Bad solution on final building block of Banking Union

Date

06 Feb 2014

Sections

Euro & Finance

Press release

GUE/NGL President Gabi Zimmer has reiterated the Group's opposition to the socialisation of debt today in a European parliament debate on whether or not to continue negotiations with member states on creating a single EU bank resolution authority - the Single Resolution Mechanism (SRM), and a fund - the Single Resolution Fund (SRF).

"We don't accept that the Council will have the final decision on this as we know how it will go - the strong member states will make their own decisions with their own countries' private banks' interests in mind, and this could mean the socialisation of banks' debts and lead to even stronger imbalances between member states," said the German MEP. "The Council was conspicuous by its absence today in plenary. The Parliament must have a say on all important decisions on the Banking Union. We should stick to article 114 as the legal basis for ensuring that the European Parliament is included in all important decisions, we must stick to the community method."

The SRM and the SRF are the last elements of the Banking Union and if established would involve uniform rules and procedures for the restructuring of banks in the event of an economic crisis.

Zimmer continued: "A fundamental point is that resolution mechanisms would not be necessary at all if banks got back to their basic business and were not allowed to get 'too big to fail'.

"My group is not convinced at all that the Commission's position is sufficient. If they truly are the guardian of the treaties we need a clearer position from them in these negotiations."

Commenting on the rush to push this file through the legislative process before May, she said: "We shouldn't be under pressure, if we don't achieve a result before the end of this parliamentary term there won't be a decision. Then the new Parliament will be completely free to decide from scratch."

 

GUE/NGL Press Contacts:

Emily Macintosh +32 470 85 05 08

Gay Kavanagh +32 473 84 23 20

European United Left / Nordic Green Left

European Parliamentary Group

www.guengl.eu