On 4 december 2012, the ECOFIN Council debated proposals on bank supervision that are a key part of a broader plan to establish a banking union. It agreed to hold an extra meeting before the December European Council, in order to reach an agreement that would enable negotiations with the European Parliament to start with the aim of approving the texts before the end of the year.
The proposals involve the creation of a „single supervisory mechanism” for the oversight of credit institutions, conferring supervisory tasks on the European Central Bank and amending the voting rules of the European Banking Authority.
The Council was informed of an agreement with the Parliament on amendments to the rules on credit rating agencies.
The new rules are aimed at reducing over-reliance on credit rating agencies, increasing transparency and mitigating conflicts of interest in the industry.
The Council agreed to adjust fiscal consolidation measures required of Greece, granting it an additional two years to correct its excessive budget deficit in the light of an agreement between the Greek government and the „troika” of international creditors.
It decided to close the excessive deficit procedure for Malta.
The Council also approved:
– a report to the European Council on tax issues;
– a report to the European Council on tax policy coordination under the Euro Plus Pact;
– a six-monthly report on work carried out under a code of conduct on business taxation.
Press Release ECOFIN