EU set for vote on bank support

19 Sep 2012, 6:53 am   -   Source: AAP
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Hailed as a future cornerstone of a tighter EU political and economic union, several top ministers said the proposals will fail to meet an end-year deadline for adoption due to EU treaty constraints. (AAP)

Hailed as a future cornerstone of a tighter EU political and economic union, several top ministers said the proposals will fail to meet an end-year deadline for adoption due to EU treaty constraints. (AAP)

The European Parliament says it will vote in November on whether to put the European Central Bank in charge of EU-wide bank supervision.

The European Parliament says it will hold a first vote November 19 on controversial plans to put the European Central Bank at the apex of unprecedented EU-wide bank sector supervision.

"We are meeting the timetable set by leaders of the euro area and endorsed by the European Union at its June summit," a spokesman for the parliament told AFP.

"The Parliament has been pushing for effective supervision for three years, if the member states can agree, we will be there."

The committee vote in November will cover amendments proposed by parliament to the plans for a single European bank regulator presented by European Commission President Jose Manuel Barroso last week.

A full house vote would likely follow in December but there are major differences to be overcome for that to happen - eurozone giant Germany wants a more limited ECB role while Britain jealously guards the independence of the City of London financial centre.

Sharp differences over the plans surfaced at informal talks among eurozone finance ministers in Cyprus over the weekend.

Hailed as a future cornerstone of a tighter EU political and economic union, several top ministers said the proposals will fail to meet an end-year deadline for adoption due to EU treaty constraints.

German Finance Minister Wolfgang Schaeuble said the target-date of January 1, 2013 for a first phase was no longer realistic while EU banking commissioner Michel Barnier cited a "juridical problem" at the centre of the problems.

For the new system to work, all 27 EU states will have to confer new powers, including the right to withdraw a bank's licence, on the ECB which in effect would supersede national regulators.

Non-euro countries led by Sweden refused to accept the ECB as judge and jury in cases where disputes arise over their lenders.

EU Parliament economics committee chair Sharon Bowles, an English MEP, is pushing for the European Court of Justice (ECJ) to be given a role in any final adjudication.

According to an EU official, Bowles wants "the possibility of review by the ECJ."

The parliament is likely to adopt a similar official position, a source at the legislature said.

The Parliament spokesman said outstanding questions would be raised at a meeting on Wednesday between Parliament Speaker Martin Schulz, EU Council head Herman Van Rompuy, European Commission chief Barroso and the EU's rotating chair, currently held by Cyprus.

The supervisory regime is intended to be fully operational by January 2014 when it would have responsibility for some 6000 eurozone banks.

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