Eurogroup postpones agreement to advance into banking union to a later time

The eurozone’s economy and finance ministers, the Eurogroup, will not be able to conclude an agreement on Thursday on the action plan to finalize the banking union in the coming years, which was due to be handed over to eurozone leaders next week. He will return to try later this year. “We have worked a lot in the past weeks and months, and we have made a lot of progress, paving the way for an agreement later,” said Eurogroup President Paschal Donut, before the meeting in Luxembourg at which he will address the ministers. the question. #eudebates #Economy #ECON #Eurozone #Euro #Recovery #NRP However, Ireland’s finance minister also said that everyone would reiterate their commitment to reach an agreement later. The goal is to create a calendar between now and the beginning of 2024 with steps to be taken to finalize the European Banking Union, which already has common mechanisms for supervision and resolution but lacks the European Deposit Guarantee Fund (EDIS). Which guarantees protection for depositors from any country. The EDIS is generating reluctance in some countries, especially in Germany, which fear that it will end up paying banking sector risks to other partners, and given the initiative’s blockade since 2015, the Eurogroup decided to negotiate it in parallel together. With measures to reduce banking sector risks. But Germany and France disagree today that this is the way forward. German Finance Minister, Olaf SchulzOne candidate for chancellorship in Germany’s next federal election in September was “sure” upon arriving at the meeting that the eurogroup “is not ready to reach an agreement today”, but that it would “be an important step” to clarify. plan. READ Biden seeks G7 support for his global tax reform Schulz considered that the fact that “look not only at one issue, but at the stage as a whole, will be the basis of success” and an agreement. However, his French counterpart, Bruno the mayorHe considered that “the smart way in light of the (many) obstacles that lie ahead is to raise them one by one instead of seeking a global agreement,” noting that this was conveyed to the head of the Eurogroup. “I think that today a global solution is not within the reach of the eurozone countries. On the contrary, I believe that we can remove a certain number of obstacles and that a gradual approach is more logical and at the same time more realistic.” He said as soon as he arrived at the meeting, stressing that it is difficult negotiations. Although the Eurogroup addresses this issue in almost all of its meetings, Thursday’s meeting in Luxembourg is taking place on the eve of a summit of eurozone leaders next week, at which they had to arrive with a calendar to complete the task begun in the past. financial crisis. Agreement in the European Union to fund 5,000 million to mitigate the effects of Britain’s exit from the European Union الاتحاد On Thursday, the European Parliament and the Council of (Member States) agreed on the rules and details of the creation of a new €5,000 million fund to support the economic sectors and regions that suffer the most from the effects of Brexit due to the trade link. With the UK while it was part of the community block. READ G7 leaders address economic challenges and plan for future pandemics The negotiators’ initial agreement, which must be confirmed by the plenary session of the European Parliament and the Council, implies that funds may start disbursing before the end of the year to make up for lost trade flows, maintain jobs, support the fishing sector or create customs structures in ports. It is also expected that assistance could be granted for the return of citizens who had to return to the European Union (EU) from the UK due to Brexit. It is a special fund initially proposed by the Commission on 25 December 2020, a day after Brussels and London were able to close the pact that defined their relations once the UK cut all ties with the EU.