Ecofin Council/Banking supervision
Council awaits Commission’s proposal
By Manon Malhère | Tuesday 10 July 2012
The establishment of a single banking supervision mechanism involving the European Central Bank will depend on the proposal the European Commission presents in September (see separate article), said Cypriot Finance Minister Vassos Shiarly on behalf of the Council Presidency, after the 10 July Ecofin Council. “We had an initial airing of views and will get back to this during the year,” added Shiarly. The text will have to be adopted unanimously by the 27 (Article 127(6) TFEU).
“Our objective is to move faster than usual in this specific case” so as to have the final vote and “operational organisation of this supervision” by the end of 2012, said Internal Market Commissioner Michel Barnier in an optimistic comment.
The draft directive “establishing a framework for the recovery and resolution of credit institutions and investment firms” was given an overall positive reaction. Italian Prime Minister Mario Monti nevertheless observed that the “decentralised approach” recommended in the text is not “ambitious enough” compared with the integrated financial framework presented in the report on Economic and Monetary Union (EMU) by European Council President Herman Van Rompuy.
On the reform of prudential rules for banks, CRD IV-CRR (regulation and directive), for which negotiations between the EP and Council are particularly tough, the Cyprus Presidency confirmed its intention to reach a first-reading agreement as soon as possible. Three-way talks are planned on 11 and 12 July.