Amendment to the European Loan Provision Act
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PREAMBLE
This act aims to create an exchange of sorts as to facilitate the provision of loans to member-states.
SECTION I: The European Loan Exchange (ELE)
I. The ELE is headed by the President of the European Central Bank, or, in the vacancy of that position, by the Premier Commissioner, who shall hereby be referred to as being its President.
II. Member-states of the European Union, the European Central Bank, or legal private institutions, may register available loans they wish to provide with the ELE.
III. Member-states of the European Union may apply for and receive loans through the ELE.
IV. If requested, loans may be negotiated between provider and receiver, facilitated by an authority appointed by its President.
SECTION II: Rights of Member-States and the European Central Bank Regarding the ELE
I. Member-states may apply for specific loans offered through the ELE; however, they may also choose the option of being allotted one by the ELE.
II. Member-states, as well as the European Central Bank, may withdraw "open" loans - that is, loans that are available - from the ELE at any time.
III. Member-states, as well as the European Central Bank may deny the allotment of a loan to another state on the basis of economic unpredictability, economic instability, political illegitimacy, or political authoritarianism.
SECTION III: Retribution
IV. Member-states may have the option to ensure that the money provided in the loan is spent in the manner that was agreed upon by sending a team of inspectors from their own nation, the EU, or both. The European Central Bank has the same option, but is limited to sending only a team of inspectors from the European Union.
V. Member-states that have been found to intentionally have violated the agreed terms may be persecuted through the European Court of Justice for immediate repayment of the loan with an interest payment to the loaning member-state or, in the case that it extended the initial loan, the European Central Bank and may be barred from the ELE in a loan taking or providing procedure for no less than one year. This entire clause shall not be applied if it has been founded that the violation was only done intentionally by an individual or group of individuals, who shall be the ones persecuted for the violation and not the member-state on where the violation took place.
VI. Member-states unable to make payments regarding repayment of the loan are to be considered in default. In such a scenario, the provider of the loan and the recipient are to negotiate a new repayment schedule. According to set-out internal procedures, the loan provider may demand austerity in such a case, but this must be approved by a supermajority of the European Council.
This makes the second portion of my reform to the European Central Bank - allowing it to offer loans, of any level interest, to member-states, to offer a quick way to obtain funds not simply for development but also for other purposes - investment in research involving the green transition for example. The European Central Bank will of course be constrained in what it can spend, but I assume that this will mostly be done through a natural limitation, rather than one that is legal - that of the funds actually available to the bank.
Iras Tilkanas
Councillor for the Republic of Istkalen -
Debate begins NOW and will last until 22:08 GMT on September 24th, 2021.
Donald Tusk
Deputy Speaker and Councillor for Spain -
Debate on this shall CONTINUE until 18:12 GMT on October 16th, 2021.
Donald Tusk
Deputy Speaker and Councillor for Spain -
Due to the lack of debate, as well as concerns brought to me privately, I withdraw this bill from consideration.
Iras Tilkanas
Councillor for the Republic of Istkalen -
This bill has been withdrawn from consideration.
Donald Tusk
Deputy Speaker and Councillor for Spain
The Kingdom of Spain