EU Tussle Over Costs Threatens to Derail Bank Union Plan

Posted by Forexsq 672 days ago (http://www.bloomberg.com)
img forexsq - The French-backed effort to fast- track a European bank supervisor is running into German-led concern over potential costs as the region’s leaders tussle over putting their crisis-fighting blueprint into action.

The 27-nation European Union has struggled to maintain momentum on a June plan to spur investor confidence by putting the European Central Bank in charge of banks across the euro area. Skeptics have questioned the scope of the ECB’s supervisory powers and how losses would be shared.

As leaders gather in Brussels for a two-day summit, French President Francois Hollande says efforts to stem the turmoil that began in 2009 could unravel if the EU fails to deliver on its promises. He called on the EU to press ahead on banking union, provide economic help to countries that rein in budget deficits, and show investors that Greece will be able to stay in the euro zone if it keeps its commitments.

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