Wednesday March 4, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
EU lawmakers said to reach provisional deal on bank bill

By Jim Brunsden

European Union lawmakers struck a tentative deal on legislation to create a single agency for handling euro area lenders in crisis after the European Central Bank warned that failure would be “close to suicide.”

Negotiators including Dutch Finance Minister Jeroen Dijsselbloem and European Parliament legislators found a provisional agreement on the Single Resolution Mechanism bill after about 16 hours of talks in Brussels that ran until after 7 a.m. Thursday morning. French Finance Minister Pierre Moscovici said Thursday that details would emerge shortly.

“There was an agreement over night. It should be confirmed this morning,” Moscovici said on France Info radio. “This is a major advance.”

EU parliament members involved in the talks will now consult with their political groups on the outcome of the talks before a press conference later this morning, according to a tweet from the parliament’s Economic and Monetary Affairs committee. The accord still needs to be formally approved by national governments and by the full European Parliament to take effect.

The deal will be a signature achievement for EU leaders meeting in Brussels later today. Leaders have been working for nearly two years to establish a euro-area banking union to repair the currency bloc’s financial architecture and guard against further crises sparked by contagion between banks and sovereign borrowers.

Dutch Finance Minister Jeroen Dijsselbloem shepherded the debate through the night, stepping out of negotiations periodically to phone his euro area counterparts. At one point, talks were on hold for more than an hour to wait for a response for German Finance Minister Wolfgang Schaeuble and other ministers, said Sven Giegold, a German lawmaker representing the assembly’s Green group in the talks.

The SRM is part of an EU effort to prevent future financial crises by pooling responsibility for euro-area banks, a project known as banking union. In a first step, the ECB will fully assume supervision of the 18-nation currency bloc’s lenders in November.

ECB Executive Board member Yves Mersch said last week that not having the SRM “would be very close to suicide.” The parliament and the bloc’s finance ministers proposed competing visions of SRM in December.

The agreement retains key elements of a plan put forward last year by Michel Barnier, the EU’s financial services chief, including the creation of a central resolution board backed by a 55 billion-euro ($77 billion) fund financed by industry levies. It also allows the EU to meet a self-set deadline of concluding talks in time to conclude work on the law ahead of EU elections in May.

The deal on the SRM sets out a blueprint for the overall system. Further talks will be needed in the months ahead on implementing measures to flesh out some aspects, including on the methods to be used for calculating banks’ individual contributions to the central fund.

The marathon talks were described by Sharon Bowles, chairwoman of the parliament’s Economic and Monetary Affairs Committee, as the longest ever on an EU financial-services law. The overnight meeting was the last one scheduled before a March 26 deadline set by Greece, which holds the EU’s rotating presidency.

Dijsselbloem and his Greek counterpart, Yannis Stournaras, began discussions with top parliament lawmakers at 3 p.m. in Brussels Wednesday, with all key points on creating the SRM still open. [Bloomberg]

ekathimerini.com , Thursday March 20, 2014 (10:39)  
De Guindos insistent that Greece likely to need another aid program [Update]
For first time in years, euro economy starts surprising on upside
Spain´s De Guindos says next steps for Greece point to third rescue
Greece successfully rolls over 6-month T-bills but yield rises
Merkel says eurozone has hands full with existing Greek bailout program
German Chancellor Angela Merkel on Wednesday refused to speculate if Greece could count on a third aid package from its euro zone partners after Athens had completed its existing bailout pro...
Premature to talk about 3rd Greek bailout, EU´s Juncker says
It is too early to discuss a third bailout package for Greece, European Commission President Jean-Claude Juncker said on Wednesday, stressing the focus of talks with Athens was implementing ...
Inside News
SOCCER
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a «sacrifice» to win trophies or leave. "Olympiakos ...
SOCCER
Olympiakos´s Karembeu confident UEFA on top of racism
Olympiakos strategic advisor Christian Karembeu expressed his confidence on Tuesday that UEFA are getting to grips with racism in soccer after suffering abuse during the recent Greek derby a...
Inside Sports
FOCUS
Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
Strapped for cash and under pressure to deliver on reforms, Greece's new radical government has ruffled feathers in Brussels by not respecting the diplomatic niceties of the negotiating tabl...
COMMENTARY
Up the creek without a paddle
One of the issues that dominated the country’s pre-election debate was whether SYRIZA, which eventually won the vote, had worked out a plan B. It was clear from the start that its much-hyped...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Merkel says eurozone has hands full with existing Greek bailout program
2. Premature to talk about 3rd Greek bailout, EU´s Juncker says
3. Chomsky: EU reaction to Greek bid to reverse austerity was ´extremely savage´
4. Schaeuble: Greece needs to fulfill terms of agreement before further aid
5. De Guindos insistent that Greece likely to need another aid program [Update]
6. For first time in years, euro economy starts surprising on upside
more news
Today
This Week
1. Up the creek without a paddle
2. Panousis says no official decision on undocumented migrants
3. Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
4. More Germans booking holidays in Greece, tourism chief says
5. For Greece, a lesson from Ireland, Kenny says
6. ECB glimpse of Cyprus debt shows limits of bank cleanup
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.