments, the pricing guidelines referred to in Article 20 (2) of the Treaty establishing the European Economic Community Stability mechanism, the guidelines for borrowing operations referred to in Article 21 Paragraph 2 of the Treaty establishing the European Stability Mechanism, the guidelines for the investment policy referred to in Article 22 (1) of the Treaty establishing the European Stability Mechanism, the guidelines for the policy on dividends pursuant to Article 23 (3) of the Treaty establishing the European Stability Mechanism and the provisions relating to the establishment, management and use of other funds referred to in Article 24 (4) of the Treaty establishing the European Community the stability mechanism,

4.

the detailed rules and conditions governing the capital changes referred to in Article 10 (2) of the Treaty establishing the European Stability Mechanism,

5.

the adoption of provisions or interpretations of the professional secrecy referred to in Article 34 of the Treaty establishing the European Stability Mechanism.

In these cases, the Federal Government may only agree to a proposal for a decision in matters of the European Stability Mechanism by its representative, or abstain from taking a decision after the Committee on Budgets has adopted a decision on this matter. the decision to be adopted. The Federal Government may also make a corresponding request in the Committee on Budgets. Without such a decision by the Committee on Budgets, the German representative must reject the proposal for a decision. The representative of the Federal Government has to take part in the decision-making process. (3) In the cases not covered by paragraph 2, which affect the budgetary responsibility of the German Bundestag, the Federal Government has to involve the Committee on Budgets and to take account of its opinions. This shall apply in particular to decisions on the disbursing of individual tranches of the stability assistance granted. (4) The Governor appointed by Germany pursuant to Article 5 (1) of the Treaty establishing the European Stability Mechanism, and whose substitutes are obliged to inform the Committee on Budgets of the German Bundestag, at the request of at least one quarter of its members, which must be assisted by at least two political groups in the committee, and to provide information on (5) to the extent that they are not subject to facts pursuant to Section 6 of this Act. (5) The plenary of the German Bundestag may, at any time, draw on the powers of the Committee on Budgets by means of a decision taken by a simple majority and exercise it by simple decision. (6) A request or a presentation by the Federal Government is considered to be the Committee on Budgets referred to in the Rules of Procedure of the Bundestag. Paragraph 70 of the Rules of Procedure shall apply accordingly, with the request of one-quarter of the members of the Committee on Budgets to be supported by at least two political groups in the committee. Unofficial table of contents

§ 6 Participation by a special body

(1) Where a purchase of government bonds on the secondary market under Article 18 of the Treaty establishing the European Stability Mechanism is planned, the Federal Government may invoke the special confidentiality of the matter. The special confidentiality is provided, provided that the fact of deliberation or decision-making has to be kept secret in order not to thwart the success of the measure. The acceptance of the special confidentiality is to be justified by the Federal Government. (2) In this case, the rights of participation referred to in § § 4 and 5 may be exercised by members of the Committee on Budgets, which are the members of the German Bundestag for the duration of a parliamentary term in secret ballot with the majority of the members of the German Bundestag (special committee). The number of Members and an equal number of alternates shall be the smallest possible, in which each political group shall be able to appoint at least one member, the majority of which shall be respected, and the composition of the plenary sitting. is reflected. The special body elected pursuant to Section 3 (3) of the Stabilisation Mechanism Act shall exercise the rights under this Act. An election according to sentences 1 and 2 takes place for the first time in the parliamentary term, in which no board can be elected according to § 3 (3) of the Stabilisation Mechanism Act after the expiry of the Stabilization Mechanism Act. (3) Special bodies may immediately object to the adoption of special confidentiality. In the event of the objection, the plenum shall accept the rights of participation referred to in § 4 and the Committee on Budgets. (4) The special committee shall report to the German Bundestag on the content and outcome of its deliberations, as soon as the reasons for there is no special confidentiality. Unofficial table of contents

§ 7 Information by the Federal Government

(1) The Federal Government shall, in matters of this law, comprehensively inform the German Bundestag and the Bundesrat in writing of this law at the earliest possible date, and as a rule in writing. It has the opportunity to give its opinion and take account of its opinions. (2) The Federal Government shall provide the German Bundestag with all the information it has available to the German Bundestag. Documents relating to the exercise of the rights of participation of the German Bundestag. It also transmits these documents to the Federal Council. (3) The German Bundestag and the Bundesrat shall take into account the special protection requirements of current confidential negotiations by means of confidential treatment. (4) In the case of the The Federal Government shall forward to the German Bundestag and to the Bundesrat, in accordance with Article 13 (1) of the Treaty establishing the European Stability Mechanism, a request for stability by one of the parties to the European Stability Mechanism. , within seven days of the submission of the application, an initial assessment of the content and scope of requested assistance. If the Federal Government intends to agree to the granting of stability assistance in accordance with Article 13 (2) of the Treaty establishing the European Stability Mechanism, it shall provide in good time a comprehensive assessment of the content and scope of the programme. the aid requested and an opinion on the evaluation of the European Commission in accordance with Article 13 (1) of the Treaty establishing the European Stability Mechanism and an assessment of the financial consequences. (5) The The Committee on Budgets of the German Bundestag is also regularly informed about the Financial management of the European Stability Mechanism, as defined in Chapter 5 of the Treaty establishing the European Stability Mechanism, in writing. In addition, the Federal Government shall forward to it the quarterly financial statements drawn up pursuant to Article 27 (2) of the Treaty establishing the European Stability Mechanism and the profit and loss account of the European Stability mechanism. (6) The continuous briefing of the Federal Government also contains information on the respective consideration of the opinions of the German Bundestag and the Committee on Budgets of the German Bundestag, which have been issued under this law. Bundestag (s) during the negotiations. (7) The information requirements referred to in paragraphs 1 to 6 may be restricted to the members of the special body in cases of special confidentiality pursuant to Section 6 (1), as long as the reasons for the special confidentiality exist. In the event of these reasons, the Federal Government shall immediately recover the information provided to the German Bundestag. (8) The information on the information referred to in paragraph 5 shall also be provided to the Federal Council by the Federal Government. The Federal Government also provides information on the respective consideration of opinions of the Federal Council in matters of this law. In the cases referred to in paragraph 7, the Federal Council shall be informed if the reasons for the special confidentiality are no longer available. (9) The representatives appointed by Germany or by the German governor in the European Stability Mechanism may not rely on the obligation of confidentiality pursuant to Article 34 of the Treaty establishing the European Stability Mechanism in relation to a request for information by the German Bundestag and its committees and its members. (10) The rights of the German Bundestag from the Act on the Cooperation of the Federal Government and the German Bundestag in matters of the European Union and the rights of the Bundesrat from the Act on the Cooperation of the Federal Government and the Länder in matters of the European Union remain unaffected. Unofficial table of contents

Section 8 Entry into force

This Act shall enter into force on the day following the date of delivery.