It consists of four complementary building blocks, of which the SSM forms an integral part. The establishment of a European framework for Supervision forms the first pillar of the Banking Union. As implied by its name, the SSM will be a mechanism, composed of national competent authorities and the ECB, with possibility of non-euro area Member States to participate.
The process to establish the SSM is underway, with the Council proposal forming the basis for the current trialogue with the European Parliament. I am quite pleased with the Council’s proposal as it lays down a robust legal framework for the SSM to operate in.