Thursday, May 24, 2012

European leaders put off key decisions

(Financial Times) -- European leaders put off any decisions on shoring up the region's banks at a late-night summit on Wednesday despite rising concerns that instability in Greece was undermining confidence in the eurozone's financial sector.

Instead, the heads of the EU's main institutions were given the task of drawing up proposals for closer fiscal co-ordination in time for another summit next month, plans that could include a path towards a Europe-wide deposit guarantee scheme and, in the longer term, commonly-backed eurozone bonds.

Herman Van Rompuy, president of the European Council, cautioned that even the June plan would be limited to "building blocks" and "working methods" towards economic integration and not specific proposals towards a banking union or mutualisng eurozone debt.

"These ideas on stronger, stricter banking supervision and resolution were only mentioned, we did not have a real discussion on it, but we will work on them in the upcoming weeks," said Mr Van Rompuy. Read More