(MENAFN) The European Commission proposed on Wednesday softer measures to strengthen the EU banking sector against future crises, after two years of fruitless talks among the 28 EU states on more ambitious plans.
The watered-down proposals are designed to win over Germany, the largest economy of the bloc and the staunchest opponent of sharing banking risks among EU states, but they were quickly dismissed by the German banking lobby.
The proposals could also create frictions with the European Central Bank over the pace of reduction of banks' exposure to bad loans.
Germany's outgoing finance minister, Wolfgang Schaeuble, has repeatedly raised concerns that sharing risks would mean richer German banks propping up weaker rivals in other EU countries, such as Italy, Portugal or Greece.
MENAFN1210201700450000ID1095943648
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.