Friday August 22, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Finance ministers fall short of bank-crisis fund deal sought by ECB

By Rebecca Christie, Corina Ruhe & Ian Wishart

European Union finance ministers claimed “good progress” after talks in Brussels as they worked to break a deadlock on a euro-area bank-failure law urgently sought by the European Central Bank.

The EU is searching for a compromise on the Single Resolution Mechanism and an accompanying common fund to cover the cost of saving or closing banks. ECB President Mario Draghi last week warned that failure to reach a deal before May’s European Parliament elections would have severe consequences for the euro zone and its fledgling banking union.

Dutch Finance Minister Jeroen Dijsselbloem said no conclusions were reached on rules for decision making by the proposed bank-failure authority. The questions of how quickly to build up the fund, and when and how it could tap financial markets, also remain open. Ministers resume talks today.

“We will have to look for further strengthening of proposals” concerning the proposed fund’s liquidity, said Dijsselbloem, who leads the group of euro-area finance ministers. EU member states and the European Parliament want a deal by the end of March, he told reporters after the meeting.

German Finance Minister Wolfgang Schaeuble, whose nation has led resistance to the parliament’s demands, declined to comment after the meeting. French Finance Minister Pierre Moscovici said Germany wasn’t far from accepting a proposed eight-year timetable for building up the new fund.

The SRM is part of an EU effort to prevent future financial crises by pooling responsibility for euro-area banks. A blueprint put forward last year by Michel Barnier, the bloc’s financial-services chief, would create a central agency backed by a 55 billion-euro ($76 billion) fund financed from industry levies.

“This week is critical,” Barnier said in a statement after the meeting. “I believe that a compromise is within reach on the great majority of topics under discussion.”

Dijsselbloem said ministers were able to agree on some elements of the plan, such as how to assign burden-sharing fairly in cross-border failures that involve a bank’s home country and nations that host its subsidiaries. He said ministers also worked out a compromise on how the new plan will incorporate EU rules on when regulators can force bank creditors to take losses.

Ministers also debated how to handle national compartments that will exist within the fund during its start-up period, which could be as long as 10 years.

“There is the possibility of lending or borrowing between the compartments,” Dijsselbloem said. “That is a decision to be taken by the fund. Member states can object during the transitional period, but only under a limited number of conditions. Otherwise it’s simply at the board’s discretion.”

Negotiators for the European Parliament and EU member states have made scant progress on a compromise text of the SRM bill, with time running out before the assembly adjourns for elections in May. The two sides made proposals late last year, and both must approve any final legislation for it to enter into force.

The next round of negotiations between parliament and Greece, which holds the EU’s rotating presidency and represents the interests of member states, will be held on March 12.

The ECB assumes full oversight of euro-zone banks in November, and Draghi made clear that the central bank wants to work with a single resolution agency when lenders get into trouble. The SRM is part of an EU effort to prevent future financial crises by pooling responsibility for euro-area banks.

“If we do not have one SRM, the responsibilities for resolution will remain national, and so we will have a misalignment of responsibilities,” Draghi said on March 6.

Parliament negotiators said last week that they would make a “last attempt” to broker a deal with Greece, which holds the EU’s rotating presidency and represents the interests of member states in the talks. Greece has set a March 26 deadline for an agreement.

“We cannot sign off on a deal which establishes a mechanism which is unfit for purpose,” Elisa Ferreira, the parliament’s chief negotiator on the SRM, said on March 5. “A potentially unworkable resolution system will jeopardize banking union and leave taxpayers exposed.”

[Bloomberg]

ekathimerini.com , Tuesday March 11, 2014 (10:59)  
Spanish government bonds rise with Italy´s before Draghi speech
Greek peach farmers await Brussels decision on compensation
Report: Greek banks sturdily positioned
Economy stunted by property tax demands, report says
Avramopoulos, Hagel hammer out ´roadmap´ of defense cooperation
Defense Minister Dimitris Avramopoulos emphasized, after talks with his American counterpart Chuck Hagel late on Thursday, the "truly excellent level of the Hellenic-American defence coopera...
Coast guard intercepts 180 migrants in Aegean in two days
Coast guard officers detained dozens of undocumented immigrants in the Aegean late Thursday and early on Friday, bringing to 180 the number of people detained on smuggling boats trying to cr...
Inside News
SOCCER
Panathinaikos, Asteras Tripolis notch up vital wins in Europa League
Thursday proved a very productive night for two of the three Greek teams performing in the Europa League as Panathinaikos and Asteras Tripolis secured vital wins in the first legs of their p...
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
Inside Sports
COMMENTARY
Nationalism on steroids
Bodybuilders are in a league of their own. They rarely make headlines for their achievements, their performance, or being role models. In contrast, they’re more likely to make the news due t...
EDITORIAL
Time to kick a stupid habit
Official figures indicate that tax dodging continues unabated across Greece’s tourist areas. According to data made available by the Finance Ministry following checks conducted between July ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Spanish government bonds rise with Italy´s before Draghi speech
2. Greek peach farmers await Brussels decision on compensation
3. Avramopoulos, Hagel hammer out ´roadmap´ of defense cooperation
4. Coast guard intercepts 180 migrants in Aegean in two days
5. Panathinaikos, Asteras Tripolis notch up vital wins in Europa League
6. Aftershocks rattle Halkidiki after strong 5-Richter quake
more news
Today
This Week
1. Aftershocks rattle Halkidiki after strong 5-Richter quake
2. Coast guard intercepts 180 migrants in Aegean in two days
3. Avramopoulos, Hagel hammer out 'roadmap' of defense cooperation
4. Greek peach farmers await Brussels decision on compensation
5. Spanish government bonds rise with Italy's before Draghi speech
6. Merkel cites euro’s ‘construction flaws’ as economy sputters
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canada’s fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Ministry sys ‘no’ to debt collection agencies
6. Karatzaferis eyes ND-LAOS alliance to stop Tsipras
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.