Europe unveils banking union plan to tackle crisis
2012 09 12

By Claire Davenport | TheGlobeAndMail.com

Europe moved a step closer to a banking union on Wednesday with a plan for the European Central Bank to supervise all euro zone banks, a cornerstone of closer fiscal integration designed to end years of financial turmoil in the region.

European Commission President Jose Manuel Barroso outlined the proposal in his annual “state of the union” address, laying out a path to further economic integration that he said he hoped would underpin the future of the euro currency.

The proposed banking reforms, which need to be approved by the European Union’s member states, aim to break the link between banks and states, preventing heavily indebted countries being sucked further into difficulty by distressed lenders in need of rescue.

It tackles a core element of the crisis that first struck banks in Europe almost five years ago and escalated into a sovereign debt crisis in 2010.


President of the European Commission Jose Manuel Barroso, Wednesday, Sept 12, 2012, at the European Parliament in Strasbourg, eastern France.


“The crisis has shown that while banks became transnational, rules and oversight remained national,” Mr. Barroso told members of the European Parliament. “We need to move to common supervisory decisions, namely within the Euro area.”

“The single supervisory mechanism proposed today will create a reinforced architecture, with a core role for the European Central Bank,” he said. “It will be a supervision for all Euro area banks.”

For the plan to work, it will require countries to surrender a degree of sovereignty over supervising their banks. This has long been a national responsibility, and the proposal has already led to tensions with Germany and Britain.

Although Britain, which is outside the euro zone, will not join the scheme, many international banks in London have operations in the euro area that will be affected by the ECB’s new supervisory reach.

[...]


Read the full article at: theglobeandmail.com














Related Articles
Secret EU summit document shows first step to banking union
France and Germany call for "True Economic Government" - Rise of the Fourth Reich?
Barroso unveils European banking union


Latest News from our Front Page

6,000-Year-Old Temple with Possible Sacrificial Altars Discovered
2014 10 21
A 6,000-year-old temple holding humanlike figurines and sacrificed animal remains has been discovered within a massive prehistoric settlement in Ukraine. Built before writing was invented, the temple is about 60 by 20 meters (197 by 66 feet) in size. It was a "two-story building made of wood and clay surrounded by a galleried courtyard," the upper floor divided into five ...
What happened to Journalist Serena Shim? Assassinated? Find out what happened to Serena, Press TV director calls on Turkey
2014 10 21
Press TV news director Hamid Reza Emadi says the “suspicious death,” of the news channel’s correspondent in Turkey is a tragedy for “anyone who wants to get the truth.” Emadi made the remarks in an interview with Press TV on Sunday following Serena Shim’s death across the border from Syria’s Kurdish city of Kobani, where the ISIL terrorists and Kurdish fighters ...
Ancient Roman Nanotechnology Inspires Next-Generation Holograms for Information Storage
2014 10 21
The Lycurgus Cup, as it is known due to its depiction of a scene involving King Lycurgus of Thrace, is a 1,600-year-old jade green Roman chalice that changes colour depending on the direction of the light upon it. It baffled scientists ever since the glass chalice was acquired by the British Museum in the 1950s, as they could not work ...
Rapid Geomagnetic Reversal Possibility: Confirmed
2014 10 21
From the video: "The scientists who conducted the study are still unsure why the magnetic field is weakening, but one likely reason is the Earth’s magnetic poles are getting ready to flip, said Rune Floberghagen, the ESA’s Swarm mission manager. In fact, the data suggest magnetic north is moving toward Siberia." Tune into Red Ice Radio: Ben Davidson - Suspicious0bservers: Space Weather ...
Georgia Guide Stone 2014 cube stone removal
2014 10 21
From: Youtube: Was it all just a gag? it seems the cube stone just happens to be made out of the same Elberton granite that the rest of this morbid monument is made from.
More News »