Safety net, commentary on the Eurogroup by Andreas Heitker
Frankfurt (ots) – After years of debate, the Eurogroup has finally got it green
Light for a further development of the European Stability Mechanism (ESM)
given. This is an important sign of the capacity to act that the
Euro finance ministers have been here and they have been so in recent years
often have missed.
No, the ESM will not be converted into a European Monetary Fund like it will
was discussed in the meantime. But he will be in the future much earlier
Crisis prevention included. He can borrow more easily in case of minor crises
awarded, its role in major aid programs will be strengthened. And with the
Backstop for the European bank resolution fund – at least one
Pot of money with an estimated volume of 70 billion euros – receives the
Rescue fund added additional competencies.
With the decisions to strengthen the ESM, the last one from Italy
were blocked, an additional safety net is now drawn in, a
closed another gap in the architecture of the eurozone. This should be the
Market confidence in the European currency and, of course, that too
Strengthen the international role of the euro – if the reform package actually does
is ratified by all 19 euro countries. This notice is part of it because in
one or the other national parliaments are likely to be heated
Give discussions.
Then the risk situation in the European banking sector will probably turn in again
move the focus. Already it seems clear that the problem is the needy
Loans from next year will get a new dynamic, though
in the course of the crisis the number of company bankruptcies is increasing. The Eurogroup has this
in their decision, the backstop for the resolution fund in a good one
Having been ready to go under the umbrella of the ESM for the year may have been given too little attention
and their risk analysis led to the past.
On the other hand: Will the banking union survive the corona crisis in 2021 without it
greater damage, so it really shows itself to be resilient and confirmed
so that the more optimistic risk assessments should be followed by the next
Reform steps come on the table. This probably includes the one again
Introduction of a European deposit insurance scheme. Eurogroup leader Paschal
After the ESM decision, Donohoe was clearly trying not to direct this issue
to mention. He knows its explosive power very well.
Press contact:
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editorial staff
Phone: 069–2732-0
www.boersen-zeitung.de
Further material: http://presseportal.de/pm/30377/4779469
OTS: Börsen-Zeitung
AXC0376 2020-12-01/20:27
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