The European Movement-France (ME-F) welcomes the compromise reached by the Council regarding the Banking Union. Certainly, not all banks are covered by the European Central Bank (ECB), and the timeline has been postponed to March 2014.
However, the essential is preserved: banks representing a systemic risk to the financial stability of the eurozone will be under the direct supervision of the ECB, which will be able to act on its own if necessary.
The success of this first step now relies on good coordination between the ECB and national supervisory authorities, as well as between the ECB and the European Banking Authority.
The ME-F invites all non-eurozone member states to gradually join this common mechanism for the supervision of European banks. Above all, the ME-F encourages the Council and the European Parliament to proceed with the new steps planned by the European Commission, namely the establishment of a common crisis resolution mechanism, funded by contributions from the financial sector, and a European bank deposit guarantee system.
The European Stability Mechanism (ESM) must also be available for the recapitalization of struggling banks, to avoid burdening the sovereign debt of states and the weight on European citizens alone.
Nevertheless, the ME-F regrets the weak results of the last European Council, particularly the lack of boldness towards strengthening economic and monetary integration. Strengthening the eurozone should not be limited to constraints regarding budgetary discipline.
The spirit of solidarity must prevail, including through the establishment of a budgetary and borrowing capacity specific to this most integrated common area within the European Union!
Brigitte Ferrari, President of the ME-F for the Alpes Maritimes
