The Bundesrat

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN CENTRAL BANK On steps towards Completing Economic and Monetary Union

Scrutiny details

 
Scrutiny Information

Scrutiny date: 18/12/2015

Subsidiarity Concern:

No Important information to exchange

No Veto

Information on parliamentary scrutiny


Referred to Committees on:


European Union Questions
Labour, Integration and Social Policy
Finance

Economic Affairs



Lisbon Treaty procedures
 
  Political Dialogue

18/12/2015 | Scrutiny results - COM20150600


The Bundesrat welcomes the recent changes in order to strengthen the procedure of the European semester. It supports Commission's efforts for more convergence between the members of the Euro-zone.


The Bundesrat takes note from the Commission's decision form 21 October 2015, establishing the independent advisory European Fiscal Board. It regrets that no possibility had been given to national parliaments to express their opinion on this project. Whereas consequent supervision of the respect of provisions set by the treaty on stability and growth is of high importance, the now established advisory EFB is not constructive. Given the current composition of the board, the Bundesrat has doubts whether the use is proportional to the bureaucratic burden. By the same time, the legal basis for the establishment of the EFB and its relation to national fiscal boards are blurry.


The Bundesrat welcomes the Commission's intention to pay more attention to the employment and social dimension in order to create an economic and social union. The Greek example has shown that structural reforms and budgetary consolidation may lead to increasing unemployment. Therefore, it is important to consider also social aspects besides economic and fiscal aspects in impact assessments of structural reforms and in reform programs.

Whereas the Bundesrat welcomes a closer cooperation with the social partners in the elaboration of NRPs, it is against the establishment of National Competitiveness Boards for in the Euro-zone.

The Bundesrat is of the view that the start of work of the Single Supervisory Mechanism marks an important step on the way to achieve a Single Resolution Mechanism in the Euro-zone and to harmonize the rules for deposit guarantee schemes in member states. These elements are important pre-conditions for a more stable and safe banking sector in Europe. In this context, the Bundesrat is unsatisfied that only 16 member states have transposed the Bank Recovery and Resolution Directive (BRRD) and only 10 member states the Deposit Guarantee Scheme Directive (DGSD) within the set time. The Bundesrat considers it as a prior obligation of member states - if not yet happened - to transpose BRRD and DGSD immediately in order to contribute to a stable and powerful deposit guarantee scheme in Europe.


Further reflections of the Commission going over these first and important steps towards a European deposit guarantee scheme are in the Bundesrat's view neither acceptable nor constructive. Further harmonisation in the deposit guarantee scheme may have heavy consequences for the German banking sector. Particularly small and regional credit institutes, following a more conservative bank business, would have to guarantee with their contributions to a common deposit guarantee scheme most probably much more risky business of other institutes in the European Union. Powerful and stable systems would have to guarantee for inefficient and instable systems. The Bundesrat is clearly against the creation of a common European guarantee scheme, as presented in the Commission's communication.


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