Wed, Oct 16, 2013 - Page 15 News List

EU finance ministers meet amid US default warnings

‘DRAMATIC CONSEQUENCES’:The potential US debt default cast a shadow over the Eurogroup meeting, but officials said the situation in Spain and Ireland had improved

AFP, LUXEMBOURG

A UK diplomatic source said London had won fresh assurances that this would be the case and accordingly, EU finance ministers could clear the SSM when they were to meet yesterday.

Asmussen said progress on the SSM was “really very good news ... We can [now] really speed up preparations ... [for] a banking union.”

French Minister of Finance Pierre Moscovici said the banking union was the main issue and “a priority for France.”

“We want a global banking union, complete and ambitious,” he said, confirming that the SSM would be finally cleared yesterday.

The SSM is to be complemented by a Single Resolution Mechanism to close failing banks and a Deposit Guarantee regime protect savers.

This is meant to provide a comprehensive, single regulatory framework to prevent taxpayers having to fund the disastrously expensive bailouts that led to years of austerity and recession the eurozone is only now emerging from.

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