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Towards a European Financial Union and a More Solid European Banking Sector

Speaking at the Peterson Institute for International Economics in Washington, DC, today, EU Internal Market and Services Commissioner Michel Barnier outlined further European integration efforts leading towards a more integrated banking, economic and fiscal union.

“Europe will soon be the first region in the world to have translated the Basel III agreement on banks’ capital rules into binding law. We will apply these rules to more than 8000 European banks,” he pointed out, noting that “it is very important that we advance all in parallel to avoid regulatory arbitrage.”Commissioner Barnier highlighted that “Europe is moving towards a banking union” and he announced a legislative proposal on the single supervisory mechanism by early September.

“We want to complete economic integration with stronger budgetary integration…Pooling of resources and solidarity must go hand in hand with accountability and transparency,” he said. “Through more democracy we will build a stronger Europe, both in economic and political terms.”