EESC calls for momentum to be maintained in Banking Union implementation

Carlos Trias Pinto and Daniel Mareels

The EESC calls for the measures proposed by the European Commission to complete the Banking Union and deepen the EMU to be fully implemented without delay.

The Banking Union is vital to the EMU as it will enhance the financial stability and territorial integrity of the EU and prevent market fragmentation and disintegration in future crises. The EESC therefore welcomes the Commission's proposals.

"We support the new approach for a more phased implementation of the third pillar of the Banking Union, the European Deposit Insurance Scheme. It may provide new impetus to the so far unsuccessful negotiations", said Daniel Mareels, co-rapporteur for the EESC opinion on the subject. "The momentum of the implementation process should not be lost."

The EESC backs the measures to reinforce and consolidate the first two pillars of the Banking Union. It believes that further efforts to reduce and share risks in the financial sector can pave the way to achieving the third pillar and must continue in parallel.

"Remaining stocks of non-performing loans and their possible build-up must be addressed as a priority", said rapporteur Carlos Trias Pintó. "We also call for the European Monetary Fund to be fully functional as soon as possible, as a backstop to the Single Resolution Fund."

In addition, the EESC recommends paying full attention to the national deposit guarantee schemes during the re-insurance phase and taking a more concrete and formal decision, with the broadest possible consensus, on entering the co-insurance phase.

Finally, the financial industry should commit to implementing the 2030 SDGs and the Paris commitments, and all financial players should focus reliably and on an equal footing on financing the real economy. (jk)