| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2013) 520 final (10.7.13) |
| Publication Date | 10/07/2013 |
| Content Type | Policy-making |
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As outlined in the Communication from the Commission to the European Parliament and the Council ‘A Roadmap towards a Banking Union’, in the Communication from the Commission ‘A Blueprint for a Deep and Genuine Economic and Monetary Union Launching a European Debate’ and in the Four Presidents’ report ‘Towards a genuine economic and monetary union’ in 2012, an integrated financial framework or ‘Banking Union’ is a vital part of the policy measures to put Europe back on the path of economic recovery and growth. Swift progress towards a Banking Union is indispensable to ensure financial stability and growth in the Euro Area and in the whole internal market. It is a crucial step to overcome the current financial fragmentation and uncertainty, to ease funding conditions for vulnerable sovereigns and banks and break the link between the two, and to re-launch cross-border banking activity in the internal market to the benefit of both Euro Area and non-Euro Area Member States. Building on the regulatory framework common to the 28 members of the internal market (single rulebook), the European Commission has therefore taken an inclusive approach and proposed a roadmap for the Banking Union with different instruments and steps, potentially open to all Member States but in any case including the 18 currently within the Euro Area. In March 2013, the European Council committed to complete the Banking Union via the following steps. First, the remaining legislative procedures to set up the Single Supervisory Mechanism (SSM) conferring powers on the ECB to supervise Euro Area banks should be concluded as a priority. Second, agreement should be reached in the summer months on how the European Stability Mechanism (ESM) could, following the establishment of the SSM and a review of bank balance sheets including the definition of “legacy assets”, recapitalise banks directly. Likewise in summer 2013, agreement should be reached on the Commission’s proposals for a Directive of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms. Finally, the Commission’s proposal for a Single Resolution Mechanism (SRM) together with appropriate and effective backstop arrangements should be examined as a matter of priority with the intention of adopting them during the current parliamentary cycle. As established, the Banking Union will cover all Euro Area Member States and those non-Euro Area Member States that choose to join. The same EU-wide single rulebook of prudential requirements and rules on bank resolution will apply within the Banking Union and in all other Member States. The integrity of the internal market will thus be preserved. The enhanced financial stability generated by the Banking Union will also boost confidence and the prospects for growth across the internal market. Central and uniform application of prudential and resolution rules in the Member States participating in the Banking Union will benefit all Member States. By overcoming the financial fragmentation currently hampering economic activity, it will help ensure fair competition for and remove obstacles to the free exercise of fundamental freedoms not only in the participating Member States but in the whole of the internal market. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2013:520:FIN |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
