Caps Agreement

Nevertheless, the new treaty poses serious problems of interpretation, as it introduces exceptions to the ordinary procedure that benefit the Council. With regard to competition rules, Article 42, paragraph 2, states that “the Council, on the Commission`s proposal, may authorise the granting of aid: (a) for the protection of companies with disabilities by structural or natural conditions; b) under economic development programmes.” In addition, Article 43, paragraph 3, states that “the Council, on the Commission`s proposal, adopts measures relating to price setting, taxes, aid and quantitative restrictions.” In the absence of a clear delineation of the legislative powers of the European Parliament and the Council in the agricultural field, legal and political problems arose during the negotiations on the new post-2013 CAP. The European Parliament has always rejected general reservations of enforcement in favour of the Council, which could qualify, or even invalidate, the co-decision powers acquired under the new Treaty, particularly with regard to the fundamental reforms of the CAP, which include as key elements the setting of the levels and prices of state aid. However, the Council has any limitation on the powers conferred on Article 43, paragraph 3, under the new CMO [EU Regulation) 1308/2013, JO L 347 of 31.12.2013, p. 1. 20.12.2013, regulation (EU) no 1370/2013, JO L 347 of 28.12.2013, p. (factual sheet 3.2.4) ] and setting reduction percentages direct aid under financial discipline [Article 26 of Regulation (EU) No. 1306/2013, JO L 347 of 11.12.2013, p. 1.

JO L 347, 20.12.2013]. Parliament was therefore forced to approve the exception in order to prevent the adoption of the 2013 reform from being blocked [resolution P7_TA (2013) 0492 of 20 November 2013; JO L 347 of 31. OJ C 436, 24.11.2016, p. 274. In addition, a final declaration by Parliament, the Council and the Commission recognises that the agreement reached does not affect subsequent CAP reforms and does not rule out possible legal action. It can be shown that a cap on a LIBOR from t to T is equivalent to a multiple of a maturity t of a T-maturity bond. Therefore, if we have an interest rate model in which we can assess bond prices, we can estimate interest rate caps.

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