News
BackThe so-called “Rompuy Report” at the end of June initiated discussions on the future of Europe. Now the European Parliament wants to have its say. No less than three committees of the European Parliament discussed a road map for Europe this week. To coincide with this, the European Committee on Economic and Monetary Affairs has prepared the “Thyssen Report”. The European Parliament demands in particular more participation rights and democratic control.
The Committee on Employment and Social Affairs, the Committee on Economic and Monetary Affairs and the Committee on Constitutional Affairs this week worked on recommendations by MEPs to be presented to the Commission and to the Member States. The Committee on Employment and Social Affairs as well as the Committee on Constitutional Affairs put the proposals to the vote; however, the final versions will only be available once several hundred amendment applications have been considered. The European Parliament hopes that its initiative reports will be able to contribute to the advised discussion on the “Van Rompuy Paper”.
The first draft of the “Van Rompuy Paper”, prepared by Council President Herman Van Rompuy, ECB boss Mario Draghi, Eurogroup boss Jean-Claude Juncker and Commission President Jose Manuel Barroso was drawn up at the end of June, after the EU summit had asked the four Presidents to do so. The road map for Europe developed in the report is based on four fundamental pillars: an integrated financial framework, an integrated budgetary framework, an integrated economic policy framework and the democratic legitimacy and accountability. The European Parliament however criticises that one President did not participate in preparing the Paper: the President of the European Parliament.
Discussions in the European Parliament: the Thyssen Report
On Tuesday, the “Thyssen Report” - named after the Belgian conservative rapporteur Marianne Thyssen - was on the agenda of the Committee on Economic and Monetary Affairs. In the draft report from mid-September, the MEPs first and foremost come out in favour of strengthening the rights of the European Parliament even further.
The Thyssen Report by and large welcomes the proposals of the “Rompuy Report” on a banking union. The planned measures on the banking union, a single supervisory mechanism, a single European recovery and resolution scheme as well as a single European deposit guarantee scheme are supported by MEPs. The existing structures are not sufficient to prevent a mutual contagion of the troubled banks and the costs of tackling the crisis have put a “too heavy burden on the taxpayer”. Apart from that, it should be differentiated between short-term measures to “stabilise the current crisis situation in the banking sector” and long-term measures to realise the banking union. The report also emphasises that the independence of the European Central Bank is in particular important for the credibility of the economic and monetary union.
Ideas on a banking union
A single supervisory mechanism represents an improvement over the existing fragmented system of national supervisory authorities and is able to meet the current challenges. The Thyssen Report supports the key role of European Central Bank concerning the future organisation of banking supervision. However, some opinions in the report deviate from the ideas of the four presidents. For example, the committee demands the introduction of safeguards to avoid potential conflicts of interest between the ECB's monetary policy and its supervisory powers. Apart from that, the future banking supervision shall justify itself and be accountable to the European Parliament. The European Parliament shall be able to appoint the head of the European single supervisory mechanism, which means that it will be given more participation rights.
The report applies similar arguments to the planned single European recovery and resolution scheme and the single Europe-wide deposit guarantee scheme. Separate European funds shall be set up for both instruments. The funds shall come from contributions made by financial institutes, thereby relieving public budgets. The Euro countries would have the collective obligation to ensure that the European deposit guarantee fund has adequate funding.
According to the report of the committee a single European recovery and resolution scheme is necessary to tackle the banking crisis. This new authority shall be largely independent, but nevertheless accountable to the European Parliament. Here too the Thyssen Report demands that the European Parliament appoints the head of the authority.
Over 800 amendment applications
The Committee on Economic and Monetary Affairs discussed the Thyssen Report this week. The committee members presented 839 amendment applications; a possible compromise proposal will be put to the vote next week.
In this week’s discussion, many MEPs widely criticised the “Thyssen Report”. Above all, many MEPs demanded an additional fifth pillar: a social union, which guarantees social rights. It was also proposed to provide the European Court of Justice with the competence to control the supervisory mechanisms. However, mainly criticised was the lack of democratic control. The famous “Troika” (International Monetary Fund, ECB, European Commission), which has pitched its tents in the countries affected by the crisis and which in particular prescribes employees with bitter pills, should at last be controlled democratically, is the opinion of some MEPs. Only this week, a report of the International Monetary Fund, caused a stir by holding the Troika policy directly responsible for the fact that its “economic policy” proposals are based on incorrect calculations, thereby clearly leading to significant economic and social distortions.
Next week will also be exciting, as the Thyssen Report will be put to the vote in the Committee on Economic and Monetary Affairs. Only after this vote, and if the parliament is able to assert itself, it will become clear how much importance will be attached to the social rights of employees with regard to a possible reorganisation of the EU Treaties. The Austrian trade unions and the AK have made their positions clear: the time of pretty speeches on a “social Europe” is over! What is needed now are concrete improvements for the people in Europe!
Thyssen Report
The first draft of the “Van Rompuy Paper”, prepared by Council President Herman Van Rompuy, ECB boss Mario Draghi, Eurogroup boss Jean-Claude Juncker and Commission President Jose Manuel Barroso was drawn up at the end of June, after the EU summit had asked the four Presidents to do so. The road map for Europe developed in the report is based on four fundamental pillars: an integrated financial framework, an integrated budgetary framework, an integrated economic policy framework and the democratic legitimacy and accountability. The European Parliament however criticises that one President did not participate in preparing the Paper: the President of the European Parliament.
Discussions in the European Parliament: the Thyssen Report
On Tuesday, the “Thyssen Report” - named after the Belgian conservative rapporteur Marianne Thyssen - was on the agenda of the Committee on Economic and Monetary Affairs. In the draft report from mid-September, the MEPs first and foremost come out in favour of strengthening the rights of the European Parliament even further.
The Thyssen Report by and large welcomes the proposals of the “Rompuy Report” on a banking union. The planned measures on the banking union, a single supervisory mechanism, a single European recovery and resolution scheme as well as a single European deposit guarantee scheme are supported by MEPs. The existing structures are not sufficient to prevent a mutual contagion of the troubled banks and the costs of tackling the crisis have put a “too heavy burden on the taxpayer”. Apart from that, it should be differentiated between short-term measures to “stabilise the current crisis situation in the banking sector” and long-term measures to realise the banking union. The report also emphasises that the independence of the European Central Bank is in particular important for the credibility of the economic and monetary union.
Ideas on a banking union
A single supervisory mechanism represents an improvement over the existing fragmented system of national supervisory authorities and is able to meet the current challenges. The Thyssen Report supports the key role of European Central Bank concerning the future organisation of banking supervision. However, some opinions in the report deviate from the ideas of the four presidents. For example, the committee demands the introduction of safeguards to avoid potential conflicts of interest between the ECB's monetary policy and its supervisory powers. Apart from that, the future banking supervision shall justify itself and be accountable to the European Parliament. The European Parliament shall be able to appoint the head of the European single supervisory mechanism, which means that it will be given more participation rights.
The report applies similar arguments to the planned single European recovery and resolution scheme and the single Europe-wide deposit guarantee scheme. Separate European funds shall be set up for both instruments. The funds shall come from contributions made by financial institutes, thereby relieving public budgets. The Euro countries would have the collective obligation to ensure that the European deposit guarantee fund has adequate funding.
According to the report of the committee a single European recovery and resolution scheme is necessary to tackle the banking crisis. This new authority shall be largely independent, but nevertheless accountable to the European Parliament. Here too the Thyssen Report demands that the European Parliament appoints the head of the authority.
Over 800 amendment applications
The Committee on Economic and Monetary Affairs discussed the Thyssen Report this week. The committee members presented 839 amendment applications; a possible compromise proposal will be put to the vote next week.
In this week’s discussion, many MEPs widely criticised the “Thyssen Report”. Above all, many MEPs demanded an additional fifth pillar: a social union, which guarantees social rights. It was also proposed to provide the European Court of Justice with the competence to control the supervisory mechanisms. However, mainly criticised was the lack of democratic control. The famous “Troika” (International Monetary Fund, ECB, European Commission), which has pitched its tents in the countries affected by the crisis and which in particular prescribes employees with bitter pills, should at last be controlled democratically, is the opinion of some MEPs. Only this week, a report of the International Monetary Fund, caused a stir by holding the Troika policy directly responsible for the fact that its “economic policy” proposals are based on incorrect calculations, thereby clearly leading to significant economic and social distortions.
Next week will also be exciting, as the Thyssen Report will be put to the vote in the Committee on Economic and Monetary Affairs. Only after this vote, and if the parliament is able to assert itself, it will become clear how much importance will be attached to the social rights of employees with regard to a possible reorganisation of the EU Treaties. The Austrian trade unions and the AK have made their positions clear: the time of pretty speeches on a “social Europe” is over! What is needed now are concrete improvements for the people in Europe!
Thyssen Report