According to Jeroen Dijsselbloem, the work for the EU finance ministers would resume after the German elections. First on the agenda would be the setup of an agency which would oversee the restructuring or have the power to close any bank in the Eurozone.
He made the remarks last Saturday. The said agency would be called the Single Resolution Mechanism and it would complement the work of the European Central Bank. The two agencies would break the cycle between having weak banks and deeply indebted governments.
The European Central Bank would have to outline its new responsibilities by the autumn of of 2014. As of the moment, EU policymakers want to have the body and its attendant fund ready by New Year's Day of 2015. Before this time, a bank resolution would be governed by a set of a common rules that all national authorities would have to recognize. This is what is called the Bank Recovery and Resolution Directive.
According to Dijesselbloem, before the discussions with EU Finance Ministers, "There hasn't actually been a debate on how it can be solved. As of next month, I think we should have that debat and have it in depth ans work on solutions."
Join the Conversation