Weakened Scholz Puts Brakes on Eurozone Reform

Hopes of striking a grand bargain over the eurozone’s banking union project are in tatters. Coalition woes in Italy and Germany, arguably the two most significant countries in the eurozone’s integration battle, have put the brakes on an elusive compromise that EU finance ministers had hoped to seal this afternoon, the Financial Times reported. It was only last month that Brussels was awash with tentative optimism over Germany dropping longstanding red lines over the vexed issue of European Banking Deposit Insurance (EDIS). Olaf Scholz, German finance minister, won widespread praise for attempting to unblock the impasse on EDIS with a series of quid pro quo offers to Rome and other southern eurozone countries. Read more