Brussels, 27/07/2012 (Agence Europe) - The president of the European Commission, José Manuel Durão Barroso, says that the Commission will be unveiling draft legislation in early September for a “Banking Union” (single bank regulatory system) for the eurozone, as decided by the eurozone summit in June (see EUROPE 10645). On Thursday 27 July 2012, speaking after a meeting with the Greek prime minister, Antonis Samaras (see EUROPE 10664), Barroso said the Commission was working very hard on setting up a Banking Union and in early September would be unveiling draft legilsation to introduce a single regulatory mechanism, giving the European Central Bank supervisory powers wholly separate from its monetary policy duties.
Barroso said that giving the ECB such powers would be an important way of building inter-bank confidence and thus increasing the financial stability of the eurozone. It is hoped that this new bank regulatory system can be in place by the end of the year. Its introduction has been made a precondition for the granting of direct financial aid to banks from the eurozone bailout funds. (MB/transl.fl)