How is it possible to move supervision competences to EU level when the tax bill for saving failed financial institutions will remain with member States?
The financial responsibility of Member States in cases of financial crises is one of the reasons why supervision competences must remain at the national level, since the decision to intervene must be taken at the same level where the financial burden will lie. The new European Supervisory Authorities will have a role of arbitration, co-ordination and promoting harmonisation of rules, but not direct supervision, and so will not impinge on the fiscal responsibilities of Member States.
