Single bank supervisor will bring enhanced stability and accountability to European banking system – Donohoe

19th March, 2013

Mistakes of the past must never again be repeated


Welcoming the deal struck by the Irish Presidency with the European Parliament on the single EU bank supervisor, Fine Gael Dublin Central Deputy, Paschal Donohoe, said the move brings Europe one step closer to full banking union which will ensure that the mistakes of the past are never again repeated.

“The provisional agreement reached today represents a milestone on the road to recovery and the restoration of confidence in European banks. The scale of the damage done across Europe as a result of lax regulation and a banking system that was not subject to adequate oversight is plain for all to see. We are now cleaning up a mess that can never again be allowed to happen and the measures being adopted at European level will ensure that that is the case.

“Putting an EU bank supervisor in place will act as another check against bad practice and will help to instil confidence that our banks are being run in the appropriate way. Closer banking union is essential for a functioning Europe and will ensure that the European model remains a sustainable and stable one.

“The provisional agreement reached today will also pave the way for the European Stability Mechanism to take on the direct recapitalisation of the banks. Minister Noonan has been working steadfastly to secure a better deal for Ireland in terms of the restructuring of our debt and easing the burden imposed on the Irish people by the actions of the Fianna Fáil Government.

“Breaking the link between bank and sovereign debt will be key to lessening this burden and today’s agreement with the Parliament, which will now have to be given the green light by all Member States, is a big step in the right direction.

“We have a long way still to go in Europe, and in Ireland, in terms of getting back to where we need to be. Unemployment is still unacceptably high, especially among our young people, but there are real signs that the plan the Fine Gael/Labour Government has put in place is working. The first increase in employment was recorded in 2012, with 15,000 jobs being created over the last 15 months and I have no doubt that if we keep going we will create an Ireland once again that we can be proud of. Ensuring that the proper checks and balances are in place in Europe in terms of how our banks operate is part of that and I commend everyone involved in reaching this agreement for their hard work and dedication in bringing Europe one step closer to banking union and cooperation.”