Draghi’s rallying cry for new EU powersDecember 14, 2012
The EU needs fresh powers to wind up failing banks in a speedy push to the next phase of banking union, according to Mario Draghi, president of the European Central Bank, after a landmark agreement on centralised supervision.
“A European resolution authority is an important complement to the SSM and it will probably be in place by the time the SSM takes up its responsibilities,” Mr Draghi told the Financial Times on the eve of Thursday’s agreement. The bank expects to take a year to prepare itself to assume responsibility for supervising lenders with assets of more than €30bn.
The bailout authority was due to be discussed at a summit of EU leaders on Thursday night, which followed 24 hours of uncharacteristically rapid decision-making by eurozone ministers.