Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1093/2010 as regards the location of the seat of the European Banking Authority
Date: 2017-11-29
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU office or agency, European Union membership, United Kingdom, banking, offshoring, operation of the Institutions

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   EUROPEAN COMMISSION  Brussels, 29.11.2017 COM(2017) 734 final 2017/0326 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1093/2010 as regards the location of the seat of the European Banking Authority (Text with EEA relevance)  
 
 
EXPLANATORY MEMORANDUM 

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 

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the  building  procedure  set  out  in  Article  203  of  the  Financial  Regulation1,  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).  

1 
Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 
2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, 
Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1). 

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2017/0326 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 1093/2010 as regards the location of the seat of the 
European Banking Authority 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Central Bank2, 
Having regard to the opinion of the European Social and European Committee3, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

2 
3 
4 

In the context of the United Kingdom's notification on 29 March 2017 of its intention 
to leave the Union, pursuant to Article 50 of the Treaty on European Union, the other 
27  Member  States,  meeting  in  the  margins  of  the  General  Affairs  Council  (‘Article 
50’), selected Paris, France, as the new seat of the European Banking Authority. 

Having  regard  to  Article  50(3)  of  the  Treaty  on  European  Union,  the  European 
Banking  Authority  should  take  its  new  seat  as  from  the  date  on  which  the  Treaties 
cease  to  apply  to  the  United  Kingdom  or  from  30  March,  2019,  whichever  is  the 
earlier.  

To  ensure  the  proper  functioning  of  the  European  Banking  Authority  in  its  new 
location, a headquarters agreement should be concluded before the European Banking 
Authority takes up its new seat. 

To  give  the  European  Banking  Authority  sufficient  time  to  relocate,  this  Regulation 
should enter into force as a matter of urgency. 
Regulation (EU) No 1093/2010 of the European Parliament and of the Council4 should 
therefore be amended accordingly, 

[…] 
[…] 
Regulation  (EU)  No  1093/2010  of  the  European  Parliament  and  of  the  Council  of  24  November  2010 
establishing  a  European  Supervisory  Authority  (European  Banking  Authority),  amending  Decision  No 
716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12). 

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HAVE ADOPTED THIS REGULATION: 

Article 7 of Regulation (EU) No 1093/2010 is replaced by the following: 

Article 1 

“Article 7 

Seat 

The Authority shall have its seat in Paris, France.” 

Article 2 

This Regulation shall enter into force on the day of its publication in the Official Journal of 
the European Union. 

This Regulation shall apply from the date on which the Treaties cease to apply to the United 
Kingdom or from 30 March 2019, whichever is the earlier.  

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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