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 European commissioner Jonathan Hill said in a letter to senior
commissioner Frans Timmermans there was a need to see how much
progress could be made on the plan to force banks to separate out
risky trading to avoid contagion and shield customer deposits if
things go wrong.
The controversial measure has become bogged down amid concerns among
some member states and the European Central Bank that it could harm
market-making in securities that help raise funds for the economy.
Britain, Germany and France, which represent much of the bloc's
banking assets, are already introducing similar, national measures
to mitigate bank trading risks.
Scrapping the EU plan "could be an option next year if member state
support does not pick up", Hill said in the letter seen by Reuters.
A revision of occupational pensions rules, which has also
languished, could also be scrapped.
"I have concluded that it would be premature to withdraw either
proposal now," Hill said.
Hill's spokeswoman, Vanessa Mock, told the European Commission's
daily press briefing his work programme would be published on Dec.
17 and declined to comment on the letter.
The European Parliament, which has joint say with EU states on draft
laws, has often taken a harder line on banks and would likely oppose
scrapping the draft law outright.
Hill would face accusations that as a Briton he was siding with
banks in London, which say the measure would harm markets.
Nevertheless, a draft law on investor compensation schemes should be
scrapped, Hill said.
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Going further than his French predecessor Michel Barnier, he will
also ask for an analysis on the cumulative impact of all EU rules
since the 2007-09 financial crisis.
Banks have long demanded such a study, believing it will back their
case that the welter of rules since the crisis make it expensive to
feed credit to the bloc's sluggish economy.
Hill's core aim is to set up a capital markets union (CMU) to help
markets raise funds for companies and wean the region off its
reliance on banks.
He will consult in the first quarter of 2015 on CMU and publish an
action plan in the third quarter, along with pre-legislative
proposals on lighter capital treatment of covered bonds.
A sharp focus on deepening consumer and retail aspects of the bloc's
single market was also a key priority.
(Editing by Mark Potter)
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