Banking Union

Eurozone edges towards key goal

Published on 11 December 2013 at 14:21

“Remarkable progress on banking union,” announces La Vanguardia. On December 10, an initial agreement was concluded by Eurozone finance ministers for the creation of a European authority with the power to decide whether to close or grant assistance to banks in difficulty. For the daily, this decision amounts to a “decisive step” towards banking union —

This progress is very important, because the union could become a decisive factor in the normalisation of lending to businesses and families, and thus offer a notable means of support for recovery in Europe. [...] Progress has been made on the acceptance of the European Commission as a the overseer of a mechanism to restructure and liquidate banks, a very delicate task that it will share with member states.

This point is one of the three pillars of the banking union, along with the supervision of banks by the ECB, which has already been launched, and the deposit guarantee fund. This last measure is still under discussion, but “giant steps forward” have been achieved in reconciling opposing positions, and a “mixed solution” has been found that will make use of form of umbrella fund to which national funds will “be attached” during a 10 year transition period.

The final details will be ironed out at the European Council meeting on December 19 and 20.

Receive the best of European journalism straight to your inbox every Thursday

Was this article useful? If so we are delighted! It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans. Discover our membership offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic