Brussels, 19/09/2012 (Agence Europe) - Belgian MEP Marianne Thyssen (EPP) will be unveiling a draft own-initiative report on Thursday 20 September on a genuine Economic and Monetary Union (EMU), which is part of an attempt by the European Parliament to have a say in the drawing up of a roadmap by the European Council for greater integration of member states' budget, economic and political plans, as recommended by the European Summit in June this year (see EUROPE 10645).
Thyssen makes several recommendations about the granting to the ECB of the ultimate supervisory powers over banks in the eurozone (see EUROPE 10690), saying that this should cover all financial institutions, but should involve a clear separation of operational responsibilities between national and EU supervisory bodies depending on the size of the bank and the type of supervision concerned.
Two separate EU funds. Thyssen suggests setting up two separate EU funds - one to guarantee savings and one for bank restructuring. The financial instrument should contribute cash to the first fund, which would cover all banks to prevent customers shifting their savings to safer banks (banks covered by the savings guarantee system). Savings in euros would be covered by a special system whereby member states would be required to “jointly” ensure the fund has enough cash. The second fund would only be used to bail out banks in the eurozone monitored by the ECB and would be funded ahead of any crisis by contributions from the financial industry. Participating countries would be obliged to jointly ensure the fund has enough cash in it. In addition, a special EU body would be set up to carry out the bank restructuring proper. For the two funds, Thyssen wants the European Stability Mechanism (the eurozone's new bailout fund that will have a lending capacity of €500 billion) to have the power to provide guarantees where necessary. She adds that if necessary, the ESM should be allowed to directly intervene in banks that are being bailed out.
Other recommendations cover the budgetary side of EMU. The European Commission is invited to take account of the inter-institutional agreements on the “two-pack” of legislation on the Stability and Growth Pact (on a budget timeline for the member states, for example). Thyssen believes that greater cooperation could be used to speed up fiscal integration (ACCIS, FTT). She also suggests implementation of the “European Semester” process to encourage completion of the Single Market and synergy between national and EU budgets. For example, the Council of the EU should inform the Parliament about major changes to the European Commission's country-specific budget and macroeconomic recommendations each year. In order to give EMU greater democratic legitimacy, Thyssen makes a number of recommendations, such as the president of the Parliament attending EU27 and eurozone summits. (MB/transl.fl)