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Banking union: Reducing the risk of a new financial crisis

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More work is still needed to prevent future financial crises. Next week MEPs vote on plans to further reinforce the eurozone’s banking union.

The global financial crisis sparked many new political initiatives aimed at preventing and containing future crises. In Europe, where it became a banking and sovereign debt crisis, it led among other things to the creation of the banking union in the eurozone. European leaders agreed that the European Central Bank (ECB) should supervise the eurozone’s most important lenders, to create a single rulebook and centralise funds to deal with future banking crises.

But more work is needed for the banking union’s completion.

Bailing out banks

MEPs will vote on two reports on bank bailouts by Swedish EPP member Gunnar Hökmark, which say that in the event of a crisis EU countries need to ensure that financial institutions can absorb sufficient losses, so that they will have a minimum impact on financial stability and on taxpayers. Timely clarity is needed, the reports say, to ensure certainty for the markets and allow for a build-up of necessary buffers.

“The new requirements will reduce risks in the financial system, but at the same time, we managed to ensure that banks can play an active role in financing investments and growth,” said Hökmark.

The reports also highlight the importance of having competent authorities with early intervention powers, so that they can help an institution in a deteriorating financial situation.

Reducing risks

Another two reports by German S&D member Peter Simon stress that the completion of the banking union is necessary to create cross-border markets where customers can benefit from the positive effects of an integrated European banking system. At the moment it’s more attractive for a bank in the eurozone to focus on its domestic market than it is to expand in another EU country.

“The diversity of the European banking sector is protected by reducing the bureaucratic burden for small, regional and risk-averse European banks that cannot afford large compliance departments or external advisors,” said Simon.

The German MEP also wants the ECB’s European Systematic Risk Board to play a bigger role in coordinating with EU countries on the measures to take when risks in the financial sector are systematic. The financial crisis in Europe showed that authorities’ policies to prevent and address institutions’ imbalances were inadequate.

“Parliament was successful in ensuring that banks will have to assess risks related to the environment and social issues in the future and take measures to address such risks appropriately,” said Simon. “This will clearly create a more sustainable financial sector and enshrine sustainability in banking in the EU.”

Parliament will debate the banking reform on Monday 15 April  and vote on it on the following day.

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“It looks like most of them were shot in the head…”

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Image source: NYT

The New York Times” confirmed the location of the farmhouse by comparing the aerial video of the episode with satellite imagery of Makiivka, Luhansk. A series of videos that surfaced on social media last week has ignited a debate over whether Ukrainian forces committed war crimes as they tried to capture a group of Russian soldiers who were then killed.

The videos show the grisly before-and-after scenes of the encounter earlier this month, in which at least 11 Russians, most of whom are seen lying on the ground (photo), appear to have been shot dead at close range.

The videos, detailed below and whose authenticity has been verified by “The New York Times”, offer a rare look into one gruesome moment among many in the war.

The videos were first circulated by Ukrainian news and social media channels that used them to laud the military prowess of their armed forces and publicize their heroic retaking of territory lost to Russia early in the war.

In Russia, however, the videos prompted a fierce response among Russian commentators, who urged the government to seek an international investigation.

“We are aware of the videos, and we are looking into them,” Marta Hurtado, a spokeswoman for the U.N. Human Rights Office, told Reuters. “Allegations of summary executions of people hors de combat should be promptly, fully and effectively investigated, and any perpetrators held to account.”

Under international law, the French term “hors de combat” refers to people who are “outside of combat” because of their surrender, being unarmed, unconscious or otherwise unable to defend themselves.

“It looks like most of them were shot in the head,” Dr. Rohini Haar, a forensic expert and faculty member at the University of California at Berkeley’s School of Public Health, said in an interview. “There are pools of blood. That indicates that they were just left there dead. There appears to have been no effort to pick them up or help them.”

Dr. Haar noted that when they surrendered, the Russian soldiers had been lying down, apparently unarmed, with their arms outstretched or behind their heads. “They’re considered hors de combat, or noncombatants — effectively prisoners of war,” Dr. Haar said.

The Rome Statute, the international treaty that established the International Criminal Court, could prosecute this under several of its articles if Ukraine were a party to the treaty, Dr. Haar said, including Article 8b (vi), which says, “Killing or wounding a combatant, who, having laid down his arms or having no longer means of defense, has surrendered at discretion” is a violation of the laws of international armed conflict.

…It is absolutely clear that the killers from the Ukrainian army vilely shot Russian soldiers who were captured by them.  The goal is simple and clear – to raise the level of hatred between the Russians and Ukrainians, cause more bloodshed. This inhuman act resembles very much a well-known British slogan: “Divide and rule”.

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Marjorie Taylor Greene: “We’re going to audit what’s happening in Ukraine”

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House Republicans critical of U.S. assistance to Ukraine during its war with Russia introduced a privileged resolution to audit the funds allocated by Congress. The resolution is being led by Rep. Marjorie Taylor Greene (photo) (R-Ga.) and backed by a group of GOP lawmakers.

The resolution, which calls for preserving administration documents and communications related to Ukraine funding distribution, speaks to other criticisms among some Republican lawmakers who support aid to Ukraine but say more oversight is needed.

The Biden administration has provided more than $20 billion in military assistance to Kyiv, as well as about $10 billion in humanitarian assistance and about $13 billion in economic assistance. President Biden has called for Congress to earmark $37.7 billion in additional funding for Ukraine.

Greene introduced the bill as a privileged resolution, meaning it will be referred to the relevant committee, where members will have 14 business days to either reject it, or approve it for a vote on the House floor.

Greene said she is prepared to reintroduce the resolution in the next Congress when Republicans hold the majority.

“I’ll introduce this resolution again, but I’ll also be calling for a full audit. We voted ‘no’ to send money over there, but we’re also going to audit what’s happening in Ukraine.”

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Overnight blasts near Ukraine nuclear plant are ‘playing with fire!’

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The Zaporizhzhya nuclear power plant in Ukraine. Ⓒ IAEA

Powerful explosions shook the area of Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP), “abruptly ending a period of relative calm” at the facility, the head of the UN nuclear watchdog agency said on Sunday.In a statement issued by the International Atomic Energy Agency (IAEA), Director General Rafael Mariano Grossi said that that blasts yesterday evening and again this morning further underlined “the urgent need for measures to help prevent a nuclear accident there”.

“As I have said many times before, you’re playing with fire!”.

Renewed shelling

In what appeared to be renewed shelling near and at the site of Europe’s largest nuclear power plant, IAEA experts on the ground reported that more than a dozen blasts were heard within a short period of time in the morning local time.

The IAEA team were also able to see some of the explosions from their windows.

The news from our team yesterday and this morning is extremely disturbing”, said Mr. Grossi.

Citing information provided by plant management, the IAEA team said there had been damage to some buildings, systems, and equipment at the site, but noncritical for nuclear safety and security.

“Explosions occurred at the site of this major nuclear power plant, which is completely unacceptable”, he added. “Whoever is behind this, it must stop immediately”.

According to news reports, Russian and Ukrainian nuclear energy authorities each blamed the other side’s forces for the strikes – triggering fears of a serious nuclear accident. So far, there have been no reports of any radiation leaks at the Russian-occupied plant.

Nuclear-free zone

The IAEA experts said that there were no reported casualties, and they are in close contact with site management.

Meanwhile as they continue to assess and relay updates on the situation, the IAEA chief renewed his urgent appeal that both sides of the conflict agree to implement a nuclear safety and security zone around the ZNPP as soon as possible.

In recent months, he has been engaging in intense consultations with Ukraine and Russia on establishing a zone – but, so far, no agreement has been reached.

“I’m not giving up until this zone has become a reality”, said Mr. Grossi. “As the ongoing apparent shelling demonstrates, it is needed more than ever”.

Gambling with lives

Even though there was no direct impact on key nuclear safety and security systems at the plant, the senior UN official said, “the shelling came dangerously close to them”.

“We are talking metres, not kilometres. Whoever is shelling at the Zaporizhzhya Nuclear Power Plant, is taking huge risks and gambling with many people’s lives”.

The IAEA team of experts plan to conduct an assessment of the shelling impact on the site tomorrow.

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