Extraordinary Economic and Financial Affairs Council (26/06/2013): extracts from the press conference by Michael NOONAN, Irish Minister for Finance, and Michel BARNIER, Member of the EC in charge of Internal Market and Services
Lieu: Brussels, Belgium - Council / Justus Lipsius
End production: 27/06/2013 First transmission: 27/06/2013
An extraordinary ECOFIN meeting took place on 26 June. Finance ministers of the Member States managed to reach broad political agreement on the future rules for how to restructure and resolve failing banks.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General view of the speakers
||SOUNDBITE (in English) by Michael Noonan, Irish Minister for Finance : I am pleased to announce that we have reached political agreement among member states on the new rules for bank recovery and resolution. Bank resolution rules are an essential pillar on the banking union. The agreement tonight marks major milestone in our efforts to break the vicious link between banks and sovereigns. Trough our deliberations tonight there was a clear consensus among ministers on the importance and need to deliver on this file.
||SOUNDBITE (in English) by Michel Barnier, Member of the EC in charge of Internal Market and Services: We have something to celebrate tonight which is the agreement on bank resolution in addition to the agreement reached this morning on market abuse. Here we have two new proofs of the effectiveness and the efficiency of the Irish Presidency. This issue of the bank resolution has been for a long time a key corner stone of the stability of the single market. I have always said that is less expensive to prevent than to repair.
||SOUNDBITE (in English) by Michael Noonan: I welcome the fact that we are going to have a banking union in Europe and I welcome the fact that tax payers are now going to be protected by a bail-in mechanism rather than a bail-out mechanism and I welcome the fact that the depositors are going to be guaranteed that their deposit up to 100.000 will never be touched.
||SOUNDBITE (in English) by Michel Barnier, Member of the EC in charge of Internal Market and Services: The bail-in was at the center of my proposition. The idea is that banks pay for the banks and no more letting the taxpayers pay the problems of the banks. This principle has been preserved and clarified so that the rules of the game should be now known in advance by everybody.
||Departure of the speakers