MEPs spell out priorities for the European Central Bank and on banking union

This article is brought to you in association with the European Parliament. MEPs on Wednesday set out their priorities for the European Central Bank’s actions in the coming year and those for moving ahead with completing the banking union. In two separate resolutions, the first on the work of the European Central Bank (ECB) drafted by […]

The ‘yellow vests’ undermined Macron in France and the EU

Paris was a blockaded city this weekend. The government was forced to close down all the main tourist sites in the French capital. The Eiffel Tower, the Opera of Paris, the Louvre museum and tens of other sites which may attract the fury of the ‘yellow vest’ movement are closed and heavily guarded. Galerie Lafayette […]

Commission reports on progress in risk reduction in the Banking Union and calls for faster progress on Capital Markets Union ahead of EU Leaders’ meetings

This article is brought to you in association with the European Commission. Today, the Commission takes stock of the latest developments as regards risk reduction in the banking sector and progress towards an even more integrated and stable EU financial system. Financial stability has been considerably reinforced in recent years and risk reduction in the EU […]

Draghi joined Macron in telling Germany how Eurozone must be reformed

Mario Draghi the President of ECB, speaking at the European University Institute in Florence, on 11 May 2018, must have been under the influence of the idealistic aura of this Florentine learning institution. He went as far as proposing political policies, bravely overstepping his role as central banker of Eurozone. Draghi asked for an effective […]

Germany resists Macron’s plan for closer and more cohesive Eurozone; Paris and Berlin at odds

Last week, surprising everybody, Francois Villeroy de Galhau, Governor of the Bank of France and member of European Central Bank’s Governing Council said that the decision to stop ECB’s extraordinarily accommodating monetary measures this year, is premature. So, according to him, the central bank must continue applying its extra relaxed measures well beyond this year. […]

The Monetary Union drives Europe into dangerous paths, CoR demands an EMU of regional content

Last Thursday 7 April, the European Committee of the Regions (CoR) concluded that there is “No successful reform of the Economic and Monetary Union without a regional dimension”. Indirectly, this means the EMU remains a system just to support the banking industry. In other words, the banks are still completely unregulated, high flying and counting […]

A new crop of EU ‘Boards’ override the democratic accountability and undermine the EU project

Last Wednesday 16 September the European Economic and Social Committee, an authentic representative of the European organized civil society, adopted an opinion aimed at improving the democratic function and the accountability of the EU decision-making bodies. The EESC acted at the request of the European Parliament. Actually, the Lisbon Treaty contains untapped potential to bring […]

Bankers don’t go to jail because they are more equal than us all

How come and despite the fact that bankers systematically and quite openly cheat hundreds of millions of people, usurping trillions from them, and the only ones of that trade that have been locked up in a penitentiary are the bosses of the three Icelandic banks Glitnir, Kaupthing and Landsbanki, which went bankrupt in 2008? All […]

The Peoples are missing from EU’s monetary union

The disenchantment of the 28 European Peoples with their Union stems from the special care the EU institutions clearly show for the financial sector aka the banks and not for the unemployed. To put it differently so as the Brussels bureaucrats and the decision makers in Berlin and Paris can understand; the European Economic and […]

European Banking Union: no one is perfect

Europe came to an agreement last Thursday 20 March to complete the second pillar of the European Banking Union with the establishment of the Single Resolution Mechanism (SRM). After months and months of negotiations between the European Parliament and the member states, Europe will have as of now the relevant legislation and the mechanisms to function a banking […]

A week to decide if the EU is to have a Banking Union

This Monday and Tuesday, 10 and 11 March during the Eurogroup and the ECOFIN meetings respectively, the member states will show their willingness to compromise with the Parliament, in order to finalise the legal base of the European Banking Union. This would be the most important EU project after the common currency. The Banking Union […]

Banking Union: ECOFIN and Parliament ready to compromise

The absolute necessity to conclude before May the trilateral negotiations on the functioning of the Single Resolution Mechanism (SRM) for failing banks and clarify the role of the Intergovernmental Agreement (IGA) (in relation to the control and the use of the Single Resolution Fund), united yesterday all the representatives of three decision-making bodies of the […]

Eurozone: Despite anemic growth and shaky banks marks record trade surplus

Yesterday morning, Eurostat, the EU statistical service, reserved a pleasant surprise to the European decision-makers by announcing its estimates for economic growth during the last quarter of 2013, with all four big Eurozone economies found in the positive part of the chart. Of course this development was not a surprise for Germany, but for both […]

EU Parliament and Council: Close to agreement on the bank resolution mechanism

During this past week the European Parliament had been working hard on its position over the bank resolution mechanism (the last building block to complete the Banking Union), in the context of the ongoing negotiations between the legislative and the Greek Presidency of the Council. In two consecutive plenaries the MEPs approved resolutions making a […]

A new proposal breaks the stalemate over the Banking Union

According to the European Commissioner Michel Barnier, the Eurozone member states, who participate in the Eurogoup and the ECOFIN councils are ready to soften their position in the negotiations with the European Parliament, to lift the deadlock over the creation of the Banking Union. This is a step forward in resolving the stalemate around the […]

The mother of all fights about inflation, growth and banks

Reading two accounts by two different people, about what happened in the Eurogroup meeting yesterday in Brussels, gives a clear indication of what will be decided in the ECOFIN Council today. Ollie Rehn, Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro, and Jeroen Dijsselbloem, […]

ECOFIN: Choosing between the re-unification of Eurozone and a stalemate

Tomorrow’s Economic and Finance Ministers Council (ECOFIN) set to be convened in Brussels, the first under the Greek Presidency, will have the crucial task to decide on the construction of the European Banking Union. In view of that, the European Parliament sent a letter to the Greek Presidency of the Council, rejecting both the legal […]

IMF launches a new offensive against Germany

In the latest issue of its World Economic Outlook (WEO), which was published yesterday, the IMF raises the tone of criticism against Europe. It’s again the risk of deflation and the projection that “economic slack will remain high”, the two axes which constitute the cutting edge of criticism of North America against Eurozone. The latest […]

Parliament toughens its position on banking union

The Conference of Presidents of the European Parliament reiterated the tough position of the legislative in relation to the Single Resolution Mechanism for failing banks. The SRM is meant to complete within the next four months the enactment of a real European Banking Union, according to the MEPs vision. In order to emphasise the decisiveness […]

No better year for the EU’s weak chain links

The European Parliament issued a Press release this week with the ambitious target to inform us all about what is bound to change in our lives this year, resulting from the application of EU laws. It mentions the mercury ban in thermometers and some new rules in recycling of electrical and electronic equipment, the legislation […]

2014 will bring more European Union for the big guys and less for the weak

During 2014 Europeans will be confronted with at least two major developments. Firstly, the completion of the political control of the EU financial market will materialize during the next year, after the adoption, before March 2014, of the Resolution Board a body like the EU council, which will decide which banks will fail. A second […]

Berlin ‘orders’ the EU Parliament to compromise

As expected the President of the European Parliament, Martin Schulz  strongly criticised  the agreement reached in the European Council by the 28 EU leaders, on the plan for the enactment of the Banking Union. He said, “The slower and inefficient a system is, the more expensive it will be”. However the Federal Minister for Finance […]

Eurozone close to agreeing on a Banking Union

In the small hours of yesterday night, the ECOFIN Council agreed on a general approach over the single resolution board (SRB) and a single fund for the resolution of banks in Eurozone. These are the main tools of the Single Resolution Mechanism (SRM), which constitutes the second pillar of the grandiose European Banking Union project. […]

The Parliament sets the way for the European Banking Union

The final shape of the European Banking Union will be served as dessert on the dinner table of the 28 EU leaders on Thursday night. According to the invitation letter that Herman Van Rompuy addressed to the heads of states and governments on the European Union “Over dinner, the focus will be on economic and […]

Eurobarometer: Not a single answer about what the Banking Union will cost to citizens

At a critical time for the future of Eurozone, with the Banking Union still pending – the most important project since the euro – and the Eurobarometer survey failed to ask the citizens of the 18 euro area member states about that. Of course this is not a grave omission of the people who drafted […]

The Social Committee may accept the new ‘contractual’ Eurozone

The European Economic and Social Committee (EESC), representing employers, workers and other interest groups, issued yesterday a Press release urging for the creation of the Banking Union and the establishment of a uniform bank resolution procedure. Obviously the leadership of the EESC, after reading the conclusions of the last EU summit of 24-25 October and […]

The Banking Union may lead to a Germanic Europe

A careful reading of the text of conclusions of last European Summit, the 28 EU leaders undersigned yesterday night after two days of discussions in Brussels, proves that they don’t really care about the implementation of their own June 2013 decision to combat unemployment and social exclusion, as the European Sting reported last morning. However, […]

Draghi cuts the Gordian knot of the Banking Union

Mario Draghi, the President of the European Central Bank, had three messages to send yesterday to Eurozone’s political leaders. He did that while answering journalists’ questions, after the regular monthly meeting of the Governing Council, which left the basic interest rate unchanged at 0.5%. For the first time Draghi puts a big question mark over […]

What is the IMF telling Eurozone about fiscal and banking unification?

The International Monetary Fund questions the efforts of the European Union to establish effective fiscal discipline policy instruments and a smoothly functioning banking union in the euro area. In a survey entitled “More Fiscal Integration to Boost Euro Area Resilience”, the Fund analysts observe that “Crisis exposed important gaps in architecture of the euro area”. […]

Bank resolutions and recapitalisations by the ESM may end up politically swayed

Klaus Regling, the Managing Director of the European Stability Mechanism (ESM), speaking yesterday at the European Parliament, when pressed by legislators, accepted that the wealthy ESM under conditions could function as a backstop and finance jointly with other sources, euro area bank resolutions and recapitalisations. Regling did concede that he was “open to considering other […]

Draghi: A bridge from Brussels to Berlin

Past the German elections, the President of the European Central Bank, Mario Draghi, must have left free to take some steps forward in his quest for the accomplishment of the European Banking Union, and promote the defragmentation of Eurozone’s financial markets. Speaking yesterday in a hearing at the Committee on Economic and Monetary Affairs of […]

Landmark EU Parliament – ECB agreement on bank supervision

In a ground breaking development opening the way to the European Banking Union, the European Parliament and the European Central Bank undersigned the draft text of an Interinstitutional Agreement providing for the exact procedures related to the enactment of the Single Supervisory Mechanism. The legislative had reserves about the transparency and accountability of the SSM […]

Convincing the Germans to pay also for the unification of Eurozone

What Angela Merkel, the German Chancellor, said about the uncertainties that an eventual new hair-cut of the Greek state debt may trigger doesn’t exclude this possibility. She stressed that it may set off a “domino effect of uncertainty” and scare off possible investors. But the country has already performed a voluntary hair-cut on the privately […]