Sunday

30th Apr 2017

Agenda

This WEEK: bank union to dominate EU summit

  • ECB: the banking union will dominate next week's EU summit (Photo: Valentina Pop)

EU leaders will descend on Brussels on Thursday (19 October) for a summit expected to be dominated by talks on the proposed EU banking union, as well as the growth and jobs pact agreed at the June summit.

In September, EU commission President Jose Manuel Barroso unveiled ambitious plans to establish the Frankfurt-based European Central Bank (ECB) as the single supervisor for the eurozone banking sector. The move was hailed by the markets as a sign that leaders were ready to break the link between indebted banks and sovereigns.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

Although some are anxious to force the package into law before the end of 2012 in time for the ECB to assume supervisory authority over the eurozone's biggest banks, others, led by Germany, are unhappy with the plans.

Wolfgang Schauble, Germany's finance minister, has repeatedly warned that sweeping supervisory powers would cause conflicts of interest with the ECB's existing tasks. Under the EU treaties, the primary role of the bank is to use monetary and interest rate policy to "maintain price stability."

Other financial actors are growing frustrated with the EU's apparent inability to act decisively on the euro's future.

Ahead of its annual meeting with the World Bank, Jose Vinals, the head of the IMF's monetary and capital markets department, insisted that "a clear roadmap on a banking union and fiscal integration are needed to restore confidence, reverse the capital flight and reintegrate the euro area."

Meanwhile, MEPs reacted cautiously to the plans. Although a majority of deputies in the EU assembly back the concept of banking union, there is widespread concern that about the potential lack of parliamentary scrutiny over the ECB's new role.

Meanwhile, EU Council President Herman Van Rompuy's "ideas paper" on deeper eurozone integration will also provide food for thought.

Treasury bills to replace short-term debt, a special budget and a finance ministry were the three main proposals offered by Van Rompuy, who also repeated the possibility of a temporary "redemption fund" being set up to pool and gradually pay off eurozone debt above the 60 percent stability and growth pact threshold.

Elsewhere, EU foreign ministers will meet on Monday (15 October) to discuss sanctions against Iran, Syria and Belarus.

Over 200 Belarusian government officials, including President Lukashenka, are currently subject to an EU travel ban and asset freeze, sanctions which ministers are expected to extend until November 2013.

Foreign affairs chief Catherine Ashton described the elections as "yet another missed opportunity to conduct elections in line with international standards in Belarus" adding that voting had taken place against the backdrop of "an overall climate of repression and intimidation."

Ministers are also expected to discuss what support the EU can offer to the Malian security and defence services, as the West African country remains wracked by civil war. EU aid to Mali has been on hold since a military coup d'etat in March. An estimated 450,000 people have been displaced since the start of 2012.

Italian Prime Minister Mario Monti will be in town on Monday (15 October), with the former commissioner appearing alongside Barroso as the European Parliament hosts a press seminar to mark the 20th anniversary of the EU Single Market.

On Wednesday, the commission will propose new rules on biofuels to reduce greenhouse gas emissions compared to petrol or diesel. MEPs are anxious that EU legislation should only promote emissions-reducing biofuels.

Eurozone needs 'limited fiscal solidarity'

The eurozone should consider introducing treasury bills, a special budget and a finance ministry, says a new ideas paper ahead of next week's summit.

Opinion

EU-Belarus trade: hands in the cookie jar

EU-Belarus oil trade has helped Lukashenko to cling on to power with billions in foreign currency. So is Brussels ready to put its money where its mouth is?

Brexit summit, Turkey and Hungary dominate EU This WEEK

European leaders will adopt their negotiating position on the Brexit summit on Saturday, whereas the situation of Hungary's democracy and post-referendum Turkey will be under scrutiny in the EU this week.

News in Brief

  1. Vote of no confidence prepared against Spanish PM
  2. Syria to buy Russian anti-missile system
  3. Germany seeks partial burka ban
  4. Libya has no plan to stop migration flows
  5. EU has no evidence of NGO-smuggler collusion in Libya
  6. Poland gets 'final warning' on logging in ancient forest
  7. Commission gives Italy final warning on air pollution
  8. Romania and Slovenia taken to court over environment policies

Stakeholders' Highlights

  1. European Healthy Lifestyle AllianceCharlotte Hornets' Nicolas Batum Tells Kids to "Eat Well, Drink Well, Move!"
  2. ECR GroupSyed Kamall: We Need a New, More Honest Relationship With Turkey
  3. Counter BalanceParliament Sends Strong Signal to the EIB: Time to Act on Climate Change
  4. ACCARisks and Opportunities of Blockchain and Shared Ledgers Technologies in Financial Services
  5. UNICEFRace Against Time to Save Millions of Lives in Yemen
  6. Nordic Council of MinistersDeveloping Independent Russian-Language Media in the Baltic Countries
  7. Swedish EnterprisesReform of the European Electricity Market: Lessons from the Nordics, Brussels 2 May
  8. Malta EU 2017Green Light Given for New EU Regulation to Bolster External Border Checks
  9. Counter BalanceCall for EU Commission to Withdraw Support of Trans-Adriatic Pipeline
  10. ACCAEconomic Confidence at Highest Since 2015
  11. European Federation of Allergy and Airways60%-90% of Your Life Is Spent Indoors. How Does Poor Indoor Air Quality Affect You?
  12. European Gaming and Betting AssociationCJEU Confirms Obligation for a Transparent Licensing Process

Latest News

  1. EU boasts unity on Brexit talks
  2. May’s election juggernaut
  3. EPP scolds Orban over university and NGO laws
  4. Oxford-Studie besorgt über 'Schrott' News in Frankreich
  5. Alte Freundschaft zwischen Le Pen und Putin
  6. EP chief faces questions after homophobic 'summit'
  7. EU signals Northern Ireland could join if united with Ireland
  8. One year later: EU right to open internet still virtual