The Parliament accuses core EU countries of exploiting their dominant political position

European Parliament, Plenary session, 12/06/2013, Financial services. Jean-Paul Gauzes, MEP, Group of the European People's Party (Christian Democrats) member of Committee on Economic and Monetary Affairs (on the left) and Michel Barnier EU Commissioner in charge of Internal Market and Services. (European Parliament photographic library).

European Parliament, Plenary session, 12/06/2013, Financial services. Jean-Paul Gauzes, MEP, Group of the European People’s Party (Christian Democrats) member of Committee on Economic and Monetary Affairs (on the left) and Michel Barnier EU Commissioner in charge of Internal Market and Services. (European Parliament photographic library).

As promised, the plenary of European Parliament overwhelmingly approved yesterday a resolution by 483 votes to 27, and 65 abstentions, accusing with it some core EU countries and “to some extend the Commission” for holding back crucial legislation to promote the financial sector’s reform. The European legislators want the financial sector to serve the real economy and the job generating SMEs and also increase prudency so as the risk for a new financial crisis can be eliminated.

The European Sting writer Elias Lacon wrote yesterday, that “The ‘inquisition’ of Commission and Council dignitaries will include questions by MEPs on the pending draft rules to protect small savers, which have been blocked by Council for well over a year. Legislators will also ask about the Commission’s sleeping proposal on trading platforms in securities, which was supposed to be presented in 2010”. Both those issues are blocked by EU heavyweight member states. Let’s take one thing at a time.

Bank deposit guarantee

Starting with the bank deposit guarantee the resolution adopted yesterday by the MEPs says that “certain EU countries apparently lack the determination to strike the agreements needed to put their public pledges to complete the banking union into effect”. In this respect the truth is that the enactment of an EU level or Eurozone level bank deposit guarantee in a Banking Union is not at all a simple matter.

Of course there are already giant steps taken towards this direction. The first step has been agreed by all and was the nomination of the European Central Bank, as the new pan European bank supervision authority. It’s impossible for a bank deposit guarantee scheme to exist without a reliable supervision of all and every commercial bank. The ECB is in fact meticulously building a completely independent and brand new section under its own roof to undertake this difficult task.

This is not enough however for the creation of an EU proper system of bank deposit guarantee, comprising also the existing national schemes and absorbing their capital. There is also a need for a real European Banking Union with standard bank resolution procedures, if this bank deposit guarantee plan is to be convincing.

The European Commission, however, is very active in this front and presses hard for a central bank resolution authority and a common resolution fund. From the moment  those tools become operational the European Banking Union could be enacted and be functional as from the beginning of 2015. Then a pan-European system of bank deposit guarantees will be feasible. It is Germany though that blocks all that. To overcome the obstinacy of one country the Parliament recommends that, “Rather than decide by consensus, the Council should shoulder its political responsibility and vote its positions by a qualified majority”, the adopted text says.

Trading platforms

On trading platforms the picture is quite the same. In this case it’s not probably Germany that blocks the progress of this issue in the Council. The Parliament’s resolution says: “The same applies to reviewing rules for safer trading platforms (review of markets in financial instruments directive), which remains blocked in Council even though EU countries’ heads of state set a deadline for finalising it (end 2012), the resolution says”.

On both accounts, that is bank deposit guarantees and trading platforms, the Parliament stresses that Council decisions could be taken by a majority. The fact that some core countries manage to hold back those decisions is tantamount to exploiting their dominant position. This is a direct political accusation, blaming some heavyweight member states for exerting more influence, than their voting rights in the Council. In short the Parliamentarians say that some core EU countries are exploiting to their benefit their dominant political position in the Union.

The question is whether the Council has the sensitivity to hear the Peoples’ voice as expressed by the European Parliament.

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

Stopping antimicrobial resistance would cost just USD 2 per person a year

An ECB banker wants to change the European social model

Gender equality: an issue much talked about but less acted upon

Good grub: why we might be eating insects soon

Protests, violence in Haiti prompts international call for ‘realistic and lasting solutions’ to crisis

Big impact vs big exit: the social side of the start-up game presented at the WSA Global Congress in Vienna

How cities can lead the way in bridging the global housing gap

The refugee crisis as a young Nigerian doctor sees it

ECB to people: Not responsible if you lose money on Bitcoin, your governments are

EU and U.S. castigate Facebook on Cambridge Analytica scandal as citizens’ data privacy goes down the drain again

Aid stepped up to Syria camp; new arrivals say terrorists blocked their escape

Pakistan: UN strongly condemns terrorist attack that leaves scores dead and wounded at election rally

Doctors without borders

India’s economy is an ‘elephant that is starting to run’, according to the IMF

A day in the life of a Rohingya refugee

MWC 2016 LIVE: 5G to trigger disruption, claim industry leaders

World cannot be transformed without ‘ingenuity of the countries of the South’: UN Chief

JADE Romania Celebrates the 4th Anniversary

Chronic illnesses: UN stands up to stop 41 million avoidable deaths per year

Trump reshapes the Middle East at the expenses of Europe

For how long and at what cost can the ECB continue printing trillions to keep euro area going?

5 ways to go green in your own kitchen

New EU rules cut red tape for citizens living or working in another Member State as of tomorrow

The European Sting writes down the history LIVE from G20 Leaders’ Summit in Turkey

Stronger European Border and Coast Guard to secure EU’s borders

Outgoing UN official praises Iraq’s ‘exemplary peaceful transfer of power’ at the top

London, Berlin, Paris to fight over EU budget

‘We face a global emergency’ over oceans: UN chief sounds the alarm at G7 Summit event

‘Fire-fighting approach’ to humanitarian aid ‘not sustainable’: Deputy UN chief

EU shapes its ambitious strategy on India

Access to health in the developping world

Copyright: European Union , 2017; Source: EC - Audiovisual Service; Photo: Frank Molter

EU hits deadlock on the future of glyphosate a month before deadline

China hails human rights progress amid calls to close detention camps

#TwitterisblockedinTurkey and so is Erdogan

This woman changed the world of work – and you’ve probably never heard of her

Mother of all mergers between Facebook Messenger, WhatsApp and Instagram: EU Data Privacy restrictions against Facebook’s imperialistic plans

US-EU trade war: Berlin fearful of the second round

Venezuelan exodus to Ecuador reaches record levels: UN refugee agency steps up aid

This is what happens when a school swaps french fries for quinoa

Travel the world, find yourself

Prevention is key to ‘breaking the cycle of HIV transmission’, UN chief tells General Assembly

The importance of collaboration in the digital economy

Are ECB’s €500 billion enough to revive Eurozone? Will the banks pass it to the real economy?

Does EURES really exist?

How banking with blockchain can stamp out corruption and increase financial inclusion

On Grexit: Incompetence just launched the historic Ultimatum that could open “pandora’s box”

Here are 4 of the most politically charged World Cup games ever played

A Sting Exclusive: “One year on from the VW scandal and EU consumers are still in the dark”, BEUC’s Head highlights from Brussels

Falling inflation urges ECB to introduce growth measures today

Eurozone: Sovereign debt decreases for the first time since 2007

What do the economic woes of Turkey, Argentina and Indonesia have in common?

UN experts report: Business ‘dragging its feet’ on human rights worldwide

How technology is driving a fourth wave of environmentalism

Social Committee teaches Van Rompuy a lesson

Here are five ways we can make mental healthcare better

How to make primary healthcare a favourable career choice for medical students: Strategies and reflections

Commission considers anti-dumping duty on Chinese solar glass imports

EU invests in green projects and bans single-use plastics while climate change requires more to be done

The EU cuts roaming charges further while the UK weighs Brexit impact

FROM THE FIELD: Free tutorials in Mali, ‘a life-saver’ for Fatouma

Religious violence is on the rise. What can faith-based communities do about it?

More Stings?

Comments

  1. You are so interesting! I do not suppose I’ve read through a single thing like
    that before. So great to discover somebody with unique thoughts on this topic.
    Seriously.. thank you for starting this up.
    This web site is something that is required on the internet, someone with a little originality!

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s