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"I can say the European Parliament has to make a lot of move, otherwise we will not get a decision", Bloomberg reports German Finance Minister Wolfgang Schäuble saying during yesterday's talks. "And then we will have no regulation." At least they started with smiles and goodwill (video link). But there is little evidence that Council has given the Greek Presidency much latitude.
However, the run of reports about banks raising capital, passing national stress tests, etc. continues unabated. Though the losses now being reported look daunting, the shares seem to go up afterwards so bank shareholders continue their insouciance about the risk of the 'huge losses' that seem to haunt the politicians. Maybe it would not be so bad to wait a year for a thoroughly thought through SRM that is designed after any AQR problems are known. In any case, DG Competition will have to deal with any state aid issues before the SRM is in force so what is all the sound and fury actually about? Might be best to allow a breathing space for Council to have a fundamental re-think.
See also: Main results of the ECOFIN Council on SRM
Graham Bishop - Consultant on EU Integration - Political, Financial, Economic, Budgetary