EURACTIV PR

An easy way of publishing your relevant EU press releases.

S&Ds welcome Eurogroup breakthrough on ESM reform to reduce risks for the banking sector

Date

01 Dec 2020

Sections

Euro & Finance

Last night’s Eurogroup agreement ends a year-long blockage that will finally update the European Stability Mechanism (ESM) by improving the credit lines available for euro countries and turning the ESM into a fiscal backstop for the Single Resolution Fund for helping resolve banks by January 2022. Reacting to the agreement Jonás Fernández MEP, S&D spokesperson for economic and monetary affairs, stated:

“We congratulate the Eurogroup on last night’s breakthrough on reforming the European Stability Mechanism. The European Parliament has been requesting the Council swiftly implement the Single Resolution Fund backstop for a long time. Last night’s decision is an important step, especially in the context of the current crisis.  The work carried out in the context of the Next Generation EU, and specifically with the issuance of recovery bonds, provides countries with economic support to improve their health and education systems. As a consequence of the Covid-19 pandemic banks are coming under pressure - we have to expect the amount of non-performing loans to increase. With the backstop we will be better prepared for dealing with eventual bank failures even if banks today are stronger and more resilient compared to the last crisis. It is only a pity that it took the Council so long to progress on the file, which might seem technical but can prevent damage to people and businesses.

“On the back of this recent success, I encourage the Council to now move on the creation of a European deposit insurance scheme and completing the Banking Union.”

 

Jobs

Bulle Media
Video maker
Interreg Sudoe Programme
Communication officer
Telus International
Online Data Analyst | Remote
CENTRE TECNOLOGIC DE TELECOMUNICACIONS DE CATALUNYA (CTTC)
Call 22-2022-1 Researcher position in the Geomatics Research Unit
CENTRE TECNOLOGIC DE TELECOMUNICACIONS DE CATALUNYA (CTTC)
Call 21-2022-1 Researcher position in the Geomatics Research Unit
European Institute of Peace
Finance Assistant Intern