The European Union Delegation to Liberia has issued a press statement in Monrovia, quoting the EU Commission President, José-Manuel Barroso, as calling for a Single Supervisory Mechanism (SSM) for banks in the Euro area.
According to an EU press statement here, President Barroso stressed that the Single Supervisory Mechanism (SSM) for banks in the Euro region are an important step in strengthening the Economic and Monetary Union (EMU) of the European Union.
The statement by the EU Commission President was contained in his 2012 State of the Union speech delivered before the European Parliament in the eastern French city of Strasbourg, where he emphasized the significance of a banking union in the eurozone.
President Barroso said: “Today, the Commission has presented proposals for a single European supervisory mechanism, a major step to a banking union. This new system, with the European Central Bank at the core and involving national supervisors, will restore confidence in the supervision of all banks in the Euro area.”
Continuing, he added: “The European Parliament will have a crucial role to play in the ensuring democratic oversight. We should make it a top priority to get the European supervisor in place by the start of next year. This will also pave the way for any decisions to use European backstops to recapitalise banks.”
The speech by the EU Commission President comes amidst continuing efforts thus far to respond effectively to the eurozone crisis, as the EU’s ability to tackle its currency issues will have a deep impact on the global economy, and will impact on export and other opportunities of developing countries, including Liberia, which continues to build a sustainable and fair trade relations with the EU.
The EU Internal Market Commissioner Michel Barnier said banking supervision needs to become more effective in all European countries to make sure single market rules are applied in a consistent manner, that it will be the role of the ECB to make sure that banks in the Euro area stick to sound financial practices.
“Our ultimate aim is to stop using taxpayers’ money to bail out banks. We have proposed a mechanism to separate supervision from monetary policy within the ECB, and make sure that the ECB will be accountable to the European Parliament for supervisory decisions”, Commissioner Barnier.