Mr Dijsselbloem said the dispute on the legal requirements of the banking union can go in parallel with more technical work on how it would function. He said the 17 countries using the euro can also move ahead with further harmonising deposit guarantee programmes, and creating rules on when the eurozone bailout fund, the European Stability Mechanism, or ESM, can buy a stake in a eurozone bank to boost its capital when no-one else can or wants to.
"We are going to work on these elements and in parallel have this debate if we need treaty change, what do we need to fix in this treaty change. We can do that in parallel while putting all the building blocks in place. So we might not lose any time“, he said.
A change of European Union treaties would substantially delay the launch of the banking union because apart from the time needed to negotiate the amendments it would also require time for parliaments of the 27 EU countries to ratify it. There would also be a risk that the ratification fails in one or more countries and that some EU governments would use the opportunity to trade their support for concessions in other areas, opening the door to long and difficult negotiations.
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