Donohoe’s debacle, commentary on the banking union by Andreas Heitker
Frankfurt (ots) – The European heads of state and government have theirs
Finance Ministers have been asked several times to draw up a work plan to complete the
banking union – most recently with almost identical statements in June and
December 2021. When the bosses meet at the end of next week for the next euro summit
meet in Brussels, the President of the Eurogroup, Paschal Donohoe,
who will also attend the meeting, but again empty-handed
standing there Despite the great commitment that the Irishman has had since taking office
two years ago on the subject of banking union, it’s up to him too
failed to cut the Gordian knot today.
Donohoe had attempted a packaged solution that addressed the various sticking points
of the banking union balanced according to the different interests
should be: On the one hand, it was about protection for savers and the
Introduction of a European deposit insurance, on the other hand around the
Dealing with government bonds on bank balance sheets. It was about one
revised crisis mechanism for banks including clearer ones
resolution rules and a genuine European single financial market and
the rules for foreign banks in the respective national markets.
Obviously these were too many problems at once. Is on a shortcut
now also Donohoe failed.
The long night of negotiations between the euro finance ministers on Thursday in Luxembourg
is therefore cancelled, because the resistance from the Member States – also cancelled
Germany – are still too big. It really always takes serious ones first
Crises before national interests in favor of European ones
integration steps be deferred?
The completion of the banking union and a well-functioning capital markets union
play according to the EU heads of state and government “one
Key role to ensure a stable financial system, the
To boost the competitiveness of the EU and to promote the green and the digital
Funding required to control change, laying the foundation for the
Europe’s prosperity will be created in the coming decades”. This is one
of the central statements from the declaration of the euro summit in December. if
this is true, it is all the more sad that the banking union project is now on hold for the time being
is buried. After this debacle, Donohoe may no longer be willing
to play Sisyphus.
Press contact:
Stock exchanges newspaper
editorial staff
Telephone: 069-2732-0
www.boersen-zeitung.de
Further material: http://presseportal.de/pm/30377/5248545
OTS: Börsen-Zeitung