Brussels, 23/06/2010 (Agence Europe) - Negotiations over the EU's new financial supervision legislation are turning into a power struggle between the European Parliament and the EU Council of Ministers. José Manuel García-Margallo y Marfil (EPP, Spain), the European Parliament's rapporteur for the draft regulation setting up a European bank supervision authority, warns member states that the EPP might adopt its position in first reading in plenary next month if it is not satisfied with the following issues: - that the three European financial supervision authorities will be able to issue binding decisions in the event of infringements of EU rules, disputes among national supervisors of different countries and also in emergencies; - the creation of an EU financial stability fund to bail out too-big-to-fail banks. Speaking to a few reporters on Wednesday 23 June, García-Margallo y Marfil said the EP was not prepared to compromise on the principles but would, perhaps, compromise on the timings. By way of compromise, the draft legislation could, for example, not include the immediate creation of an EU crisis management fund if the European Commission is given explicit instruction to make such a suggestion (unveil draft legislation) within a specific period of time. The Spanish MEP regretted that the EP had dropped its demands on safeguard clauses and decision-making processes. He said that a vote in July would not prevent the EP holding a second reading after the summer break and the new legislation coming into force next year. (M.B./transl.fl)