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Discussions on the single resolution mechanism for banks are more or less at a standstill in the Committee of Permanent Representatives (Coreper). What are you expecting from the ECOFIN Council, on 15 November?
I don’t agree with your view. Discussions are not at a standstill in Coreper. They are advancing. A large majority of states have come out in favour of the key elements of my proposal, for example the legal basis and the single resolution fund for banks. On all the texts that I have presented over the last three-and-a-half years, we have had the same debates, the same contradictions and the same fears. That is the normal process for complex texts like this one. It won’t be easy, but a compromise is possible by the end of the year. We will continue our work on 15 November.
Are you expecting more flexibility on the part of German Finance Minister Wolfgang Schäuble?
Like the other ministers, I listen carefully to Mr Schäuble, a wise European. I am trying to find a compromise with him and with the aim of protecting a system that works. I’m sure that he too wants to work out a compromise by the end of 2013.
The sensitive aspects have been identified. Are things any clearer now?
I think that the legal basis is solid, as the European Central Bank has just acknowledged, although that doesn’t preclude us from developing a more precise, robust and definitive system later. I think that we can come to an agreement on building a resolution system in stages.
My priority is to come up with a system that works now. This aspect is understood, but there are other sensitive points, including the Commission’s role as the authority that presses the button to validate resolution plans. I am open on that point to any other solution that works, from the Council, for example. Another question concerns governance and voting arrangements in the resolution board. To my way of thinking, this board is the resolution authority, not the authority that presses the button.
Many states do not want the Commission to participate in the resolution board. What’s your answer to that?
We want the Commission and the ECB to be part of the board to defend the general European interest and the integrity of the internal market of 28 states. We are building something that will work for the 18+, but the coherence of the internal market of 28 members is also fundamental.
What compromise is foreseeable on creation of the single resolution fund for banks, another touchy aspect, especially for the Germans?
The general position of the Member States is in support of a single resolution fund. The other possibility, which I did not choose because it would add nothing to the status quo, is a network of national resolution funds. There may be intermediate solutions between these two options but I still think the best solution is a single fund. Another question is that of the interim period during which the fund will not yet be sufficiently capitalised.
Various options are possible. Lastly, another aspect to be settled is the scope of application. Many states wish to see all banks concerned, which is also my preference and what the Commission has proposed. However, we can discuss the size of banks, for instance.
What does the timing look like for reform of the structure of the banking sector, a proposal you initially planned to present by the end of summer?
From the legal point of view this text is extremely difficult. I cannot say precisely when, but the aim is to present the text within weeks. I prefer to take these few extra weeks to have a good text. I also wish to gather a maximum amount of information on what others are doing - to ensure a level playing field - in the United Kingdom, France and the United States, where I’m not getting the data we need on how they wish to apply the Volcker rule.
Are you going to follow these national reforms or move forward?
I am not going to follow them. I am going to take them into account.
One last question on the European election campaign. Do you think that candidates for the European Commission presidency should stand as such in the European elections?
I have always said that the idea of using the European elections to democratise the designation of the Commission president is a good idea. I see it as progress. The Socialist party has already adopted its decision. The EPP party to which I belong is discussing it.