By John O’Donnell – Concerns are growing among European investors and lawmakers that plans for a eurozone banking union will end up half-baked, with the financial backstops required to underpin the ambitious scheme unlikely to be in place for years.
“Originally the idea of a banking union was to have deposit guarantees to stop the outflow of money from Spain,” said Sharon Bowles, who chairs the European Parliament‘s influential economic and monetary affairs committee.
“But they are shying away from mutualization and all you are left with is supervision, which if left on its own would have more drawbacks than benefits. It could split the (EU) single market.” more> http://tinyurl.com/9mmttj3
- Europe’s new banking plan gets cool German response (theneteconomy.wordpress.com)
- Britain should seize this chance to strike a new deal with Europe (telegraph.co.uk)
- Europe unveils banking union plan to tackle crisis (business.financialpost.com)
- Europe at loggerheads over banking reform (miamiherald.com)
- Analysis: Euro crisis tests limits of “French exception”, Paul Taylor, Reuters
- Calls for more time as Greece faces deficit squeeze, Nick Edwards and Harry Papachristou, Reuters
- Investors increase pressure on Spain to seek aid, Julien Toyer and Paul Day, Reuters
- EU executive approves $1.31 billion aid payout to Ireland, Reuters