European system of banking supervisors?
Pervenche Beres (PES, FR), chair of the Economic and Monetary Affairs committee and co-chair of the meeting, stressed the importance of improving financial regulation. "We, as Parliament, have more than once called for a strengthening of European cooperation as far as supervision is concerned." She proposed "a system of European supervisors, on the model of the European System of Central Banks, allowing the necessary synergy between national expertise and European integration of the means to sanction".
Jan Hajda, Chair of the Committee on National Economy, Agriculture and Transport of the Czech Senate, the other co-chair of the meeting, stressed the importance of "making the lives of small and medium-sized enterprises [SMEs] easier". He also emphasised the importance of innovation to boost employment and economic growth.
A healthy banking sector essential - pressure to lend to SMEs
Joaquin Almunia, Commissioner for Economic and Monetary Affairs, said it was essential to get restore the banking sector to health: "We are convinced that if the financial markets do not function properly over the coming months, the efficiency of the Recovery Plan and monetary policies will be seriously affected".
Philippe Maystadt, President of the European Investment Bank (EIB) said the objective was not to help banks per se. As far as the EIB's action was concerned, the aim was to providing SMEs with as much credit as possible. He said a condition applies for each bank receiving funds: "For every euro we lend to a bank, it needs to prove that there two euros are made in new loans to an SME".
The EIB President also stressed the need to keep the pressure on banks so they do lend to small businesses.
Respect Stability and Growth Pact
Mr Almunia stressed that, despite some opinions to the contrary, "the Stability and Growth Pact needs to be respected and enforced in this time of crisis". Its credibility is needed to finance public debt and consolidate public investments, he concluded.
"Euro zone will not break up"
Ms Berès also made clear that: "Despite certain catastrophic statements, I do not believe that the Euro zone will break up. The cost of leaving the euro zone would in fact be so high for the country concerned and for the Economic and Monetary Union, that such a scenario is just not possible."
