Translated from the German
When it comes to the rescue of the euro area debt countries, what else will the taxpayer have to shoulder? Will there be a second haircut for Greece?
No, we agree in Europe that the haircut was a unique event. Whoever puts that in question should consider the consequences: No investor would buy any more European government bonds. The current aid programme will run until 2014 and the adopted programme is designed so that Greece can service its debt by itself again, in 2020 at the latest. Until then, the government in Athens must do its homework. I know how hard this is for the people. The finance ministers of the eurozone already pledged last year to consider further support when the programme has been fully implemented by the end of 2014.
With its proposal for Banking Union, the EU Commission wants to have the final decision whether a bankrupt bank has to be resolved or not. Would that mean granting Brussels too much power?
From a German perspective, the Commission's proposal stands on feet of clay. I have written to Commissioner Barnier explaining why I consider his proposal to be extremely risky. What we need now is a credible and legally viable solution. If a bank has to be closed, this decision has far-reaching consequences and connot be made solely from Brussels. Especially as it might involve national taxpayers' money.
What happens if Brussels manages to implement its proposal nonetheless - are you afraid that the European Commission might turn a blind eye when a crisis country bank is in trouble?
Whether the Commission would act strictly enough with their limited expertise is, indeed, questionable. The idea of a settlement fund to carry the costs of banking resolutions, however, is a good one and a fund like this already exists in Germany. But building such a fund on a European level will take many years. In the meantime, it may happen that the taxpayer has to step in - and in that case we do not want Brussels to decide and the Member States to pay. Responsibility and decision-making have to go hand in hand. We answer to the citizens and Parliament.
Full interview (in German)
© Bild.de
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article