Schaeuble Sees ‘Broad Agreement’ for Speedy Regulation of Banks

German Finance Minister Wolfgang Schaeuble comments on the Slovenian government’s position on possibly seeking aid from Europe’s bailout fund, the European Stability Mechanism, the region’s future banking union and controversy over the need to reduce budget deficits.

He spoke to reporters before a meeting of euro-region finance ministers in Brussels today:

On Slovenia:

“The Slovenian government says it can do it without the rescue umbrella, it doesn’t want a program. I think it is right.”

On banking union:

“The decisive point is that we regulate precisely the sequence of liability, from shareholders to the various kinds of creditors and investors on to the member states and in the end also the European fund.”

“There is general agreement on that but we have to assure that we do this in parallel to the recapitalization rules for the ESM and for the restructuring directive we do within the EU-27.”

“There is broad agreement that we need this regulation fast. We will greatly accelerate the deliberations about the restructuring and resolution directive and bring into force much earlier than envisaged by the European Commission so far.”

“The preparations for the real banking union can be completed by the middle of the year as envisaged by the heads of state and government.”

The existing treaties “don’t provide a sufficient basis for a European restructuring authority, but that can be done with a network of national authorities.”

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