By Sam Obenhaus
European finance ministers are meeting this week in an
attempt to resolve long-running differences over the establishment of the
European Union’s bank bailout mechanism. The heart
of the debate revolves around the design of the Single Resolution Mechanism (SRM) for
handling failing European banks and ensuring that they are efficiently
wound-down with minimal taxpayer assistance.
The finance ministers will be working towards their second
agreement on the subject. The E.U.
Parliament criticized the finance ministers’ previous SRM agreement as being
too unwieldy to implement. Both the
national governments and the E.U. Parliament must approve the SRM’s design
before it can come into effect.
The familiar north-south dynamic present in most E.U.
financial debates is an additional point of intrigue. Greece currently holds the E.U. presidency
while Germany remains extremely skeptical of any plan to pool bailout
resources.
For more on this story visit Bloomberg
BNA.
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