Mr. Dombret says:
“Expressed in one sentence, the main thrust of my talk would be that, for the further evolution of the euro area, we should remain sceptical about an inevitable deadlock, just as we should be wary of all-too-easy solutions.”
This applies to the banking union as well. As regards the initial question on whether to complete the banking union now or later, his answer is: The third pillar, which sounds like an easy solution to some, is actually not a solution at all to the most pressing problems of the euro area. It may therefore be better to postpone the envisaged third pillar altogether - out of concern for stability.
He concludes:
“It is possible to stand quite firmly on two legs for the time being. An incomplete banking union is in itself no reason to become uneasy, because we are not at point zero anymore, but right in the middle of a major paradigm shift, and the existing financial architecture has left us with a lot of room for manoeuvre.
“My argument is that we are not stuck in a structural deadlock. Instead, we have to think of different paths as being available for the euro area. In that respect, our daily task is to make sure that we are on the most favourable path.”
Full speech
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