The 19 european countries that share currency trying to save the furniture in the reform of the euro. Those nations most ambitious seek to tie up agreements to strengthen the architecture of the Banking Union, and keep alive the proposal of a budget for the euro zone and above all the guarantee fund of deposits. The pulse of Italy has rekindled the reticence of the advocates of a strong fiscal discipline. To avoid atrincheren, have accelerated the work with the goal of reducing the banking risks. The Finance ministers will try to approve the measures this week.
Today starts a debate in Brussels that, as it secures a high charge community, it will be “long and intense”. At stake is the reform of the euro in July, the EU leaders decided to postpone until the end of the year. And again, the backing of the French president Emmanuel Macron to give a push to the euro so that it does not erupt into the next crisis was met with the hard resistance of the countries of the north and the doubts of Germany.
at The end of last week the Nineteen still tried to reach the very complex condition that paralyzes so many other folders: the consensus. Community sources explained that there is one to create a firewall to go into operation in the event of a bank failure. But that’s just the unanimity necessary for the reforms. And take only such action at the next Summit of the Euro would be a resounding failure for Macron, which would not make measures to sell to the electorate in the may elections.
The euro partners agree that it should be strengthened rescue fund (ESM) and turn it into a kind of Monetary Fund for the EU that it can deliver funds warning for countries in distress. It is, for example, that if a country suffers an increase in unaffordable premium of risk for the contagion effect from other economy, may order such temporary loans.
Resistance in the north
The countries of the so-called New Hanseatic League, led by Holland and formed by the nordic and baltic demand that any assistance be done with a strict “conditionality” and are asked to give more powers to the ESM. In case of debt restructuring, in addition, they demand collective action clauses, which consist of a majority of bondholders can agree to terms and conditions that are applicable to the other. France has accepted this last point, but next to countries such as Spain or Italy refuses to impose conditions as stringent for non-stigmatizing in front of the markets to a member with problems.
Tense debate around the ‘rate Google’
Along with the budget of the euro area, the so-called rate Google is the other big bet of the French Government. And Princessbet the negotiations over the last few days have not convinced even the four countries that are radically opposed to it if it is not adopted at the global level: Ireland, Sweden, Denmark and Finland.
According to community sources, Austria —which has the rotating presidency of the EU— has made a new offer: apply it starting from 2022 if the OECD in these years cannot reach an agreement. However, these countries argue that with that rate on the billing could be taxing businesses at a loss, which would be a brake to innovation in Europe.
In contrast, France, Spain or the United Kingdom will not admit that the tech giants to achieve to continue dodging the physical national. In fact, 11 countries have decided to implement it unilaterally.
from there come the big disagreements: the budget of the euro area and the deposit guarantee fund. Nineteen already have a technical formula by which, for the moment, the national funds could be provided are money between them and then continue to move forward. But Germany has put the brake. “It is with breath support”, say eu sources. Diplomatic sources confirm. The more optimistic believe that while it is in the roadmap of the project is still alive. The more pessimistic given up for dead.
The challenge of Italy to the community rules and its rejection to limit the sovereign debt in the hands of the national banks has made that Germany has decided that it will be the last of their priorities. His Finance minister, Olaf Scholz, expressed it this way last Wednesday: “A deposit guarantee fund common to be found at the end of the road”. And it warned: “And the path to that goal is long and full of conditions”.
Germany has been asked before to share risks there are that reduce them. The latest data from the Commission indicate that they continue to decline: the delinquency continues to fall and countries like Spain have virtually gone off the radar. “You have No excuse,” according to diplomatic sources. To get to the bottom of the UCI, have accelerated the work of the so-called banking package that, according to the papers that you have had access to THE COUNTRY, include the criteria in the case of insolvency, and measures to help banks with high levels of delinquency or anti-money-laundering.
The big bet of the axis, franco-German is, even so, the budget of the euro zone. For the moment, is limited to investments, but France is ready to explore the insurance european unemployment, in which he insists Spain, and which divides the Government of Angela Merkel. That will be the crux of the discussion this week. The chasm between the countries of the north and the rest opens a word: “stabilisation”. The States most orthodox think that this would dishearten the south to carry out reforms. For France, it is a workhorse, as he feels that only a community mechanism would avoid that countries with limited fiscal space to end up collapsing in the next crisis. In other words: the disaster.
