Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-07-06-Speech-2-383"
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"en.20100706.28.2-383"2
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"Madam President, Commissioner, never has the European project, built with such effort over the last 50 years, been as threatened as it is today. The European public’s frustration is enormous: the financial system which should serve them has destroyed their savings, their pensions, their investment projects, and their jobs; in short, it has destroyed their future.
In terms of the necessary strengthening of the whole financial services market, banking, insurance, and securities, the road to follow is clear and resides in the architecture which we are discussing here today. In fact, we need strong European supervision architecture, covering all products and actors, endowed with efficient methodologies and intervention instruments capable of responding to a market reality which does not recognise national frontiers, especially in the European context.
Risk cannot and should not be eliminated from the financial market, but we need regulation which makes this risk more transparent, and which avoids the accumulation of bubbles that affect the whole system when they burst, spreading to the real economy. However, if new crises occur in the future despite these defences, it is crucial to have mechanisms available that limit contagion, especially regarding the banking system, because this is vital to the economy’s functioning and is the depositary for Europeans’ savings. Here, in the very powers and competences of the European Banking Authority, resides the capacity to execute a new strategy for the management of transnational crises in the banking sector, a topic referred to in my report.
It is not in our hands to prevent the bankruptcy of banks, but rather to ensure that their reorganisation or possible winding up are carried out in an orderly fashion, limiting the collateral effects in the rest of the system and, above all, preventing the taxpayer from being the one who foots the bill for the resulting crises. For this, we need a series of new mechanisms, we need to adopt rules, definitions, methodologies, instruments and terminology common to all those intervening in operations of restructuring, reorganisation or winding up. We need to harmonise all the relevant national legal frameworks for crisis management, not least the laws for bankruptcy and winding up. We need to attribute wider powers of intervention to the supervisors. We need to specify clear criteria, not just quantitative but also qualitative, that allow intervention in an institution in difficulty. We need to prepare contingency plans. This entire process takes time for 27 Member States.
However, around 50 of the 12 000 banks operating Europe represent 70% of assets. This means an enormous concentration of risk, but also an opportunity to intervene primarily in them. There exist, therefore, conditions for us to propose a special and urgent process of listing those banks whose size and relations with other banks make them transnational, potentially giving them a systemic impact on the financial system. For these banks, it is possible to anticipate special supervision by the new European Banking Authority, even if operating in the college of national supervisors. Owing to the risk that they generate, it is possible and urgent that they begin to make contributions to a fund to finance any interventions that may be necessary; and it is important that the European Banking Authority should create a specialist unit to coordinate interventions in the case of difficulties in these banks.
The package of proposed elements ensures that the interventions in transnational banks of a systemic nature are consistent and coherent between the various countries and, above all, that they comply with a principle very dear to Europe: that the costs of the pollution caused by these banks should be borne by the polluter.
This proposal fits perfectly well in what we are discussing, above all, in the competences of the European Banking Authority; I would even say that it is the most obvious test of its efficiency. There was a huge majority – 87% – in favour of this proposal in the Committee on Economic and Monetary Affairs vote. We are counting on a massive vote in favour in this Chamber too, in the knowledge that by massively supporting this visionary, realistic and pragmatic proposal, we will be taking urgent and necessary action to re-establish Europeans’ faith in Europe, in its financial system, and, especially, in its banking system."@en1
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