Freeze US-EU pact aimed at tracking terrorism funds, advises Strasbourg

http://www.theguardian.com/world/2013/oct/23/us-eu-pact-terrorism-funds-nsa

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The European parliament on Tuesday demanded a financial transactions information-sharing pact between the EU and the US aimed at tracking terrorism funding be frozen because of the US National Security Agency's mass surveillance operations.

The three-year-old agreement, known as Swift, had to be suspended because of suspicions that the NSA was using the arrangements to pry into Europeans' bank and financial dealings, the parliament said in a resolution.

The demand in Strasbourg has little impact since the European commission has to decide whether to recommend a freezing of the bilateral agreement between Washington and Brussels, and a decision would then need to be taken by the 28 national governments of the EU by two-thirds majority. The parliament resolution obliges neither the commission nor the governments to act.

At present any such move is highly unlikely, although Cecilia Malmstrom, the commissioner for home affairs, has instructed her staff to look into the impact of the Edward Snowden revelations about NSA mass surveillance on the workings of the Swift agreement.

The parliament resolution was carried by 280 votes to 254 against with 30 abstaining, with the centre-left for and the centre-right against.

While the resolution obliges no further action from EU policy-makers, the MEPs warned that a failure to act by the commission could undermine parliament support for future EU international agreements.

The Labour MEP, Claude Moraes, who is heading a parliament inquiry into the NSA disclosures, said the Snowden revelations had jeopardised the common transatlantic fight against terrorism.

"The reports of the NSA tapping into the Swift data mean that there are now serious doubts that this agreement offers any real legal guarantees and safeguards for EU citizens' personal data. After several weeks, the US has still not denied these reports nor provided sound and irrefutable evidence."

Timothy Kirkhope, the Conservative MEP and spokesman on home affairs, countered that the parliament was imperilling European security.

"MEPs have cut off their noses to spite their faces. Based on unconfirmed allegations, the parliament has sought the suspension of an agreement of significant value in combating terror," he said. "National governments know too well the value of the agreement and they should stand firm against the parliament's demands."

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