# EUR-Lex - 52013PC0434 - EN

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# 52013PC0434

**Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland /* COM/2013/0434 final - 2013/0203 (NLE) */**

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EXPLANATORY MEMORANDUM

Upon a request by Ireland, the Council
granted financial assistance to Ireland on 7 December 2010 (Implementing Decision 2011/77/EU) in support
of a strong economic and financial reform programme aiming at restoring confidence, enabling the return of the economy to
sustainable growth, and safeguarding financial stability in Ireland, the euro
area and the EU.

In line with Article 3(9) of Decision
2011/77/EU, the Commission, together with the IMF and in liaison with the ECB,
has conducted the tenth review of the Irish authorities' progress on the
implementation of the agreed measures as well as of the effectiveness and
economic and social impact of the agreed measures.

Taking into account of intervened
information, the Commission proposes to modify the economic policy conditions
underpinning the assistance. The Commission views the proposed changes to the
economic policy conditions as necessary to ensure the smooth implementation of
the programme and secure the programme's objectives.

2013/0203 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending Implementing Decision 2011/77/EU
on granting Union financial assistance to Ireland

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union,

Having regard to Council Regulation (EU) No
407/2010 of 11 May 2010 establishing a European financial stabilisation
mechanism[1], and in particular Article 3(2) and Article 3(7) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Upon
a request by Ireland, the Council granted financial assistance to it (Implementing Decision 2011/77/EU[2])
in support of a strong economic and financial reform
programme aiming at restoring confidence, enabling the
return of the economy to sustainable growth, and safeguarding financial
stability in Ireland, the euro area and the Union.

(2)       In line with Article 3(9)
of Implementing Decision 2011/77/EU, the Commission, together with the International
Monetary Fund (IMF) and in liaison with the European Central Bank (ECB), has
conducted the tenth review of the Irish authorities' progress on the
implementation of the agreed measures as well as of the effectiveness and
economic and social impact of the agreed measures.

(3)       Following
the political agreement reached by the European Parliament and the Council, it
is expected that the legislation setting up a Single Supervisory Mechanism
(SSM) will be adopted soon. In this context the next EU-wide
stress tests of banks, to be conducted under the aegis of the European Banking
Authority (EBA), will not take place in 2013 as previously expected.

(4)       In preparation for the SSM
entry stress test and with a view to (i) having meaningful diagnostics before
the programme ends and (ii) ensuring as much as possible consistency across
different assessment exercises, Ireland should therefore carry out a series of
supervisory steps, including a preliminary comprehensive balance sheet
assessment, before the end of 2013.

(5)       Ireland has reaffirmed its
commitment to transfer without delay the responsibility for the water sector
from local authorities to a national public utility and to introduce water
charges for households. Ireland has demonstrated good progress in carrying out
the reform of its water sector, including with the enactment of legislation,
the establishment of Irish Water and the completion of operational steps for
the transition process. Technical reasons would justify deferring the
introduction of water charges for households to 2014, without compromising the
reform process as whole.

(6)       In light of these
developments and considerations, Implementing Decision 2011/77/EU should be
amended,

HAS ADOPTED THIS DECISION:

Article 1

Article 3, paragraph 10, of Implementing Decision 2011/77/EU is amended
as follows:

1) point (a) is replaced by the following:

"(a) in accordance with the methodology to
be agreed by end July 2013, complete a preliminary balance sheet assessment
before the end of the programme, as part of the preparatory work towards a
stress test to be conducted in accordance with the new EU methodology."

2) the following point is added:

"(c) communicate to the Commission the
funding model for Irish Water and announce a definitive time-plan for the
introduction of domestic water charges in the fourth quarter of 2014."

Article 2

This Decision
is addressed to Ireland.

Article 3

This Decision
shall be published in the Official Journal of the European Union.

Done at Brussels,

For
the Council

The
President

[1]               OJ L 118, 12.5.2010, p. 1.

[2]               OJ L 30, 4.2.2011, p. 34.