The EU wants to tackle the Problem of failure of endangered loans at Europe’s banks stronger. The Union’s Finance Ministers agreed on an action plan with work orders for the coming years.
Money houses in the EU, as a legacy from the financial crisis and the subsequent host lull sheep still push Problem-loans in the volume of almost a trillion euros. This dampens your ability to lending and decelerates according to experts, the economic growth in the countries of the community.
This mountain as fast as possible removed. Federal Finance Minister Wolfgang Schäuble and his colleagues decided in Brussels, an action plan, which aims to strengthen, among other things, the supervision and rules for the creation of so-called Bad Banks unify. “You have to do it carefully, but you have to take it,” said Schäuble.
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Mountains of debt as high as the Alps
According to a study by the EU Council, the member States, the volume of non-performing loans amounted at the end of 2016 to around 990 billion euros. These are approximately 6.7 percent of the total economic output of the EU. Thus, the Europeans are significantly worse than other Economic heavyweights: In the United States, there are 1.7 per cent and in Japan by 1.6 percent.
The highest proportion of bad loans in the EU in the two during the Euro-crisis just on the state of bankruptcy over scarred States of Greece (45.9 percent) and Cyprus (44.8 percent). Then, Portugal (19.5 percent) and Italy (15.3 percent).
No European Bad Bank
Schäuble urge in addition to more uniform national bankruptcy rules for smaller banks, which do not fall under the EU rules for large banks. The recent bailouts in Spain and Italy have shown that there are differences, urgently needed harmonisation. Schäuble praised but in the case of Italy in the recent cases of Crisis.
A billion-dollar injection of capital of Italy had supported the tradition Bank Monte dei Paschi di Siena, which also suffers from high levels of bad loans.
Plans for the establishment of an EU-wide “Bad Bank”, which buys bad loans and then sold them to investors, on the other hand are, for the first time from the table. Instead, the Ministers agreed to a blueprint for the creation of national collecting societies (AMC) for the making of such loans. This can then be converted into national “Bad Banks”, the problem loan rates buys for the Institute is more advantageous. In the process, representatives must be adhered to according to the EU, but the strict requirements for state aid.
The financial transaction tax does not only comes once
The European financial transaction tax is postponed for the time being. Schäuble confirmed that France has asked, first of all, to be seen and the consequences of the EU to assess Britain’s withdrawal in more detail. Germany further to the introduction of the tax, said the CDU politician. “We do everything so that it comes off, it stays that way.” But it was “a hell of a difficult matter”.
The tax on stock exchange transactions is discussed since the global financial crisis, intense. After a global introduction was not possible, wanted Germany and France to enforce the tax at the European level. In 2014, eleven EU countries agreed to start in 2016. But by the end of 2015 Estonia jumped, and the schedule was shaken. The remaining ten EU countries are still struggling to a common concept.
The SPD MEP Udo Bullmann, protested against the new shift and accused France to be in front of the “Bank lobby” bends. “The justice of a tax should not be put on the back burner,” he said in Brussels. The levy is to make speculation less attractive, and so the financial markets will stabilise, but also bring additional revenue. Last week, 52 international experts had insisted on a rapid implementation.
The Dutch Finance Minister Dijsselbloem is also R group-in-chief of the Euro. For him, a successor is sought
Personal speculation brakes ‘ commitment to reform
The topic of the Minister of Finance, the debate on the deepening and Reform of the Eurozone was, according to schäuble’s words. Changes are of great importance in order to strengthen the economic and monetary Union, said the CDU politician. “We all want Europe to act.” Resolutions there were not.
The Austrian Minister Hans Jörg Schelling has positioned itself clearly against the proposal of a permanent President of the Euro group. Schelling said, the current solution with an alternate head from the ranks of the Euro Finance Ministers was good. The question according to their own ambitions to the Post he called speculation.
The new Chairman, Jeroen Dijsselbloem, must vacate the Post because he does not belong to an electoral defeat of his social Democrats in the Netherlands, the next government according to the current state. At the latest, in January, his current mandate runs out.
dk/sti (dpa/afp/rtr)