Translated from the German
German Finance Minister Wolfgang Schäuble yesterday reiterated his plan for the eurozone’s single bank resolution mechanism (SRM) at a meeting attended by CDU/CSU and SPD delegates. Schäuble proposed the formation of a new agency composed of representatives of national resolution authorities who would make decisions on ailing banks, which must then be approved by the EU finance ministers. Among them, a simple majority should be sufficient so that individual countries cannot block the closure of a bank.
On the question of who should pay for the future settlement costs of bad banks, Schäuble proposed a transnational network of national resolution funds. Creating and filling a European fund will take several years. Until this fund is large enough, an interim solution such as Schäuble's proposal will be required. However, according to the Treasury's idea, the recipient state needs to guarantee for the repayment of the money thus transferred.
At a meeting of EU finance ministers next week in Brussels, Schäuble wants to propose this position with the backing of the CDU/CSU and SPD. Therefore, a basic agreement in the coalition negotiations is needed beforehand. On Thursday afternoon, Schäuble will meet with the chairmen of the relevant sub-group on Europe, Herbert Reul (CDU) and Martin Schulz (SPD) to discuss these plans. Possible further meetings with party leader Angela Merkel (CDU), Horst Seehofer (CSU) and Sigmar Gabriel (SPD) are also scheduled.
Full article (in German)
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