Plenary speech on Banking Union, by Sharon Bowles MEP
"These are the first steps on Banking Union. We know the theory, there is supposed to be a severance of the doom loop between banks and Sovereigns, but that cannot come from ECB supervision alone - and with regard to the link between ECB supervision, recapitalisation and the ESM, the goalposts keep on moving.
"Nevertheless, we have the prospect of ECB supervision and the expectation that this will promote market confidence, and to justify that expectation there is a place for stress tests and assessment of asset impairment. Supervision may restore market confidence but it cannot resolve bad loans currently on banks' books.
"Turning to what supervision by the ECB means in democratic terms, I refer to the comment made by Marco Buti, the Director General of ECFIN, at the Blueprint Conference - that giving banking supervision to the EU is an even greater handing over of sovereignty than joining the Euro. This can be nuanced with detail, but make no mistake it is a huge step.
"For this reason the European Parliament has written in as many accountability steps as possible, including for national parliaments. Negotiation of an agreement with the ECB covering issues of disclosures, code of conduct, inquiries, and appointment procedures for the supervisory Chair is underway and is part of the package. This is why there will be no final vote until there is demonstrable agreement.
"The ECB has been given a duty of care for the Single Market. Following the tacit acceptance and subsequent shaming of the Troika for a raid on insured deposits, I hope all EU institutions have learned the lesson that they must have the courage of conviction about the Single Market, even in the face of difficulties.
"The Single Market requirements also mean that the EBA is even more important. Voting arrangements have been balanced for now and this is the time for the EBA to prove its strength, which I believe it can. The EU-wide supervisory rulebook and handbook are important, it is sad to see them now being written out of dossiers."
ENDS