REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the compliance of the European Banking Authority with the requirements regarding the location of its seat
Date: 2020-07-15
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: European Banking Authority, France, Ile-de-France, United Kingdom, operation of the Institutions, seat of institution, withdrawal from the EU

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 15.7.2020  COM(2020) 317 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the compliance of the European Banking Authority with the requirements regarding the location of its seat  
 
 
1 

INTRODUCTION 

In  the  context  of  the  United  Kingdom’s  withdrawal  from  the  Union,  the  other  27 
Member States, meeting in the margins of the Council, selected Paris, France, as the 
new seat of the European Banking Authoriry (EBA)1.  

The  location  of  the  EBA’s  seat  is  laid  down  in  Article  7  of  the  EBA  founding 
Regulation2  (the  EBA  regulation),  which  therefore  had  to  be  amended3  to  move  the 
seat  from  London  to  Paris.  In  addition  to  changing  the  location  of  the  seat,  the 
amendment to the EBA regulation also introduced certain new requirements regarding 
the  consequences  of  the  location  of  the  seat  as  well  as  an  obligation  for  the 
Commission to publish a report by 30 March 2019 and every 12 months thereafter on 
EBA’s compliance with these requirements. 

According to Art. 7 of the EBA Regulation: “The location of the seat of the Authority 
shall not affect the Authority’s execution of its tasks and powers, the organisation of 
its governance structure, the operation of its main organisation, or the main financing 
of its activities, while allowing, where applicable, for the sharing with Union agencies 
of  administrative  support  services  and  facility  management  services  which  are  not 
related to the core activities of the Authority”.  

The  EBA  provided  the  necessary  input  to  fulfill  these  reporting  requirements.  The 
first report was published in 20194. This is the second report under the new reporting 
obligation.  

2 

EBA  HEADQUARTERS AGREEMENT 

A  Headquarters  Agreement  (hereinafter,  HQA)  with  the  French  Government  was 
signed in Paris on 6 March 2019. The EBA is awaiting confirmation of completion of 
the procedures required by French law for the HQA to enter into effect – this includes 
ratification by the French Parliament. The signature of the HQA has not affected the 
EBA’s operations and governance.    

In  addition  to  reflecting  the  requirements  of  Protocol  No  7  on  the  privileges  and 
immunities  of  the  European  Union5,  the  HQA  establishes  the  privilege  for  staff 
relocating from London to Paris of purchasing a car tax–free within twelve months of 
relocation, a privilege that has been extended to staff with French nationality. Until 13 
March  2020,  of  the  175  staff  members  entitled  to  avail  of  this  privilege,  ten  had 
registered  their  vehicles  under  this  privilege  and  another  four  currently  await 
finalisation of the procedure. 

General Affairs Council (Art. 50), 20 November 2017:  

1  
https://www.consilium.europa.eu/en/press/press-releases/2017/11/20/european-banking-authority-
to-be-relocated-to-city-country/  
2  
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)  (OJ  L 
331, 15.12.2010, p. 12). 
3  
Regulation (EU) 2018/1717 of the European Parliament and of the Council of 14 November 
2018, amending Regulation (EU) No 1093/2010 as regards the  location of the  seat of  the European 
Banking Authority (OJ L291, 16.11.2018, p. 1). 
4  
5  

COM(2019) 451 final. 
OJ C202, 7.6.2016, p. 266-272 

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The HQA also commits the French government to engage in a process to establish a 
European  School  in  the  Paris  Region.  A  type  II  European  School  opened  in 
Courbevoie in September 2019 and is currently undergoing its accreditation process. 
A  full  nursery  and  primary  education  cycle  has  been  established  for  the  English 
section  of  the  school;  however,  a  full  secondary  cycle  in  the  English  section  is  not  
available yet as classes are established gradually. The school aims to have a complete 
secondary cycle by September 2021. The French section has been opened for nursery 
classes  and  partially  for  the  primary  cycle.  The  secondary  cycle  will  open  in 
September 2021. 

The EBA has also engaged with the Protocol office of the French Ministry of Europe 
and  Foreign  Affairs  and  with  the  French  customs  authorities  to  ensure  a  smooth 
process in relation to the arrival of staff and their families in France, the provision of 
special  residence  permits,  and  the  application  of  tax  privileges  to  the  EBA.  On  15 
May 2020, 139 staff members and 67 family members have received special residence 
permits. 

Protocol  No  7  on  the  privileges  and  immunities  of  the  European  Union  grants  the 
EBA  exemption  from  VAT  on  purchases  of  goods  and  services  required  for  the 
operation  of  the  authority.  The  EBA  has  submitted  reimbursement  claims  to  the 
French government for VAT paid on goods and services provided by French entities 
and on internet purchases, and reimbursement of the earlier claims has been received. 

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EBA GOVERNANCE, OPERATIONS AND EXECUTION OF TASKS 

The  EBA’s  tasks  and  powers,  the  organisation  of  its  governance  structure,  the 
operation  of  its  main  organisation,  and  its  main  financing  were  not  affected  by  the 
relocation of the EBA’s seat. The EBA has been fully operational in its new offices in 
Paris from the beginning of June 2019. 

for 

resulting 

led  by  ESMA: 

from  procedures 

The  EBA  and  the  European  Securities  and  Markets  Authority  (ESMA)  coordinate 
closely  on  procurement  procedures.  The  EBA  is  participating  in  two  framework 
contracts 
information  and 
communications technology (ICT) consultancy services and for facility management 
consultancy services. ESMA has also invited the EBA to participate in its upcoming 
procurement  procedure  for  interim  staff  services,  which  the  EBA  will  join.  ESMA 
joined the EBA’s procurement procedure for language training, for which framework 
contracts  were  signed  in  January  2020.  The  EBA  has  invited  ESMA  (and  the 
European  Insurance  and  Occupational  Pensions  Authority)  to  join  its  upcoming 
procedure  to  procure  document  proof-reading  and  editing  services,  for  which  a 
framework contract is expected to be signed in 2020. The two agencies are currently 
discussing  joint  procurement  for  an  impending  medical  services  procedure,  and  a 
number of other procedures in the administrative area that arise further in the future.   

On  8  July  2019,  the  European  Commission  approved  the  European  Supervisory 
Authrorities’ (ESAs) request for their financial rules to depart from certain provisions 
of  Delegated  Regulation  (EU)  2019/7156  in  order  to  be  able  to  join  procurement 

6   
Commission  Delegated  Regulation  (EU)  2019/715  of  18  December  2018  on  the  framework 
financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 
70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council  (OJ L 122, 
10.5.2019, p. 1) 

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procedures  run  by  the  European  Central  Bank  and  the  Eurosystem  Procurement 
Coordination  Office  (EPCO).  EBA  is  acting  as  the  liaison  between  EPCO  and  the 
other  two  ESAs  and  coordinates  the  discussions  to  identify  and  join  procurement 
procedures run by EPCO. EIOPA is acting as liaison with the ECB. 

The  EBA  and  ESMA  also  participate  in  a  network  of  procurement  officers  of 
international  organisations  based  in  Paris.  On  ESMA’s  initiative,  the  international 
organisations  are  also  considering  establishing  a  regular  meeting  among  heads  of 
administration. 

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CONCLUSIONS 

Based on the available information, the EBA’s execution of its tasks and powers, its 
governance structure, its main organisation, and the financing of its activities have not 
been affected by the relocation of the EBA’s seat to Paris and by the administrative 
cooperation  arrangements  with  ESMA  and  EIOPA  described  above,  which  are  not 
related to the core activities of the EBA. 

3