The UK assented to the proposal to give the ECB additional 'supervisory tasks’, thus providing the necessary unanimity of the Council to proceed. The parallel deal on voting rights in the European Banking Authority provides for the UK safeguard of the famous 'double majority’ of ins and outs of banking union. BUT that falls away if there are less than four outs. Note that this still has to be agreed by the European Parliament as co-legislator and their existing, voted position is a minimum of five.
The exact mechanics are to be sorted out in the next year or so as the ECB has been allowed 12 months from the entry into force of the new legislation on 31 March 2013 or later. That will be the moment to test for the necessary minimum of outs to operate the double majority. This blogger regards it as a good bet there will not be four. So the results of Cameron’s delusion about a banking union deal could well crystallise during the European Parliament election campaign in May 2014!
© Graham Bishop
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