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

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

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

Indonesian tsunami death toll climbs over 400 as Government-led relief efforts are stepped up

Policymakers can ensure the 4IR is fairer than the last three

Ahead of UN summit, leading scientists warn climate change ‘hitting harder and sooner’ than forecast

“Working together to make a change at the COP 21 in Paris”, an article by Ambassador Yang of the Chinese Mission to EU

3 ways to ensure the internet’s future is creative, collaborative and fair

The 5 biggest challenges cities will face in the future

UN and partners call for solidarity, as Venezuelans on the move reach 4.5 million

‘No country, no region’ can tackle global challenges alone says UN’s Mohammed

Now’s the time to take up cycling – here are 6 reasons why

‘Provocative actions and inflammatory rhetoric’ destabilizing Middle East, warns top UN official

A voice from Syria: the positive prospect of clinical research despite the excruciating circumstances

Philanthropy is at a turning point. Here are 6 ways it could go

How do we really feel about women leaders?

Roxane in Cambodia

COP21 Breaking News_05 December: Ban Ki-Moon Closing Address at COP21 Action Day Innovation, Imagination, Faster Climate Action

Four major resources for new European young entrepreneurs

As a rising global power, what is India’s vision for the world?

UN agency chiefs condemn Saudi-coalition led air strike that killed dozens in western Yemen

Energy of African youth ‘propelling’ new development era as UN ties bear fruit

Climate change: Will COP23 be able to accelerate the implementation of the Paris agreement?

Spring 2019 Economic Forecast: Growth continues at a more moderate pace

‘Humiliation was the worst’; Holocaust survivor at UN, asks world to act with ‘empathy and compassion’

Canada needs to increase foreign aid flows in line with its renewed engagement

UN, world leaders, condemn Sri Lanka terrorist attacks targeting churches, hotels, which leave more than 200 dead

Ethiopian Prime Minister Abiy Ahmed wins Nobel Peace Prize

How to get young people in Europe to swipe right on voting

Annual UN women activists’ summit opens with focus on services, infrastructure

What meat consumption has brought to the environment and how herbal diets can help human health

Special measures for Greece: 100% absorption rate

In Tokyo, UN chief expresses full support for US-Japan dialogue with North Korea

OECD joins with Japan to fight financial crime by establishing new academy

These are the countries where most adults still don’t have a smartphone

Six children among 53 confirmed fatalities after Libya detention centre airstrikes: Security Council condemns attack

FROM THE FIELD: New sensors protect vulnerable Malawians against deadly lightning

Medical Doctors in Industry 4.0: pure science fiction

3 charts to help you understand the American shale boom

Saving the whales is more important than planting trees to stop climate change. This is why

EU Youth Report casts stark light on life for young Europeans

UN Envoy ‘confident’ deal can be reached to avert further violence around key Yemeni port city

Politics needs to “Youth UP” in order the ensure the future of our democracies

Brexit may finally not really happen; The Brits have second thoughts

MWC 2016 LIVE: Mobile World Congress shows off planes, trams and automobiles

Engaging ‘head and mind’, key for effective learning, says UNESCO chief on Literacy Day

How can we build a workforce for our digital future?

Eliminating hepatitis calls for ‘bold political leadership, with investments to match,’ UN health chief says

7 shocking statistics that show the cost of corruption

Rule of Law: Commission launches infringement procedure to protect the independence of the Polish Supreme Court

Across the world, women outlive men. This is why

America’s student debt crisis explained

MEPs criticise “America first” policy

Will Eurozone be able to repay its debts? Is a bubble forming there?

FROM THE FIELD: A mountain of indigenous knowledge in Peru

The Mobile World Congress in Shanghai will take place on 27-29 June 2018

The banks want now free capital from taxpayers

Libya: Thousands seek shelter in health clinics from Tripoli fighting, UN warns

Erdogan vies to become Middle East Sultan over Khashoggi’s killing

Syrian Refugees in Germany face distinctly different challenges than those in Lebanon

Finland has a new eco-fashion line – clothes made from trees

These 5 industries can drive digital financial inclusion

What do Europeans believe about the crisis and the possible way out?

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