The European Parliament on Wednesday backed eurobonds as a medium-term solution for stabilising the Eurozone. But the decision did not go down well with the Spanish government which has sent its own proposal to Brusssels, stating that eurobonds are not “strictly necessary” to “guarantee fiscal support for banking union” and therefore “are not the priority.”
European Banking Union
It’s been some time since Europe has had a leader with such clear ideas as Emmanuel Macron, but Angela Merkel is not really happy about it. And that’s logical, because she has been calling all the shots. She has the power in Europe and so don’t expect even the slightest concession from her which is anything more than esthetic.
The “eternal return” to a proposal to leave the euro seems to be an irresistable force for some people. A current case in point is Italy, but there are a couple of interesting precedents in the files, like Greece and Ireland.
Five years after saying no to participating in the EU Banking Union, it seems Sweden is now studying the possibility of joining, motivated precisely by the possible benefits the UK’s departure from the EU could bring.
The volume of M&A in the European banking sector has gone from 39 billion euros in 2008 to scarcely 9.5 billion in 2015. And in the first half of last year, it was little over 1 billion euros. Why has there not been more consolidation in the sector? It’s an important question for the European authorities who want to promote banking union to answer.
And it will have consequences for the Spanish banking sector’s solvency.
BRUSSELS | June 26, 2015 | By Jacobo de Regoyos | Along with other EU state members, Spain called for a eurozone-level budget for emergency rescues, and issue debt in the form of eurobonds. Álvaro Nadal, Director of the Economic Affairs Office of the Spanish Prime Minister explained it for The Corner. This is the first part of the interview.
MADRID | By Luis Martí | The European banking union project received a remarkable boost last December, even if a major chapter, the bank resolution fund, had to conform to German requirements and stay on a national basis. This part of the agreement is a moot point, and Southern countries should have raised their voices and taken a firm stand against, as Münchau also wrote, no matter the delay inflicted to the working agenda of the eurogroup.
MADRID | By Raimundo Poveda | With the typical delays of the first willful calendars, the European Community Resolution that regulates a common supervisor for the euro zone and guests (SSM, single supervisory mechanism) was finally published. Press and politicians are announcing the Banking Union, a new name for an invention of limited scope. We already had a common banking market since 1989, and a European Banking Authority since 2011. The Banking Union will turn back the financial Balkanization process triggered by the crisis. So entities will get abundant credit at unified interest rates, just as during the bubble; SMEs in the South will pay for credit the same as German SMEs; and there will be credit! We will go back to the Arcadia Felix of the first five years of the century. True? Well, maybe not.
MADRID | By Luis Arroyo | Yanis Varoufakis is the most critical economist regarding the institutional failures of the monetary union. He considers that the European Banking Union will only benefit EU Northern countries, and adds that the basic principles of the euro zone have not been entirely followed.