Brussels, 18/04/2013 (Agence Europe) - The European Parliament (EP) suggests that the future system for direct bailout of banks in the eurozone should also cover non-euro nations.
In an own opinion report by Danuta Hübner (EPP, Poland), MEPs say that an indirect bank recapitalisation instrument should be set up for non-euro member states that would offer conditional Facility loans for balance of payments aid to the government of the country where the failing banks are registered. The indirect nature of such loans would mean that the European Union's budget would not be directly exposed to risk from the bailing bank because the country in question would be liable for the loan.
ESM. The EP says the idea of amending the treaty establishing the European Stability Mechanism (ESM) could be considered to enable non-euro countries that have decided to join the eurozone bank supervision mechanism under the aegis of the ECB to take advantage of direct bank bailouts from the ESM. The countries would then be required to provide capital to the direct bank bailout fund and their involvement in the bank supervision system would need to be permanent, according to an amendment tabled by the ADLE Group and adopted by the plenary on Wednesday.
Along with loans, the aid system for non-euro countries should include the option of giving struggling countries extra loans as a preventative measure under strict conditions, argue the MEPs, concerned to ensure the integrity of the single market. They say the conditions for such loans should be based on the two-pack regulations for the eurozone nations' stability and growth pact.
“The revision of the Balance of Payments Fund sends out an important message that goes beyond the issue of financial assistance, namely that a greater harmonisation of reform across the Union is ultimately to euro and non-euro member states alike, and beyond all, in the interests of the single market”, said Hübner in a press release. (MB/transl.fl)