Brussels, 13/11/2012 (Agence Europe) - Sweden has made it clear that countries not yet members of the eurozone that are asked to join the bank supervision system to be set up under the aegis of the European Central Bank are not yet being treated on a par with eurozone nations. “It is unacceptable that the supervisory committee be subordinated to ECB Council of Governors,” said Swedish finance minister Anders Borg on Tuesday 13 November, speaking on the fringes of the ECOFIN Council. The supervisory committee will be set up within the ECB in order to keep monetary policy separate from banking supervision.
The Cypriot Presidency has suggested that draft decisions by the future Supervisory Committee be deemed passed unless the ECB Governing Council objects within three weeks (see EUROPE 10727). The idea is that this would get round the legal problem whereby under the EU treaty, only the ECB Governing Council and Executive Council can make decisions.
Borg says that a technical amendment could be made to the treaties. “Either you change the treaty for every country to be treated equitably or you move the supervisory committee outside the ECB,” he said. Behind the scenes at the ECOFIN Council, Germany and the United Kingdom said they were open to a change in the treaty. Ireland opposes the idea because of the time it would take, which would delay introduction of the bank supervisory system.
EU Internal Market Commissioner Michel Barnier says he realises that improvements are needed if non-euro countries are to be involved in the bank supervision system and the system would not become operational until 2013 or the start of 2014. He said he was prepared to go further in the separation of duties between the ECB and national supervisory bodies. ECB deputy president Vitor Constancio said he would go along with that as long as the buck stopped with the ECB. Austria warned of the risk of too much haste spoiling the outcome. (MB/transl.fl)