tailieunhanh - COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

The role of monetary analysis in the ECB’s monetary policy strategy is founded on the robust positive relationship between longer-term movements in broad money growth and inflation, whereby money growth leads inflationary developments. This relationship is found to hold true across countries and monetary policy regimes. 1 Accordingly, when trying to identify the contributions to monetary growth that are associated with risks to price stability, it is necessary to look for changes of a persistent nature or that are driven by factors beyond the normal needs of the economic cycle. In this respect, the supply of money and credit may be. | EUROPEAN COMMISSION Brussels COM 2012 510 final COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL A Roadmap towards a Banking Union EN EN COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL A Roadmap towards a Banking Union 2 1. Introduction Over the past four years the EU has responded decisively to the economic and financial crisis. Significant improvements have been made to the Economic and Monetary Union EMU and a substantial financial reform agenda is being implemented fulfilling commitments made in the G20 in response to the financial crisis and to make financial institutions and markets more stable more competitive and more resilient1. Completing this reform of the EU regulatory framework is essential but will not be sufficient to successfully address significant threats to financial stability across the Economic and Monetary Union. Further steps are needed to tackle the specific risks within the Euro Area where pooled monetary responsibilities have spurred close economic and financial integration and increased the possibility of cross-border spill-over effects in the event of bank crises and to break the link between sovereign debt and bank debt and the vicious circle which has led to over 4 5 trillion of taxpayers money being used to rescue banks in the EU. Coordination between supervisors is vital but the crisis has shown that mere coordination is not enough in particular in the context of a single currency and that there is a need for common decisionmaking. It is also important to curtail the increasing risk of fragmentation of EU banking markets which significantly undermines the single market for financial services and impairs the effective transmission of monetary policy to the real economy throughout the Euro Area. The Commission has therefore called2 3 for a banking union to place the banking sector on a more sound footing and restore confidence in the Euro as part of a longer term .