The Commission believes there has to be a clear longer term vision on the future of the EU’s Economic and Monetary Union to give a sense of direction to the reforms and decisions necessary for the EU and its Member States to tackle current challenges.
Therefore, the Commission has been pushing for deeper economic integration as one of the remedies to the current crisis. This new step in European integration would complement the monetary union. In this context, the Commission is putting forward the concept of a banking union.
The European banking union is not a new legal instrument yet. It is a political vision for more EU integration, which will build on recent major steps to strengthen the regulation of the banking sector and go further.
The concept of a banking union was put forward by President Barroso at the last informal European Council, which took place on 23 May. It has been attracting a lot of attention in the political debate since this meeting and ranks high on the agenda of the next European summit.
The full benefits from deepening the economic and monetary union and from creating the banking union could only be reaped by the development of the fiscal union. The full benefits from deepening the economic and monetary union and from creating the banking union could however only be reaped by the development of the fiscal union.The full benefits from deepening the economic and monetary union and from creating the banking union could however only be reaped by the development of the fiscal union.
The President of the European Council will present a report in close collaboration with the President of the European Commission, the Chair of the Eurogroup and the President of the European Central Bank to the next European Council (28-29 June). In the context of the preparation of this report, the main building blocks towards a deeper economic and monetary integration including the banking union and the fiscal union will be extensively discussed as well as the working methods.
Once this vision is agreed at political level, the Commission will propose the necessary measures for implementation. The Commission could make proposals as early as Autumn 2012. And it also wants the Council and EP to accelerate the decision-making process on key legislation already in the pipeline.