Monday May 25, 2015 Search
Weather | Athens
14o C
09o 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)  
Euro weakens on Greece as emerging stocks, Spanish bonds decline
Spanish shares fall after vote as Greek stocks drop second day
Brussels Group talks to resume Tuesday with VAT, pension topping agenda
Greece calls on creditors to compromise as IMF payment nears
Asylum service short of staff after losing 30 ex-municipal policemen
The bureau in Attica responsible for processing asylum applications will not be able to operate properly over the next few days due to staff shortages, authorities said on Monday. Officials ...
Tourist dies in rockfall on beach in Crete
A 36-year-old tourist from the Czech Republic was killed on Sunday night when a boulder fell on her while she was on a beach in Sfakia, Crete. Rescuers reached the Glyka Nera beach by dinghy...
Inside News
SOCCER
Berg brace gives Panathinaikos four-point lead
Panathinaikos beat Atromitos on Sunday and took advantage of the goalless draw between PAOK and Asteras Tripolis to open a four-point gap from PAOK at the top of the Super League play-off mi...
SOCCER
Reds add Cup to league trophy with 3-1 win over Xanthi
Olympiakos completed a league-and-cup double on Saturday by beating Xanthi 3-1 in the Greek Cup final at the Olympic Stadium of Athens, that was more balanced than the final score suggests. ...
Inside Sports
Greece needs a second election
Most scenarios facing Greece are bleak. The country could default, introduce capital controls, forcibly convert savers’ deposits into bank capital, quit the euro and so forth. But there is s...
COMMENTARY
No more ´quick and dirty´ fixes for Greece
International Monetary Fund Managing Director Christine Lagarde correctly said last week that the protracted negotiations between Greece and its official creditors required «a comprehensive ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Euro weakens on Greece as emerging stocks, Spanish bonds decline
2. Asylum service short of staff after losing 30 ex-municipal policemen
3. Spanish shares fall after vote as Greek stocks drop second day
4. Brussels Group talks to resume Tuesday with VAT, pension topping agenda
5. Tourist dies in rockfall on beach in Crete
6. ND´s Bakoyannis fears capital controls over long weekend
more news
Today
This Week
1. No more 'quick and dirty' fixes for Greece
2. Greece calls on creditors to compromise as IMF payment nears
3. ND's Bakoyannis fears capital controls over long weekend
4. Brussels Group talks to resume Tuesday with VAT, pension topping agenda
5. Tourist dies in rockfall on beach in Crete
6. Greece needs a second election
Today
This Week
1. The Greek-German breakthrough that didn’t come
2. Conspiracy madness
3. Greece came close to not paying IMF
4. National self-awareness put to the test
5. Albanian demarche raises concerns about possible territorial claims over Greece
6. Greek endgame nears for Tsipras as bank collateral hits buffers
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.