Sunday, April 14, 2024

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European

The appointment of Buch as EU banking regulator is approved by Parliament.


Today, the European Parliament approved the appointment of Claudia Buch from Germany as the next chief banking supervisor for the EU. This decision came after a dispute with the European Central Bank.

During a meeting in Strasbourg, the Members of the European Parliament (MEPs) cast their votes, with 357 in favor, 195 against, and 42 abstentions, through a secret ballot to endorse Buch as the next chair of the European Central Bank’s Supervisory Board. This role involves overseeing the largest banks in the European Union.

Nadia Calviño, Spain’s Finance Minister, would face one less obstacle in her bid to become the next leader of the European Investment Bank if Buch is appointed.

Buch and Delgado, the deputy governor of the Bank of Spain, had been competing for the Supervisory Board position. Despite Delgado being the preferred choice of influential lawmakers on Parliament’s economics committee, Buch’s appointment paves the way for Calviño to join the EIB. This decision avoids the challenge of having two Spaniards in top finance roles, which may have been difficult for other countries to accept.

The decision by the ECB to choose Buch as a nominee caused anger among MEPs on the committee. However, they voted in favor of Buch in September in order to prevent a conflict with the ECB, as she is considered capable for the role.

The EIB is a significant reward for Spain because it includes funds from the EU to utilize and has the potential to aid in the reconstruction of Ukraine in the future. However, no determination has been made regarding this matter.

Buch, who is currently serving as the vice president of the Bundesbank, must now receive approval from EU governments in the Council of the EU in order to officially assume the position.

At the end of the year, Italy’s Andrea Enria, the current chairperson, will reach the maximum term limit.