Following the reaching of a compromise on the Single Resolution Mechanism (SRM) at the end of a 16-hour inter-institutional negotiation marathon, GUE/NGL President Gabi Zimmer has described the compromise as “flawed”, questioning whether it will be able to protect European taxpayers in the future.
She said: “The core problem still remains: bloated financial markets and its actors won't be tamed. The EU is still lacking an urgently needed, fundamental reform of the international financial system.
“We still have the issue of big banks that are 'too big to fail'. A real European solution to deal with banks must be based on the Community method. Otherwise these ailing banks can still ruin nation states because of their size and complexity, and this is not acceptable.”
Zimmer also criticised how the compromise was reached: “Parallel to the official three-way negotiation process between Parliament, Council, and Commission, an intergovernmental working group was set up and Parliament's negotiators were only allowed to participate as observers. This proves that the Commission and the Council continue to turn their back on the Community method. First the Fiscal Treaty, and now this intergovernmental agreement, what's next? At no point did the Commission defend the Community method, instead very quickly they just went with the Council's position.”
She continued: “We need clarification on whether the Commission's role is legally compatible with the proposed intergovernmental agreement. In view of all these shortcomings in the compromise we have to question in whose interests this Banking Union is being created, those of the banks or those of citizens.”
GUE/NGL Press Contacts:
Emily Macintosh +32 470 85 05 08
Gay Kavanagh +32 473 84 23 20
European United Left / Nordic Green Left
European Parliamentary Group