Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland
Date: 2013-09-27
Institutions: European Commission
Subjects: Community loan, EU aid, Ireland, economic stabilisation, financial aid, macroeconomics, reflation













EUR-Lex - 52013PC0679 - EN











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52013PC0679

Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland /* COM/2013/0679 final - 2013/0326 (NLE) */









EXPLANATORY MEMORANDUM
In order to allow
for a due assessment of compliance with the conditionality under the
macroeconomic adjustment programme for Ireland and to assure a completion of
the final review within the timeframe of the financial assistance, Council
Implementing Decision 2011/77/EU on granting financial assistance to Ireland should be amended. The proposed amendment is of a purely technical nature and concerns
the extension of the availability period of the financial assistance from three
years to three years and two months. The key parameters of the macroeconomic
adjustment programme, notably the duration of the programme and the overall
financial envelope remain unchanged.
In accordance with Article 4 of Regulation
(EU) No 473/2013 on the common budgetary timeline, which entered into force on
30 May 2013, the Irish authorities will publish their draft budgetary plan on
15 October 2013 at the latest. Moreover, the results of the balance sheet
assessment as per programme conditionality are expected by end November 2013.
For a comprehensive and thorough assessment of compliance with the programme
conditionality it is clearly essential to take the information contained in the
draft budgetary plan and the bank diagnostics into account. Therefore, the 12th
and final review mission under the Irish programme cannot start before 15
October 2013. Council Implementing Decision 2011/77/EU currently states that
the financial assistance shall be made available during three years starting
from the first day after its entry into force, which means the availability
period of the assistance ends 8 December 2013. All the processes to complete
the review and prepare the necessary documents would have to be squeezed in the
few remaining weeks before this date, running the risk of lacking time for the
appropriate scrutiny in assessing the compliance as well as failing the
deadline due to an unforeseen event, in which case Ireland would miss out the
final disbursement. To mitigate these risks, the availability period of the
programme could be extended by two months.
It should be
noted that such decision will enhance the predictability of the disbursement
under the programme. At the same time, it enhances the quality of the review
assessment. These effects are beneficial for both creditor and debtor countries
and therefore contribute to the stability of the euro area.
Taking into account the above explanations,
the Commission considers that the changes consisting in the extension of availability
period of the financial assistance are beneficial to securing the programme's
objectives. 
2013/0326 (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) thereof,
Having regard to the proposal from the
European Commission,
Whereas:
(1)       Upon
a request by Ireland, the Council granted financial assistance to Ireland (Implementing Decision 2011/77/EU[2])
in support of a strong economic and 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)       The Commission completed
the tenth review of the Irish economic reform programme on 10 July 2013.
(3)       A short extension of the
availability period of the financial assistance is necessary as it would allow
for a comprehensive and thorough assessment of programme compliance under the
final review in due diligence and make sure that the decision on the release of
the last instalment can proceed in time.
(4)       In light of these
developments, Implementing Decision 2011/77/EU should be amended,
HAS ADOPTED THIS DECISION: 
Article 1
In Article 1(2) of Implementing Decision 2011/77/EU, the words “during 3 years” are replaced by “during 3
years and 2 months”.
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.