Monetary dialogue with Mario DRAGHI, President of the European Central Bank:
- MEPs debate
EP Committee on Economic and Monetary Affairs
Lieu: Brussels, Belgium - EP
End production: 18/02/2013 First transmission: 18/02/2013
Mario DRAGHI, President of the European Central Bank and chair of the European Stability Risk Board (ESRB), visited today the European Parliament to meet with the members of the ECON-Committee. He addressed the members in his two clearly distinguished roles: the first one, within the framework of the Monetary Dialogue; and the second one, as a chair of the ESRB, separated, both, by a little break. As chair of the ESRB, a High Level Group created in 2010 in response to the global financial crisis aiming to strengthen the European supervisory arrangements in order to both better protect its citizens and to rebuild trust in the financial system; DRAGHI shared the ESRB's risk assessment on the European and Global financial system with the Committee.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||External view of the European Parliament building, Brussels, Belgium
||Cutaways of the ambience during the meeting (3 shots)
||SOUNDBITE (Portuguese) Elisa FERREIRA (S&D, PT): "My second question is on the banking system. Discussions on the way of the Liikanen report, looking at systemic risks, how this can be reduce in the light of the implementation of the recommendations in the Liikanen report. With all your responsibilities to avoid systemic risk how can you see an initiative like this working? Thank you."
||SOUNDBITE ( English) Mario DRAGHI, Chairman of the European Systemic Risk Board: "My view is that eventually we should converge to one standard of ring-fencing for banks that are alike in all the Union, so we do not have different rules which again will eventually be of a damage for the single market."
||SOUNDBITE ( French) Sylvie GOULARD (ALDE, FR): "The opinion given by the ESRB scientific committee on the ESM paragraph 16, if I recall correctly, is that the ECB should have clear defined powers. Do you believe that the article 5 of the draft of the ESM is clear enough, the article that enables you to bring up specific cases, and hence, under the ECB control?"
||SOUNDBITE ( English) Mario DRAGHI, Chairman of the European Systemic Risk Board: "We need to have a strong supervision. It should not be a way to mask a situation which is not changing. The situation has to change; we have to find the proper equilibrium between national supervision and central supervision. But the situation has to change. That is why I said since the very beginning that the
ESM is not like a cake, where we divide the cake and this part of the supervision is being done in Frankfurt and the rest is being done at national level. All the national supervisors are part of this mechanism and altogether will do supervision, both from the centre and at national level. The construction should involve all actors to be effective."
||SOUNDBITE (German) Udo BULLMANN (S&D, DE): "The keyword is flexibility especially when it comes to capital requirements. There is a discussion about more flexibility which some countries wish in capital markets and some developments in these areas. Some other people insist time to time again on greater market regulation. They do not want this to be a loophole here. What do you as President of the ECB think of this and how do you think we can find a way out?"
||SOUNDBITE ( English) Mario DRAGHI, Chairman of the European Systemic Risk Board: "On the top of the ECB, we host an ongoing flexible and voluntary dialogue among national authorities based upon a voluntarily but demanding coordination process to asses spill over effects of national measures. So, there is some coordination that is foreseen by the directives and the ESRB will play a role on this".