Sunday, December 7, 2014

The European Commission could bury his reform project … – The World

The European Commission could bury his reform project … – The World

Le Monde | • Updated | By

The President of the European Commission, Jean-Claude Juncker (left), and the Commissioner of Financial Services, Jonathan Hill.

The new Commissioner of Financial Services, Briton Jonathan Hill, sent on November 18, Frans Timmermans, number two in the new European Commission, a letter in which he evokes the withdrawal of the proposal of his predecessor as an option to seriously consider in 2015. “If the member states of the European Union [EU] continue not to support [the initiative],” he said.

This is Philippe Lamberts, a leader of the Greens in the European Parliament, very aware of the subject of bank regulation, which, Thursday, December 4, alerted media about this letter from Mr. Hill. “The signal it sends to member states is clear: Continue to favor a rotting strategy of this issue, and we can take care next year to nip in the bud Banking Reform accuses Mr Lamberts.

The proposal of Mr Barnier targeted the thirty largest banks in the EU, whose failure would destabilize the economy. It was designed to prohibit banks in 2017 to speculate for their own account on financial products trading markets (stocks, bonds, etc.) and raw materials. It also proposed that national banking authoritarian, above a certain volume produced, force banks to spin off their operations at risk.

Mr Barnier’s proposals were inspired by the American Reform, called “Volcker reform”, named after the former chairman of the US Federal Reserve (Fed, central bank). They have attracted immediate and vigorous exercise shields. Especially in France. Within banks. But not only. French bankers have received government support. They have informed Brussels that the project was “irresponsible” to use the term rather hard in the mouth of a central banker, Christian Noyer, Governor of the Bank of France.

The argument? The European project weaken banks and would be more restrictive than the regulations, rather “light”, that France has adopted for its financial institutions after the crisis. These consist mainly strengthening of national supervisory bodies. The UK, which has also adopted its own rules (called “Vickers Act”) and Germany also militated against it.

“Mr. Hill did not say at all in his mail he must get rid of the Barnier proposal. This book just to exercise, imposed by the new Commission in recent weeks, the evaluation of projects still underway in our institution, “ argues a Brussels source.

In fact, Juncker the Commission wants to focus on a few priority subjects (digital, energy, boosting the economy) and she decided to sort all draft legislation supported by its services and retain only those it considers a priority. Or have a chance to succeed. That is to say, to get agreement in the Council, the meeting of Twenty-Eight, and / or the European Parliament. Mr Timmermans is responsible for legislative screening

But Barnier check one of these boxes project. The point of view of Mr. Hill, which divides the text may not pass the Bar Council because of the strong opposition of the three largest economies of the European Union, France, the UK and Germany.

“No decision has been taken, at least for the moment, “ prevents a European source. “It is true that the state, the text of which we speak has little chance of passing. Unless it is rewritten in a simpler form, with a separation of risky activities that would not be compulsory, but only optional, eg , “notes another knowledgeable source.

LikeTweet

No comments:

Post a Comment