Economic and Financial Affairs Council (ECOFIN): extracts from the arrivals and doorstep
Lieu: Brussels, Belgium - Council
End production: 12/12/2012 First transmission: 12/12/2012
The Council will be called on to agree a general approach on proposals aimed at establishing a
single supervisory mechanism (SSM) for the oversight of credit institutions, as part of a broader
plan to establish a banking union.
The Council debated the proposals on 4 December and agreed to hold an extra meeting before the
December European Council. An agreement would enable the presidency to start negotiations with
the European Parliament with the aim of approving the texts before the end of the year.
The proposals involve two regulations: one conferring supervisory tasks on the European Central
Bank, the other modifying regulation 1093/2010 establishing the European Banking Authority2.
The October European Council set 1 January 2013 as the deadline for agreeing on the legal
framework set out in the two regulations, whilst indicating that work on operational implementation
would take place during 2013
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Maria Fekter, Austrian Minister for Finance
||SOUNDBITE (in German) by Maria Fekter: We want to use this meeting to clarify the last questions, the difficulties are related mainly to voting modalities, there is a match between bigger and smaller countries, small countries need to stand up with their position. Another question is the participation of non-euro countries in the European Banking Authority decisions, because in the ECB each country has one vote, whereas in EBA there is a different vote balance. We need to find a compromise in all that and I hope it will happen today.
||Arrival of Luis De Guindos Jurado, Spanish Minister for Economic Affairs and Competitiveness
||SOUNBITE (in Spanish) by Luis de Guindos Jurado: There remain some open questions regarding the date of entry into force of the Single Supervisory Mechanism. I think there is a willingness to compromise by all because it is fundamantal, this is the first pillar of the banking union and from here you can start building the other pillars, so I'm confident that we will reach an agreement .
||Arrival and SOUNDBITE (in English) by Anders Borg, Swedish Minister for Finance: Sweeden is not likely to join the banking union. We don't think that it 's likely that we will achieve an equal treatment. There will be a stronger role for the euro countries than for the non-euro countries and that's unacceptable for us so we will not join. We don't think that we have the safegards when it comes to th Swedish banks and the Swedish tax payers not being responsible for bank mistakes in other countries. We could see an agreement today, but that's on the pre-requisite that we would have a good compromise on EBA rules so that we have safeguards against being dominated by the ECB supervison.
||SOUNDBITE (in English) by Wolfgang Schäuble, German Minister for Finance : No supervisory mechanism can oversee all 6000 European banks and I think nobody wants that. However we must not translate this idea into conflicts.The banking supervisory mechanism can demand the supervision of a specific bank when there is a reason, otherwise big, system-relevant European banks are included in the supervision, but then we must be clear on the limits. Whether the supervisory mechanism has the right to oversee particular banks or it can do so following a request by a member state, these are conflicts that can be overcome, this is why I am confident we can reach an agreement.
||Arrival and SOUNDBITE (in German) by Luc Frieden, Minister for Finance of Luxembourg: We want to use this meeting to clarify the last questions, the difficulties are related mainly to voting modalities, there is a match between bigger and smaller countries, small countries need to stand up with their position. Another question is the participation of non-euro countries in the European Banking Authority decisions, because in the ECB each country has one vote, whereas in EBA there is a different vote balance. We need to find a compromise in all that and I hope it will happen today.
||Arrival of Margrethe Vestager, Danish Minister for Finance
||SOUNDBITE (in French) by Pierre Moscovici, French Minister for Economic Affairs and Finance: For France it is important that it retains the means of instruction that will be general and particular at the same time. We have to be pragmatic but not out of nature, the ECB is the ultimate responsible of the supervision system. Secondly, we have to make sure that the countries that participate and those that do not are comfortable with the system. Finally, we have to preserve the functioning conditions of the EBA, so that it remains competent concerning internal market. We have to find a solution, a lot of work has been done with the Commission and the presidency, we are here to support a solution, I have had contacts with my German colleague and others as well, the French and German positions are close but the can be even closer, we are not alone.