EU Economic and Monetary Affairs Correspondent
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Jun 28, 2013

EU leaders push banking union despite German reluctance

BRUSSELS, June 28 (Reuters) – European Union leaders said on
Friday they want agreement by the end of the year on a way to
resolve failed banks at European rather than a national level,
signalling work should go on despite German objections ahead of
elections in September.

German Chancellor Angela Merkel cast doubt on whether that
timetable could be respected, saying the creation of a European
authority with such powers would require a change to the EU
treaty – a lengthy and politically risky process.

Jun 28, 2013

EU leaders pledge to push on with banking union

BRUSSELS (Reuters) – European Union leaders confirmed on Friday they want agreement by the end of the year on a way to resolve failed banks at European rather than a national level, signaling work would go on despite elections in Germany in September.

EU finance ministers agreed on Thursday on an intermediate step towards what is known as banking union, which involves tighter oversight of Europe’s banks and coordinated resolution of any problems. Thursday’s agreement means investors and wealthy savers will share the costs of future bank failures.

Jun 27, 2013

EU leaders back use of structural funds to boost lending to firms

BRUSSELS, June 27 (Reuters) – European Union leaders agreed
on Thursday to use the EU’s structural funds to boost lending to
companies in an effort to kick-start growth, mainly in
recession-blighted southern Europe.

Finance ministers will choose next month between three
options put forward by the European Investment Bank (EIB) and
the European Commission to generate between 55 and 100 billion
euros of new loans.

Jun 25, 2013

EU ready to explore loan guarantees of up to 100 bln euros

BRUSSELS/BERLIN June 25 (Reuters) – The European Investment
Bank and the European Commission are working on plans to
generate between 55 and 100 billion euros of new loans to
companies to try to kickstart growth in southern Europe, the
institutions’ said in a joint report.

European Union policymakers are desperate to ignite growth
in Greece, Cyprus, Italy, Portugal, Spain and Slovenia so they
can pay back their debts. It was high sovereign debt that
triggered the euro zone crisis more than three years ago.

Jun 24, 2013

EU ministers seek resolution on who pays if banks fail

BRUSSELS (Reuters) – European Union finance ministers are under pressure to agree who pays for failing banks after failing to reach a deal last week, with Germany and France at odds on how to distribute the costs.

The law on rescuing and closing banks in the EU is central to the 27-nation bloc’s banking union, which aims to prevent future financial crises and get the economy out of recession.

Jun 20, 2013

Euro ministers to decide direct bank recapitalisation rules on Thursday

BRUSSELS, June 20 (Reuters) – Euro zone finance ministers
will decide on Thursday when and how their bailout fund can
invest in a bank to save it from failure, laying a cornerstone
of the banking union seen as vital to restore economic growth.

Ministers from the 17 countries using the euro will also set
guidelines for how much a government would have to contribute to
such a bank rescue, which banks would be eligible, and who would
lose money in the process.

Jun 12, 2013

EU considering loan guarantees to boost lending to firms

BRUSSELS, June 12 (Reuters) – The European Union may
guarantee the repayment of bank loans made to companies in an
effort to improve firms’ access to credit, especially in
southern Europe, European Commission President Jose Manuel
Barroso said on Wednesday.

Easier access to credit is critical to getting Europe’s
economy growing again, with even record-low interest rates
failing to translate into an increase in lending.

Jun 12, 2013

EU considering loan guarantees to boost lending to firms

BRUSSELS, June 12 (Reuters) – The European Union may
guarantee the repayment of bank loans made to companies in an
effort to improve firms’ access to credit, especially in
southern Europe, European Commission President Jose Manuel
Barroso said on Wednesday.

Easier access to credit is critical to getting Europe’s
economy growing again, with even record-low interest rates
failing to translate into an increase in lending.

Jun 6, 2013

EU, IMF clash over ‘mistakes’ in handling Greek bailout

BRUSSELS (Reuters) – The European Commission clashed with the International Monetary Fund on Thursday over their handling of the first Greek bailout, which the IMF said had pushed an extra burden on euro zone taxpayers by letting Athens delay restructuring its debts.

The Commission, together with the IMF and the European Central Bank, forms the so-called Troika that prepared financial assistance programs for Greece, Ireland, Portugal, Spain and Cyprus in the three years since the euro zone sovereign debt crisis started.

Jun 5, 2013

ESM to limit direct bank recap at 50-70 billion euros: document

BRUSSELS (Reuters) – The euro zone’s ESM bailout fund is likely to set a cap on the amount of money it can use for direct bank recapitalization at between 50 and 70 billion euros, a euro zone document showed on Wednesday.

Euro zone leaders decided in June 2012 that the European Stability Mechanism (ESM), which has a lending capacity of 500 billion euros, should be able to directly recapitalize banks if a government is unable to raise sufficient funds on its own because market borrowing could endanger the sustainability of its public debt.

    • About Jan

      "Based in Brussels since 2005, I cover economic policy news from the European Commission, EU and euro zone economic data, monthly meetings of EU/euro zone finance ministers as well as G7/8/20 meetings. Before Brussels I was a correspondent in Stockholm for five years, covering technology stocks and the Swedish central bank. I was earlier a correspondent in Poland for seven years, covering macroeconomic policy, bond, forex and money markets, the central bank and politics."
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