EU summit launches Banking Union

The October European Union summit in Brussels has agreed a Banking Union inside the Eurozone, proposals which will serve the most powerful EU states and monopoly capital.

Under these plans the European Central Bank (ECB) in Frankfurt, which controls monetary policy in the euro, will in future also supervise big private banks.

From next year ECB will control over 130 banks in the eurozone states and wipe out any ‘risky businesses and non-performing loans’ as the ECB does not want to inherit any financial risks.

“It is an important step towards creating a legal framework that will allow the ECB to press ahead with setting up operations for banking regulation,” said German Finance Minister Wolfgang Schauble.

If you want to see what ECB solutions to financial insolvency looks like, study the strict conditions imposed on bailout countries such as Greece, Cyprus and other states.

These include mass privatisation, abolition of trade union rights, pay cuts, vicious government spending cuts and massive structural adjustment in favour of monopoly capital.

As the left-wing Cypriot party AKEL pointed out after the summit, the people of Cyprus are paying a very heavy price for the “solidarity” of its so-called friends

“The policies of the single economic governance on an EU level are destroying the sovereignty of  peoples and states for the sake of the interests of big capital,” it said.

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