Extracts from the press conference by Michel Barnier on banking union

Type: Summary of press conference   Reference: I-074467   Duration: 10:03:36  Lieu:
End production: 12/09/2012   First transmission: 12/09/2012
On 12 September 2012, Michel Barnier, Member of the EC in charge of Internal Market and Services, gave a speech in Strasbourg on the set of legislative proposals adopted by the European Commission on the same date regarding the establishment of a single supervisory mechanism for banks led by the European Central Bank in order to put into action the conclusion of the European Council and Euro Area summit at the end of June 2012. The set was accompanied by a Communication on a roadmap for completing the banking union over the coming years. Already in September 2009, the Commission brought forward proposals to replace the EU's existing supervisory architecture with a European system of financial supervisors (ESFS), consisting of three European Supervisory Authorities; a European Banking Authority, a European Securities and Markets Authority, and a European Insurance and Occupational Pensions Authority. The three European supervisory authorities (ESAs) and a European Systemic Risk Board (ESRB) were established as from January 2011 to replace the former supervisory committees.

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10:00:00 Title 00:00:05
10:00:05 Arrival of Michel Barnier, Member of the EC in charge of Internal Market and Services, to the press conference on new European Central Bank (ECB) powers for banking supervision as part of a banking union, in Strasbourg 00:00:11
10:00:16 General view of the speakers 00:00:03
10:00:19 Soundbite by Michel Barnier (in FRENCH) saying that, today, we are putting forward a major plan in terms of financial economic integration. Less than 2 years since the La Rosière report implementation, we are now moving on from coordination - and this is something which is already important, something where the Parliament brought some genuine and added value - the coordination of supervisors, to the integration of supervision for the banking sector in the Euro area. And behind all these words, we actually propose to work together on is quite simply surveillance and control of the main sources of financing for the European economy. Let's not forget that banks in Europe fund 75% of the companies on our territory. In the US, we see a reverse proportion, 25 % paid by the banks and 75% by the market. So we are controlling and keeping an eye on the main source of financing but we are also controlling the sources of risks for the Member States and the taxpayers. 00:01:22
10:01:42 General view of the speakers 00:00:05
10:01:47 Soundbite by Michel Barnier (in FRENCH) asking who is going to carry out the supervision? The European Central Bank, following the Treaty, will be responsible for financial stability. How? By looking to the national supervisors who have the know-how, the expertise and the human and technical resources to do that. Which bank will be concerned? All banks; that is the basic prerequisite to have confidence in this system working. We have seen small banks or medium sized banks causing great difficulties. When? As soon as the text is approved; we hope that it will be before the end of this year. The European Central Bank will then have a capacity to carry out direct supervision over any bank presenting a risk. 00:00:59
10:02:47 General view of the speakers 00:00:04
10:02:52 Soundbite by Michel Barnier (in FRENCH) saying that the European Central Bank is doing its work as an independent actor on monetary stability. The Head of States and Government in the end of June provided this global answer to the crisis to provide more flexibility for the European Stability Mechanism which has a possibility to directly recapitalise banks and the European Stability Mechanism will decide on the recapitalisation through its own decision process and under its own responsibility. However, a precondition has been set; namely the entry into force of the European supervision at the beginning of next year to move forward. 00:00:44
10:03:36 Michel Barnier leaving the press conference 00:00:11
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