Eurozone Ministers Divided Over Banking Union Negotiations

Brussels has warned that member states are sharply divided after Eurozone finance ministers failed to agree on plans to accelerate the introduction of a bloc-wide banking union, casting doubt over completion of the project, the Financial Times reported. The planned “road map” for banking union was devised during the sovereign debt crisis to boost financial stability by centralising supervision and crisis management of banks. As part of the plan Germany proposed to introduce a deposit insurance scheme, but this was met with opposition from Italy, among other member states. Paolo Gentiloni, the EU’s economy commissioner, said German finance minister Olaf Scholz’s proposal had been useful in the debate but some of the conditions introduced by Berlin were “unacceptable” for some other member states, adding: “This was made very clear yesterday in the discussion.” Read more