The Eurogroup have discussed the creation of a central rescue agency to wind up failing banks, but Germany says a Treaty change would be needed for the project to go ahead. The proposal would be a mainstay of any future banking union.
Jeroen Dijsselbloem, the Eurogroup president, said: “We must, while we are discussing the Treaty change, work on the other building blocks. The banking union cannot wait. There are a number of elements that have to start: the single supervising mechanism can start, the capital requirements have to be put in place, we have to work on a resolution directive.”
The 17 Eurozone finance ministers also discussed new bailouts for Portugal, Greece and Cyprus. For the French Minister, rescuing the EU economy remains a higher priority than making budget adjustments.
Pierre Moscovici, the French Finance Minister, said: “I welcome Commissioner Rehn’s intention to make this proof of flexibility. To give time and to take action in a way which means we keep the focus on growth. We have to be serious, that’s what we want but we reject austerity.”
Italy’s new government was also discussed at the meeting and Ministers are keen to hear their proposals to reform the Italian economy and promote growth. But questions are now being asked about Slovenia.
Isabel Marques da Silva of Euronews said: “In the presentation of the agenda for this meeting, EU sources said that there would not be any discussion of a bailout for Slovenia. But this is the latest country under scrutiny and the minister should explain in detail the recent reforms decided by the Slovenian government.”