1. Principles
For the SSM to work, a union body must be vested with ultimate supervisory authority over all EU banks
ECB cannot be this body
unless all MS join the Euro (because non-EZ MS can only be invited to join and since they are not represented in Governing Council there is little incentive)
Its statutes mean it must give monetary policy priority over supervisory policy
Ultimate solution = Use TFEU to create a body (EBA or a separate entity) that has these powers
Immediate solution = reinforce EBA to ensure that :
ECB and other NSAs are equally subject to final say by EBA concerning application of prudential legislation
EBA can address binding instructions equally to all NSAs and ECB (Ripasi interp. of TFEU)
Adapt decision making in EBA to prevent the ECB mechanism
Systematically dominating non-ECB MS
Diminishing rights of “opt-ins”
Enhance EBA’s powers to enforce compliance with information requests and other decisions are reinforced (reflecting EP position from 2010)

2. EBA as Supreme Supervisory Authority
+Enhanced powers.
Decision Making
EBA
Board of Supervisors
27 NCA with separate votes
Binding
Instructions
Binding
Instructions
Extra Panel for ECB-mechanism
Members (to boost voice of “opt-ins”)
Planning & Execution Only
Permanent College –
enhance uniformity of supervision
ECB Supervisory board
Non-ECB
NSAs
Fully harmonised
execution
Individial
NSAs
= agents of ECB
Red = proposed changes

3. Explanations Enhanced powers of EBA Binding instructions
Full investigatory powers over institutions & supervisors
Issuing Single Supervisory Handbook (Enria)
Direct intervention in case of non-compliance
+ EP position on EBA 2009
Binding instructions
ECB (non-)action can be corrected by binding EBA decision (no independence for supervisory tasks)
Just as in the case of National Supervisory Auths. (NSA)
Special Panel for ECB comp. auths.
Possibility of challenging (via EBA) ECB decision affecting an “opt-in”
Means that ECB decision (based on power of Gov. Council with no “opt-ins”) can be overruled by EBA decision (proposed by panel including “opt-ins”)
Changed EBA voting system for Binding Mediation
“3+3” only where a dispute is between ECB and non-ECB
Simple majority otherwise

4. Detail on proposed Voting Mechanisms