Brussels, 22/05/2013 (Agence Europe) - On Wednesday 22 May 2013, the European Parliament voted through amendments to a legislative resolution to make the European Central Bank (ECB) directly responsible for supervising the eurozone's biggest banks and express its opinion on the surveillance of other banks. The EP decided, however, to leave the final vote until agreement is reached with the ECB on boosting democratic responsibility and the Council of Ministers is able to reach unanimous and formal agreement, which requires the Bundestag in Germany to give its go-ahead.
MEPs expressed serious doubt during the debate in plenary on Tuesday 21 May about the ECB's desire to submit to European Parliament scrutiny in practice (see EUROPE 10849). “There will be no vote without a final agreement with the ECB laying down how it will be democratically accountable to the European and national parliaments”, said Sharon Bowles (ALDE, United Kingdom), chair of the EP's economic and monetary affairs committee. During the debate in plenary, Sven Giegold (Greens/EFA, Germany) made similar comments, saying that the ECB didn't have a reputation for being a haven of democracy, but it will have to get used to it with the bank supervision task.
Sylvie Goulard (ALDE/France) expressed concern: “We still don't have official guarantees over a clear separation between the ECB monetary and supervisory tasks”.
The MEPs are pleased that it has been possible to get changes made, incentives for non-euro countries to join the surveillance mechanism and a strengthening of the European Banking Authority.
Marianne Thyssen, another rapporteur, said stricter supervision was the cornerstone of an EU-wide banking union: “It will reinforce European integration, restore confidence, make the financial sector stronger and protect the economy and citizens' savings”.
Kay Swinburne (ECR, UK) welcomed the multi-speed Europe which “recognises that all member states are different, both economically and culturally, yet can still work together to achieve an overall outcome that everyone can be comfortable with”.
The EP needs to approve of the final deal once national parliaments have expressed their views and agreement on democratic control is reached with the ECB.
Italy says EU is moving too slowly on banking union.
On Tuesday 21 May 2013, the Italian prime minister, Enrico Letta, criticised the European Union for moving too slowly to set up banking union, saying it was unacceptable for it to have been decided a year ago and yet not even to have been properly defined yet. In a speech to the Italian Senate, Letta said that, in his view, such behaviour makes the EU itself less credible because it announces big decisions but then can't put them into practice in the following twelve months. (EL/transl.fl)