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European Council Meetings

Dáil Éireann Debate, Tuesday - 30 January 2018

Tuesday, 30 January 2018

Ceisteanna (156)

Joan Burton

Ceist:

156. Deputy Joan Burton asked the Minister for Finance the status of ECOFIN’s work in respect of the completion of the European banking and capital markets union; and if he will make a statement on the matter. [4162/18]

Amharc ar fhreagra

Freagraí scríofa

Finance ministers met on 22 and 23 January and to discuss the completion of banking union and capital markets union, amongst other things. 

In November 2016, the European Commission proposed a comprehensive package of reforms to further strengthen the resilience of European banks. This package, collectively known as risk reduction measures, aims to complete reforms implemented in the wake of the financial crisis by tackling remaining weaknesses as well as implementing some outstanding elements of internationally agreed standards. The Risk Reduction Measures propose amendments to the capital requirements regulation, the capital requirements directive, the bank recovery and resolution directive and the single resolution mechanism regulation as well as a number of other elements. Negotiations have also continued on the European deposit insurance scheme which seeks to introduce a mutualised deposit guarantee scheme for members of the banking Union.

Ireland has always been supportive on the completion of banking union, with appropriate risk reduction and risk sharing.  Good progress has been made on risk reduction but there are still some issues to be resolved. 

The Capital Markets Union, CMU, aims to establish the building blocks of an integrated capital market in the EU by 2019 through supporting the development of alternative sources of finance, complementary to bank-financing – including venture capital, crowdfunding and market-based finance.  In addition to building resilience in the financial system by diversifying available funding sources and enabling more robust forms of risk sharing, the CMU seeks to make it easier for companies to finance investment through capital markets and for investors to invest their funds across borders.

The Capital Markets Union project has the potential to provide for alternative sources of financing for Irish businesses and the creation of larger and deeper capital markets in Europe will be of benefit to our financial services industry as well.  The CMU mid-term review, published by the European Commission on 8 June 2017, detailed the progress made so far in implementing the action plan with 20 out of 33 measures already implemented to date.

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