Brussels, 14/10/2013 (Agence Europe) - MEPs on the European Parliament's economic and monetary affairs committee are aware that they are working against the clock in the negotiations on setting up a bank resolution mechanism within the future Banking Union. During a debate on Monday 14 October on the draft report by Elisa Feirrera (S&D Portugal) (see EUROPE 10941) Corien Wortmann-Kool (EPP, Netherlands) said they had to work fast, but not at the expense of quality.
Pointing out that time was running out for lodging amendments, Wolf Klinz (ALDE, Germany) talked about the bank resolution fund to run alongside the SRM. He said that everyone was aware that a fund was needed and that it would take time to build up the necessary funding, expressing scepticism about ten years for building the fund up to speed and the aim of €50-€60 billion. He said the German bank resolution fund had €70 billion for German banks alone. A safety net would be needed until the fund was fully financed but what had been proposed so far was not a step in the right direction, he said.
In her report, Feirrera suggests a public lending facility, preferably via a European institution. Klinz said a guarantee was needed and it is the taxpayer who will provide it. In this connection, Feirrera said that she was awaiting contributions from the political groups (which have until 18 October to make their position known). Feirrera said she had heard concerns from the MEPs about the national bank resolution funds and the transition to setting up a single European mechanism. Some of the committee members drew Feirrera's attention to the need to avoid banks being expected to finance the European fund when they already finance a bank resolution fund in their home country.
On behalf of the Greens/EFA, Sven Giegold (Germany) welcomed the fact that Feirrera had reduced the Commission's role in a number of areas. He said his grouping would add to the legislation that the whole system would apply to all banks across the board, even the smallest ones, and they wanted the Parliament to have a greater role in the process, through democratic scrutiny and information.
Other areas where clarification is required include where the headquarters of the bank resolution mechanism would be located, decision-making on the European resolution committee, the protection of savings and the system's legal basis. (EL/transl.fl)