Brussels, 29/08/2012 (Agence Europe) - At its first meeting back after the summer break, on Wednesday 29 August, the College of Commissioners carried out an exchange of views on forthcoming proposals of the European Commission on a single banking supervision mechanism in the eurozone, one of the planks of the banking union called for by the EU17 at the end of June (see EUROPE 10674). The College held "an initial discussion on the proposals to be adopted in two weeks' time", a spokesperson for the European institution announced. The definitive date for the adoption - Tuesday 11 and Wednesday 12 September have been put forward - will depend on the date of the speech on the state of the European Union to be made by the President of the Commission, José Manuel Barroso, at the plenary session of the European Parliament in Strasbourg.
The Commission wants proposals on single banking supervision which are "as ambitious as possible" in order to reinforce consumer confidence within the eurozone and beyond and, more importantly, to pave the way for the direct recapitalisation of struggling banking sectors by means of European bailout funds. These proposals will be based around a number of principles: a central role to be given to the ECB; seeking a better balance between the competences of the ECB and those devolved upon the European Banking Authority and the national supervisors; in a single market, seeking a better balance between the rules applicable to banks which are in the Eurozone and those for banks which are outside. The proposals will lay the foundation stones for genuine banking union which will eventually include a single deposit guarantee mechanism and banking restructuring mechanisms. The aim is for the new rules to enter into force in early 2013. (MB/transl.fl)