[Last updated 25/10/2013 12:25]
Initial reports indicate that no agreement was reached on the main issues in the Omnibus II trilogue yesterday (24/10/2013). Three people familiar with the discussions told Solvency II Wire that parties were not able to come to an agreement. The next trilogue is scheduled for 13 November.
According to one source, there was no agreement on Long-Term Guarantees (LTG), equivalence or sovereign debt, but parties were moving closer on some of these.
The meeting lasted about an hour and a half and it was already known a few days ago that the trilogue would be shorter than initially planned. An EP source said that the Council had put forward a proposal on the LTG package but that disagreement remained on a number of key issues. However, up until Wednesday night some sources were optimistic a deal could be reached.
Details are yet to emerge as to the nature of the discussions. Despite high optimism from both the Parliament and Council in the run up to the trilogue it is now unclear what the implications for the process will be.
Council position on LTG packageOn 11 October the Lithuanian Presidency circulated a working document (Presidency package ahead of the political Trilogue on 24 October 2013) outlining an agreed position on the LTG package. The document, seen by Solvency II Wire, proposes the following amendments to previous texts. It is not clear if this is the version presented to the trilogue parties.
- The floor for the fundamental spread for corporate bonds is set at 35%.
- The floor for the fundamental spread for government bonds is set at 30%.
- The application ratio for the volatility adjustment is set at 65%.
- An improved method for the calculation of the national top-up for the volatility adjustment.
- A clarification that volatility adjustment does not entail the Solvency Capital Requirement charge.
- An extension of the transitional measures to 16 years.