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Bloomberg: EU considers loans in return for economy overhauls
The EU is considering whether it could encourage countries to make long-term economic changes by offering them loans at below-market rates, an EU official told reporters in Brussels.
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BoE Financial Stability Paper: Sovereign default and state-contingent debt
A new paper by the Bank of England looks at how authorities deal with stricken countries, and suggests that repayment terms of government bonds should be linked to a country's economic performance.
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ECB/Mersch: The overhaul of the architecture of the euro area and the return of investor confidence
"The return of foreign investors, receding financial market fragmentation and a halting of contagion clearly demonstrate a return to confidence in the euro, and the credibility of the measures taken at supra-national and national level."
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EIB: The European Long-Term Investors' association (ELTI) launches its 2014 Action Plan
Members endorsed the 2014 Action Plan which is strongly focused on enhancing long-term investment in Europe as a key to economic recovery.
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CEPS/Gros: The European Banking Disunion
The eurozone risks becoming stuck in an unstable status quo, with banks' cross-border claims large enough to transmit national shocks to the entire system, but financial integration not deep enough to ensure that capital flows freely throughout the currency area.
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Bruegel/Mody: A Schuman compact for the euro area
If an 'ever closer union' remains elusive, a perpetual muddling ahead risks generating economic and political dysfunction. It may be time to recognise and render more effective the de facto decentralisation in Europe.
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Simon Nixon: Will ECB break its bond-buying taboo?
Writing for the WSJ, Nixon says that despite conflicting signs, there are two risks that could prompt the ECB to utilise a bond-buying programme: Italy's political uncertainty, and ongoing stimulus by the US and Japan.
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IMF/Blanchard: Monetary policy will never be the same
Blanchard touched on three issues: the implications of the liquidity trap, the provision of liquidity, and the management of capital flows.
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ECOFIN Council results: Bank resolution/SRM
The Council discussed a draft regulation aimed at establishing a single decision-making authority and a single fund for the resolution of failing banks. The Presidency confirmed its intention to seek agreement on the dossier by the end of the year. (Includes statement by ECOFIN chair Šadžius.)
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ECOFIN Council statement on EU banks' AQRs and stress tests, including on backstop arrangements
This statement specifies the expected action by the financial institutions and Member State governments, as well as any use of euro area or EU level instruments if needed to address any necessary action. (Includes Barnier comments.)
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Reply from ECB/Draghi to the SSM Working Group's letter of 28 October 2013
Draghi answered questions i.a. on how the ECB would ensure that the planned AQR covers the whole of the banking system under the supervisory responsibility of the SSM, not just the 130 institutions cited in the note regarding the comprehensive agreement.
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Barnier interview with Europolitics: Bank resolution - Majority of states support key elements
"A compromise (on the SRM) can be reached before the end of the year", said Barnier, adding that a vast majority of States had backed him on the key elements of his proposal.
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Bloomberg: Germany digs in against risk-sharing in EU bank failure plan
Germany has argued against a joint backstop for struggling euro area banks, as European finance ministers renewed their debate on how to handle the costs of managing failed lenders.
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Bloomberg: EU lawyers say EBA can't bind Commission on bank resolution
The Commission's proposed bank resolution system shouldn't be bound by EBA decisions, lawyers for the EU's 28 Member States have said. The legal opinion puts a dent in efforts by the UK and Sweden to beef up the EBA's role in the SRM.
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Beck & Trebesch: A bank restructuring agency for the eurozone – Cleaning up the legacy losses
This column proposes a eurozone bank restructuring agency as a way to speed up the crisis resolution. This temporary, centralised agency would be in charge of restructuring viable and non-viable banks throughout the eurozone.
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ECB/Mersch: On the road to a Banking Union - The way forward from the ECB's perspective
Mersch reflected on how the fundamental idea behind the Banking Union is reflected in the practical design of the single system of banking supervision, and what else could be done to be faithful to it when banks have to be wound up.
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