No E.U. treaty revision for the pressing Banking Union
The article traces the necessary steps that a Banking Union in Europe should take- Single supervisor, single resolution authority to wind down troubled banks, and a single deposit-insurance system. The first was agreed in October and the third was already been accepted by Schaeuble. If Germany equally agrees to proceed without the revision of the E.U. Treaties it is likely that the Union can be operational very soon. About the single resolution Fund – the second aforementioned prerequisite – that could probable would need a treaty revision for its creation Schaeuble had proposed an alternative. “Instead of a single European resolution fund ….. such a model would lean on national funds, which already exist in several member states.” In this way the banking Union would be possible to break the connection between financial-sector failure to public-sector finance that lead to state insolvency. Germans have much to gain from the safety of the euro-system much more than the fiscal cost that will be obliged to commit .