The Euro has weakened for a fifth consecutive day against the Pound and the European Union’s plan for a banking union suffered a new delay after Germany and Finland opposed the European Commission’s role in banking decisions.
The European Parliament today approved legislation that would allow the European Central Bank to oversee the Eurozone’s banks, a move that ECB President Mario Draghi hailed as a real step towards establishing a fully fledged banking union. The plan hit a snag however when Germany and Finland voiced their concerns over the role the European Commission would play, in particular the two nations believe that the EC should not have the final say on when and how a bank in the Eurozone would be closed.
In July the EC said that it should have the final say on banks that have gotten into trouble at a European level however Germany insists that such action should be taken on a national level.
“Resolution should generally be done by national authorities and not by the EU Commission,” German Finance Minister Wolfgang Schaeuble told the Boersen Zeitung newspaper. “It is not an appropriate central resolution authority.
“Instead, where necessary in disputed cases, a central resolution board should be able to take binding decisions when there are conflicts between national resolution authorities,” he said.
EU ministers plan to reach a deal on how to set up the single resolution authority by December, when they would start negotiations on the issue with the European Parliament.
Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3261 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8361 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4339 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6287