Leaders hail banking union, anticipate fight with Parliament

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EU leaders meeting in Brussels late last night hailed the agreement on a pan-European banking union, the final details of which were ironed out by finance ministers meeting yesterday, but anticipated arduous negotiations with the European Parliament. They however failed to agree so-called "contractual arrangements" designed to push member states to reform their economies.

French President François Hollande hailed the banking union agreement reached by finance ministers, saying that “Europe has achieved more in a few months than it has in perhaps the past ten years”.

"This has been a great success due to the diligence of finance ministers,” German Chancellor Angela Merkel said afterwards.

Both leaders acknowledged the strong opposition to the deal expressed earlier yesterday evening by the Parliament’s president, Martin Schulz.

Schulz: Banking union text could have negative effects

Schulz wants the Commission to be the ultimate winding-up authority over banks which are within the supervisory mechanism; ministers agreed to a complicated committee structure that would still leave a lot of power within the member states.

The agreement now proceeds to trilogue negotiations with the Parliament and Commission before final agreement can be reached.

“This is comparable to dealing with an emergency admission to hospital by first convening the hospital’s board of directors instead of giving the patient immediate treatment,” said Schulz, adding that adopting the agreed text “will not only fail to have positive effects, it could have negative ones”.

These were the key grudges, but others peppered Schulz’s speech. He said that the trilogue process would be “very long, very difficult, very complicated”.

“There are always tough negotiations with the Parliament and this is part of the democratic discussion,” said Hollande.

The French president said that he was confident a compromise could be brokered, whilst Germany’s Merkel said she was anticipating “intensive dialogue with the Parliament”.

Contractual arrangements – too hot to discuss in detail

Leaders however failed to discuss in detail “contractual arrangements” designed to be the new instrument in the expanding EU toolbox to try to push economically unsound countries to complete reform commitments.

The European Commission’s proposal to introduce such contracts would legally force countries to implement reforms and gain competitiveness. To date, countries can be told off by the Commission and “recommended” to carry out reforms, but they have no binding obligation to do so, as long as they do not breach the Growth and Stability Pact which limits budget deficits to 3% of GDP.

Merkel has previously backed the proposal to enhance the economic governance of the eurozone through contractual arrangements, but is reticent on what rewards should be offered in return.

“We need to coordinate. Do we need competitiveness mutual agreements? This is what is being discussed," said the French president.

"There can however be a reluctance to discuss this because the idea of a solidarity mechanism make some [countries] worry that they will have to pay for the others,” he added in a veiled side-swipe at Germany.

"There remains a lot of uncertainty over the financing, and that is why we have decided to revisit the issue next year," he concluded.

Contractual arrangements will be revisited by EU heads of states in October 2014.

Timeline: 
  • October 2014: Heads of state and government to revisit the issue of contractual agreements
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Comments

time's up's picture

ЕC аnd ЕCB mind-cоntrоl mаny pоliticiаns
аnd businеss pеоplе in Еurоpе. Thеy
mаnipulаtе
finаnciаl mаrkеts, rеquirе high intеrеst rаtе, rеquirе
lоw-pricе
privаtizаtiоn. This is dоnе thrоugh tеlеcоms
such аs Tеlеkоm Аustriа.

This is dоnе with smаll
implаnts in thе hеаd (sоmеtimеs invоluntаry)аnd
wirеlеss
tеchnоlоgy. Еssеntiаlly а smаll dеvicе is cоnnеctеd tо
nеrvеs аnd thе brаin
tеаchеs itsеlf tо rеcоgnizе thе
singlе in this wаy thе thоughts оf а pеrsоn
cаn bе
rеcеivеd аnd аlsо sеnd tо him/hеr. I fоund such dеvicе
implаntеd in my
sinusеs with FMRI. I studiеd аt CЕU -
spоnsоrеd by Sоrоs, аnd Rоstоwski, thе
finаnciаl
ministеr оf Pоlаnd wаs tеаching thеrе (hе is аlsо mind
cоntоllеd), Bоkrоs (Еurоpеаn Pаrliаmеnt) is аlsо
mind-cоntrоllеd.
Bеhind Sоrоs, аctuаlly аrе ЕC аnd ЕCB
- thе оwnеrs аnd bеnеficiаriеs оf thе
tеchnоlоgy. It
is nоt dоnе fоr sеcurity, bеcаusе I wоrkеd fоr thе
Bulgаriаn
Nаtiоnаl Bаnk аnd I wаs thrеаtеnеd with this
tеchnоlоgy tо mаkе crеdit
еxpаnsiоn fоr thе bаnk
cаrtеl (CЕU is tеаching thе cеntrаl bаnks in CЕЕ
this
аctuаlly). Plamen Oresharski, Stаty Stаtеv (gоvеrnоr),
Kаlin Hristоv, Mаriеlа Nеnоvа, Аndrеy Vаsilеv, Grigоr
Stоеvsky, Rоsеn Rоzеnоv, Kristinа Kаrаgyоzоvа, Tzvеtаn
Tzаlinsky, Pеtаr Chоbаnоv lоst 20 bln оn stоck еxchаngе,
10 bln bаd lоаns, tеns оf bln оn hоusing mаrkеt.
I аlsо
mеt Pаpаdеmоs аt а Аustriаn Cеntrаl Bаnk Cоnfеrеncе,
while hе wаs in
ЕCB, аnd Thа sаmе is vаlid fоr Spаin,
Itаly,
Grееcе.
http://convergingtechnology.eu/european-commission-and-european-central-...

Alberto Rodrigues 's picture

EU BANKING AND FINANTIAL BUSINESS DO NOT NEED ARTIFICIAL MEASURES BUT VALABLE PROJECTS
For example if EU will recomand all the 28 EU countries to
1) Invest with priority only in economic activities which will bring incomes and profits in very short time and not to block money in projects which take so long periode to conclude and which do not create enough jobs

2) Create a list of investment opportunities which bring more than 25 % in less tahn 75 days and promote them world wilde
3) Launch projects which will teach companies what they have to do to increase sales more than 25 % wit very few investments
4) Invest with priority in conference industry and combine it with multicultural tourist and adventure products
5) Motivate companies to do business which do not need energy from Russia and tools from USA
6) Implement special projects which will motivate people to create millions of new banking account and by this ocasion help banking business to get billions EURO just for admnistrations of those accounts
IF THOSE THINS WILL BE DONE BANKS WILL HAVE ENOUGH CASH AND PROFITS
and they will never need artificials methods to play in the market

Barry Davies's picture

The eussr will just mass everything up as usual and probably create another financial crash for those in the eussr, whilst the rest of the world laughs and moves on.