EU Ministers Baulk At Banking Reform
EU finance ministers on Thursday again dampened expectations on completing major banking reforms in Europe, with big divisions between Germany and Italy on how to move forward
Luxembourg, (APP - UrduPoint / Pakistan Point News - 17th Jun, 2021 ) :EU finance ministers on Thursday again dampened expectations on completing major banking reforms in Europe, with big divisions between Germany and Italy on how to move forward.
At the meeting, ministers were supposed to finalise a timetable for completing the EU's banking union, a major step in advancing European economic unity that was launched in the heart of the financial crisis.
The missing piece of the project is the creation of a common European deposit insurance that would cast a continent-wide safety net for customers hit by failing banks.
Heavily indebted, Italy refuses to give ground on this demand, afraid it could spark a national banking crisis and plunge the country into economic chaos.
"There is further work that needs to be done, further compromises that have to be identified and then delivered," said Eurogroup chief Paschal Donohoe, who is leading the negotiations.
"With the time that is left, it wasn't sufficient to deliver what I believe was critical in such a work plan," added Donohoe, who is also Irish finance minister.
A senior eurozone official said the setback was not a "big drama" and that Donohoe was determined to keep working on finding a compromise.