The European Union’s Finance Ministers will focus on outstanding issues of the Single Supervisory Mechanism, in their extraordinary meeting which will be held tomorrow, December 12, in Brussels.
The ECOFIN Council will be called on to agree a general approach on proposals aimed at establishing a Single Supervisory Mechanism (SSM) for the oversight of credit institutions, as part of a broader plan to establish a banking union.
Ministers debated the proposals on December 4 and agreed to hold an extra meeting before the December European Council which is taking place on Thursday and Friday. An agreement would enable the Presidency to start negotiations with the European Parliament with the aim of approving the texts before the end of the year.
On September 12 2012, the Commission proposed the establishment of a Single Supervisory Mechanism for banks led by the European Central Bank. This proposal is a first step towards a fully integrated financial framework, which includes further components such as a single rulebook, common deposit protection and a single bank resolution mechanism.
The proposal involves two regulations: one conferring supervisory tasks on the European Central Bank, the other modifying regulation establishing the European Banking Authority.
The SSM is a key element of the banking union.
“It is of key importance to reach a general approach before the European Council of December 13. Reaching an agreement in SSM is top priority for Cyprus Presidency and that why we have called for an extraordinary meeting”, Minister Shiarly said.