European Commission Single Supervisory MechanismJames Hall, Contributor The European Commission recently announces and lays ground for banking union. A new proposal would see the European Central Bank (ECB) gaining new powers to monitor the performance of the 6 000 or so banks in the eurozone. The arrangement would be known as the single supervisory mechanism. The ECB would take over tasks such as authorizing banks and other credit institutions, ensuring they have enough (liquid) capital to continue operating even when sustaining losses and monitoring the activities of financial conglomerates. If a bank breaches or is at risk of breaching capital requirements, the ECB would be able to ask the bank to take corrective action. National supervisors would meanwhile continue to carry out day-to-day checks. A single rulebook on capital requirements, standardized deposit protection schemes and new recovery and resolution provisions all proposed earlier in the year would complete the banking union. It is also understood the ECB will have the power to wind up banks; remove bank licenses; and force recapitalization programs when it think its necessary, according to the documents. The ECB will also be empowered to enter into administrative arrangements with regulators outside the eurozone or act and negotiate on behalf of all members in talks on global financial regulation. The City of London has never been a keen supporter of European governance. Britain opposes ECB as head of Banking Union illustrates push back. Britain is pushing for changes to a proposed euro zone banking union to dilute the power of the European Central Bank, EU officials said, potentially hampering efforts to build the infrastructure urgently needed to underpin the euro. Britain intends to propose a system that would give countries outside the banking union the possibility of blocking those within the project from clubbing together to shape EU-wide regulations, said EU officials, speaking on condition of anonymity. The concern is that the Bank of England can find itself outvoted by the ECB on aspects of rule making, said one official. Britain will not join the banking union. Another report in, Britain pushing to dilute powers of ECB in banking union, reveals the concerns about a diminished influence of the British financial houses. Britains finance minister, George Osborne, fears the ECB will use its authority to impose EU-wide regulation that would favor countries with the euro and put Londons financial centre, using sterling, at a disadvantage. It seems unlikely that the ECB would ride roughshod over the wishes of the Bank of England, but that is what the British Treasury is worried about, said the first official. They want safeguards to make sure that doesnt happen. Britain and all other members of the European Union must give the green light to the banking union before it can go ahead, an approval that could be delayed or withheld if Londons concerns are not addressed. Empowering the European Central Bank regulatory authority over every country as part of the broad EU coalition requires surrender of even more national sovereignty. Since the initial pronouncement for a single supervisory mechanism, acceptance for a new European Central Bank Headquarters in Frankfurt Germany has shown caution. In the article, Germanys Merkel, Swedens Reinfeldt: Banking Union Must Be Done Right, even Angela Merkel told reporters, Quality is more important than speed. Mr. Reinfeldt said Sweden wasnt fundamentally opposed to banking union, but added: We dont think suggestions on the table now are ready. It would be better to get it right than rush it through. He also said that although Sweden isnt in the euro zone, Sweden must have influence over decisions taken that could have an impact on his countrys banks. If we take part, we want to have influence. And we do not find in the current proposal that we have that, Mr. Reinfeldt said. Germany having lost two military world wars, wants to win the financial conflict for dominance of Europe. However, is the relative prosperity of the German economy healthy enough to carry the burden of the bankrupt sister nations on the continent? While the prospects of a single supervisory mechanism are profoundly disturbing, the forecast of globalized integration into a one-world economy is even worse. At stake is a total elimination of the national identity and home rule. Essentially the will of the people demonstrated by numerous referendums, have sought to limit the centralization overreach of the European Commission. Now that the power grab of the European Central Bank is in motion, the communal interests of Europeans needs to reflect disgust for the administrative technocrats that seek to impose their will across national borders. It seems the lessons of centuries are so soon forgotten, when the illusory and outlandish nightmare, that a centralized banking cartel is the best form for political government. On one level, its almost funny to call offering dollars at a cheaper rate to foreign banks coordinated action. Its only coordinated in the sense that the Federal Reserve is printing the dollars and the European Central Bank and other central banks put the greenbacks in the virtual vaults of mangled commercial banks that are drowning in European debt. See story on Fed action. The central banks are the problem, not the solution; and the only way to regain economic prosperity and political independence is to repudiate the illicit debt extortion. Original article archived here James Hall is a reformed, former political operative. This pundits formal instruction in History, Philosophy and Political Science served as training for activism, on the staff of several politicians and in many campaigns. A believer in authentic Public Service, independent business interests were pursued in the private sector. Speculation in markets, and international business investments, allowed for extensive travel and a world view for commerce. Hall is the publisher of BREAKING ALL THE RULES. Contact batr@batr.org linkwithin_text=Related Articles: 