Ministers share NFU concerns on EU banking union
An EU banking union is not something that you just install. NFUs concerns over the proposed Single Supervisory Mechanism (SSM) is shared by serveral EU finance ministers. That was evident when the Council of Ministers discussed the banking union yesterday.
The EU Member States are voicing concerns that existing treaty rules for the European Central Bank (ECB) are not capable of creating a good enough solution. Whilst Germany is worried that the firewall between the ECB:s monetary and supervisory functions risk being too thin, non-eurozone countries such as Sweden and Poland demands full voting rights in the SSM, should they choose to join.
On top of these obstacles, the UK wants to change the voting rules in the EUropean Banking Authority, where the eurozone would get the majority vote through the SSM. London is worried that the ECB would dictate supervisory rules for the whole of EU-27.
In a comment yesterday, Swedish finance minister Anders Borg said that a decision on banking union will have to wait until spring, when decisions on crisis management and deposit guarantee schemes are to be taken.
Already in september, NFU raised the concerns that are now being contested among EU finance ministers. It is evident that there is no quick fix to the problem of the vicious circle of government debt and failing banks. And EU Member States need to be patient to be able to secure a democratically accountable, high quality supervision system on EU level.