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Merkel Opens Door to Deputy’s Plan for Europe’s Banking Union

  • In Rome, Chancellor says Scholz’s proposal is ‘push’ for talks
  • Italy had initially rejected a key pillar of German plan
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Merkel signaled support for Scholz’s proposal to explore banking union. Bloomberg’s Birgit Jennen reports.Source: Bloomberg

German Chancellor Angela Merkel signaled support for her deputy’s gambit to break a years-long impasse over Europe’s banking integration.

Her remarks Monday evening suggest that the proposal by Germany’s finance minister, while not officially endorsed by the government, reflects a willingness to negotiate on establishing European Union-wide bank deposit insurance. This was a key pillar of Europe’s strategy to exit the sovereign debt crisis, but years of debate has so far failed to produce results.