Municipalities free of Armed Bank
Protocol of municipalities free of Banca Armada and for ethical finances.
The importance of financing for the military-industrial complex is vital. Arms companies need the banking services of a financial system that is key to the ability of arms companies and other practices rejected by society to achieve their economic goals. That is, without financial support these companies would be forced to produce fewer weapons, undertake fewer polluting projects and other practices that we denounce in this campaign.
Currently there is already an ethical financial sector made up of financial institutions that make a clear and unique commitment to promoting projects with a clear positive social and environmental impact, respect and compliance with the principles that define ethical finance and that, at the same time, are integrated into the various local, state or international networks of ethical finance.
In this context, we believe that local councils and other public administrations can reduce the overall impact of the Banca Armada through greater control of public procurement (to move towards policy coherence in the fulfillment of the commitments made in terms of human rights and sustainable development such as the SDG 2030).
These are the reasons that have led to seek public commitment to promote and extend the use of ethical finance to public administrations while disinvesting in the Banca Armada. This protocol seeks to collect and make visible all the initiatives already carried out by public administrations in favor of ethical finance and to disengage from armed banking, as well as to encourage the rest of public administrations that have not yet taken any steps.
STEPS TO BECOME A MUNICIPALITY FREE OF ARMED BANKING AND IN FAVOR OF ETHICAL FINANCE
1.- To announce the will to become a “Municipality free of armed banking and for ethical finances”.
2.- To pass a resolution prohibiting or moving towards the explicit prohibition of investments in companies involved in the production, development, maintenance or trade of arms and their components, while encouraging and valuing the incorporation of ethical finance in the day-to-day work of public administration.
3.- To analyze if the relations with the current financial sector of the administration have links with entities that are part of the armed banking reports.
4.- Implement measures to establish negative selection criteria to ensure that no producer of nuclear or controversial weapons is part of the municipal portfolio and that there are no financial institutions related to these companies with financial service provider contracts for the administration. At the same time, introduce financial providers that are part of the ethical finance ecosystem.
5.- Disseminate to promote and complement divestment efforts by explaining the divestments made and the new financial policies adopted by other public administrations and citizens.
If you want to propose that your city council joins the campaign “MUNICIPALITIES FREE OF ARMED BANKING AND FOR ETHICAL FINANCE” you can contact the municipal groups that you think are more willing to approve the motion, and then inform us if it has been approved.
You can download a proposed text of the motion here: MUNICIPALITIES FREE OF ARMED BANKING AND FOR ETHICAL FINANCE
TECHNICAL ASPECTS AND CONSIDERATIONS ON THE NEW LAW ON PUBLIC SERVICE CONTRACTS (LCSP)
The new Public Services Contracts Law (LCSP) makes a differentiated treatment of the various financial services that exist and separates them into financing and treasury services and investment and insurance services. For this reason, it is necessary to stop talking about finance in general and go on to make explicit the different types of financial services that exist when formulating requests or carrying out evaluations of considerations with the inclusion of non-economic aspects to the contracting of financial services by the public administration.
The contracting of financing services is excluded from the LCSP, therefore each administration will define the procedures linked to the contracting of these services. This would imply that it is a private negotiation between the two parties. In this case, the restrictions and procedures established in the LCSP do not apply; however, other internal instructions issued by the different public administrations do apply.
The contracting of these services is also excluded from the LCSP, and receives the same treatment as financing services. Each city council may establish procedures related to the contracting of these services by means of specific instructions. Depending on the criteria they establish, they will make it more or less difficult for ethical finance entities to access these services.
Savings and investment
Banking services related to savings and investment, such as the management of pension plans, budget surpluses and other related services, are governed by the LCSP, even though they are private contracts. This means that, as regards the preparation and awarding of the file, the legal framework of application is the LCSP, but as from the awarding, the legal regime is that of private law.
They are a financial service and offer coverage in various scenarios. It is mandatory and essential for the proper risk management of the public administration. As with savings and investments, these services are included within the LCSP, but will have the character of a private contract. This means that for the bidding of these services (preparation and awarding) the regulations established in the LCSP apply, but the formalization of the contract will be governed by private law and not by administrative law. In the insurance product it is possible to establish criteria beyond the economic ones linked to the product that is contracted (the policy in particular) and also to the agents involved.
If you have any doubts, please contact us.
If you want to propose that your city council joins the campaign “MUNICIPALITIES FREE OF ARMED BANKING I FOR ETHICAL FINANCE” you can contact the municipal groups that you think are more willing to approve the motion, and then inform us if it has been approved.
We also want to ask you that, since a good part of the financial services is not subject to public competition, the information related to these aspects is not of a public nature and is not even found in the transparency portals of public administrations. For this reason, making public and disseminating everything that is done is essential for its replication and extension.
MUNICIPALITIES THAT HAVE TAKEN STEPS TO DISINVEST IN ARMED BANKING AND IN FAVOR OF ETHICAL FINANCE
Municipalities in Catalonia