Europe: banking union goes ahead, but much remains to be done
The EU Finance Ministers met in Luxembourg on 14 and 15 October. They adopted unanimously a mechanism for banking supervision. But the discussions promise to be tight on other aspects of the banking union, designed to prevent a new debt crisis in Europe.
Indeed, it is to the ECB that goes the role of the supervisor, which finally will supervise not only the eurozone banks, but also those of other EU countries who wish to participate. The mechanism will be operational «in November 2014″, said the Lithuanian Finance Minister Rimantas Sadzius, whose country holds the EU presidency for six months.
By the end of the year the ministers are also to agree on the second pillar of the banking union – the unique mechanism of «resolution» , which will decide the fate of banks facing bankruptcy. Its implementation is «urgent», said José Manuel Barroso, the President of the European Commission in his statement. An agreement should be reached at the ministerial level for the Parliament to adopt the text before the European elections 2014.