Yes or no to banking union

Here's a contender for the record books: When EU leaders met in Brussels in June, they decided on the creation of a banking union for the stricken eurozone and less than three months later, the Commission's proposal for it is already scrutinised by Parliament. Europe's banks have largely welcomed the plan because the banking union's centralised supervisor is regarded as useful for stability. But, as the European Banking Federation Chief Executive points out, any regulation has to get the details and the competences right. We are worried on the one hand about the relationship between the ECB and the European Banking Authority, the EBA in London, and we are also concerned about the relations between the ECB and the national banking supervisors. Who will do what? Also, Europe's most important financial centre, London, accounting for 60% of the market, will not be included in any eurozone regulations, raising the spectre of a Europe divided. I do believe it's important to discuss with our British colleagues, in particular, the individual points of this suggestion for a banking union. What we agree on with our British colleagues cannot be made public yet. We are really in the early stages of our discussions. The Economic and Monetary Affairs Committee started to discuss the first building blocks of a banking union this week, and MEPs made it clear from the start that Parliament will insist on adequate decision making powers. The European Parliament cannot be marginalised on such a delicate and important subject. European Parliament has the right to participate in the appointment of the board members carrying out the supervision. The EP's first two legislative reports are expected to be presented for further debate in early October.

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