FRANKFURT (MNI) – European Union leaders on Thursday welcomed their
finance ministers’ agreement to create a single supervisory mechanism
for EU banks.
The deal on the single supervisory mechanism “is a big step forward
towards more trust and confidence in the Eurozone,” German Chancellor
Angela Merkel said as she entered the European Council meeting.
Still, “we have a lot more work” ahead in 2014 to get the banking
union up and running, she added.
Eurogroup head Jean-Claude Juncker said this week that Europe had
proven it can take decisive steps.
“It’s a good day for Europe,” said French President Francois
Hollande. “Since the summit at the end of June, we have moved forward.
We have been able to put in order… the question of Greece… and the
question of the banking union.”
Hollande said France can rest assured that there will be
supervision of all banks, “not simply in France but everywhere in
Europe.”
Austrian Chancellor Werner Faymann also welcome the accord: “Now we
must quickly implement this,” he said, noting the earlier implementation
begins, the earlier common supervision can start.
Also speaking to reporters, British Prime Minister David Cameron
stressed that the European Union needed a banking union, “but Britain
won’t be part of this banking union.”
“We’ve properly protected our interests in the single market,”
Cameron added.
Swedish Prime Minister Fredrik Reinfeldt said that Sweden will stay
outside the banking union “to start with” and wait to see the European
Commission’s plans for common bank resolution.
“I’m satisfied that, within the treaties,” Reinfeldt said.
Non-Eurozone countries “have been given influence.” However, he said he
did not believe that “this was a full-fledged banking union”.
“To have a full-fledged banking union, we have to answer the
question of what to do with failing banks,” he added. “Then we can
really value if this is going to be something powerful.”
— Frankfurt bureau: +49 69 720 142; email: frankfurt@mni-news.com —
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