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Banking Union
According to Regling, “up to 25 – 26 countries will join the EU Banking Union” and not only those from the eurozone. Regling repeated that as far as the Banking Union is concerned there is still a lot to be done. “We will have something by spring next year”, he said but also stated: “Everybody agrees that it is needed. The question is how to organise it. And there is the disagreement. Some Member States say that what the Commission has proposed is legally not feasible. I can see that there is need to have a solid legal basis for the Single Resolution Mechanism because closing down banks - and that is what this authority will actually do - is a serious undertaking, it is a serious interference in property rights. Otherwise it could be a disaster. I hope the lawyers will do their job and we will have something, even if this is in two steps, one before the Treaty change – which might change one day - and one after”.
Spain and Greece
“I am convinced that Member States like Spain will do very well. Spain, some say, will be the new growth engine of Europe. It might even replace Germany and this is not my forecast”, Regling said, surprising particularly the Spanish journalists, who mentioned that for the time being problems in Spain still persist. “Of course for the population the negative effects are still apparent, because their income is significantly lower and unemployment is going up, whereas in the last two - three months unemployment is slightly decreasing. Most observers are confident that the labour market reform from last year will have a very posit impact over time”, Regling said.
Regling also appeared quite happy with the adjustment programme’s implementation in Greece. “Greece has lived up to all its commitments”, he told journalists and continued: “All measures agreed in the Memorandum are fully implemented and the Greek parliament always adopted the measures proposed by the Cabinet. It is working, but that does not mean that it is easy for the people, especially”. He also considered it “possible” that Greece may need a third package of help. "Something else will need to be done. The easy way might be to add one year to our programme. But probably more money will be needed. We will have to see this because fiscal deficit today is much smaller than it was at the beginning”, he continued.
"No, do not give money without conditionality" replied Regling when asked by a journalist if it is possible to have Greece in a new programme without putting further conditions. According to Regling, 2014 is too early for Greece to go back to the markets, whereas for 2015, is too early to say. “Greece is the most difficult case of all and it will be back to the markets after Ireland, Spain and Portugal. Some reforms are still to be done", he concluded.