Torvalds report sets the direction of the EU banking union
The European Parliament today approved the report by Nils Torvalds MEP outlining the European Parliament's position for the future of the Banking Union. The Banking Union, established in the aftermath of the 2008 financial crisis, has so far been a success both for financial stability and for the real economy. However, the banking union is not yet complete and there are still significant risks in the European system.
The Torvalds report draws up guidelines for how the EU work on the banking union should be developed in order to better achieve the common goals of a stable financial framework. The report also addresses current issues such as the need for better cooperation between countries when it comes to combating money laundering in the banking sector.
Nils Torvalds MEP commented today:
“The banking union has already helped in protecting our economies from crises but it is yet to be completed. The EU banking system is still vulnerable and the rate of non-performing loans is high in some Member States. We therefore urgently need further risk reduction measures to make the EU banking system more resilient."
There are clear ideological dividing lines regarding the future of the banking union. My colleagues to the right prioritise risk reduction while those on the left prefer risk sharing as a method for achieving financial stability. I am therefore pleased to have been able to build a compromise that considers both sides’ views and which has received broad support from the committee. “
I think this is the way forward. If we are to be able to continue to strengthen the banking union, we must not get hold of ideological locks. This report establishes a possible direction for the continued work on strengthening the banking union.”