Europe welcomes 'unprecedented' banking union agreement
Thursday 19 December 2013
The European Commission hailed the overnight agreement by finance ministers for a new system to deal with failing banks as an "unprecedented" achievement.
“Today is a momentous day for banking union,” said Michel Barnier, EU commisioner for internal market and services.
“Progress made in recent days on the Single Resolution Mechanism and a whole host of financial files is unprecedented. We are introducing revolutionary changes to Europe’s financial sector, finally learning all the lessons of the crisis,” he added.
Finance ministers agreed to create a €55 billion (£45.9 billion) bailout fund by raising levies on eurozone banks over the next 10 years. That is equivalent to 1 per cent of all deposits held in eurozone banks.
Until the full amount is available, bank rescues will be paid for through a complex combination of funds from national backstops and the European fund.
Decisions would be taken by a new Single Resolution Board which would involve the Commission, the Council, the European Central Bank and the national resolution authorities. The UK will remain outside the mechanism and its banks will continue to be overseen by the Bank of England’s Prudential Regulatory Authority.
Chancellor George Osborne who was at the talks said that the agreement ensured the UK would not have to bear any extra burden if a bank in the eurozone were to fail.
“We have consistently said we support the creation of a eurozone banking union but that the interests of British taxpayers must be protected,” a Treasury spokesman said.
French finance minister Pierre Moscovici said: “I don’t see a major problem that could be an obstacle. But as always, the devil lies in the detail. So we’re fighting against the devil, finalising the details.”
Barnier also admitted that there is still a long way to go. He said: “Negotiations will now start with the European Parliament in the New Year. Both sides are committed to banking union. So compromise is possible.
“But it is also true both sides are far apart on some key points. Flexibility will be needed on both sides to reach an agreement before the Easter break. We can’t afford to fail. Citizens would not forgive us if another crisis hit and we remained unprepared.”
Kirstie Allsopp has waded into the female fertility debate again
Gillian Anderson lays into gender disparity in Hollywood
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather on north-west Alaska beach 'for a rest'
- 5 Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Cheryl Cole named 'the most dangerous celebrity' on the internet
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...