Home » World News » EU summit: France says bank deal helps eurozone fusion

EU summit: France says bank deal helps eurozone fusion

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 540 other followers


Error: Twitter did not respond. Please wait a few minutes and refresh this page.


The French president says a deal to start building a banking union on 1 January will enable the eurozone to speed up economic integration.

“Thanks to this we can advance more quickly and with more assurance,” Francois Hollande said in Brussels.

He was speaking after EU leaders agreed to set up a single banking supervisor for the 17-nation eurozone – a key step towards a banking union.

But Mr Hollande also said EU states “need different speeds” of integration.

“We should have a council of the eurozone to meet on a regular basis… We need different speeds – that’s agreed by everyone now, and there are even some moving backwards,” he told a news conference.

Germany’s Chancellor Angela Merkel insisted again that “quality takes precedence over speed” in setting up the banking union.

New ECB clout
It has been agreed that the European Central Bank (ECB), as supervisor-in-chief, will have the power to intervene in any of the eurozone’s 6,000 banks.

The deal appears to be a compromise between France and Germany, who earlier disagreed over the timing and over the number of banks the ECB would oversee.

Continue reading the main story

Start Quote

Compromising and fudging is the way business often gets done in Brussels”

Gavin Hewitt
Europe editor
Read more from Gavin
A legislative framework is to be in place by 1 January, with the supervisory body starting work later in 2013.

The timetable remains important, because only when the body is fully operational will the eurozone’s new rescue fund, the European Stability Mechanism (ESM), be able to recapitalise struggling banks directly, without adding to a country’s sovereign debt pile.

A priority is to rescue weak banks in Spain, where a recent audit put the bailout requirement at 59.3bn euros (£48.3bn; $77.4bn).

But the Greek crisis also looms large, as the EU awaits a key report from the “troika” of international lenders – the ECB, European Commission and International Monetary Fund.

Mr Hollande insisted that “Greece’s presence in the eurozone should not be questioned any more” and Mrs Merkel said the Greek government was “really making an all-out effort” to reform its economy.

Meanwhile, Spain’s main trade unions have called a general strike for 14 November, coinciding with similar protests in Portugal and Greece.

Continue reading the main story
Banking union – Three-stage plan

Single supervisory mechanism (SSM)
Joint resolution scheme to wind down failing banks
Joint deposit guarantee scheme
Peston: UK mugged by eurozone?
‘Ambitious roadmap’
Berlin wanted to apply the brakes over the banking union and much wrangling lies ahead, the BBC’s Europe editor Gavin Hewitt says.

Mrs Merkel insisted on Friday that “the right sequence is important” and added: “It’s already quite an ambitious roadmap.”

Germany had been at odds with the European Commission over the scope of the proposed ECB supervision. All the eurozone banks will be included – but Germany had wanted it limited to the biggest, “systemic” banks.

Previously, the German government has expressed a desire to retain supervisory responsibility within Germany over the country’s Landesbanks – state-owned banks that play a key role in the economies and state finances of Germany’s federal regions.

European Council President Herman Van Rompuy said the 27 EU leaders had agreed to set up “a Single Supervisory Mechanism [SSM], to prevent banking risks and cross-border contagion from emerging”.

Continue reading the main story

Start Quote

What the media do not do enough is study the reasons we are in this crisis”

Sofia Palma Rodrigues
Portuguese journalist
How Europe’s media cover crisis
“Once this is agreed, the SSM could probably be effectively operational in the course of 2013,” he said.

With new supervisory powers the ECB would be able to act early on to prevent a systemically dangerous accumulation of debt on a bank’s balance sheets.

UK concerns
ECB supervision will not extend to the UK – Europe’s main financial centre, but outside the euro.

However, the BBC’s Business editor Robert Peston says there is now a serious risk that the UK will always be outvoted when decisions are taken on the regulation of banking and finance in the EU as a whole.

It is more than a theoretical possibility that the interests of the UK and City of London in shaping financial rules will be systematically ignored or overridden, he says. The UK also wants safeguards to protect the powers of the Bank of England.

Mrs Merkel said the agreement was that “banks must be supervised in a differentiated way. That means that some will be direct… at the ECB level and others indirectly, via the national authorities.”

She also said that ECB President Mario Draghi had told her it would be some months before the ECB was ready to take on its new role.

Fraught with complications
The leaders agreed that the ECB’s new supervisory function would be strictly separated from its role in setting monetary policy.

The banking union plan is fraught with legal complications, as it would give more powers to the ECB and possibly weaken those of national regulators.

There is speculation that it could lead to treaty changes – something that has caused big headaches for the EU in the past.

The EU Commission said the arrangement would be “as inclusive as legally possible for non-euro members to join if they want to”.



  1. super real says:

    When you opt for refinancing, your old loan is paid completely and you are provided which has a
    new loan whose fine print are formulated keeping in mind your present credit scores super real
    take the time and energy to find an internet advance loan lender who will work along with you to make your financial crunch into financial freedom.

  2. look at one of the ways that

    you can make this technique work:1) write good contentno one will want to pick up and publish your articles if your content isn’t worth much value. you have to make it a point to create high-quality content, and make it good

  3. with everything in its ‘right’ place. you

    don’t need to write a phd thesis unless your subject matter is for other academics and some of the same rules for writing a good blog post will still apply.write your blog for your audience:first and foremost has to be content

  4. writers make the grade and become accomplished

    content writers. you need to be prepared to make very little money in the early days. after all, you have to be prepared to establish yourself before you can make decent money.you will also quickly learn that there are an endless

  5. Hermes Birkin Replica

    I always go back and forth in regards to Khloe Kardashian Odem. I mean, sometimes her fashion is right on the money and sometimes it is absolutely atrocious – like she had gotten dressed in the dark while intoxicated. Well, maybe it isn’t that bad, bu…

  6. One of my favorite of Khloe’s Hermes bags happens to be her fiery red Hermes Birkin. It just suits her so well, and I happen to think it would suit me too! Well, that would be the case if I could actually afford Hermes designer handbags, because come on, these designer bags aren’t for the everyday gal. I am absolutely obsessed with Khloe’s Hermes Birkin bag, how about you? To think that this designer Hermes bag is only one in a sea of others that the Kardashians own. Sigh. To be rich would make all of my problems go away. Kidding, I know money doesn’t buy happiness!
    Hermes Birkin Replica http://pgaa.com/article/hermesbirkinbags

  7. Auf Wunsch bietet das Service-Personal eine Beratung, notwendige kleine Reparaturen etwa an einem Reißverschluss lassen sich bei Bedarf direkt in der Service-Abteilung durchführen.
    Wellensteyn Zermatt Damen http://www.turbolader123.de/pliki/wellensteyn-zermatt

  8. blog post, readers of the mega blog

    will learn more about caring for the roses and you will get traffic to your website. this is a win-win situation for everyone involved.enhancing user experiencenot a lot of people know this, but the main purpose of the search engines is

  9. and learn how to write headlines that

    grab the attention of target prospects. use viral titles because they are effective and are the most crucial point of contact with your target prospects. the content should be professionally structured for skimming. additionally, use images that add mo…

  10. able to plan your time so that

    you can prepare parts of your thesis while still working on your experiments you won’t have the daunting prospect of having to finish your experiments and then start to write your whole thesis in one long session. it’s possible to do

  11. research. go online and see what questions

    people usually ask about that niche or subject. perhaps you are interested in writing about challenges faced by new mothers. segment that off into specific challenges faced by single mothers, such as returning to school and daycare challenges.when you…

  12. Grace says:

    marketing and writing is all about. believe

    it or not, you do create value in people’s lives when you do this. a little inspiration can go a long way. writing a title that target the emotional hot spots of your target audience is exactly what you need to

  13. in an organized manner, fixed any spelling

    errors and avoid inflated language or too much jargon in your blog post, site promotion will fall naturally in place.3. keep a friend handy to keep your blog writing honest! a good friend will be honest in pointing out obvious flaws

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: