The EPP, the main opponent of this proposal (also known as 'backloading') argued that the increase in prices is counter-productive at a time of economic downturn, as it will make life harder for the industry and will result in higher energy prices for consumers. The centre-left supported the reform, saying that more efforts are needed to fight pollution and climate change and that renewable sources of energy should receive greater benefits at the expense of the conventional sources that pollute more. Click here to read more information on ETS.

Breakdown of votes by European political group on the proposal to send the Commission's proposal back to committee:



Click here to see the breakdown by individual MEP.

However, a proposal to conclude the legislative procedure (and thus to completely reject the Commission's proposal) did not gather a majority of votes, as some MEPs switched sides on this second vote. Click here to see the breakdown of votes by MEP.



The 'swing voters' who made the difference between the two votes were mainly in the Romanian, Bulgarian, Hungarian and Italian S&D national party delegations, as well as in the Bulgarian ALDE delegation.

Comparative breakdown of votes by national party delegation within the S&D group:

A)    Vote to send the report back to committee:



B)    Vote on proposal to conclude the procedure:



Intercontinental flights excluded from the ETS

In a vote on a related report, a majority of MEPs voted to approve an agreement with the Council to temporarily suspend the ETS for intercontinental flights so as to facilitate progress towards a global agreement within the International Civil Aviation Organisation (ICAO). A broad majority of MEPs supported this approach, while the Greens/EFA and GUE/NGL groups opposed it.



Click here to see the breakdown of votes by MEP.

MEPs vote to increase supervision and responsibility of EU banks

MEPs passed, by a large majority, a package consisting of the Capital Requirements Regulation (CRR) and a fourth edition of the Capital Requirements Directive (CRD IV). MEPs in the ECR and GUE/NGL groups abstained.

The new regulations require that banks increase the quality and the quality of the capital they hold at all times to make sure they can pay depositors and creditors in an emergency.  The rules also create a platform for greater supervision of the banking sector, making information on profits, taxes paid and subsidies received country-by-country, turnover and number of employees available to the supervisory authorities of the members states they operate in (who will collaborate with the European Banking Authority). From 2014, these figures should also be reported to the European Commission and from 2015 made fully public.

Another key provision of the package concerned the capping of bankers' bonuses with the stated aim of curbing speculative risk-taking. Under the new rules which were approved, the basic salary-to-bonus ratio will be 1:1 and may be raised to a maximum of 1:2 if approved by at least 66% of shareholders owning half the shares represented at a shareholder meeting, or of 75% of votes if there is no quorum.

The new rules also create incentives for more credit to be offered to SMEs.

Click here for more information and here to see the breakdown of votes by MEP.

MEPs reject EPP discharge amendments critical of the European External Action Service

The Parliament has granted discharge to the EU agencies and institutions for the 2011 financial year. While most votes were largely consensus, others gave rise to political conflict. For example, the EPP group had drafted a number of amendments criticising the External Action Services. These did not get the support of a majority. One of them asked for a "review of the 36 delegations comprising of only one EEAS staff member, the ambassador, with a view to either closing them or increasing their staff". The amendment fell, as it was supported only by the EPP and GUE/NGL groups (see table below; click here to see the breakdown). A request that the EEAS explain the recall of the Union's ambassador to Libya was also rejected.



MEPs call once more for a single seat for the EP

A majority of MEPs (370) supported an amendment (am. 1) to the motion for a resolution accompanying the discharge of the 2011 EP accounts. The amendment urged "the Member States to revise the issue of Parliament's seat and working places in the next revision of the Treaty".



The opposition came mainly from the EPP group (except for the Swedish and Dutch delegations) as well as from the French delegation in the S&D group:

EPP



S&D



Click here to see the full breakdown of votes.

MEPs demand greater role in the macroeconomic imbalance procedure

The Parliament adopted a non-binding report criticising the Commission, and particularly the Directorate-General for Economic and Financial Affairs, for a lack of transparency in implementing the economic governance package ("six-pack"). The resolution says that the Commission has failed to properly involve the Parliament in the procedure of supervising the macroeconomic policies of the member states, which goes against the spirit of the Treaty and the EU legislation. It calls on the Commission to "respect Parliament's role as co-legislator in multilateral surveillance".

A separate vote on a key amendment (am. 3) asked for the Commission to report on the monitoring of capital and resource productivity developments, and to report on whether the scoreboard might be extended so as to include indicators on capital and resource productivity.  The amendment, which was supported by the centre-left (S&D+Greens/EFA), was rejected by a centre-right coalition of EPP+ALDE+ECR (see table below).  Click here to see the full breakdown.



MEPs say "no" to Turkish Cypriot observers

The EP voted on the 2012 progress report on Turkey. One of the new issues that emerged in this year's report was whether the EP should host two Turkish Cypriot observers to represent their community, following the practice of the Parliamentary Assembly of the Council of Europe. This proposal (set out in am. 3) was supported by the ALDE and the Greens/EFA groups (as well as by the British, Dutch and Danish S&D Members), but it was rejected by the other groups (table below; click here to see the breakdown of votes).




For more information contact Doru Frantescu, VoteWatch Europe Policy Director, at doru@votewatcheurope.eu, +32 472 657 924.

A significant number of defections from the Group line were recorded in the EPP, mainly from Central and Eastern European countries (Poland, Romania) and the Nordic countries (Denmark, Sweden, Finland):



Within the S&D Group the British, Swedish and Danish delegations voted against the EP resolution:



Click here to see how each MEP voted.

Next steps: informal negotiations will take place between Parliament, Council and the Commission. The EP will then vote formally on whether to give its consent. If no agreement is reached by the end of 2013, the EU will operate on the basis of yearly budgets at the level of the 2013 ceilings, adjusted for the inflation rate.

Centre-right wins battle over CAP reform; net contributor country MEPs outvoted

MEPs voted on a package of four legislative proposals that make up the reform of the Common Agricultural Policy (CAP). The subject was hotly debated, as CAP currently accounts for close to 40% of the EU budget. CAP is to be reformed with effect from 1 January 2014. To ensure better targeting of aid, the proposal gives Member States the responsibility for defining what constitutes an "active farmer".

Other provisions are that no Member State's farmers should receive less than 65% of the EU average, that young farmers should get a 25% top-up payment for a maximum of 100 ha and that direct payments to any one farm should be capped at €300,000.

The most closely fought issue was the regulation of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products, which was pushed through by a narrow majority of EPP and S&D MEPs:



Within the EPP, the Swedish delegation and a third of the German delegation voted "against:



In the S&D the opposition came from the German, British, Swedish, Danish, Dutch and Austrian delegations (all from countries which are net contributors to the EU budget):



Click here to see how each MEP voted.

Amendment 406 by the ALDE group, which proposed to eliminate export refunds and which was also supported by the Greens/EFA, GUE/NGL groups and a minority of S&D Members (from UK, Germany, Denmark, Sweden and Austria) was voted down by a coalition of EPP, ECR and a majority of S&D MEPs. Click here to see how each MEP voted.

In another key vote, amendment 90 called for the phasing out of a number of sectorial measures, including on milk quotas, sugar quotas and other sugar measures and of certain state aids. This amendment was voted down by MEPs in the EPP (except for Swedish, Dutch and several Germans) and S&D groups (except for German, Swedish, Danish and Dutch Members). Click here to see how each MEP voted on amendment 90.



Centre-right MEPs block call for binding greenhouse gas targets

Parliament adopted a non-binding resolution setting out guidelines for the EU's energy strategy. While there was general agreement on the need for the EU to develop further its own energy generation capacity and reduce consumption so as to substantially reduce dependence on imports, MEPs disagreed on how this should be achieved. One of the most controversial amendments asked the European Commission to set binding targets on greenhouse gas emissions (Amendment 1). This amendment was voted down by a margin of only 27 votes (261 in favour to 288 against). The EPP, ECR, EFD voted against the amendment, as well as 11 ALDE Members (mainly from Germany), while S&D, Greens/EFA, GUE/NGL and a majority of ALDE MEPs supported the amendment.

Breakdown of votes on Amendment 1 (click here to see how each MEP voted):



Another key provision, paragraph 18, stated that "[...] the increasing importance of electricity in the future energy mix requires that all means of low-carbon electricity production (involving conversion efficiency, renewables, carbon capture and storage (CCS) and nuclear energy) will need to be harnessed if climate goals are to be achieved without jeopardising competitiveness and security of supply". This paragraph was approved by a coalition of EPP, ALDE, ECR and a minority of S&D MEPs. Click here to see how each MEP voted on paragraph 18.

The final text was adopted by a majority of the three largest groups, EPP, S&D, ALDE, although a minority of MEPs from the EPP group (mainly from Poland) opposed the document (click here to see how each MEP voted):



Centrist coalition votes to strengthen economic and budgetary surveillance of Member States in the euro area

Parliament adopted a legislative resolution laying down tougher rules concerning the economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability. The resolution was adopted by a centrist coalition of  EPP, S&D, ALDE and Greens/EFA. It was opposed by EFD, ECR and GUE-NGL. However, S&D MEPs from Belgium voted against and an important number of Italian EPP MEPs abstained. The resolution is part of the so-called "2-pack" which adds rules to economic governance package adopted in 2011. Back then, left-of-the-centre largely opposed the regulations, but this time S&D and Greens/EFA voted in favour, presumably because the resolution puts greater emphasis on the role of growth and employment indicators when monitoring economic performance of member states.



MEPs agree on new seat allocation following the 2014 EP elections

MEPs agreed on a revision of the number of seats each Member State will have following the 2014 European elections. The changes, which must respect the maximum number of 751 seats set by the Treaty of Lisbon, are designed to take account of Croatian accession (in July 2013). MEPs agreed on the principle that no member state should lose more than one seat. The EP's proposal will now go to the European Council, where it must be adopted unanimously. Here is the new breakdown by country approved the EP:

For more information contact Doru Frantescu, VoteWatch Europe Policy Director, at doru@votewatcheurope.eu, +32 472 657 924.

Voting rule

Although the Council will not be asked to vote formally tomorrow, the Irish Council Presidency will want to establish whether its tentative deal with the European Parliament has the support of a qualified majority of EU Member States. A qualified majority is reached if:

• a simple majority of Member States supports the proposal, and
• a minimum of 255 votes is cast in favour, out of a total of 345 votes.

In addition, a Member State may ask for confirmation that the votes in favour represent at least 62 % of the total population of the Union.

The UK holds 29 votes. In order to block the compromise, it needs an additional 62 votes. Use the Council's voting calculator to see how this blocking minority can be reached: http://www.consilium.europa.eu/council/voting-calculator. Under qualified majority voting, an abstention has the same effect as a 'no' vote, as it does not contribute to reaching the threshold required for a measure to pass.

Voting records

Although EU governments rarely take a decision on economic and financial issues until all of them agree, there have been instances where proposals have been put to qualified majority voting. Since 2009 Ecofin has adopted 44 legislative proposals. Out of a total 1188 votes cast during this time (44 proposals * 27 Member States), there were only 5 'no' votes ('against' or 'abstention'). These 5 votes were cast by the UK (2), Germany, Portugal and Finland (1 each). Click here to see who has been in a minority in the Council on economic and monetary affairs issues.

One decision which the UK opposed while all other Member States supported it, was the regulation on short selling, designed to combat speculative financial trading. Click here to see the vote in Council. The Council vote was mirrored in the Parliament, where the proposal was passed by  large majority, with most Conservative and LibDem MEPs abstaining. Click here to see the vote in the European Parliament.

The UK was more successful on the proposal for a Financial Transactions Tax (FTT, Tobin or 'Robin Hood' tax). In the absence of a qualified majority for this proposal in the Council, it was never put to a formal vote - a de facto rejection. Instead, eleven Member States were given permission by the Council to forge ahead and draw up their own plans for an FTT, under the so-called enhanced co-operation procedure.  Interestingly, the position taken by Eurozone MEPs belonging to governing parties turned out to be a good predictor of whether their government would opt to join the enhanced co-operation procedure (click here to see the comparative table).

What should we expect?

Based on the Council's voting record on economic and monetary affairs issues since 2009 and the publicly stated positions of Member States, as well as the fact that it would be highly unusual for the Council to go back on a deal reached with the European Parliament, the tentative compromise reached between the EU Council and the Parliament last week is likely to be approved - albeit possibly with minor changes and with certain Member States expressing reservations. If the UK maintains its opposition, it is likely to be outvoted.

In the European Parliament, which must also still give its final agreement to the compromise proposal, the so-called Tobin tax initially did not enjoy much support. But mounting public anger following the 2008 financial crisis caused a change of heart. The biggest change occurred within the largest political group, the European People's Party (EPP, also the largest party in the Council). Although it voted against the FTT in several non-binding votes in 2011, most EPP MEPs finally supported the tax in May 2012, when the legislative vote was held. Click here to see the evolution in MEP positions on the FTT in the European Parliament.

For further information, please contact Doru Frantescu, VoteWatch Europe policy director, doru@votewatcheurope.eu, tel. +32 472 65 79 24.

VoteWatch Europe AISBL is an independent, non-partisan, not-for-profit organisation registered in Belgium. It is funded by grants from the Open Society Institute and the Joseph Rowntree Charitable Trust. It receives in-kind support from Burson-Marsteller and White and Case.

The amendment proposed by EPP concerning the Advisory Councils that may be created for implementing such policy and the role national and regional administrations of Member States with interests in the fishing area should play was rejected by a centre-left coalition (S&D, ALDE, Greens/EFA) who was joined by the ECR.

The text as a whole is less ambitious than the Commission proposal and aims only to reduce, not to eliminate discards. Another measure regards transferable fishing concessions (TFCs), suggesting more individual responsibility in managing the quotas. The MEPs propose in addition a legally binding obligation, placed on the Council, to reduce fishing mortality by 2015 and call on the Member States to cooperate on the adoption of "regionalised" national measures.



First guidelines for the 2014 Budget

The resolution adopted by the European Parliament regarding the 2014 budgetary procedure was supported by six of the seven political families, the only one that voted against being GUE-NGL. Amajority of MEPs (with most EPP Members opposed) supported the amendment that asked for a roadmap by June 2013 on the multiple seats of the EP, and for up-to-date figures and information on the financial and environmental impact of the current multiple seat arrangement. On the other hand, the amendments proposed by ECR, regarding the reduction of the administrative budgets in the EU institutions and of the staff pensions in line with future long-term demographic trends, were all rejected.

The finally adopted text focuses on the idea that real savings can be made by identifying overlaps and inefficiencies across budgetary lines and reducing administrative burdens. However, the MEPs consider an undifferentiated approach to the institutions' budgets as being counter-productive and in this sense they recognize the EEAS needs an enhanced network of missions in order to meet the EU's political priorities.



Sound level of motor vehicles disputed

A majority formed by EPP, ALDE, ECR and EFD adopted a legislative resolution on the sound level of motor vehicles, while the S&D, Greens/EFA, GUE-NGL groups opposed. However, the limit values proposed by the Commission were rejected by EPP, ECR and EFD. Underlining that traffic noise harms health in numerous ways, the resolution calls on further research on these effects. The MEPs also call on the Commission to publish "silent" road guidelines, addressed to road authorities in order to provide them with a useful tool to comply with requirements for more sustainable road infrastructure. Another tool proposed to improve the current conditions is making available the information relating to noise, including test data, by displaying it at points of sale and in promotional materials for vehicles.



Guidelines for the employment policies of the Member States

A majority formed by EPP, S&D, ALDE and Greens/EFA voted in favour of guidelines for the employment policies in the Member States. By this, the European Parliament supports the Commission's proposal and stresses that these documents are integrated in the guidelines for implementing the Europe 2020 strategy.



Employment and social aspects in the annual growth survey 2013

EPP, S&D, ALDE and Greens/EFA pushed through the document on the European Semester for economic policy coordination: employment and social aspects in the annual growth survey 2013. However, all the ALDE MEPs from Germany abstained. The amendment 9 was adopted by a majority formed by the centre-left groups- ALDE, S&D, Greens/EFA and GUE-NGL. This amendment calls on the Commission to explore ways of increasing the Structural Funds' cofinancing rate in the case of those Member States with the highest rates of unemployment and to seek additional funds for that purpose from other sources of finance.



Access to finance for SMEs to be improved

The MEPs adopted a non-binding resolution regarding the access to finance for the Small and Medium Enterprises. The resolution was supported by all parties, except GUE-NGL.

By this resolution, the European Parliament agrees with the Commission that the European Union's economic success, excellence and cohesion largely depend on sustainable growth and job creation based on SMEs committed to providing quality products and services. In order to improve the access to finance, the resolution calls on the Member States to facilitate professional training support for potential entrepreneurs and for partnerships between banks, chambers of commerce, business associations and accountancy professionals. The Member States should also implement an appropriate framework for capital guarantees. On its side, the EU needs to allocate at least 20% of the Horizon 2020 budget to financing innovation in SMEs, and the European Investment Bank will be used as a key tool in this process.



A common system of value added tax

All the political groups within the European Parliament agreed on the adoption of a draft for a legislative resolution regarding a common system of value added tax. By this, the MEPs recognize the importance of significantly improve Member States' chances to effectively tackling complex fraud schemes, such as carrousel fraud, and of reducing otherwise irreparable financial losses. In order to deal with possible new forms of fraud in the future, it is also foreseen that other anti-fraud measures could be authorised and established under a Quick Reaction Mechanism (QRM).



Governance of the single market

MEPs voted in favour of a non-binding resolution regarding governance of the single market. The majority was formed by all the groups excepting GUE-NGL and EFD. The text calls on the Commission to aim for more horizontal coordination and coherence in the preparation of legislative proposals with relevance for the Single Market and to monitor the implementation of Union law. On their side, the Member States should transpose every directive in a consistent manner and adopt all transposition measures. The text mentions that the digital Single Market, the services sector, the energy sector, public procurement, research and innovation as well as consumer protection and increased mobility of citizens, in particular workers and professionals, figure among the most important key areas for growth.



For more information contact Doru Frantescu, Policy Director, at doru@votewatcheurope.eu, +32 472 657 924.