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Live Reporting

Paul Seddon

All times stated are UK

  1. See you tomorrow...

    That's all from the European Parliament tonight - MEPs will be back tomorrow from 08.00 BST.

    The main events in the morning will be debates on draft legislation to prevent the financing of armed groups through the purchasing of "conflict minerals" and on the EU's new digital market strategy.

    In the afternoon, MEPs will be joined by Hungarian prime minister Viktor Orban to discuss his recent calls for a debate on whether the death penalty should be re-introduced in his country - a move that would be incompatible with EU fundamental rights law.

    Mr Orban said current penalties for serious crime were too lenient and capital punishment should be "kept on the agenda" in the country. The debate is expected to begin at around 15.00 BST.

  2. Final debate

    Finally tonight, Belgian Liberal MEP Philippe De Backer is presenting a resolution prepared on behalf of the Industry, Research and Energy committee about how to help small businesses can benefit from the so-called "green economy".

    Notably, it calls for small companies, including green ones, to benefit from money from the EU's proposed investment plan, which is aiming to raise €300bn, mostly from private sources, for infrastructure spending over the next three years.

    Philippe De Backer
  3. Procedural bust-up

    There's a bit of a disturbance in the hemicycle, as Doru-Claudian Frunzulica - a Romanian Socialist MEP - marches up to the front of the chamber to confront German MEP and Parliament vice-president Rainer Weiland, who is chairing the debate.

    It appears he was unhappy about not being called to speak during the "catch the eye" procedure.

    Mr Weiland orders his colleague to be accompanied out of the chamber.

    Doru-Claudian Frunzulica
  4. Direct amendments

    As well as repeating his criticism of austerity measures, Mr Pedicini blames "political interference" in the appointment of public health officials for high levels of HAIs across Europe.

    He also hails the Parliament's so-called "own-initiative report" as an example of direct democracy in action, noting that EU citizens were able to add amendments to the text online, some of which he says he has incorporated in his text.

    Piernicola Pedicini
  5. Resolution presentations

    With the one-minute speeches finished, tonight's sitting will conclude with short presentations of two resolutions that are going to be put to the vote tomorrow.

    The first resolution, prepared by Italian Five Star MEP Piernicola Pedicini, calls for member states to ensure proper maintenance and cleaning of hospitals to lower the rates of illness contracted during medical treatment or a stay in hospital.

    Figures from the European Centre for Disease Prevention and Control show that, across the EU, 1 in 20 hospital patients falls foul of a so-called "healthcare-associated infection" (or HAI).

    Between 20%-30% are considered to be preventable by intensive hygiene and control programmes.

    The text also criticises austerity measures across Europe, which it says have led to a "reduction in the level of cleaning staff in hospitals and other healthcare settings".

  6. Short speeches begin

    That's the debate on EU rules on VAT charged on digital services finished - MEPs will be voting on a resolution tomorrow.

    Now, MEPs will have the chance to make a round of short, topical one-minute speeches.

    This item, traditionally held at the end of the Monday plenary sittings in Strasbourg, allows backbench MEPs the chance to speak about any subject they choose.

    Most use it as an opportunity to speak on a recent news story or political development in their home region or country.

  7. Call for urgency

    Estonian Liberal Kaja Kallas beceomes the latest MEP in this remarkably consensual debate to endorse simplification of EU VAT rules and harmonisation of the rates charged on electronic and paper books.

    She adds that what is crucial is that changes to the current situation are made quickly, telling MEPs that they "don't have three years" to implement new laws due to the situation faced by digital firms.

    Kaja Kallas
  8. An EU VAT rate?

    Polish centre-right MEP Róża Gräfin von Thun Und Hohenstein says the current situation reinforces the need for a harmonised VAT rate across the EU.

    The idea has been around for a while - but is unlikely to be passed anytime soon due to significant opposition from national governments.

  9. 'Strangled with red tape'

    Syed Kamall, who leads the group of British Conservative MEPs in the Parliament, makes a similar point to Ms. Gill, claiming that the new system designed to help companies cope with the new requirements "doesn't work".

    Like Ms. Gill, he also says he has been contacted by digital companies who are facing the need to close down as a result of the changes, and that such firms are being "strangled to death with red tape".

    He proposes new thresholds and exemptions in EU VAT law so that smaller businesses are not affected by the new requirements, which he says are clearly designed more for regulating large multinationals.

    Syed Kamall
  10. VAT in the EU

    A new regime was introduced at the start of this year, which stated that VAT should be charged according to the country where customers are based, not where country the company providing the product is based.

    Thus, a company based in Luxembourg will still have to charge 20% VAT on ebooks sold to people in the UK, even if the rate in Luxembourg is lower.

    A new electronic system has been developed to help companies comply with the new rules - requiring just a single online declaration for all countries where they have been selling products.

    However, there have been complaints that that the new rules place too much of a burden on smaller businesses - a point raised in the chamber by Labour MEP Neena Gill, who says she has been contacted by "many" smaller digital businesses who have said they are "on the point of closing down" because of them.

  11. Ebook VAT rates

    German centre-right MEP Andreas Schwab mentions a recent legal ruling on ebooks affecting France and Luxembourg. Here's the background:

    In March, the European Court of Justice (ECJ) upheld a decision made by the Commission that the two countries couldn't apply the same reduced VAT rate they apply to paper books for their electronic equivalents.

    Both countries have had a lower rate of VAT for books - 5.5% in France and 3% in Luxembourg - which they have been applying to both types.

    However, the ECJ ruled that ebooks were an electronic "service" rather than simply a digital version of a physical product, and thus that the normal VAT rates (17% in Luxembourg and 20% in France) should be charged on them.

    Several publishing groups criticised the ruling, claiming that it was discriminatory and that it would hold back the development of the ebook market.

    Ebook
  12. Commission opens debate

    Commissioner Ansip says VAT rates on ebooks will be reviewed in the framework of new tax proposals included in the strategy, to be announced in detail next year.

    He adds that he personally supports the idea of reduced VAT rates on digital products such as ebooks.

    Commissioner Ansip
  13. VAT debate starts

    Commissioner Georgieva wraps up the debate on tobacco agreements, praising the success of current transparency measures and again pledging to keep MEPs informed on the state of negotiations with the tobacco companies.

    Next up is another debate with the Commission, represented by Digital Economy Commissioner Gunther Oettinger - this time on the rates of VAT on digital services, online newspapers and ebooks in the EU.

    It follows the launch two weeks ago of the Commission's new strategy for a "digital single market", which pledged to simplify EU VAT arrangements for digital products.

    MEPs will vote on a resolution tomorrow.

  14. Agreements a 'protection racket'

    UKIP MEP David Coburn says the agreements - which require the cigarette companies to contribute financially to anti-counterfeiting measures conducted by the member states - are a "protection racket" that "puts a gun to the head" of international tobacco firms.

    He adds that laws to introduce plain cigarette packaging in the UK, approved by MPs in March and due to come into effect in May next year, will only make the task of the counterfeiters easier, and predicts a "flood" of fake cigarettes into the EU as a result of the new rules.

    David Coburn
  15. Greater transparency calls

    Finnish centre-right MEP Petri Sarvamaa says that despite "frustrating" efforts to find out more about the nature of the new agreements negotiated with the companies, MEPs have only been able to get hold of documents that would require "a specialised lawyer" to understand.

    He calls for a greater level of transparency in the Commission's negotiations with the firms, urging that Parliament should be informed at all stages of talks on the deals, not simply "after everything has been said and done".

  16. Commission position

    Commissioner Georgieva tells MEPs that counterfeit cigarette smuggling has led to EU member states taking a 10% hit on the tax take they would normally expect on the sale of tobacco products.

    He also adds that cheaper cigarettes undermine health polices in the EU countries, where higher taxes are levied in order to act as a deterrent to smoking.

    She says the Commission is currently assessing the renewal of the agreement with Philip Morris, which she says has shown a high level of success in reducing counterfeiting, and promises to keep MEPs informed.

    Commissioner Georgieva
  17. What are the agreements?

    The agreements oblige the four companies to give money to the member states to establish tracking systems to be used by the enforcing authorities.

    In their resolution to sign off the 2012 EU budget, MEPs asked the Commission to look into how well the agreements were working - and are now asking the Commission whether it intends to renew them.

    One of the agreements - with US manufacturer Philip Morris International - is due to expire in July next year.

    Some MEPs have argued that the agreements are now redundant because of mandatory tracking measures included in an EU tobacco directive which came into force in May last year.

  18. Tobacco agreements debate begins

    That's the debate on overseas aid spending finished - MEPs will vote on their resolution tomorrow.

    Next up, MEPs are going to be debating the future of so-called "tobacco agreements" the EU and its member states have with the world's four largest tobacco manufacturers, with budgets commissioner Kristalina Georgieva.

    The agreements, signed between 2004-2010, commit the companies to helping national authorities to fight counterfeit cigarette manufacturing.

    Cigarettes
  19. Development 'crumbs'

    Spanish left-wing MEP Lidia Senra Rodriguez says she deplores the fact the resolution has "nothing to say" on development problems such as tackling hunger or land erosion.

    She says the current amount of aid given by European countries are mere "crumbs" from countries that he says have a track record of exploiting parts of the developed world, notably Africa, for their own economic benefit.

    Lidia Senra Rodriguez
  20. Call for UK to 'get its own house in order'

    UKIP MEP Nathan Gill sets out the party's opposition to current levels of aid spending in the UK - and says that funds have been badly mismanaged in the past, as shown by a string of scandals that have hit the headlines.

    He adds that he is not comfortable with the spending levels given the UK's own current high levels of public debt, and says that more spending should only be sanctioned once the country "gets its own house in order".

    Nathan Gill
  21. Gesture politics?

    The last coalition government passed a law to enshrine the 0.7% overseas aid target into law.

    Supporters of the law - which got its royal assent in March - argued it would help developing countries improve vital infrastructure and increase the markets for UK goods.

    However, opponents dismissed it as "gesture politics", and said it would shackle future governments at a time when unprotected departmental budgets - including defence - are set to face a squeeze on spending.

    UK aid
  22. Renewed efforts

    Liberal Luxembourgish MEP Charles Goerens, speaking on behalf of the Parliament's budgets committee, says that the upcoming conference will bring "good news" that there will be renewed efforts to set to the 0.7% aid target to a more definitive timetable.

    He says, however, that the "bad news" is that this target has already been set - and missed - in the past.

    He adds, however, that the EU countries that are meeting the target (the UK is one of them - along with Denmark, Sweden and Luxembourg) should be congratulated on their efforts.

  23. MEPs' demands noted

    Development Commissioner Neven Mimica says he has "taken careful note" of the MEPs' demands in the resolution - including the need for greater contributions from the private sector and greater transparency monitoring of the aid money given by the European Commission.

    Neven Mimica
  24. Targets met?

    After today's debate, MEPs will vote on a resolution tomorrow which urges member states to respect their development aid targets.

    It is meant to set out the Parliament's position on the matter ahead of a big development conference in July being held in Addis Ababa, Ethiopia.

    It also calls for the private sector, as well as governments, to make bigger contributions.

    Portuguese Socialist Pedro Silva Pereira says his resolution should send out a "powerful political message" that EU countries should play an important role in the setting of new targets.

    Pedro Silva Pereira
  25. Overseas aid

    That's the debate on the new EU benchmarks regulation finished - MEPs will set out their initial position on the legislation at a vote tomorrow.

    Next up, MEPs are going to be debating the amount of money EU countries give in overseas aid as a proportion of their national income (GDP).

    Member states pledged in 2005 to raise their aid contributions - known as their Official Development Assistance (ODA) - to 0.7% of GDP by this year.

    Countries that joined the EU after 2004 have made a less ambitious commitment of giving 0.33%.

    As of 2013, only four EU countries were meeting this target.

  26. Common ground

    Commissioner Hill rounds off the debate by stating there is a high level of agreement in the chamber, both on the need to action to stop manipulation of the rates and promote greater transparency in the way that benchmarks are set.

    He says the text agreed by MEPs should provide a "good framework" for negotiations, although he says he recognises that some in the chamber some want to "go further".

    However, he concludes that there is "suitable common ground" to make rapid progress on talks over the new rules.

    Lord Hill
  27. Market confidence

    Italian centre-right MEP Massimiliano Salini lends his support to the text, and - much like the "rapporteur" - praises the distinction between larger and smaller benchmarks as part of a wider effort to help out smaller businesses.

    He adds that increased regulation of some sort is however necessary to increase market confidence benchmark rates.

    Massimiliano Salini
  28. Post update

    @Europarl_EN

    European Parliament tweets: Fighting #benchmarks manipulation after #LIBOR/#EURIBOR scandals. #EPlenary kicks off now

  29. UK example

    Green group co-leader and Belgian MEP Philippe Lamberts says his group broadly supports the position of the rapporteur.

    However, he says his group cannot support the entire text as things stand, claiming that a number of larger benchmarks, which "otherwise have been deemed to be critical" have been taken out of the stricter regime following the vote at committee stage.

    He says his group will be tabling amendments at the vote tomorrow to overturn this.

    He also hails measures already taken in the UK to increase benchmark regulation - which he claims are "much stricter" than the legislation before MEPs today.

    The Financial Conduct Authority announced last December that it would be formally policing seven UK-based benchmarks following the Libor scandal.

    He says that in this respect the UK "hasn't waited for the European Parliament".

    Phillipe Lamberts
  30. Heart of the financial system

    "For me, manipulating benchmarks is the same as stealing," begins Lord Hill, who adds that the scandals involving rates such as Libor have "badly undermined confidence" in the setting of important benchmarks that "go to the heart" of the financial system.

    He says that, once Parliament sets out its initial position on the legislation tomorrow, it will be up to MEPs and negotiators from the member states to find an "appropriate balance" on the transparency measures.

    However, he says that he is "grateful for the thinking" of Economic and Monetary Affairs Committee - and looks forward to negotiations beginning.

    Lord Hill
  31. What's the state of play?

    The Commission had originally argued that the rate-rigging scandals showed the need to make the setting of benchmarks more transparent and less prone to abuse or conflicts of interest.

    This view - and the overall thrust of the proposals - is shared by the Economic and Monetary Affairs Committee, which gave its initial backing to the rules in March.

    However, the committee's MEPs also stressed that there should be a lighter regime for the less important benchmarks, so as not to put too much of a regulatory burden on them.

    Also, the committee's report said commodity benchmarks should also be exempt from certain requirements, in line with international principles.

    Parliament will set out its view at "first reading" at a vote tomorrow, after which negotiations with the member states and Commission will begin.

  32. Distinction made

    Dutch Liberal Cora van Nieuwenhuizen, who has been responsible for steering the legislation through Parliament, hails the distinction made in the legislation between the more important - or "critical" - and less important - or "non-critical" - benchmark rates.

    Her report on the law has stressed that there should be a lighter regime for the less important benchmarks, so as not to put too much of a regulatory burden on them - something she says will "protect capital markets and allow them to grow".

    She claims the distinction has been a critical factor in allowing the proposals to garner a large amount of cross-party support.

    Cora van Nieuwenhuizen
  33. What was the Libor scandal?

    Libor - the London Inter-bank Offered Rate - is a benchmark set in London by a body called Intercontinental Exchange.

    It used to be set by the British Bankers' Association, based on data received from 16 major international banks, until early 2014.

    It is meant to reflect the average rate that banks pay to lend to each other, and affects lots of different financial instruments, from car loans to mortgages.

    It has been hit by a number of scandals, involving traders at several banks conspiring to influence the rate by asking colleagues to submit rates that were either higher or lower than their actual estimate.

    Trading floor
  34. What will the new law do?

    The new regulation would place the most important benchmarks - with an average value of at least €500bn - under the regulatory control of a "college" of national supervisors, led by the European Securities and Markets Authority (ESMA), an EU financial regulator based in Paris.

    These so-called "critical" benchmarks would also have to affect more than one EU country to be covered by the law.

    The draft text foresees regulators getting increased legal powers to access documents and carry out on-site searches of benchmark providers if information deemed relevant to an investigation is withheld.

    In addition, regulators would be able to fine firms up to 10% of their total annual turnover or €1m, whichever is greater, if they are found to have failed to comply with the new standards.

  35. First item

    With the week's agenda approved, we'll move on to the first item of business on this afternoon's agenda - a debate on a new draft EU law that aims to increase regulation of so-called financial "benchmarks", with the UK Commissioner Jonathan Hill - who has a brief covering financial regulation.

    These are calculated sets of figures that are used to determine the value of a number of financial contracts and instruments, including mortgages.

    The law being debated this afternoon was proposed by the previous Commission, led by Jose Manuel Barroso, in September 2013 following much-publicised scandals involving the manipulation of the Libor benchmark rate and Euribor, its eurozone equivalent.

    EU regulators hit a number of banks with record fines totalling €1.7bn later that year for their involvement in fixing the rates to boost their profits.

    City of London
  36. Moving debates

    Mr Schulz says that the Socialist and Democrat group have requested that Thursday's human rights debates are moved forward to earlier in the day, with the vote on the resolutions taking place at the lunchtime voting session.

    The proposal is approved.

  37. Resolution next month

    Martin Schulz informs the house that the Green/EFA and Socialist and Democrat groups have requested that tomorrow's debate on the situation in Hungary is wound up with a resolution vote during this plenary session.

    To applause, he also says it is "just not on" that the Council of Ministers has refused to send a representative to the debate.

    Prime Minister Viktor Orban recently called for a debate on the possible re-introduction of the death penalty - something not allowed under EU law.

    A number of MEPs have also expressed indignation at recently-announced plans by the government to hold a public consultation on the issue of immigration.

    Mr Schulz, however, has said Mr Orban reassured him that the Hungarian government has "no plans" to reintroduce the penalty -something he repeats in the chamber this afternoon.

    MEPs reject the idea - but a separate proposal, to hold a resolution next month, is approved.

  38. Election announced

    Parliament President Martin Schulz opens the session with a series of procedural announcements - including Wednesday's election of a new Parliament vice-president to replace Finnish MEP and former Parliament president Olli Rehn.

    Martin Schulz
  39. Good afternoon

    Hello and welcome to BBC Democracy Live's online coverage of today's plenary sitting of the European Parliament in Strasbourg, which will shortly be opened by Parliament President Martin Schulz.

    The sitting will begin with administrative announcements, after which MEPs will have the chance to request additions or changes to the week's agenda or make points of order.

    Proposals to add a debate to the agenda have to be made to the president at least one hour before the sitting opens, and can be tabled by one of the Parliament's committees, one of its political groups, or a group of 40 MEPs.

    In order to be formally added, an item must be approved by a simple majority - and can be done on a show of hands.