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Banks

6 February 2014

Thai News Service

European Union: Total cross-party unity against bad deal on bank resolution

Section: General News – MEPs across the political spectrum refused on Tuesday to back a bad deal on the arrangements for winding up ailing banks. They said the member states' position undermined the core aim of ensuring that taxpayers were not first in line to pay when banks ran into trouble. MEPs' chief target was the EU countries' proposals for setting up the bank-financed fund and for its decision-making methods.
 
The Commissioner for financial services, Michel Barnier said that for political reasons it seemed that intergovernmental arrangements would be needed for some aspects of the bank-financed fund but they should remain extremely limited. He also said it was clear that Parliament's “very valid concerns” needed to be taken on board.
 
Evangelos Venizelos, the chair of the EU Economic and Financial Affairs Council, again stated the need to address potential constitutional concerns in some countries but said a “realistic compromise” could be reached.
 
The following are key comments by lead MEPs during the debate:
 
Sharon Bowles (chair of the economic and monetary affairs committee, ALDE, UK): “The tone from the Council seems to be changing. It now needs to also begin changing its text.”
 
Antolin Sanchez-Presedo (S&D) (standing in for the rapporteur, Elisa Ferreira): “We will not support a bad solution. But there is no reason not to reach a deal if there is genuine political will.”
 
Corien Wortmann-Kool (EPP, NL): “It seems clear that everything we are trying to achieve can be done within the Treaty but I can accept a very limited role for an intergovernmental approach when it comes to regulating payments to the fund.”
 
Sylvie Goulard (ALDE, FR): “We need quick and effective decisions. Council's position does not allow this.The position is not credible or democratic.”
 
Sven Giegold (Greens, DE): “We must be provided with legal explanations of why the intergovernmental approach is necessary. Until now we do not have this.”
 
Vicky Ford (ECR, UK): “When banks run into trouble decisions need to be taken quickly. Too many cooks spoil the broth. At the same time I have empathy with national governments which want a say.”
 
J rgen Klute (GUE, DE): “There are too many strange structures created by the Council position. They will prevent reaching the main objectives.”