| Consultation: | European Congress |
|---|---|
| Agenda item: | 2 Government’s proposal for Regulation 2024/XX/EF laying down the general framework addressing the macroeconomic and financial situation in Italy and the Federation The European Government |
| Proposer: | The European Government (decided on: 2024-07-06) |
| Status: | Accepted |
THE HOUSE OF EUROPEAN CITIZENS AND THE EUROPEAN SENATE,
Remembering the continuum of the European integration project, created on the
premise of economic cooperation between peaceful nations as a step towards de
facto solidarity and federation among European nations,
Having regard to the European Youth Convention, and in particular Articles 47 to
52 thereof,
Having regard to Organic Regulation 2024/01 defining European citizenship also
called the European Citizenship Charta, Regulation 2024/02 laying down the
Federal Budget and Directive 2024/03 ensuring fair and decent social standards
across the Federation.
Acting in accordance with the procedure laid down in Article 20 of the
Convention and Rule 7.1.1.2, 7.1.5.1, 8.1.1 and 9.1.12. of the Rules of
procedure,
Whereas:
On the 4th of July 2024, the European Parliament adopted the “Social
Contract” packages laying down the rules for the Federal European
Citizenship, Federal Budget as well as the creation of a Public Service.
Such provisions were a response to the financial and identity crisis
looming over the Federation. As such, it gave Europeans a sense of fiscal
responsibility and proudness towards the Federation.
On the 5th of July 2024, the Italian Government announced not to reimburse
the loans contracted through the Next Generation EU package, despite the
warnings of the Federal Government. This led to an inflation spiral that
eventually caused a spike on the stock exchange markets. In turn, the
Italian Government announced it was in liquidity default and could not
fulfill its financial obligations. On the night of the 5th July, it
officially called for International solidarity.
The Federation acknowledges the threat that the bankruptcy of the Italian
Government would pose. The Federation must be provided with the
appropriate measures to preserve financial markets stability and European
social and economic cohesion.
The Convention allows, in its Article 51.2, the Government to generate
debt on exceptional circumstances to face perilous situations.
HAVE ADOPTED THE FOLLOWING REGULATION:
The present Regulation lays down immediate action to solve the issues caused by
Italy’s state of bankruptcy, and the protest waves all over the Federation’s
territory.
For the purposes of this Regulation:
Savings - Refers to the amount of money owned by private individuals, and
used by an investment asset by private banks.
Revitalisation - Refers to the policy of ensuring the economic and social
resilience of a territory after suffering major financial damages.
Ledger - A book or other scheme for keeping accountingrecords.
Lender of Last resort - Refers to an institution, typically a central
bank, that provides emergency liquidity to financial institutions facing
temporary financial difficulties or liquidity shortages and that finds
itself unable to obtain sufficient liquidity in the interbank lending
market.
The Federation shall become the sole owner of all existing national public debt
of the Federated States. The Federation is authorized to take over the existing
national public debts of any Member State(s) facing a crisis, as outlined in
articles 6.1 to 6.5 of Regulation 2024/02 pertaining to the Federal Budget, in
order to provide reimbursement.
A transitional period shall commence in the month subsequent to the enactment of
this directive. The procedures outlined herein shall be uniformly applied
throughout the federation for the entirety of the transitional period to prevent
future defaults:
Federated States may only request a grant from the Federal Treasury Agency
during the transitional period, provided that their annual budget exhibits
a deficit;
The aforementioned procedures shall terminate upon the complete transfer
of all debts owed by Federated States which are facing the crisis to the
Federal ledger.
The Federal debt mechanism is funded through 4 financial measures;
In return for the adoption of those measures, Italy must undergo structural
policy reforms with the help of the European Federation.
The Federated Government shall propose and support a plan to regenerate
employment at the regional level of Member-States struck by economic and social
blasts, with the objective of saving employment, in regards to the European
pillar of social rights.
Under the scope of a new social assistance program, financial aid will be
prioritized to the following socially vulnerable groups including single-parent
families, large families with more than 2 children, or families in which one
member is disabled and/or unemployed.
It shall additionnally help enterprises regenerate in the stricken areas.
Whenever a local authority equivalent to the established national-level
subdivisions within each Member State as further specified by each national
jurisdiction notifies the services of the Federal government of a major economic
blast reasonably threatening employment and stability of private entreprises in
a specific area, the mentioned regional government shall propose to the local
authority, to the House of European Citizens and to the European Senate a plan
based on the Federal framework for employment and entreprises regeneration in
stricken areas (FFERSA), that will be discussed by the House or European
Citizens and to the European Senate.
The FFERSA shall be funded by extraordinary bonds issued by the Federal
government, according to Article 51-2 of the European Youth Convention. The
total amount of this bond shall be allocated to financing recovery in the
stricken area, via funding local plans (proposed by local-level subdivisions
within a Member State) for safeguarding employment.
The total amount of bonds issued by the European Federation must not exceed
three-hundred billion Euros, of which no more than fifty billion euros are
allocated as grants. The amount not distributed as grants will be allocated as
loans, presenting a fixed interest rate of 1.5% for a period of 10 years. This
period can be extended to a maximum of 20 years in case a Member State cannot
comply with the requirements, on national debt and deficit, set by the Stability
and Growth Pact.
The bond shall be issued within a time period of less than two months, allocated
to the subdivisions--lead project in the following month, and eventually be
spent in less than 5 months after the economic backlash.
The grants will refer to the first phase of the European Federation's crisis
response, following by the attribution of loans.
For the purposes of the present Regulation, an independant committee shall be
laid down. It shall:
1. independently and objectively follow the redistribution of the money from the
federal government to the competent authority pursuing the established plan,
2. work with the competent authorities, these being either the member states,
and regional and local governments taking into consideration competences of each
authority related to the economic or social blast, and the goals of each
specific plans, 3. ensure that the needs of small and big private enterprises
are taken into account by catering to the specific needs related to their legal
and economic capacities,
3. consider the particularities of each member state when facing the crisis that
results in the activation of the specific plan.
Every citizen shall have the right to peaceful assembly and protest, provided
that such protest does not infringe upon the rights and freedoms of others or
compromise Federal, national and regional security.
The local authorities have the competence and right to intervene, if necessary
in concertation wih the Federal Government, in order to take appropriate and
proportionate measures to ensure the rights and freedoms of others as well as
federal, national and regional security.
The Federal Government reserves the right to intervene if local authorities are
unable to reestablish order. Any kind of brutality from the local government
will not be accepted.
If the use of force is needed, this must comply with the rights granted by the
European Youth Convention.
The right to freedom of speech and expression shall not be infringed upon by
Federal or National or Regional authorities unless fundamental rights of others
are serioulsy violated as determined by the present authorities and subsequently
judged by the courts
While the right to protest is recognized, it is incumbent upon the protesters to
ensure their actions remain within the bounds of law and order. Any act of
violence, vandalism, or public disorder shall not be tolerated and will be
subject to legal penalties and intervention of local security authorities.
Organizers may be held accountable for harm or damage caused by protesters; if
the former acted with negligence and the perpetrators can not be found. If any
person is carrying an harmful weapon or dangerous tool during the protest, this
will lead to an increase of the penalty envisaged by the national laws of the
Member State.
I. For protests involving above 100 participants or more, the organizers must
inform local athorities at least 5 minutes in advance. This is to ensure public
safety and order, and not to restrict the right to protest. The process for
obtaining such a permit should be transparent, non discriminatory, and
expedient, reaffirming Art. 11 ECHR. Local authorities may ban them when there
are well founded grounds to expect a breach of public order, involving danger to
persons or property.
II. Notice must be given or directed to local athorities as a mean of
information.
III. This is to ensure public safety and order, and not to restrict the right to
protest. Local and federal authorities thus reserve the right to prevent protest
if there is a grounded reason to expect violence , extremism or other violation
of the european Charta.
Spontaneous manifestations are allowed if they are pacifc demonstrations without
any risk or act of violence, and if they do not undermine the stability of the
Federation. Legal procedures can be initiated by the State if these rules are
not respected.
It is the right of every individual to request the support of the judiciary if
they believe with due cause that their rights have been or are being infringed
upon by local or federal authorities.
The present Regulation shall enter into force immediately following its
publication in the Official Journal of the European Federation.
The Government shall be allowed to adopt any decree or implementing act
related to the implementation of the technical aspects of the present
Regulation.
It shall apply immediatly after adoption.
The present Regulation shall be binding in its entirety and directly applicable
to the European Government and in all Member States.
For the European Parliament
The President
For the European Senate
The President
