Commissioned by the European Union a year ago, E.U. financial
regulation commissioner Michel Barnier this week unveiled a plan to
create a single agency that will oversee the rescue of failing European
banks.
The proposed Single Resolution Mechanism gives the E.U.’s European
Commission the power to decide whether a troubled bank will be dissolved
or bailed out and whether public funds should be used.
France, Italy, and several other countries quickly showed their
support for the plan, which would distribute the pain of bank bailouts
across all E.U. member states, an idea that financially troubled France
and Italy would understandably favour.
But other governments, such as Germany, the Netherlands, Finland,
Slovakia, and Estonia, are not very keen on the idea of a body not
elected by their citizens dictating how their tax dollars should be
used..''
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