EU bank supervision to come to life next year

Reports of, and reaction to, the European Council summit in Brussels, 18-19 October 2012.

EurActiv, EUObserver and other sources reported that European Union leaders agreed plans to complete the European banking union by January 2014, after the general elections in Germany in 2013. The concession was made to Angela Merkel who argued for 'quality' over 'speed' in putting in place the new supervisory system.

EU leaders made some advancement towards establishing a single banking supervisor for the eurozone as the first of the three pillars of the banking union, agreeing it would start phasing-in as of 2013year and become operational 'probably' in the course of 2013.

Following the interim report 'Issues Paper on Completing Economic and Monetary Union' presented by the President of the European Council in close collaboration with the Presidents of the Commission, the Eurogroup and the European Central Bank (ECB), informal consultations would continue with Member States and the European Parliament on the different issues to be explored. The European Council looks forward to a specific and time-bound roadmap to be presented at its December 2012 meeting, so that it can
move ahead on all essential building blocks on which a genuine EMU should be based.

ESO: Background information: ECB to become bank union supremo from mid-2013 http://www.europeansources.info/record/ecb-to-become-bank-union-supremo-from-mid-2013/

EurActiv, 19.10.12: EU summit deal aims for full 'banking union' in 2014 http://www.euractiv.com/euro-finance/summit-advances-eu-plan-banking-news-515515

European Council; President: Press Release, 18.10.12: European Council conclusions on completing EMU. Adopted on 18 October 2012 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/132986.pdf

ESO: Background information: Issues Paper on Completing Economic and Monetary Union http://www.europeansources.info/record/issues-paper-on-completing-economic-and-monetary-union/

EESC: RAPID: Press Release, CES/12/64: The EESC President welcomes the EU's progress on banking union http://europa.eu/rapid/press-release_CES-12-64_en.htm

European Commission: RAPID: Document: DOC/12/9: European Council, 18-19.10.12: Presidency Conclusions http://europa.eu/rapid/press-release_DOC-12-9_en.htm

BBC News, 19.10.12: EU summit: France says bank deal helps eurozone fusion http://www.bbc.co.uk/news/world-europe-20005100

Deutsche Welle, 19.10.12: Creation of EU banking union 'will take years' http://www.dw.de/creation-of-eu-banking-union-will-take-years/a-16319868

France24, 19.10.12: EU strikes deal on single banking supervisor http://www.france24.com/en/20121019-eu-strikes-deal-single-banking-supervision-leaders-ecb-hollande-merkel-2013

El País, 19.10.12: Merkel dashes hopes of direct recapitalization for Spanish banks http://elpais.com/elpais/2012/10/19/inenglish/1350651794_005156.html

Spiegel Online International, 19.10.12: Berlin and Paris Compromise on Bank Oversight http://www.spiegel.de/international/europe/merkel-and-hollande-reach-summit-agreement-on-banking-oversight-a-862178.html

Daily Telegraph, 19.10.12: Banking union project fudged (via PressEurop) http://www.presseurop.eu/en/content/article/2903041-banking-union-project-fudged

EUObserver, 19.10.12: Germany out on top after late-night summit http://euobserver.com/economic/117931

European Commission: Speech/12/747: Statement by President Barroso at the post-European Council press conference http://europa.eu/rapid/press-release_SPEECH-12-747_en.htm

European Commission: Speech/12/743: Statement by President Barroso following the European Council dinner on 18 October 2012 http://europa.eu/rapid/press-release_SPEECH-12-743_en.htm

European Voice, Vol.18, No.37, 18.10.12: Creative thinking needed for a single banking supervisor http://www.europeanvoice.com/article/imported/creative-thinking-needed-for-a-single-banking-supervisor-/75422.aspx

EUObserver, 23.10.12: EU leaders stalling 'irresponsibly' on crisis, MEPs say http://euobserver.com/economic/117962

European Parliament: Press Release, 23.10.12: MEPs criticise lack of progress at EU summit http://www.europarl.europa.eu/news/en/headlines/content/20121019STO53978/

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