At a meeting in Strasbourg between negotiators of the European Parliament on Tuesday 25 October, the negotiators of the political groups of the European Parliament noted that the dossier on banking structural reform was still in limbo.
A source close to the dossier told EUROPE that the meeting had shown that the positions could not be reconciled.
Schematically, the European Left – represented by the GUE/NGL and Greens/EFA Groups and a section of the S&D – called again for a text which leaves the option open for the national regulators ultimately to carry out a legal separation between the excessively risky investment activities and the retail activities of the same banking group, highlighting the recent troubles of the German bank Deutsche Bank as an example. On the right of the political spectrum, the EPP – to which Sweden's Gunnar Hökmark, rapporteur on the dossier,belongs – and ALDE Groups take the view that this position is a step too far and criticise provisions that would apply only to a handful of banks.
Commissioner for Financial Services Valdis Dombrovskis, who attended the meeting in line with the commitment he made when he inherited the dossier after Lord Jonathan Hill stepped down, pointed out that the European Commission was to present several proposals by the end of the year aiming to reinforce the solidity of the banking industry, including the reform of prudential requirements (new CRD-CRR legislative package) and introducing the TLAC standard into the EU (revision of the BRRD directive) agreed at G20 level. All of these legislative initiatives, the European Right argues, no longer justify any separation requirement on banking groups engaged in trading activities deemed excessively risky. Not wishing to take over from the European Parliament, the Commission has no intention of withdrawing the legislative text at this stage.
After an unsuccessful vote at the parliamentary committee on economic affairs in spring 2015 (see EUROPE 11322), the MEPs are struggling to put together a compromise on this file (see EUROPE 11457), whereas the member states have reached their position (see EUROPE 11339). (Original version in French by Mathieu Bion)