Bloomberg View: The EU Shouldn't Stall a Banking Union
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Time is running out for the European Union to meet its own yearend deadline to create a single bank regulator or at least the legal framework for one. Sadly, Europe’s leaders are again leaning toward procrastination on a reform crucial to saving the euro.
Europe’s banking problem is entering its fifth year. The EU has 27 regulators with 27 sets of rules, undercapitalized banks that can’t afford to lend anymore, and governments that lack the wherewithal to bail them out. Eventually, weak banks will start to topple, and what has been a slow-burning crisis could become a disaster.