The Hague: fall of government, controversial-declarations, SEO supervision report, Box 3
Since the fall of the Cabinet on June 3, things have been happening again in The Hague. The election date has been set for October 29 and the campaign has already begun. This is evident in the House of Representatives, where unfunded plans are being adopted, think of reversing the cuts in health care or agreeing to the new NATO norm without clear coverage. There is also tension among the three remaining coalition parties. For example, they could not initially agree on the Asylum & Migration ministerial post, so they decided to split the post into three. Another proposal that was also reversed after the PVV's exit was the proposed freeze on social rents. This happened almost immediately after the departure of the PVV announced by Minister Keijzer.
The many changes are symptomatic of a House of Representatives that wants to remain active despite the Cabinet's caretaker status. At the June 17 procedural meeting, for example, not a single item on the Finance Committee agenda was declared controversial. Still, the question remains as to how much the current House can actually decide as the summer recess begins July 4 and lasts until September 1, only to return to electoral recess on October 1, after which the campaign battle will be in full swing. From DUFAS, we are busy working on a position paper and other activities surrounding the elections.
Apart from the start of the election campaigns on Oct. 29, a number of other issues have come up recently. Starting with the SEO report on the evaluation of the Financial Supervision Funding Act 2019 and the cabinet response to it. DUFAS also participated in this study. Five years after the introduction of the Financial Supervision Funding Act, this report offers valuable insights into, among other things.
- The evolution and stability of supervision costs since 2019.
- The impact of (new) European regulations on these costs.
- The impact on the Dutch business climate.
- And stakeholder involvement in legislative changes.
The cabinet response contained a number of relevant proposals and measures. For example:
- Fairer cost allocation between new and existing market participants.
- Initiated an international comparative study on supervisory costs and establishment climate, with specific focus on smaller, start-up and expanding parties.
- Continued commitment to efficient and effective supervision.
- Explored ways to further improve panels of supervisors.
Finally, I will also briefly mention real estate and housing. The House of Representatives decided not to accommodate real estate investors in Box 3. Two amendments, by BBB and CDA & CU did not achieve a majority. Since the bill (rebuttal rule) was not declared controversial at the procedural meeting, the it will continue to be debated.
Brussels: Savings and Investment Union, Omnibus I, IV & V, FIDA, RIS
While geopolitical and national developments dominate the headlines, the European legislative train rumbles on unabated. The elaboration of the Savings and Investment Union is in full swing, with the past few weeks focusing on the targeted consultation on the integration of European capital markets. From DUFAS we have responded to this - see our press release for the main points.
Meanwhile, the European Commission continues to publish new Omnibus packages. Omnibus I, aimed at sustainability reporting, significantly reduces the scope of CSRD and CSDD, among others. There are noises in the European Parliament to reduce this scope even further, while in the Council the Commission proposal is seen as a cautious landing zone. An important open question is how this package relates to the announced revision of the SFDR. DUFAS is following this dossier closely and actively seeking discussions with MEPs to arrive at a workable proposal there as well.
In addition, there are the recently published Omnibus IV and Omnibus V package. Omnibus IV, published May 21, aims to make amendments to MiFID II and the Prospectus Regulation that should improve SMEs' access to capital markets. Among other things, small mid-caps will have access to simplified prospectus and reporting requirements. Omnibus V, the Defense Readiness Omnibus, was presented June 17 and includes proposals to accelerate defense-related investments. These include accelerated licensing procedures, administrative simplification within the European Defense Fund and broader application of InvestEU rules.
In addition to these new proposals, two files from the previous mandate are in the trialogue phase. First, FIDA (Framework for Financial Data Access). Although there are still speculations in Brussels about a possible withdrawal, negotiations are continuing for the time being. Starting in July, the Danish presidency will take over this dossier.
Finally, there is the Retail Investment Strategy (RIS). After the Polish presidency dropped this dossier, Denmark is now showing renewed ambition: the first working group is scheduled for July 4 (3 days after the start of the presidency). Within the Council, however, opinions remain divided. Spain, Italy and Slovenia express concerns about investor protection, while Slovakia, Luxembourg, the Czech Republic, Poland and Austria call for complete withdrawal. Germany is still in doubt. Yet the belief seems to be growing that full repeal is no longer realistic. The focus is thus shifting to developing a more workable alternative.
