European leaders opened a two-day Brussels summit on Thursday with Angela Merkel, the German chancellor, facing stiff resistance to her plan to force structural reforms on the ailing economies of the eurozone.
The summit was preceded early on Thursday by EU finance ministers agreeing on a compromise on how to rescue weak eurozone banks, or close down rotten ones.
While ministers and senior EU officials hailed the accord as “revolutionary” and “historic”, the complicated deal, resisted by Germany, meant there would be no quick leap to a common eurozone system of bailing out bad banks.
Germany had resisted key elements of the bank resolution plans for 18 months, but yielded slightly by agreeing to phase in pooled responsibility for the eurozone over a decade from 2015.
It foiled French-led attempts to have the eurozone’s €500bn bailout fund serve as a “fiscal backstop” for winding up or recapitalising bad banks.
“We wanted a backstop,” said Pierre Moscovici, the French finance minister. “We are working on its definition, which will evolve over time.”
The German finance minister, Wolfgang Schäuble, said: “The final pillar for the banking union has been achieved.”
via theguardian.com
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019