Brussels, 18/11/2015 (Agence Europe) - In Strasbourg next week, the political groups of the European Parliament will try to work out an extended compromise on the structural reform of the banking sector on the basis of the informal agreement reached in late October by the EPP and S&D groups.
A meeting, the second since Gunnar Hökmark (EPP, Sweden) and Jakob von Weizsäcker (S&D, Germany) found some common ground (see EUROPE 11422), was due to take place on Tuesday 17 November, between the MEPs responsible for negotiating this highly controversial dossier on behalf of their respective political groups. The reason for this delay is reported to lie in the problems the Swedish Christian Democrat and the German Social Democrat are having in winning over their colleagues from their respective groups, with the EPP and S&D holding the majority at the committee on economic and monetary affairs of the EP.
There is a certain “uneasiness” within the EPP and S&D groups, a Parliamentary source said on Wednesday 18 November. This source explained that the rift in these groups is not based solely on nationality, although France has spoken out against the embryonic reform (see EUROPE 11427) and MEPs from countries with less-developed banking markets are said to be concerned about problems in terms of liquidity.
The aim for the EPP and S&D groups is to avoid a further breakdown when the competent parliamentary committee is called upon to agree its position with a view to starting negotiations with the Council of the EU, which agreed on its position back in June (see EUROPE 11339).
However, the Liberals oppose the 'Hökmark/von Weizsäcker' outright. They criticise an informal agreement which scales down the measures to be taken to a handful of European banks (transfer of market activities or substantial increase of own funds) when the financial risks taken on market activities jeopardise retail activities. They do not wish to create a precedent by approving a European legislative text affecting only a few financial institutions when the G20 has just laid down new bank prudential rules (TLAC buffer) for the major systemic banks, which would apply to some dozen European banks. (Original version in French by Mathieu Bion)