Dáil Éireann Debate, Wednesday - 16 January 2013
183. Deputy Micheál Martin asked the Minister for Finance his views on the points made in the recent speech by Mr Matthew Elderfield in London, England, in relation to the European Banking Authority; and if he will make a statement on the matter. [54055/12]
View answer185. Deputy Micheál Martin asked the Minister for Finance if, at the recent EU Council meeting, there was any discussion on a banking union and placing a maximum ceiling on bankers bonuses across the EU; and if he will make a statement on the matter. [54061/12]
View answer187. Deputy Micheál Martin asked the Minister for Finance if he is concerned about the lack of progress with the consolidation of EU banking plan; and if he will make a statement on the matter. [55451/12]
View answerI propose to take Questions Nos. 183, 185 and 187 together.
The Deputy will recall that support for the establishment of a Banking Union has been given at the highest political level at Summits of Heads of State & Government of the Euro Area. In September 2012 the European Commission presented legislative proposals for a single supervisory mechanism (SSM) conferring powers on the ECB for the supervision of all banks in the euro area, with a mechanism for non-euro countries to join on a voluntary basis. The SSM is a key element of the Banking Union along with a common resolution framework and national deposit guarantee schemes built on common standards set out in the Capital Requirements Directive and by the European Banking Authority. The Banking Union package is a priority of the Irish Presidency of the EU Council.
The European Council discussed the SSM at its October meeting in the context of a report from President Van Rompuy on work being carried out on the Future of Economic and Monetary Union. The timetable set in the October Council conclusions envisaged agreement being reached on "the legislative framework" for SSM by end of the year. Agreement was duly reached in December 2012 by Ecofin Ministers to establish a Single Supervisor Mechanism under the ECB covering the euro area and open to all Member States. The overall objective is to enforce prudential rules in a strict and impartial manner and perform effective oversight of cross border banking markets.
As regards Mr Elderfield’s speech I note this was delivered in a personal capacity on 26th November 2012 well before the Ecofin agreement was reached in December. Many of the concerns raised in the speech are addressed in the Council December agreement notably in relation to ensuring a balance between rights and obligations for all Member States participating in the new supervisory arrangements and in the voting modalities of the EBA to preserve the integrity of the single market.
The question of placing a maximum ceiling on bankers’ bonuses across the EU is under discussion in the context of deliberations on the Capital Requirements Directive (CRD IV) and the Capital Requirements Regulation (CRR).
Having recently assumed the Presidency of the EU Council Ireland is currently engaged in trilogue and tripartite discussions with the European Parliament and the Commission on both Capital Requirements Dossiers and on the Single Supervisor Mechanism dossier. It would not therefore be appropriate for me to comment further at this stage except to say that in its European Presidency Ireland will be doing all it can to conclude work on these dossiers in the coming weeks.
