19 October 2012

Finnish Government: Progress in bank supervision at European Council

The European Council emphasised the importance of equitable treatment of both euro and non-euro area Member States participating in the SSM. Finland considers it important that the single supervision mechanism be as attractive as possible to countries like Sweden and Denmark. Bank supervision is one of the tools that aim to strengthen the European Economic and Monetary Union.

"Progress in the banking union is crucial. The aim is to prevent such situations in which sovereigns become accountable for banks' problems. The banking union is not meant only for the euro area. In its establishment it is important to ensure that it attracts as many countries as possible to join", Prime Minister Katainen said.

"I am pleased that the conclusions also refer to the final report of the high level expert group chaired by Bank of Finland Governor Liikanen which discusses investor responsibility and the avoidance of banks' excessive risk-taking."

As part of the integrated budgetary framework, the European Council discussed the development of a fiscal capacity, a mechanism to support structural reforms in Member States. "The discussion on the fiscal capacity has only started and the issue has to be carefully considered without any commitments at this point", Katainen said.

Prime Minister Katainen emphasised the need to foster the EU's unity. "The development of the EMU is a vital part of the integration and crucial to the strengthening of the euro area in the long term. In this situation, we need to ensure the EU's unity and a strong union", Prime Minister Katainen said.

Press release

© Finnish Government