A deal on banking supervision legislation that will strengthen EU-level oversight of many EU banks was struck by Parliament and Council negotiators on Tuesday. Parliament's negotiators inserted many provisions strengthening the system's transparency and accountability. They also ensured that its working structures will be imbued with a European spirit, rather than reflecting just a sum of national interests.
Sven Giegold (Greens, DE), rapporteur for the text amending the role of the European Banking Authority, said: "This agreement is a breakthrough for democratic control of the financial sector. Crucially, the agreement reached today will provide for strengthened democratic accountability under the proposed system, with the European Parliament getting a clear scrutiny role over the European Central Bank in its performance of its tasks. The deal will also help ensure that the diversity of the EU's banking system is taken into account of by the supervisory system."
Key areas in which Parliament pushed through changes:
Parliament's plenary must now ratify the deal in the near future. In the meantime, national parliaments may also express their views and an inter-institutional arrangement on the details will be hammered out by Parliament and the ECB on to shape appropriate accountability systems.
For legal reasons, the details of Parliament's powers of control over the ECB supervisor will be drawn up through an inter-institutional arrangement. Parliament's adoption of the final legislation is contingent on the successful conclusion of this arrangement.