MEPs and Council agree terms for economic surveillance of eurozone
By Ian Wishart - 21.02.2013 / 05:58 CET
Commission will monitor national budgets.
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© 2013 European Voice. All rights reserved.
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Finance ministers to discuss how to cope with failing banks. |
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Michel Barnier says consumers will get the “protection they deserve”. |
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Germany resisting moves to create a single resolution authority. |
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WORTH THE WAIT British Liberal MEP Sharon Bowles said the legislation is a vital part of EU economic plans. REUTERS
Fact file
What it means
The two new regulations – which still have to receive
approval from the full European Parliament and the Council of Ministers –
will lead in the eurozone to more intrusive oversight of draft national
budgets by the European Commission.
The Commission will inspect each
budget plan annually before the goverment presents it to the national
parliament. The Commission will warn member states if their budget plans
do not conform to stability-and-growth-pact obligations or other
economic policy recommendations.
The Commission will also have
greater powers over countries in the eurozone that it judges to be
“experiencing severe difficulties” with financial stability. The
Commission could impose “enhanced surveillance” and recommend to the
Council of Ministers that the country receives financial assistance.
Bank rules row
Talks between the European Parliament and Council of
Ministers on tougher rules for banks broke down on Tuesday (19
February), with MEPs expressing irritation at member states' reluctance
to compromise.
Negotiators had raised hopes that a deal was in reach
between the two sides on the revised capital requirements directive and
regulation – in part the European Union's tool for implementing globally
agreed Basel III banking rules. But after an abortive meeting, another
round has been scheduled for Wednesday (27 February).
MEPs who took
part in the discussions said that they were dismayed that the Council
was re-opening issues which they had believed were settled. The issue
of a limit on bankers' bonuses remains one of the most difficult
sticking points but further discussions are also needed on issues
including the powers of the European Banking Authority, the flexibility
of member states to impose stricter liquidity rules, bank transparency
requirements and capital buffers for systemically important
institutions.
A spokesperson for Ireland, which is leading the
negotiations on behalf of member states, said “more intensive work” was
needed. “We are very close to agreement and believe that we can finalise
discussions,” the spokesperson said.
Germany resisting moves to create a single resolution authority.
Finance ministers to discuss how to cope with failing banks.
Annual inflation at its lowest level since 2010.
Michel Barnier says consumers will get the “protection they deserve”.
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