| inbluevt | Date: Saturday, 2013/10/19, 0:43 AM | Message # 1 | DMCA |
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EU finance ministers agreed on Tuesday (15 October) to give the European Central Bank sweeping supervisory powers in the euro zone but Germany dug in its heels on how to deal with failing banks, the second stage in building a banking union.
The European Union ministers gave their final approval for the ECB's regulatory role nearly 1-1/2 years after the idea was first floated, with Britain dropping opposition to a plan it feared
might threaten its control of London's financial centre.
"We have written regulatory history," said Michel Barnier, the European commissioner who drafted the plan for ECB supervision. "This is a momentous step: the start of a new era for the supervision of euro zone banks."
Five years after the financial crisis erupted, many European banks remain in trouble, holding back the euro zone economy as it gradually recovers from recession.
The EU is therefore trying to agree the next big step in its integration by creating a banking framework chiefly for the euro zone, which would both police the banks and find joint solutions to their problems.
Ministers won Britain's support for ECB supervision of euro zone banks from the end of next year after offering fresh reassurances on its power to regulate the City of London, Europe's biggest financial centre.
Tuesday's decision endorsed an earlier European Parliament vote to give the ECB powers supervisory powers over the euro zone's 6,000 banks. However, such a role would lose much of its influence without a body to deal with troubled banks.
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Message edited by inbluevt - Saturday, 2013/10/19, 0:44 AM |
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