Her argument is that one of the elements of the 33 indicia of fiscal capacity, which presently make up the formula and are weighted according to an even more complex formula, namely, non-renewable resources, should be removed from the formula or possibly weighted differently than it presently is.

24". exposures" for the purpose of applying Articles 48, 49 and 50 shall mean the assets and off-balance-sheet items referred to in Article 43 and in Annexes II and IV thereto, without application of the weightings or degrees of risk there provided for; the risks referred to in Annex IV must be calculated in accordance with one of the methods set out in Annex III, without application of the weightings for counterparty risk; all elements entirely covered by own funds may, with the agreement of the competent authorities, be excluded from the definition of exposures provided that such own funds are not included in the calculation of the s ...[+++]olvency ratio or of other monitoring ratios provided for in this Directive and in other Community acts; exposures shall not include:

9. For the purposes of paragraphs 1, 2 and 3, Member States may apply a weighting of 20 % to asset items constituting claims on and other exposures to credit institutions with a maturity of more than one but not more than three years and a weighting of 50 % to asset items constituting claims on credit institutions with a maturity of more than three years, provided that the latter are represented by debt instruments that were issued by a credit institution and that those debt instruments are, in the opinion of the competent authorities, effectively negotiable on a market made up of professional operators and are subject to daily quotation ...[+++] on that market, or the issue of which was authorised by the competent authorities of the Member State of origin of the issuing credit institutions.

3. In the case of the off-balance-sheet items referred to in Article 43(3), the potential costs of replacing contracts in the event of counterparty default shall be calculated by means of one of the two methods set out in Annex III. Those costs shall be multiplied by the relevant counterparty weightings in Article 43(1), except the 100 % weightings as provided for there shall be replaced by 50 % weightings to produce risk-adjusted values.

5. Where asset and off-balance-sheet items are given a lower weighting because of the existence of explicit guarantees or collateral acceptable to the competent authorities, the lower weighting shall apply only to that part which is guaranteed or which is fully covered by the collateral.

The weighting may be 10% or 20%, representing a derogation from the general weightings of 0%, 20%, 50% and 100% laid down in the Directive. Examination of the application of the Directive reveals that all the Member States, except the Netherlands and the United Kingdom, have exercised the right to apply a 20% weighting to certain asset items guaranteed under certain conditions.