And the mountain gives birth to a mouse, while waiting for the famous bank relief fund to be operational, it is still the taxpayer who will pay, in short... Why haven't the banks had this relief fund for all this time ?
Probably because they are misers who only emit the wind, so it was easier to extort citizens to quickly get real cash...
I kindly remind you that for the €100.000 "guaranteed" on your account, it's the same, it's wind, in the end, it's the banks that guarantee this, not the government, and if the banks collapse...
The agreement was essentially tied to the conditions set by Germany.
From our correspondent in Brussels
Angela Merkel et his new government did not drag. Berlin has given the green light to a crucial piece of thebanking union euro countries. But the agreement was essentially tied to the conditions set by Germany, far from the wishes of France.
The major post-financial crisis project, intended to restore balance to the network of 6000 banks in the eurozone, is thus entering its final phase. On one side, the ECB will supervise the whole. On the other, a so-called “resolution” mechanism will decide the fate of sick signs, by wiping any losses.
During the night, after more than twelve hours of negotiations, the 28 finance ministers ofUE validated and completed the compromise torn off on Wednesday morning. The 17 of the Eurogroup had already answered the central question: who should pay in the last resort for the broken pots, if the 55 billion of the future Resolution Fund were exhausted?
Two schools had been at odds for months. One, led by Paris and the capitals of the South, wanted to use if necessary the 500 billion from the European Stability Mechanism (ESM). The other, led by Berlin, refused to see the bill for national banking excesses mopped up collectively, that is to say in the first place by the German taxpayer.
Wolfgang Schäuble, barely confirmed at the Ministry of Finance, won the round. No question of touching the "fiscal sovereignty" of each state, no question for Germany to pay via the ESM for the direct bailout of Spanish, Irish or even Cypriot banks. The agreement at twenty-eight remained to be confirmed on Wednesday evening. But the Eurogroup, pressed by the deadline for the European summit, has already yielded the essentials. Everyone, starting with Pierre Moscovici, is aware that the eurozone cannot build its banking union against the advice of the main contributing country.
Angela Merkel and her right arm savor their success. "We have a government in place again, thank you for your encouragement!", Loose Wolfgang Schäuble in a wink to his colleagues. This successful offensive reflects Germany's return to European affairs. The Chancellor herself announced the color on Wednesday, pleading for European treaty changes where necessary. On the banking union as on the future of the EU, it takes the opposite view of the positions defended by François Hollande.
The state, as a last resort
The compromise reached at the Eurogroup postpones the real European pooling of banking risk until 2025 and excludes, by then, direct recourse to the ESM fund. In practice, the public treasury of each country will remain the last resort in the event of the failure of a national bank. If national resources prove to be insufficient, the State concerned may itself borrow from the ESM or other States. But it will be under his signature, not that of Europe. The procedure is not new, Spain has already benefited from it in 2012. Unlike the European “pooling” hoped for in Paris, this “sovereign” circuit will increase the debt of the country concerned.
Source (s): Lefigaro.fr via Rowboat
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