Brussels, 06/03/2013 (Agence Europe) - On Wednesday 6 March, the European Commission organised a policy debate on two key proposals on banking in the future, one to introduce a bank restructuring authority and one to change the very structure of banking in Europe.
Once the legislation process is complete for introducing a bank supervision authority under the aegis of the European Central Bank and harmonising national bank restructuring and deposit guarantee systems, the European Commission will suggest that an independent bank restructuring authority be set up (separate from the bank supervision body) as the next stage in Banking Union in the eurozone. The new authority would have a bailout fund at its disposal, provided by industry, possibly with the addition of cash from the European Stability Mechanism (ESM). The Banking Union was launched by Europe's leaders in June 2012 to break the vicious circle between banks and sovereigns.
On Wednesday, the College of Commissioners also discussed future reform of the banking system in the light of the Liikanen Report and reforms under way in France and Germany (see EUROPE 10776) to get over the tricky problem of banks that are supposed to be “too-big-to-fail.” The Commission says it is “here to defend taxpayers and there is a case to act at EU level. We'll be ready with appropriate proposals. €1.6 trillion paid out in support to banks during crisis with burden very much on taxpayers.” (MB/transl.fl)