European Commission Admiral Jose Manuel Barroso gestures to the media at the European Commission abode in Brussels, Tuesday, June 21, 2011 (AP Photo/Yves Logghe)
European Abutment admiral are allurement civic governments to accord up ascendancy of their banks as a agency of “solving” the EU’s cyberbanking crisis.
Yes. Accord up ascendancy of their banks. What could possibly go wrong?
In a angle that represents one the a lot of cogent surrenders of civic ascendancy aback the conception of the euro in 1999, the European Commission, the EU’s controlling arm, proposed Wednesday to accomplish the European Axial Coffer (ECB) the alone administrator for all 6,000 banks in the 17 countries that use the currency.
The Commission wants to accord the ECB across-the-board admiral from the adeptness to admission and yield abroad cyberbanking licenses to extensive ascendancy to investigate and fine aberrant banks.
Jose Manuel Barroso, the Commission’s president, said giving up ascendancy of banks would be just the alpha and that countries should get acclimated to handing over admiral to Europe in adjustment to break the region’s debt problems.
“We cannot abide aggravating to break European problems just with civic solutions,” he said in his anniversary Accompaniment of the Abutment abode to Parliament in Strasbourg, France.
“A abysmal and 18-carat bread-and-butter and budgetary abutment … agency ultimately that the present European Abutment accept to evolve,” he added. “And let’s not be abashed of the words. We will allegation to move against a alliance of nation states.”
Barroso’s animadversion go to one of the axial debates apropos the adaptation of the eurozone, that is, whether countries can abide to allotment a accepted bill afterwards a unified political system.
As allotment of accomplishment a tighter EU, abounding politicians accept alleged for a “banking union” — a unified playbook for all the region’s banks. The conception of a alone coffer administrator is an important allotment of this plan.
Other measures accepting debated include: a European-wide arrangement of depositors’ insurance; a alone adjustment for ambagious down broke banks; and acceptance the European bailout armamentarium to anon advice banks in trouble, instead of lending money alone to governments.
German Chancellor Angela Merkel and French Admiral François Hollande during their aboriginal affair afterwards his election, Berlin, May 15, 2012 (AP)
In its proposal, the Commission alleged for the European Axial Coffer to yield over authoritative roles from the affiliate countries’ civic cyberbanking regulators. Currently, the ECB is alone in allegation of budgetary action for eurozone countries — ambience absorption ante and press money.
In adjustment not to beat the ECB, the plan proposes to leave circadian operations to civic authorities. The ability to wind down banks in agitation aswell stays with alone countries — for now. The EU official said it would eventually be accustomed to the ECB.
The Commission hopes its angle will yield aftereffect Jan. 1, 2013, aboriginal handing ECB ability over the eurozone’s bigger banks and eventually abacus the blow of the 17-country bloc’s lenders a year later.
The Commission’s proposal, appear Wednesday morning, still needs to be accustomed by the European Parliament and the Council, on which the active of accompaniment or government of all 27 countries of the European Abutment sit.
It could be a boxy action aback Germany, one of the eurozone’s a lot of able members, has said it wants the ECB to administer alone those banks which, if they were to go bankrupt, would could cause aloft accident to the eurozone.
German admiral accept aswell bidding anxiety at the calendar proposed, adage it risks creating just a slap-dash supervisor.
European Commission Admiral Jose Manuel Barroso speaks during a account appointment at the European Commission abode in Brussels, Wednesday, July 18, 2012. (AP Photo/Yves Logghe)
“What is important aloft all is that this administrator can plan in agreement of superior — not just that it comes into force as bound as accessible but again doesn’t work,” Merkel told assembly in Berlin on Wednesday. “This is about the superior of supervision, and not just about the quantity.”
EU centralized bazaar abettor Michel Barnier, whose aggregation was abundantly amenable for drafting the proposal, approved to downplay these concerns, acquainted that the ECB would await heavily on the “experts” already in abode at civic supervisors.
He aswell said the coffer would boring access up its admiral of administration over the advance of a year, although he did not aback off the ambition of accepting it up and active on Jan. 1, 2013.
In a account issued Wednesday, the ECB said it accustomed the Commission’s proposal.
In his accent Wednesday, Barroso aswell warned that the cyberbanking crisis is “fueling populism and extremism” in Europe.
“Europe needs a new direction,” he said.
Again, what could possibly go wrong?
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All photos address the AP.
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