2013-04-10
V. Vasiliauskas: Europe needs an effective banking union where all members would be equal
The Chairman of the Board of the Bank of Lithuania, Vitas Vasiliauskas, on 10–13 of April will participate in Dublin in the meetings of the Economic and Financial Affairs Council (ECOFIN) and the European analytical centre EUROFI, which deals with issues of financial supervision. In discussions on the financial stability of the EU, the Head of the Bank of Lithuania will express his position regarding issues on the establishment of the EU banking union.
“We are glad that after difficult negotiations we were able to reach a significant breakthrough—now the euro zone and EU nations that do not belong to it are treated as equivalent and equally important members. A maximally favourable balance between rights and powers in the decision-making process, as much as is possible without changing the EU Treaty, is foreseen for them,” said the Head of the Bank of Lithuania.
However, he stressed that in aiming to create an effective banking union, it is necessary to have immediate and maximally constructive discussions regarding other elements of the future banking union.
“For the new union to be work efficiently and reliably, it requires three equally strong pillars—effective supervision, a harmonised bank restructuring system, as well as a common deposit insurance system,” claims V. Vasiliauskas.
He notes that Lithuania in particular will soon have to take over presidency of discussions and final negotiations on these integral issues of the EU banking union.
There are hopes that in the near future the Council of the European Union and the European Parliament will accept legislation that regulates the operation of a single supervisory mechanism of the banks. However, decisions regarding the recovery and restructuring of problem banks, as well as integrated deposit insurance systems, according to the EU agenda will have to be made until 2014; therefore they will be one of the most important priorities next half-year, when Lithuania takes over Presidency of the Council of the EU.