Sunday

25th Jun 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?

EU summit and Brexit This WEEK

Security and defence, along with Brexit and migration, are among the big issues to be discussed as leaders from all 28 EU states converge in Brussels for meetings and a summit.

News in Brief

  1. Merkel and Macron hold symbolic joint press conference
  2. Juncker has 'no' clear idea of kind of Brexit UK wants
  3. Belgian PM calls May's proposal on EU citizens 'vague'
  4. UK lacks support of EU countries in UN vote
  5. Spain to command anti-smuggler Mediterranean force
  6. Estonia confirms opposition to Nord Stream 2 pipeline
  7. Ireland and Denmark outside EU military plan
  8. EU leaders renew vows to uphold Paris climate deal

Stakeholders' Highlights

  1. EPSUOn Public Services Day, Stop Austerity! Workers Need a Pay Rise!
  2. EGBAOnline Gambling: The EU Court Rejects Closed Licensing Regimes In Member States
  3. World VisionFaces of Today, Leaders of Tomorrow: Join the Debate on Violence Against Girls - 29 June
  4. ECR GroupThe EU Must Better Protect Industry from Unfair Competition
  5. Malta EU 2017Better Protection for Workers From Cancer-Causing Substances
  6. EPSUAfter 9 Years of Austerity Europe's Public Sector Workers Deserve a Pay Rise!
  7. Dialogue PlatformGlobalised Religions and the Dialogue Imperative. Join the Debate!
  8. UNICEFEU Trust Fund Contribution to UNICEF's Syria Crisis Response Reaches Nearly €200 Million
  9. EUSEW17Bringing Buildings Into the Circular Economy. Discuss at EU Sustainable Energy Week
  10. European Healthy Lifestyle AllianceCan an Ideal Body Weight Lead to Premature Death?
  11. Malta EU 2017End of Roaming Charges: What Does It Entail?
  12. World VisionWorld Refugee Day, a Dark Reminder of the Reality of Children on the Move

Latest News

  1. Macron’s investment screening idea watered down by leaders
  2. Leaders unimpressed by May’s offer to EU citizens
  3. New Irish PM praises unscripted nature of EU summits
  4. EU extends sanctions on Russia
  5. UK's universities set 'Brexit wish list'
  6. Decision on post-Brexit home for EU agencies postponed
  7. May's offer on citizens’ rights dismissed as ‘pathetic’
  8. 'Historic' defence plan gets launch date at EU summit