‘New ECB supervision has a duty of care to the Single Market’ – Sharon Bowles MEP

Speaking today on the European Commission's proposals for a Banking Union and European Supervisory Mechanism, Sharon Bowles MEP, who chairs the European Parliament's Economic and Monetary Affairs Committee, highlighted that the new supervisory powers granted to the ECB should come with full accountability and respect the Single Market.

As Chair of the Economic and Monetary Affairs Committee, Ms Bowles will be responsible for steering the negotiations between the European Council and European Parliament on the European Supervisory Mechanism in the coming months.

Sharon Bowles MEP said:

"Some of the transfer of power to the ECB is not comfortable or easy to balance either for the Single Market procedures or for accountability. In agreeing such matters, the voice of European Parliament must be seen to play a strong role, beyond that of merely giving an opinion.

"Given the Treaty provisions - which are now looking extremely deficient in the area of financial services - I supported the ECB as Eurozone supervisor to give credibility. We should not pretend however that this is a mutualisation that gives the pockets of the ECB to back Eurozone banks. The only backup is the ESM, albeit indirectly - which from today is pegged in size courtesy of the German Court decision. After that it is back to the pockets of the Member States.

"We do not expect regulatory failure, but in such an event an inquiry has to be possible. Without such enquiries we would not have found out about many aspects of the financial crisis. Waiving independence in this respect would help to demonstrate the separation of the supervisory side of the ECB from the monetary policy side.

"There is also an issue of ensuring gender balance on the supervisory board. Chair and Vice Chair selected from the ECB's men only pool is not satisfactory.

"There must be a duty of care from the ECB to the Single Market, in the same way that is required of the Commission. The interaction of the ECB and EBA needs adjustment to make sure it is fair for all. The ECB must have an outward looking approach: for example supervising all banks should also mean branches of third country megabanks - that is a role of an international supervisor."

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