Time is money, we must move on banking union – Prendergast

Labour MEP for Munster, Phil Prendergast, expressed her support for a European supervisory mechanism for all banks and urged the Commission and Member States to move swiftly on single banking resolution and deposit guarantee schemes.


Speaking this afternoon at a European Parliament debate, in Strasbourg, on the eve of Parliament’s decision on prudential supervision reform, Ms. Prendergast said:


“The systemic, cross-national scale of the European banking sector makes it impossible to ensure proper supervision with individual regulators, even when these are empowered and willing to fulfil their mandates.


“The European Central Bank is now being empowered with pan-European supervisory responsibilities and must accordingly acknowledge the need for enhanced democratic accountability.


“This Parliament must have more access to ECB documents, the right to openly hear and appoint the supervisory board chairs, as well as powers of inquiry to investigate infringements and maladministration.


“In order to break the vicious circle tying exchequers and taxpayers to banking debt, we must now show the same sense of urgency to have in place a European banking resolution mechanism, as well as a deposit guarantee scheme.


“As Commissioner Barnier said, should these measures have been in place half a decade ago, our recent economic history would have unfolded in a different way. Sadly, his predecessor was the champion of light-touch regulation, as we in Ireland know only too well.


“The aftershock of this sorry state of affairs has been painfully felt by citizens in Ireland and beyond, and not with a light touch, but with heavy-handed austerity.”

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