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Sharon Bowles MEP |
“Banking Union is fast becoming Banking Union Lite - getting the taste without the commitment” - Sharon Bowles MEP
October 23, 2012 11:37 AM
Speaking in the European Parliament today, Sharon Bowles MEP, who chairs the Parliament's Economic and Monetary Affairs Committee, denounced any "Banking Union Lite" and questioned the need to rush given that it will not lead to recapitalisation of Spain's banks.
Ms Bowles went on to criticise the Capital Requirements Directive - the implementation of Basel III bank capital rules into EU law - for introducing so many exemptions for the different banking models across Europe.
Ms Bowles also spoke out on the lack of commitment from the Council to seriously address the issue of appointing women to the ECB board.
On Banking Union Lite, Ms Bowles said:
"Who really understands the implications of the single supervisor?
"It looks like Banking Union Lite - getting the taste without the commitment - but like monetary union the 'Lite' version will tie together Eurozone countries and anyone else who chooses to join with de facto mutualisation in the event of systemic failures.
"Of course, it is hoped that stays theoretical - but citizens should know.
"Meanwhile, to avoid mutualisation using the ESM to recapitalise Spain's current bank debt is now off the cards and bond buying is linked to other conditionality. So what's the hurry? Why push through a 'good news' story before people get their heads round it when a couple of months extra could deliver the real deal?
"We are working to this mad timetable but I fear legislate in haste and repent at leisure."
Speaking on the exemptions in the Capital Requirements Directive, Ms Bowles said:
"For all the gung-ho about banking union I see no sign of it in the Capital Requirements Directive, which is still an exemption-fest to cater for all the different banks across Europe.
"Is the intention for the ECB to stop European countries from applying all these exemptions? - I think we should know and be up front about it."
Speaking on the lack of women on the ECB board Ms Bowles said:
"It is very disappointing that Van Rompuy has not taken the opportunity of last week or today to offer little more than lip service to what is a very serious matter. He has promised nothing, not even a road map, for appointing women to the ECB board in the future.
"It is a disgrace that it will now be until 2018 before the opportunity for a woman to be appointed to arguably Europe's most important board comes around again. European institutions should be leading by example, not dragging their feet."
ENDS