Single Supervisor is first big step towards banking union
The Irish Presidency has today reached provisional agreement with the European Parliament on the single EU bank supervisor.
The creation of this supervisor is a major step towards banking union, restoring confidence in the European banking system and building stability across Europe. The setting up of the supervisor will also pave the way for the European Stability Mechanism (ESM) to take on the direct recapitalisation of banks.
The Irish Minister for Finance, Michael Noonan TD, welcomed the deal saying:
"The Single Supervisor is the core element of banking union and a vital step in breaking the vicious link between the banks and the sovereigns."
Minister Noonan - "Restoring confidence in the supervision of European banks couldn’t be more important in bringing stability to Europe"
The provisional agreement reached today includes strengthened democratic accountability and a greater role for the European Parliament in the appointment of the Chair and Vice Chair of the Supervisory Board. The agreement also confirms the unanimous position of the Council, agreed in December, on the core balance of rights between participating and non-participating member states.
The provisional agreement the Presidency reached today with the European Parliament will now have to be endorsed by all Member States. There will also be some final technical revisions to the text.