Plans to create a single European Union resolution authority with powers to wind down failing banks have stalled after finance ministers failed to reach agreement. Germany continued to insist that member states have the final say over the single resolution mechanism despite opposition from France, Spain and the European Commission.
The commission was also at odds with the European Parliament over the size of a bail-out fund for eurozone banks. The commission wants to force investors to take a bigger hit when a bank goes bust while MEPs are expected to call for greater protection of large deposits, supported by a €150bn single currency bail-out fund.
Finance ministers also failed to agree a political agreement on bank transparency at the Economic and Finance Affairs Council meeting on Friday last week. Meanwhile, eurozone ministers welcomed the news that Spain and Ireland will exit their bail-out programmes without seeking transitional help.
Pierre Christopher is a researcher at ResEuropa – a partner organisation of Policy Review