European Parliament supports ECB bank supervision power

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European Parliament supports ECB bank supervision power

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A group of MEPs have backed plans to give the ECB the task of supervising banks in the European Union.

The European Parliament’s Economic and Monetary Affairs Committee said the bank should get new powers, including the right to grant licences.

“The end of the road is hopefully that we get a strong european banking supervisor which help us to get out of the eurocrisis which is under a strong democratic responsability and at the same time safegard the useful diversity in the common market” said Sven Giegold, MEP, Greens.

But all EU states must agree and French MEP Jean-Paul Gauzès fears the UK will block the changes to protect the City of London.

“Every country has a right of veto, so we fear that the UK, where euroscepticism is rife, could use its veto to block this proposal, or demand that legislation is watered down in exchange, which Great Britain deems excessive.”

Europe’s finance ministers meet next Tuesday to discuss the proposed law.

EU leaders have set an end-of-year deadline to agree on ECB supervision.