Brussels, 18/03/2016 (Agence Europe) - The European Economic and Social Committee (EESC) supports the approach aiming to deepen the Economic and Monetary Union (EMU) in stages, starting with the completion of Banking Union in the eurozone, which does not call for treaty change.
Although the social partners and civil society welcomed the proposals on the table, they also expressed concern at the fact that “the issue of democratic legitimacy is not tackled seriously by any of the Commission's proposals”, according to a press release published by the European body on Thursday 17 March.
The Committee, which takes the view that the work to reduce and pool the financial risks should move forward in parallel, said that the future European deposit insurance scheme (EDIS) will have a “crucial impact” on the national banking markets and the individual banks by providing a security buffer to help absorb local shocks, discouraging speculation targeting certain countries or banks and reducing the risks of bank runs (see EUROPE 11448). “At the same time, (EDIS) will further weaken the link between the banks and their national sovereigns”, the EESC stressed.
The Committee feels that there is a genuine need to “strengthen the euro area's relative weight in international financial institutions and give it a more prominent position in international financial markets”. In this regard, the European body supports the elements of the Commission's proposal which aim to establish a “single chair at the IMF by 2025”, as long as the outlines of an external representation of the eurozone are clearly defined (see EUROPE 11415).
Finally, the social partners and civil society are not opposed to the creation of a network of national competition authorities. However, their mandate should be extended to include the promotion of competitiveness, social cohesion and the sustainable economy. (Original version in French by Mathieu Bion)