Wednesday

14th Apr 2021

Barroso: Banking union bill to be published next week

  • Barroso and Grybauskaite launching the Lithuanian presidency in Vilnius (Photo: ec.europa.eu)

The EU will present the next round of banking union legislation next week, the president of the European Commission said Friday (5 July).

Speaking in Vilnius, prior to the opening ceremony launching Lithuania's six month EU presidency, Commission boss Jose Manuel Barroso confirmed that the legislation would be released by the bloc's financial services commissioner, Michel Barnier, on Wednesday.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The EU executive arm is expected to set up a common resolution authority for the eurozone to wind up ailing banks.

Ministers must agree their position by the end of the year, said Barroso, adding that the regulation was needed to "put banking union on firm foundations".

Last week, EU finance ministers reached agreement on their negotiating stance on the bank resolution and recovery directive, seen as a precursor for more integrated banking rules for eurozone countries, which includes measures to 'bail in' bank shareholders and creditors in the event of a bank crisis.

However, policy makers will have to act fast. With federal elections in Germany set to take place in late September and expected to lead to up to six weeks of talks to form a new coalition government, there is unlikely to be any movement on the proposal until November. Both Angela Merkel's CDU and the social democrat opposition are reluctant to agree to a eurozone resolution authority without treaty change.

Meanwhile, Barroso confirmed that two EU-US working groups set up to look into revelations that US security services had bugged EU institutions would start work on Monday (8 July), the same day as the first round of talks on an EU-US free trade agreement. Commission officials will represent the EU in the working groups tasked with assessing whether the data protection and privacy rights of Europeans had been breached. However, questions relating to spying for national intelligence purposes would be dealt with by member states dealing directly with the US, he said.

The Lithuanian presidency marks the first time that one of the three baltic countries has had control of the EU's legislative machine, and the Lithuanian government has made it clear that it intends to devote some its political capital to the EU's relations with eastern Europe.

In particular, Lithuanian officials are keen to sign off on an economic association agreement between the Ukraine and the EU amid concerns that failure to bring the Ukraine closer to the EU could help drive Viktor Yanukovych's government into the arms of Russia.

Lithuanian president Dalia Grybauskaite commented that the Ukrainian government had "at least three urgent pieces of homework" to do before a deal could be reached, identifying selective justice, judicial independence and electoral reform as the main items of contention.

"Provided they do their part of the job, they should be offered closer economic integration," added Barroso.

Lithuania: In the EU spotlight

Lithuania takes over the EU presidency on 1 July. EUobserver talks to the country's leading politicians about its austerity policy, its euro plans and relations with eastern neighbours.

News in Brief

  1. Michel pledges to protect von der Leyen's 'dignity' in future
  2. Libya frees UN-sanctioned human trafficker
  3. European court: jailed Turkish writer's rights violated
  4. EU set to miss 1m electric charging points by 2025 target
  5. Lavrov expects Iran nuclear deal to be saved
  6. France suspends flights from Brazil due to Covid variant
  7. Johnson & Johnson delays roll-out of vaccine in EU
  8. German government agrees nationwide pandemic law

Vietnam jails journalist critical of EU trade deal

A journalist who had demanded the EU postpone its trade deal with Vietnam until human rights improved has been sentenced to 15 years in jail. The EU Commission says it first needs to conduct a detailed analysis before responding.

Stakeholders' Highlights

  1. Nordic Council of MinistersDigitalisation can help us pick up the green pace
  2. Nordic Council of MinistersCOVID19 is a wake-up call in the fight against antibiotic resistance
  3. Nordic Council of MinistersThe Nordic Region can and should play a leading role in Europe’s digital development
  4. Nordic Council of MinistersNordic Council to host EU webinars on energy, digitalisation and antibiotic resistance
  5. UNESDAEU Code of Conduct can showcase PPPs delivering healthier more sustainable society
  6. Nordic Council of MinistersWomen benefit in the digitalised labour market

Latest News

  1. Nato and US urge Russia to back off on Ukraine
  2. Future EU platform seeks to 'stay clean' of hate speech
  3. Denmark threatens Syria deportations amid EU concerns
  4. MEPs raise concerns on vaccine 'travel certificates'
  5. Will Romania be EU's Green Deal laggard?
  6. Muslims, Ramadan, and myths facing 'European civilisation'
  7. Europe & Africa - rebuilding the future
  8. How the pandemic became an EU goldmine for crime

Join EUobserver

Support quality EU news

Join us