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, 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 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 may withdraw "open" loans - that is, loans that are available - from the ELE at any time.
III. Member-states 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.
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 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.
Currently, it is difficult for member-states to receive loans not originating from the funds of the Union. In order to rectify this issue, I propose the creation of the exchange above, which would make the process of obtaining loans, as well as lending itself, exponentially easier. The eventual hope is that this will allow for the facilitation of greater economic exchange. I would have liked this to be an institution under the European Central Bank; however, I am not entirely sure if this is legal. If it is, then I will propose an amendment changing it as to be such. Amendments are, as usual, wanted.
Kelarōn Juvinal
Councillor for the Union of Syndicates -
Debate shall begin NOW and end 18 February 2021 at 21:00 GMT.
Charles Michel
Council Speaker and Councilor for Fremet -
I am in support of the idea that this bill presents. Though I am still familiarizing myself with the financial institutions of the European Union, this does seem to really streamline the process of a member-state receiving a loan. And we Ruthens don't like unnecessary complication, except maybe in Religion-- yea, we like things simple. I shall keep an open mind on this and I am looking forward to hearing how this can be improved upon by other Councilor that are more familiar with the innerworkings of loans.
Tony Odhinazen
EU Councilor, Ruthund -
I understand the purpose of this loan but must ask Councilor Juvinal on how this legislation will affect the current loan that the Commonwealth of Leagio has with the EU. A loan that the nation of Leagio is committed to repaying through the guidelines that was agreed upon when it was voted in this Council. But I have another matter on the issue of the legislation. I am concerned on the registration that some nations might abuse it for secret transitions that would initiate some form of secret military buildup and there would not be any system that gives member states the ability to check that once the loans are approved. So I would like to provide an amendment to this legislation to give member-states providing the loans the ability to ensure that the money is spent the way it should be:
Amendment 1
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.
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 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.Francis Plessis
EU Councilor for Leagio -
Councillor Plessis, this legislation will not affect the loans made to Leagio, nor any future such loans. It simply creates an additional, and perhaps faster, process through which nations can obtain loans.
Kelarōn Juvinal
Councillor for the Union of Syndicates -
"I believe that first we should set up the members of the European Central Bank and then those members shall be presented this proposal and discussed with the Council. So I extend the fellow Cllrs. to proceed on hearings and the selection process of the ECB members. We are in the middle of an election process and we cannot put the decision on the Premier, newly elected, we shall do the due procees for the ECB President."
Emma Granger
Councillor for Montenbourg -
Debate is now over. It is time to vote on amendments. The Council shall vote on amendments until 1300 GMT on February 22nd, 2021. There is one amendment, proposed by Councillor Francis Plessis:
Amendment 1:
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.
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 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.
I vote FOR the amendment.
Charles Michel
Council Speaker and Councilor for Fremet -
I vote FOR the admendment
Tony Odhinazen
EU Councilor, Ruthund -
I vote FOR the amendment.
Francis Plessis
EU Councilor for Leagio -
I vote FOR the amendment.
Councillor of Alkharya, Aylin Gökçen
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I ABSTAIN from voting on the amendment.
Friedrich van Allen
Interim Councilor, Kingdom of Reitzmag -
I vote FOR the amendment.
Emma Granger
Councillor for Montenbourg -
I vote FOR the amendment.
Donald Tusk
Deputy Speaker and Councillor for Spain -
Voting on the amendments has CLOSED.
With 6 votes for, 0 votes against, and 1 abstention, Amendment 1 has PASSED.
The legislation has been updated to reflect the passed amendments.
Final voting begins NOW and will last until 26 February 2021 at 20h00 GMT.
On behalf of the Kingdom of Fremet, I vote FOR this act, as amended.
Charles Michel
Council Speaker and Councilor for the Kingdom of Fremet -
On behalf of United Duchies I vote for this act
James Mizrachi-Roscoe
Councillor for United Duchies -
On behalf of the Kingdom of Montenbourg, I vote FOR this act, as amended.
Emma Granger
Councilor for the Kingdom of Montenbourg -
On behalf of the Commonwealth of Leagio, I vote FOR this act.
Francis Plessis
EU Councilor for Leagio -
On behalf of the Union of Syndicates, I vote FOR this act.
Kelarōn Juvinal
Councillor for the Union of Syndicates -
On behalf of the Kingdom of Spain, I vote FOR this act.
Donald Tusk
Deputy Speaker and Councillor for Spain -
On behalf of the Realm of Great Ruthund, I vote FOR this act.
Tony Odhinazen
EU Councilor, Ruthund
The Kingdom of Spain