Belgian Finance Minister Steven Vanackere comments on European Union proposals for a banking union and supervision by the European Central Bank.
Vanackere spoke to reporters today in Nicosia, Cyprus before a meeting of European finance ministers and central bank chiefs.
“It is absolutely necessary to execute what Herman van Rompuy agreed on in June. One of the four parts to ensure a bigger budgetary unification of course is the banking union. So we should ensure commissioner Barnier gets sufficient support for his proposals. At the same time everyone recognizes it won’t be completed right away and many questions need answering.
“The manner of supervision needs to be sufficiently coherent. That means where national central banks supervise smaller institutions for instance, those that aren’t systemic, that supervision should be carried out according to the rules decided on ECB level.
“It is important to keep up the pace. Government leaders have decided they want a clear vision before the end of the year.
“If there is European supervision it would be obvious that it would encompass systemic and state supported banks first and then is rolled out further.” For Belgium, that would apply to Dexia SA, he said.
“It’s a balance between taking responsibility and solidarity. It is normal that those who are asked to show a lot of solidarity want to verify first that everyone takes their responsibility.”