Financial Stability: European Comission/ECB SSM tool is made. Can it be sharp enough to cut through the thickets of national vested interests?
The SSM and EBA measures were enacted – at least in principle, as final ratifications by Parliament and Council are needed before they come into force. Only then can the ECB Supervisory Board be created and the technical details of managing the new supervisory system filled in.
The ECB’s 'Financial Integration’ (link) and the Commission’s 'Stability and Integration' (link to EFSIR) Reports were published – and debated at a Brussels conference. Some concerns surfaced. The original three-legged structure – Single Supervisory System (SSM) + Single Resolution Mechanism (SRM) + Single Deposit Guarantee System (DGS) - has already had one leg chopped off as the pan-eurozone DGS has been shelved. Germany has now suggested that the SRM may need a Treaty change to have full legal strength and the SSM mechanics are being questioned.
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