Schauble: Go Slow on Banking Union

December 5th, 2012
in econ_news, syndication

Econintersect:  German finance minister Wolfgang Schauble has thrown a big bucket breaking-news-130px7of cold water on the flickering flame of movement toward a Eurozone banking union.  He suggested that a revision of EU treaties would be required to bring all of Europe's banks under a single supervisor.  If his view were to prevail it would provide more than a slowdown; it would be a dead stop.  Treaty revisions typically take years to accomplish.  The quick implementation of a single banking supervisor is pushed by its proponents as a means of restoring confidence in the EU's distressed financial system.

Follow up:

Among those expressing concern about the new position taken by Schauble were ECB (European Central Bank) officials.  From the Financial Times:

Vítor Constâncio, the vice-president of the European Central Bank, said the promise to deliver banking supervision reforms “quickly” was an “important element for credibility for the euro area”.

“I want to stress that if that would not happen that would be bad in terms of market reactions,” he said.

Sweden is also opposed to quick movement to establish a banking union as the CNN video below featuring Swedish finance minister Anders Borg illustrates.  Borg emphasizes a point that Schauble also raises.  They both maintain there must be a "firewall" between bank supervision and ECB monetary policy implementation.

anders-borg-cnn

John Lounsbury

Sources:









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.













 navigate econintersect.com

Blogs

Analysis Blog
Econintersect Features
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Live Market Commentary
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
Live Market Conditions
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2015 Econintersect LLC - all rights reserved