Financial Services Commission brief comes with key challenges

08 September 2020
  • European Deposit Insurance Scheme must be delivered to complete banking union

Congratulating Mairead McGuinness on her designation as EU Commissioner, Labour Finance spokesperson Ged Nash said the role comes with key challenges that may put her in conflict with Ireland.

He explained a key risk will be how the UK will interact with the EU on financial services post-Brexit and said he wanted to see the pan-European deposit protection scheme implemented as a priority.

Deputy Nash said:

“I want to congratulate my Louth colleague Mairead McGuinness on her appointment as Commissioner-designate. The financial services portfolio that has been designated for her comes with a series of key challenges that has often seen a divergence of views between the Commission and Ireland. Representing European interests now she may find herself in conflict with the more liberal approach to financial services that is backed by the current government of Fine Gael and Fianna Fáil.

“In the past proposals from the Commission on a financial transactions tax, and a digital services tax have been opposed by Ireland. Also, regulations covering financial services have also often been controversial and in the past Ireland has acted with the UK and others to water down measures. There will be significant banking and finance reforms to carry out, and with the ongoing impact of Covid-19 on the stability of our banking system this will be a critical task.

“A proposal I want to see delivered is the rollout of a European deposit insurance scheme for bank deposits in the Euro area which has been on the table since 2015 and is a key part of proposals to complete the banking union.

“A central risk for Ireland is the impact of Brexit, and specific to this portfolio, the arrangements that will be put in place for how trade in financial services with the UK will operate in the event of either a trade deal, or none. This will be critical.

“I look forward to hearing the views of Commissioner McGuinness on these issues when she goes before the European Parliament for ratification.”

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