Sittings · Document
OPINION (2024/2108(INI)) 2025-07-17
On the implementation of the EU-UK Trade and Cooperation Agreement
Committee on Economic and Monetary Affairs · Rapporteur: Eero Heinäluoma
AMENDMENTS
The Committee on Economic and Monetary Affairs submits the following to the Committee on Foreign Affairs and the Committee on International Trade, as the committees responsible:
Amendment 1
Motion for a resolution
Recital E a (new)
| Motion for a resolution | Amendment |
| Ea. whereas the TCA is limited in the area of financial services; |
Amendment 2
Motion for a resolution
Recital E b (new)
| Motion for a resolution | Amendment |
| Eb. whereas the EU and the UK signed a Memorandum of Understanding establishing a framework for financial services regulatory cooperation between the EU and the UK, and subsequently established a Joint EU-UK Financial Regulatory Forum, which is expected to meet at least semi-annually and which serves as a platform to facilitate structured dialogue on issues relating to financial services; |
Amendment 3
Motion for a resolution
Recital E c (new)
| Motion for a resolution | Amendment |
| Ec. whereas the implementation of the TCA can serve as a valuable incentive to promote training, skills development, and investments in intangible assets, such as human capital, both within the EU and beyond its borders; whereas the importance of fostering knowledge exchange and collaboration to enhance the skills of individuals, thereby contributing to a more competitive, sustainable and inclusive global workforce, is recognised; |
Amendment 4
Motion for a resolution
Recital E d (new)
| Motion for a resolution | Amendment |
| Ed. whereas the TCA still does not cover any decisions relating to equivalence in financial services; |
Amendment 5
Motion for a resolution
Paragraph 22 a (new)
| Motion for a resolution | Amendment |
| 22a. Recognises the need for a high level of cooperation and forward-looking dialogue between the EU and the UK on financial services matters; notes that the Joint EU-UK Financial Regulatory Forum has held only three meetings since its establishment; |
Amendment 6
Motion for a resolution
Paragraph 22 b (new)
| Motion for a resolution | Amendment |
| 22b. Encourages a forward-looking dialogue in the Joint EU-UK Financial Regulatory Forum that promotes a high degree of alignment of the respective regulatory regimes and helps to identify and address common matters with regard to financial stability, investor protection, anti-money laundering and prevention of terrorist financing, in order to facilitate cross-border investment, and to foster innovation in financial markets and cooperation in international forums and in the implementation of international standards; notes that this may include sharing information on regulatory developments, exchanges of views on respective policies, rules and processes with regard to deference regimes such as equivalence, and may also cover risk analyses, and the potential economic impacts, of proposed measures, as well as topics relating to voluntary technical convergence, which make trade flows more stable and efficient; notes the Forum’s potential to promote a consistent approach where possible and provide a framework for dispute resolution, and calls on the Commission to strengthen it and to build on this cooperation; calls on the Commission to inform Parliament fully and in a timely manner of the preparations for and outcome of the semi-annual meetings; |
Amendment 7
Motion for a resolution
Paragraph 22 c (new)
| Motion for a resolution | Amendment |
| 22c. Considers that the efficiency and competitiveness of post-trade financial market services are vital to ensure a well-functioning Savings and Investments Union, and welcomes the growing consensus between the UK and the EU on this matter; welcomes the provisional political agreement to shorten the settlement period for transactions in transferable securities to one day after the trade; |
Amendment 8
Motion for a resolution
Paragraph 22 d (new)
| Motion for a resolution | Amendment |
| 22d. Welcomes the finalisation of the EU-UK competition cooperation agreement under the TCA, allowing the Commission, the national competition authorities of the EU Member States and the UK Competition and Markets Authority to cooperate directly in competition investigations; notes that this is the first EU competition cooperation agreement that also enables national competent authorities to cooperate directly with a third-country competition authority; calls for its swift ratification to strengthen cross-border enforcement and coordination in competition cases, while safeguarding confidentiality through appropriate waivers; |
Amendment 9
Motion for a resolution
Paragraph 22 e (new)
| Motion for a resolution | Amendment |
| 22e. Stresses the importance of helping young people develop future-proof skills by facilitating cross-border training and professional development opportunities, including targeted investment in digital, green and financial literacy; calls for EU-UK cooperation on mobility schemes and mutual recognition of qualifications; |
Amendment 10
Motion for a resolution
Paragraph 23
| Motion for a resolution | Amendment |
| 23. [opinion-giving committees]; | 23. Points out that following the withdrawal of the United Kingdom from the European Union, UK market participants no longer have automatic access to the single market for financial services; highlights that the EU has only granted a time-limited equivalence decision for one specific financial services subsector – central counterparties – while the EU’s equivalence framework in financial services allows third-country firms access to the EU market, provided that their regulatory and supervisory framework is deemed equivalent to EU standards; recalls that the EU can unilaterally withdraw any equivalence decision at any time if the conditions for granting equivalence are no longer fulfilled; recognises the need to ensure that SMEs on both sides can benefit from closer financial cooperation between the EU and the UK; underlines the importance of facilitating cross-border access to finance; encourages the Commission to discuss further equivalence decisions in order to provide firms from both the UK and the EU with the benefits of greater market access; |
Amendment 11
Motion for a resolution
Paragraph 23 a (new)
| Motion for a resolution | Amendment |
| 23a. Welcomes the inclusion of exchanges of views on equivalence decisions in the remit of the Forum on Regulatory Cooperation; calls for regular discussion and examination of such issues, particularly with respect to financial and investment services, in the interests of increased trade and cooperation; calls on the Commission to assess and take equivalence decisions in a strategic and conditional manner, ensuring that any market access granted to UK financial services companies is fully aligned with EU standards; believes that equivalence assessment should go beyond a strict sector-specific approach and should instead adopt a broader, forward-looking perspective to consider the third country’s overall regulatory and supervisory framework, including its commitments to fair competition, anti-money laundering, tax cooperation, investor protection and financial stability, in order to safeguard the Union’s financial stability, preserve the integrity of the single market and prevent regulatory arbitrage; |
Amendment 12
Motion for a resolution
Paragraph 23 b (new)
| Motion for a resolution | Amendment |
| 23b. Recalls that decisions on equivalence could benefit EU firms in terms of greater access to the UK market, including for banking, payment services, investment services and insurance, and emphasises that an open and well-structured financial relationship between the EU and the UK must help to foster a more competitive financing environment for SMEs; |
Amendment 13
Motion for a resolution
Paragraph 23 c (new)
| Motion for a resolution | Amendment |
| 23c. Notes at the same time the UK’s stated desire for regulatory divergence from the EU in a number of areas; expresses concern that such divergence could undermine the level playing field with the EU; calls for close monitoring of these developments and their potential impact on EU markets, including through the strategic use of equivalence decisions; |
Amendment 14
Motion for a resolution
Paragraph 23 d (new)
| Motion for a resolution | Amendment |
| 23d. Recognises that the close economic links between Ireland and Northern Ireland will continue despite the latter being part of a designated third country; supports an acknowledgement of these economic links, including with respect to the supervision of transactions between both jurisdictions; calls for measures to ensure that such links are not disrupted by any changes in regulatory or legal frameworks, particularly in respect of services provided to consumers and SMEs that cannot take advantage of being mobile; emphasises the importance of maintaining and further developing close economic ties and minimising disruption in the aftermath of Brexit, particularly with respect to this relationship; strongly reiterates the importance of protecting the Good Friday Agreement in its entirety and supporting peace and reconciliation in Northern Ireland; encourages the British Government to take the specific circumstances of Northern Ireland into consideration in any new laws or regulations it proposes to introduce; |
Amendment 15
Motion for a resolution
Paragraph 23 e (new)
| Motion for a resolution | Amendment |
| 23e. Acknowledges that, although some crypto-assets are primarily speculative in nature, their utilisation in the financial sector is increasing, and calls for a coordinated approach to the regulation and supervision of such assets to effectively address the risks concerning consumer protection, market integrity and money laundering, as well as environmental impact concerns; notes with concern that stablecoin issuers will be allowed to operate in the UK under an exemption from the UK’s regulatory and supervisory framework, and underlines that if the UK were to pursue bilateral cooperation with the United States on a permissive regulatory model, EU efforts towards ensuring regulatory coherence, robust oversight, financial resilience across jurisdictions and global financial stability would be undermined; calls, therefore, on the UK to adopt legislation similar to Regulation (EU)2023/1114 on markets in crypto assets1a; cautions against the systemic risks that a less stringent supervisory framework may create and recommends not diverging from the Financial Stability Board’s recommendations on the regulation of crypto-assets, which could undermine global financial stability; considers that the EU and the UK should work together within the international community towards finding a common understanding of the benefits and risks of AI applied to financial services; _______________ 1a Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937, OJ L 150, 9.6.2023, p. 40, ELI: http://data.europa.eu/eli/reg/2023/1114/oj. |
Amendment 16
Motion for a resolution
Paragraph 23 f (new)
| Motion for a resolution | Amendment |
| 23f. Supports and welcomes the swift development of the digital euro, complementing but not replacing cash; highlights the EU’s high level of dependence on foreign entities in the payments sector; recognises the urgent need for the EU to ensure its autonomy from foreign payment service providers as a matter of digital and financial sovereignty; |
Amendment 17
Motion for a resolution
Paragraph 23 g (new)
| Motion for a resolution | Amendment |
| 23g. Considers that the possible introduction of central bank digital currencies in both the EU and the UK may have an economic impact on the relationship between the two parties and on strategic autonomy; |
Amendment 18
Motion for a resolution
Paragraph 23 h (new)
| Motion for a resolution | Amendment |
| 23h. Strongly supports the continued cooperation between the EU and the UK on tackling international money laundering and terrorist financing, countering harmful tax regimes and implementing sanctions; welcomes the adoption of the Anti-Money Laundering Package by the EU and the continuous commitment on the UK’s part to tackling money laundering and other financial crimes, in particular in its Overseas Territories and British Crown Dependencies; |
Amendment 19
Motion for a resolution
Paragraph 23 i (new)
| Motion for a resolution | Amendment |
| 23i. Expresses concern at the UK’s establishment of new freeports, as national hubs to promote global trade and investments, offering extensive tax breaks, deregulatory regimes and public subsidies; |
Amendment 20
Motion for a resolution
Paragraph 23 j (new)
| Motion for a resolution | Amendment |
| 23j. Highlights the commitment of both parties to the OECD/G20 Inclusive Framework’s Two-Pillar Approach; regrets the recent Executive Order issued by the US President on 20 January 2025 declaring that the OECD Global Tax Deal has no force and effect in the United States; calls on both parties to work jointly and constructively in international forums to safeguard multilateral tax cooperation, promote the global implementation of Pillar Two minimum tax standards and ensure consistency with evolving United Nations initiatives; |
Amendment 21
Motion for a resolution
Paragraph 23 k (new)
| Motion for a resolution | Amendment |
| 23k. Acknowledges the TCA’s commitment to fostering cooperation on key global challenges while respecting respective powers in the field of direct taxation; welcomes, therefore, the first EU-UK Dialogue on Countering Harmful Tax Regimes held on 10 October 2024 as a forum for discussion on shaping and implementing international standards to combat harmful tax regimes; stresses the importance of maintaining momentum in EU-UK coordination on international tax reform; |
Amendment 22
Motion for a resolution
Paragraph 23 l (new)
| Motion for a resolution | Amendment |
| 23l. Supports continued EU-UK cooperation on combating money laundering, terrorist financing, harmful tax practices and fraud; stresses the need to closely monitor UK regulatory divergence to prevent regulatory arbitrage and financial risks to the EU and ensure a level playing field; encourages both parties, with full respect for national tax sovereignty, to cooperate proactively – through relevant bilateral and multilateral forums – in order to advance fair and sustainable tax systems; |
Amendment 23
Motion for a resolution
Paragraph 23 m (new)
| Motion for a resolution | Amendment |
| 23m. Welcomes the full implementation in 2024 of the Protocol on Administrative Cooperation and Combating Fraud in the Field of Value Added Tax and on Mutual Assistance for the Recovery of Claims Relating to Taxes and Customs Duties (VAT Protocol); proposes that the EU and the UK conduct a joint annual review of the VAT Protocol’s implementation and effectiveness, provide a forum for discussion on the emerging trends in VAT fraud and challenges in cross-border VAT recovery, and assess the need for additional joint measures to address these issues; |
Amendment 24
Motion for a resolution
Paragraph 23 n (new)
| Motion for a resolution | Amendment |
| 23n. Underlines that EU market participants rely heavily on clearing houses based in the UK, with over 90 % of euro interest rate derivatives processed at clearing houses based in the City of London; considers that this massive concentration could present a strategic risk to EU financial stability; believes that the right balance should be struck between substantially reducing overreliance on UK-based clearing houses, on the one hand, and providing clarity to EU financial market participants, on the other; takes note of the updates to the European Market Infrastructure Regulation1a, as adopted in December 2024, which aim to address this overreliance by introducing an active account requirement; ______________ 1a Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories, OJ L 201, 27.7.2012, p. 1, ELI: http://data.europa.eu/eli/reg/2012/648/oj. |
Amendment 25
Motion for a resolution
Paragraph 23 o (new)
| Motion for a resolution | Amendment |
| 23o. Expresses concern, however, that the Commission’s decision to extend the equivalence for UK central counterparties for a further period of three years until 30 June 2028 risks a delay to the development of the active account requirement; |
Amendment 26
Motion for a resolution
Paragraph 23 p (new)
| Motion for a resolution | Amendment |
| 23p. Calls on the Commission in the meantime to provide a permanent and stable solution to reduce the overreliance on UK central counterparties, in line with the EU’s strategic objective of reducing excessive exposures to third-country central counterparties of substantial systemic importance; recalls that Parliament has consistently stressed the need to relocate clearing activities to the EU, and that prolonged equivalence in a context of regulatory divergence undermines financial stability, weakens EU market autonomy and sends conflicting signals to market participants; |
Amendment 27
Motion for a resolution
Paragraph 23 q (new)
| Motion for a resolution | Amendment |
| 23q. Notes that as a consequence of the withdrawal of the UK from the EU, UK service suppliers in the area of financial services no longer benefit from the ‘country-of-origin’ principle or from ‘passporting’ for direct access to the EU single market, while the integrated global economy requires close cooperation between authorities, including in the area of financial services and payments; notes also that while the TCA is underpinned by provisions that ensure a level playing field, this is not sufficient, in particular with regard to rules on subsidies, and calls for strong and transparent State aid controls, with effective domestic enforcement and with a binding dispute settlement mechanism that can help prevent distortions of competition and ensure fair trading conditions; |
Amendment 28
Motion for a resolution
Paragraph 23 r (new)
| Motion for a resolution | Amendment |
| 23r. Takes note of the UK’s upcoming Financial Services Growth and Competitiveness Strategy, unlocking investment across the economy; calls for the EU and the UK to closely align their respective competitiveness strategies for the financial services sector; |
Amendment 29
Motion for a resolution
Paragraph 23 s (new)
| Motion for a resolution | Amendment |
| 23s. Expresses concern at the Payments Systems Regulator’s plans to implement a price cap on UK-EEA card-not-present consumer cross-border interchange fees specifically for EU banks, card providers and other payment providers; stresses that two of the three alternative levels of price caps are markedly lower than the equivalent price cap set for UK banks, giving rise to concerns about adherence to the principle of non-discrimination under the TCA; emphasises, therefore, the importance of ensuring that all regulatory measures respect the principle of non-discrimination; calls on the Payment Systems Regulator to ensure that the work begun on interchange fees continues, with a view to avoiding any regulatory setbacks and ensuring a fair environment for European providers; |
Amendment 30
Motion for a resolution
Paragraph 23 t (new)
| Motion for a resolution | Amendment |
| 23t. Recognises, beyond the legally binding framework of the TCA, the importance of greater cooperation in the financial services field to address shared challenges and explore avenues for closer and continuous collaboration, in particular through engagement at the highest level, so that the benefits of globally interconnected financial systems can be reaped, against the background of the creation of a Savings and Investments Union and of the thriving hub for financial services that the City of London represents; |
Amendment 31
Motion for a resolution
Paragraph 23 u (new)
| Motion for a resolution | Amendment |
| 23u. Stresses that heightened transatlantic tensions make improved EU-UK economic relations more important than ever; calls on the Commission and the UK Government to cooperate closely in international financial services forums in order to leverage the European perspective; recognises the need to ensure that SMEs on both sides can benefit from closer financial cooperation between the EU and the UK; |
Amendment 32
Motion for a resolution
Paragraph 23 v (new)
| Motion for a resolution | Amendment |
| 23v. Acknowledges the rule of law, a market economy and free trade as common values of the EU, and stresses the need to keep the interests of citizens at the heart of the implementation of the TCA, and to accommodate in the dialogue elements of economic cooperation alongside social justice through the participation of voluntary groups, civil society and business associations; stresses that nothing should disrupt the close economic links between Ireland and Northern Ireland and the peace and reconciliation brought about by the Good Friday Agreement; |
Amendment 33
Motion for a resolution
Paragraph 23 w (new)
| Motion for a resolution | Amendment |
| 23w. Calls on the Commission and the UK Government to cooperate closely in international financial services forums in order to leverage the European perspective; |
Amendment 34
Motion for a resolution
Paragraph 23 x (new)
| Motion for a resolution | Amendment |
| 23x. Highlights that standards agreed in international forums such as the International Organization of Securities Commissions, the Financial Stability Board, Financial Action Task Force or the Basel Committee on Banking Supervision should remain the baseline for EU-UK cooperation and that deviations must be duly justified; |
Amendment 35
Motion for a resolution
Paragraph 23 y (new)
| Motion for a resolution | Amendment |
| 23y. Is concerned by the UK’s decision to delay the implementation of the Basel III framework for banks until 1 January 2027; calls on the Commission and the Member States to ensure the implementation of the Basel III standards adopted by the co-legislators and calls on the Commission to continue monitoring the implementation of the internationally agreed Basel III standards in other major third-country jurisdictions; |
Amendment 36
Motion for a resolution
Paragraph 23 z (new)
| Motion for a resolution | Amendment |
| 23z. Takes note of the substantial growth of non-bank financial intermediaries (NBFIs) in the EU and the UK, and of the major vulnerabilities identified by the European Systemic Risk Board (ESRB) in this sector, particularly with regard to leverage and liquidity mismatches; shares the concerns about the resilience of NBFIs, especially under market stress, as expressed by the ESRB and the UK’s Financial Policy Committee in this respect, and calls for enhanced monitoring and regulation of these entities; |
Amendment 37
Motion for a resolution
Paragraph 23 a a (new)
| Motion for a resolution | Amendment |
| 23aa. Reiterates, in this respect, the importance of the timely implementation of the Financial Stability Board’s recommendations to enhance the resilience of money market funds (MMFs), particularly by removing features that can incentivise runs on banks; calls, therefore, on the Commission to come forward swiftly with a revised MMF proposal, in line with the Financial Stability Board’s recommendations; |
Amendment 38
Motion for a resolution
Paragraph 23 a b (new)
| Motion for a resolution | Amendment |
| 23ab. Takes note of the plans announced by the UK authorities to introduce a lighter regulatory regime for some alternative investment funds; stresses that simplification should not disguise a deregulation agenda; supports simplification measures, provided that the policy objectives remain unaffected; calls, therefore, on the UK authorities to cooperate closely with the EU to ensure that this planned reform does not empty Directive 2011/61/EU on alternative investment fund managers1a of its substance, in particular around the delegation rules; ______________ 1a Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010, OJ L 174, 1.7.2011, p. 1, ELI: http://data.europa.eu/eli/dir/2011/61/oj. |
ANNEX: DECLARATION OF INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that he included in his opinion input on matters pertaining to the subject of the file that he received, in the preparation of the opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
| 1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register |
| 2. Representatives of public authorities of third countries, including their diplomatic missions and embassies |
| UK mission to the EU |
The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that he has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.
INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION
| Members present for the final vote | Georgios Aftias, Rasmus Andresen, Francisco Assis, Stephen Nikola Bartulica, Isabel Benjumea Benjumea, Stefan Berger, Gilles Boyer, Giovanni Crosetto, Fabio De Masi, Siegbert Frank Droese, Engin Eroglu, Marco Falcone, Markus Ferber, Jonás Fernández, Dirk Gotink, Enikő Győri, Michalis Hadjipantela, Eero Heinäluoma, Billy Kelleher, Kinga Kollár, Tomáš Kubín, Aurore Lalucq, Marlena Maląg, Costas Mavrides, Siegfried Mureşan, Fernando Navarrete Rojas, Luděk Niedermayer, Ľudovít Ódor, Gaetano Pedulla’, Lídia Pereira, Kira Marie Peter-Hansen, Pierre Pimpie, Jaroslava Pokorná Jermanová, Friedrich Pürner, Jussi Saramo, Paulius Saudargas, Ralf Seekatz, Irene Tinagli, Marie Toussaint, Pasquale Tridico, Anouk Van Brug, Stéphanie Yon-Courtin |
| Substitutes present for the final vote | Bas Eickhout, Niels Fuglsang, Alexander Jungbluth, Fernand Kartheiser, Janusz Lewandowski, César Luena, Andreas Schwab, Mariateresa Vivaldini |
| Members under Rule 216(7) present for the final vote | Sakis Arnaoutoglou, Damien Carême, Mohammed Chahim, Alessandro Ciriani, Juan Carlos Girauta Vidal, Ondřej Knotek, Lara Magoni, Jana Nagyová, Daniele Polato, Krzysztof Śmiszek |