ECON Committee: first exchange of views on cross-border crisis management in banking sector

24 February 2010

Rapporteur for this dossier, Ferreira (PT/S&D), presented her proposals and said there is “no silver bullet” to resolve this polemic issue. She emphasized that the ”Resolution Agency” will be a key element for dealing with the insolvency of cross-border institutions.

During the first exchange of views there was a general consensus that there is a need to achieve a common framework for crisis resolution. Elisa Ferreira, rapporteur for this dossier, said that a robust, comprehensive approach is needed to create an effective preventive framework and safety net. The approach should focus on:

·         Strengthening international regulations
·         Designing an effective EU supervisory architecture
·         International discussion on overall banking system architecture
 
These developments will make the system more resilient and reduce the probability of crisis.
To conclude, she said “that without a credible crisis management framework single market”, financial services will be at serious risk. Europe is at the turning point when a decision whether "more Europe" or " less Europe" ha to be made. Such decisions have tremendous implications in terms of economic growth, lost opportunities, jobs and wealth. A set of important issues and open questions require further examination and debate.”
 
The ECON Chairwomen presented the following timetable:
·         12 April – consideration of draft report
·         21 April – deadline amendment
·         1 June – first discussion on AM
·         22June – Committee vote
·         1st plenary in September – final vote  
 
Full report
 

© European Parliament