October 30, 2020

Spain wins the presidency of the European Banking Authority | Economy

Spain wins the presidency of the European Banking Authority | Economy

The Spanish José Manuel Campa, former Secretary of State for Economy with Zapatero, has been elected as the future president of the European Banking Authority (EBA, in its acronym in English), occupied so far by the Italian Andrea Enria. The appointment places Spain at the head of one of the key institutions in the supervision of the European financial sector and coincides with the transfer of the EBA from its current headquarters in London to the new one in Paris as a result of Brexit.

Sources of the Government of Pedro Sanchez assure that both the Ministry of Foreign Affairs and the Economy have followed very closely a selection procedure that allows Spain to recover weight in the community dome, after the losses suffered in the wake of the economic crisis and the rescue European banking system

Campa, Secretary of State for Economy in the government of José Luis Rodríguez Zapatero (between 2009 and 2011), had managed to enter the final list of candidates selected for the position. The other two contenders for the final selection were Hungarian Adam Farkas and French Éduard Fernandez-Boll, according to sources familiar with the selection process.

The three have an important recognition in the sector and with enough credentials to get the prized presidency of the EBA, according to financial sources. Campa, however, started as a favorite, according to community and financial sources.

In addition to his experience and reputation, in favor of Campa could have played the underrepresentation of Spain in high community positions, a deficit that began to be covered with the appointment of Luis de Guindos as vice president of the European Central Bank but which is still far from being solved . Campa has an important curriculum in the sector, where he has worked for Goldman Sachs, BBVA or Santander.

Farkas had the advantage of being the executive director of the organization, where he has been working since 2011. Fernandez-Bollo is responsible for the French resolution authority, but France has already managed to take over the headquarters of the EBA.

The final list of selected candidates has been submitted to an interview with the Board of Supervisors of the EBA. And the person chosen, José Manuel Campa, must now pass a hearing before the Economy Committee of the European Parliament, an institution that must confirm his appointment. The inauguration of the position is scheduled for next April 1, with a mandate of five years renewable.

The EBA is one of the bodies in charge of preparing the financial sector standards and verifies the risks of the entities through periodic stress tests. Its influence has declined following the centralization in the European Central Bank of the supervision of euro zone banks, but it remains a fundamental piece in the architecture of European financial regulation. Enria has left the presidency of the EBA to take control of the Single Supervisory Mechanism of the ECB.


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