"The EP has today given provisional approval to this historic banking supervision legislation, which is the first pillar in the new European Banking Union. The Greens have long argued for stronger banking oversight and regulation, with a European approach to reflect the complex cross-border nature of the sector. The new supervisory authority will overhaul the current disjointed light-touch national supervision and oversight, which has enabled financial institutions to engage in risky activities, which created the financial crisis. 

"MEPs have withheld the final go-ahead however pending concrete progress on provisions to ensure the new authority is properly democratically accountable. Negotiations with the ECB on the inter-institutional agreement to provide for the EP's scrutiny role are underway but much more constructive engagement from the ECB will be needed in order to make these key democratic provisions reality.

"This watershed legislation is only the first stage in the conclusion of a European Banking Union. As the ongoing problems in Europe's financial sector highlight, we need to urgently move to complete the Banking Union. This means a European banking resolution authority and a common EU bank resolution fund, as well as a European deposit guarantee scheme. This cannot be replaced by a network of national institutions, as this patchwork approach has played a major contributory role in the financial crisis, leading to costly banking rescues. This urgent reform must not be put on the back burner and EU governments must not give in to the bullyboy tactics of German finance minister Schäuble on this."

Press release

Background paper