Economic and Financial Affairs Council (ECOFIN):
- extracts from the press conference by Vassos SHIARLY, Cypriot Finance Minister and Olli REHN, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro
Lieu: Brussels, Belgium - Council / Justus Lipsius
End production: 04/12/2012 First transmission: 04/12/2012
The Council, was called on to agree proposals on bank supervision and take stock of negotiations with the Parliament on bank capital requirements ("CRD 4"). They are alredy close to close the agreement but they announced that an extra ECOFIN will be held next week in order to review the last details. The Council approved a compromise reached with the Parliament on strengthened economic governance ("two-pack"). The excessive deficit procedures for Greece and Malta, enhanced cooperation on the financial transaction tax, the 2013 annual growth survey and VAT fraud were also cpmmented in this meeting.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General view of the press conference room
||General shot of the speakers
||SOUNDBITE (in English) by Vassos Shiarly, Cypriot Minister for Finance: As you know it is a key element in our plan to establish a banking union. The plan involves an establishment of a Single Supervisory Mechanism the SSM. The European Central Bank and national supervisors will be responsible for overseeing banking institutions. The overall aim is to restore confidence in the banking industry. And once the SSM will be establish it will be possible for the European Stability Mechanism to contribute directly to bank recapitalisations rather than doing so by national a treasure that is currently the case. We have almost reach an agreement apart from a limited number of articles.
||Cutaway of a photographer
||SOUNDBITE (in English) by Vassos Shiarly: We are also able to inform the Council of an agreement with the Parliament on new draft rules on credit rating agencies. This important piece of legislation which has still to be formally approved by both institutions set out to reduce overreliance on a credit ratings include transparency and reach a deal with potential conflicts of interests in industry.
||Cutaway of the audience
||SOUNDBITE (in English) by Olli Rehn, Member of the EC in charge of Economic, Monetary Affairs and the Euro: Ministers concurred that an agreement in the so called two-pack to reinforce further economic governance is very close. These two regulations will be essential foundations of the rebuilding of the economic and monetary union as explained in the Blueprint presented by the Commission last week. The adoption will be a step towards a more integrated framework with stronger policy coordination and a further sharing of fiscal sovereignties.
||General shot of the audience
||SOUNDBITE (in English) by Olli Rehn :The Single Supervisory Mechanism will be the cornerstone of a full Banking Union which is a key part of a stronger and monetary Union. That is why is very important that an agreement will be reached by the end of the year. This is indeed a test that Europe cannot afford to fail and one that Europe must be more than capable of passing.