Business World

Friday 20 April 2018

Deal close on giving ECB supervisory role, says Irish official

Jim Brunsden

EUROPEAN Parliament lawmakers and national governments may reach a deal today on legislation to turn the European Central Bank into a supervisor, according to an official with Ireland's EU presidency.

"A compromise package is potentially emerging," said the official, who couldn't be named because of official policy. The two sides are "nearing agreement," the official said.

EU leaders have said that a deal on ECB bank oversight is essential to overcoming the bloc's fiscal crisis, which has led five euro-area countries to seek international aid.

Governments agreed last year that the establishment of the single supervisor would unlock the possibility for the currency bloc's firewall fund to provide direct bailouts for banks.

Outstanding issues in the talks include the role of the European Parliament in appointing the chairman and vice-chairman of the ECB's bank oversight board, the official said, as well as safeguards for countries outside the single supervisor. (Bloomberg)

Irish Independent

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