Inclusive and sustainable Banking Union - Related Opinions

The EESC welcomes the new set of measures proposed by the European Commission to complete the Economic and Monetary Union (EMU) and move towards an optimal monetary zone. The EESC supports the various proposed goals for reinforcing the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM). The EESC welcomes that the present communication provides scope for a broader discussion and for a phased approach to implementing the European Deposit Insurance Scheme (EDIS) and underlines the importance not to lose momentum in implementing the Banking Union. Finally, the EESC reiterates its commitment to a diverse financial ecosystem in which the large pan-European players coexist with small and medium-sized banks and other non-banking entities that focus reliably on the financing of the real economy on an equal footing, in an environment of much reduced systemic risk.

The introduction of further risk sharing is to be accompanied by further risk reduction in the Banking Union. Both the EDIS and the relevant risk reduction measures have to be dealt with in parallel and without delay and actually put into effect. An EDIS will have a positive impact on the situation of individual Member States and banks by being more able to cushion local shocks. This may discourage speculation against specific countries or banks, thus reducing the risk of bank runs. At the same time it will further weaken the link between the banks and their national sovereigns. It is imperative that the existing legislative framework of the Banking Union is fully implemented by all Member States. It is important that the Commission carry out a comprehensive in-depth impact study in order to further strengthen the legitimacy of the proposal.