BRUSSELS (Reuters) – The European Central Bank can oversee lenders in a banking union, the EU’s top regulatory official said on Thursday, contradicting a report that said a proposed new ECB supervisory structure would be illegal.
The Financial Times reported on Wednesday that one of the European Union’s top legal advisers had written an opinion saying the new structure would be “illegal” and that changes would more than likely have to be made to the EU’s treaty.
BRUSSELS (Reuters) – European Union countries are considering creating a body inside the European Central Bank to find a legally watertight way to involve states outside the euro zone in a banking union, officials said on Wednesday.
European leaders meet on Thursday for a two-day summit where they will try to bridge divisions over a banking union that is intended to underpin the euro zone.
BRUSSELS (Reuters) – Britain is pushing for changes to a proposed euro zone banking union to dilute the power of the European Central Bank, EU officials said, potentially hampering efforts to build the infrastructure urgently needed to underpin the euro.
Last month, the European Commission proposed making the ECB responsible for supervising lenders as a step towards a banking union where chiefly euro zone countries would jointly tackle problem banks and shield savers’ deposits.
BRUSSELS, Oct 12 (Reuters) – Euro zone countries should
consider clubbing together to borrow as well as paying into a
central budget that could be used to help struggling countries,
according to a report prepared by senior European officials
ahead of a meeting of leaders.
The interim report, prepared by Herman Van Rompuy, who as
president of the European Council will chair a summit meeting
next week, charts a path towards closer fiscal integration among
the 17 countries using the euro as they struggle to contain an
BRUSSELS, Oct 10 (Reuters) – A plan by a group of euro zone
countries to introduce a tax on financial transactions threatens
to drive more trading to London from centres such as Frankfurt,
exacerbating divisions in Europe as it struggles to overcome an
On Tuesday, 11 countries agreed to press ahead with a tax
set to fall on the trading of shares, bonds and derivatives,
although it may take up to two years before the necessary
legislation is in place and the scheme starts.
LUXEMBOURG/ FRANKFURT (Reuters) – European Union ministers examined a proposal on Tuesday to limit planned new powers for the European Central Bank to supervise lenders, in a bid to allay the concerns of countries outside the euro zone over a new banking union.
The diplomatic drive came as the President of the ECB and Germany’s markets regulator cautioned that setting up a new system of supervision would take up to the end of next year, later than many expected and a potential setback to efforts to help distressed euro zone countries and their banks.
LUXEMBOURG/ATHENS, Oct 9 (Reuters) – Eleven euro zone
countries agreed on Tuesday to press ahead with a disputed tax
on financial transactions designed to help pay for the cost of
fixing a crisis that has rocked the single currency area.
The initiative, pushed hard by Germany and France but
strongly opposed by Britain, Sweden and other free-marketeers,
gained critical mass at a European Union finance ministers’
meeting in Luxembourg, when more than the required nine states
agreed to use a treaty provision to launch the tax.
LUXEMBOURG, Oct 9 (Reuters) – Germany and France will step
up a diplomatic drive on Tuesday to convince more EU countries
to join them in setting up a financial transactions tax, but
they remain stubbornly short of the nine needed to push ahead
with the plan.
Greece, Portugal, Austria, Slovenia and Belgium have agreed
to join Berlin and Paris in the endeavour, and Estonia is
expected to sign up on Tuesday, but one more is required to
reach the threshold to put the initiative into action.
BRUSSELS (Reuters) – Ireland urged euro zone leaders on Wednesday to stick to a deal allowing the bloc’s rescue fund to assist its ailing banks, in a move to head off threats that the agreement could be unwound.
Prime Minister Enda Kenny’s message, which won tacit endorsement from one of the EU’s top officials, underscored Dublin’s growing concern that the agreement, sealed at a summit in June, may be amended.
BRUSSELS (Reuters) – Banks should separate deposit taking from trading and other high-risk investment banking work to shield taxpayers from further bailouts and protect savers, an EU advisory group said on Tuesday.
The advisers also single out the risks of property lending and said it should be underpinned with larger capital reserves. The European Commission set up the group of experts, led by Bank of Finland Governor Erkki Liikanen, to examine bank structures.