Tuesday, October 9, 2012

Germany demands more power on banking

Germany is demanding greater power on the board of the eurozone’s new bank supervisor, a politically charged request that further complicates Europe’s fractious talks on a banking union.


Berlin’s proposal for voting weights to match the bigger size of its banking sector gives voice to longstanding German concerns about being outgunned under the European Central Bank’s one-country one-vote governance system.

But the idea – raised privately in talks with European officials – touches on some of the founding principles of the single currency and is likely to rile smaller eurozone countries fearful of Germany’s growing willingness to flex its muscles. Read More