Swoboda on EU Council: „Every month of delay wastes money that could help citizens“

Socialists and Democrats welcomed the European Council agreement on a Single Supervisory Mechanism (SSM) but reaffirmed their call for swift action and implementation.Hannes Swoboda, President of the Socialists and Democrats in the European Parliament, commented on the outcome of the first session:

„I am glad that at least some steps forward were made with the agreement to implement the SSM in the course of 2013 – although we deplore the lack of clarity on the timeframe.

„The progress made is thanks to French president François Hollande’s insistence on swift action. His strong social-democratic voice is making a positive difference in Europe, delivering on the promises made at the June Council Summit.“

Swoboda recalled the dangerous effects of the lack of operational mechanisms on countries and citizens:

„It does worry me that German chancellor Angela Merkel is keeping her foot on the brake concerning the SSM, effectively blocking the European Stability Mechanism (ESM). With every month that the ESM is inactive, money is going down the drain to pay interest rates when it could be financing public services like education and healthcare. The ESM must be fully functional and active by early 2013 – including direct banking recapitalisation – otherwise the situation in Spain and other crisis-stricken countries could worsen further.

„Chancellor Merkel – together with her right-wing EPP colleagues – is becoming the European champion of high interest rates by blocking effective action to lower them. She should assume her European responsibility, even though it is not her direct problem as she is from a country with low interest rates. She should consider the disastrous impact of her actions on those countries that are suffering because of high interest rates. That would prove that she understands the meaning of solidarity in the European family.“

He continued by commenting on institutional co-operation and geographical scope within the Single Supervisory Mechanism 

„We Socialists and Democrats – but also the European Parliament as a whole – are ready to do our job so that the SSM and the ESM can and will be operational as of early next year.

„We strongly support full SSM membership for member states that are not yet part of the eurozone. This new supervision mechanism must ultimately be under the responsibility of the European Central Bank.

„All steps on this path to a banking union must involve a strong role for the European Parliament. There has to be a legal basis that ensures full accountability to the European Parliament.“