This morning, the ECON Committee of the European Parliament voted on its compromise text for the draft STS securitisation legislation. This text is not the actual legislation but is an amended version of the original European Commission text. This amended text will now be brought together with the Council text agreed last December and the two will be subject to a reconciliation process involving the Commission, the Council and Parliament – the trilogue negotiation. The result of this negotiation will be the final text to be voted on and become the STS law. The trilogue will, in all likelihood, begin in late January or early February. It is difficult, however, to estimate how long it will last as this depends on the speed at which politically contentious issues can be resolved.
It should be noted that today’s vote showed a solid consensus within ECON for this text – with 44 votes in favour, 4 against and one abstention. Also of note, it was agreed that the text would not be brought to a plenary session vote and so is now final.
We expect the official version of this text to be published in the coming days.