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Eurozone banking union proposal to create a groundbreaking new supervisory architecture for Europe in jeopardy from high risk banking culture



· Positive step that EU is finally turning “big bazooka” on financial markets and aiming for stability to ease jobs crisis

· Banking union must be accountable and listen to unions and the workers at the base of the pyramid

· European Central Bank as main supervisor must call a halt to the 15% rate of return high risk banking culture that’s undermining growth







UNI Europa Finance says European Commission President Barroso’s blueprint for a banking union revealed today shows the EU is finally facing up to the need to create stronger financial and economic integration to beat the crisis. However UNI warns that such a banking union will only succeed if the ECB as the main supervisor of the EU’s 6000 banks can end the high risk culture created by the pressure of delivering on a rate of return on equity of more than 15%.



Regional Secretary for UNI Europa, Oliver Roethig said, “The regulators have failed to deal with a high risk banking culture which has not changed despite the crisis and resulted in millions of workers becoming jobless. The proposed new banking union and the ECB as the supervisor has to show zero-tolerance to speculation and exploitation. The banks have to lend to build the real economy and not fatten the bonuses of a select few. For the banking union to succeed we need more transparency, accountability and engagement from the ECB. The trade union movement is ready to engage. At stake are the futures of millions of workers both in the banking sector and beyond. Their lives have been blighted by misguided austerity measures and a banking culture driven by greed.







Philip Jennings, General Secretary of UNI Global Union, said, “The EU is finally lining up its big guns and challenging the status quo. The Financial Stability Board should take encouragement and use a global bazooka to strengthen global regulation and not the pea-shooter they are currently using. The 700 billion euro European Stability Mechanism bailout fund and the proposed banking union are sweeping fundamental changes. We are in a battle to safeguard the economic and financial future of not only Europe but the world. Expect Jamie Dimon and the Wall Street pack to come over the hill arguing that the banking union be watered down to protect a status quo which has enriched a few to the detriment of millions or workers and unemployed – those at the base of the pyramid. If the ECB and EBA are to be effective in withstanding high powered lobbying and delivering a banking union to support the real economy they will need to be informed and resourced. None of this will work without capacity and the FSB, ECB and EBA are all seriously understaffed and resourced. The global union movement is ready to play its role on behalf of the workers to change a banking culture which is sinking the economy. To fund this change in culture a financial transaction tax should be introduced as a priority. When you are fighting for justice who better to call on than Robin Hood?”







This proposal has the potential to bridge the solidarity gap between Northern and Southern Europe. The new European Stability Mechanism will be able to recapitalize directly the European banks that are on the fringe of collapse, without further increasing the public deficits of Members States governments.



The ECB also needs to become more accountable and transparent and to truly engage with the EU Parliament and civil society. The trade union movement is willing to play a constructive role and ensure that the new banking union is being set for success rather than failure.



UNI Europa Finance will meet with the European Commissioner for Internal Market and Services, Michel Barnier at the end of October to ensure that UNI’s proposals are taken on board by the Commission.



UNI Global Union will also meet soon with the Financial Stability Board to mainstream the employment and social dimensions into the Recovery Plans that will be designed for the so-called “too big too fail” financial institutions.



UNI Finance is the Global Union for the banking and insurance industries representing 237 trade unions and 3 million workers worldwide







For more information or interview requests with Philip Jennings and Oliver Roethig please contact:



Richard Elliott, UNI Global Union Communications Director Richard.elliott@uniglobalunion.org +41 79 794 9709



Spanish/Portuguese: Marcio Monzane, UNI Global Union Head of Finance, marcio.monzane@uniglobalunion.org +41 79 412 46 97



French/English: Elise Buckle, UNI Global Union Policy Coordinator elise.buckle@uniglobalunion.org +41 79 278 48 90



See UNI’s Job Loss Survey 2012 and the related report “Coining It In”

here: http://www.globalunion.org/finance.