28 January 2014

Results of the ECOFIN Council: SSM, Presidency work programme

SINGLE SUPERVISORY MECHANISM

The Council was briefed by the European Central Bank on implementation of the EU's single supervisory mechanism (SSM) for banks.

The ECB will take up supervisory tasks under the SSM on 3 November 2014, subject to operational arrangements. The regulations establishing the SSM were adopted on 15 October 2013.

In December, the Council adopted a decision appointing Daniele Nouy as the first-ever chairperson of the supervisory board of the ECB. The supervisory board will undertake the planning and execution of the supervisory tasks conferred on the ECB. It is expected to hold its first meeting at the end of January.

The SSM will cover the euro area as well as non-eurozone Member States that choose to participate.

The ECB will have direct oversight of banks in these countries, although in a differentiated manner and in close cooperation with national supervisory authorities.

In preparation for this, the ECB is about to launch the operational phase of an asset quality review, as part of a comprehensive assessment of the banks over which it will have direct oversight. This will be followed by a stress test exercise, to be conducted during the second half of 2014 in coordination with the European Banking Authority.

The ECB is expected to present in February a first quarterly report on progress in implementation of the SSM.

PRESIDENCY WORK PROGRAMME

The Council took note of the presentation by the Hellenic presidency of a work programme on economic and financial matters for the duration of its term, which runs from January to June 2014 (5370/14). The Council held a brief exchange of views.

Supporting economic growth and employment and restoring confidence in the financial sector are the main objectives of the Hellenic presidency. The work programme sets out the following priorities:

• further developing the framework of Europe's banking union and effectively strengthening the regulatory framework for financial markets;
• ensuring the smooth operation of economic and fiscal policy coordination under the EU's European Semester and the effective implementation of economic governance mechanisms;
• facilitating discussions on the further development of the EU's economic and monetary union;
• promoting dialogue on the financing of the economy;
• active work on important taxation dossiers;
• ensuring that the EU's position is well coordinated and represented in the G20.

OTHER BUSINESS

The Council took note of work on current legislative proposals, including a draft directive for the recovery and resolution of banks, a draft directive on deposit guarantee schemes and a draft directive and draft regulation relating to markets in financial instruments.

Full results

See also:

ECOFIN-Council opens excessive deficit procedure for Croatia

ECOFIN-Council adopts Directive on mortgage credits

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