TEMPO.CO, Brussels - European Union finance ministers have successfully made an improvement in discussing new policies on the banking system in their meeting in Brussels, Belgium. The main points of discussion were the permanent rescue fund and a fiscal agreement to anticipate failing banks that have been affected by the economic crisis.
The aforementioned permanent rescue fund is known as the European Stability Mechanism (ESM). For its initial capital, the EU will invest 500 billion euro. The ESM will replace the European Facility Stability Financial (EFSF), a temporary fund utilized to provide emergency funds for Ireland and Portugal, and to provide funds for Greece in its second phase.
The Minister of Finance of France, Pierre Moscovici, positively welcomed the plan for banking union in the euro zone. He agreed that approximately 6,000 banks in Europe need to be controlled by the European Central Bank. However, German Finance Minister Wolfgang Schäuble viewed that it will be difficult to gain approval from the German parliament.
On the other hand, Spain’s Financial Minister, Luis De Guindos, said, “Banking union in the euro zone is needed to ensure the currency block’s future.” European Union Monetary Affairs Commissioner, Olli Rehn, said that the meeting was an important step towards the union.
SETIAWAN
