BRUSSELS (dpa-AFX) – German Finance Minister Christian Lindner wants to push ahead with the banking union in the EU – but still sees much need for discussion. “We are absolutely convinced that we need progress on the banking union,” the FDP politician said Tuesday ahead of a meeting with his EU counterparts in Brussels. The present proposal of the EU Commission, however, is not yet approvable.
Up to now, it has always been intended that shareholders and creditors be involved in the stabilization of a bank in the event of its difficulties, before common European instruments are used. This is also “absolutely necessary to reduce risks and to prevent the collectivization of economic problems. Individual liability contributes to stability.” To deviate from this – as in the Commission’s proposals – is “questionable from a regulatory and economic as well as an ethical point of view,” Lindner said. The Commission wants to facilitate the use of funds from national deposit guarantee systems.
Furthermore, he said, Germany has functioning deposit guarantee systems. “This is a functioning instrument, and it was always clear to us that the functioning instruments must be preserved and must also be protected in their functionality.” This is no longer the case in the Commission’s proposal, he said, which is why further development is also necessary.
In mid-April, the EU Commission had proposed far-reaching changes for crisis management in the financial sector and deposit insurance. They are primarily intended to improve the existing crisis system for medium-sized and smaller banks. The proposals still have to be negotiated by the EU countries and the Parliament./red/DP/jha
