“The aim is to finally reach an agreement on the ESM treaty reform and the early introduction of the backstop to the Single Resolution Fund,” a senior euro zone official taking part in the preparations for the meeting said.
They would also allow the ESM to lend to the euro zone’s bank resolution fund to wind down failing banks if, in a major banking crisis, the fund runs out of its own money.
Suddenly everyone is conscious that the next financial/banking troubles might not be such a distant prospect and so we need to be prepared to face it,” one euro zone official said.
“... there is a huge amount of technical work still to be completed (on EDIS),” the senior euro zone official said, noting differences in national rules on deposit insurance.
If there is agreement on Monday on the ESM treaty revision, euro zone governments would sign it in January and national parliaments would ratify it in 2021 so that it enters into force before the end of 2021.
Francois Lenoir, ”
EU, REUTERS, European Central Bank, Insurance
BRUSSELS, Brussels, Belgium, Europe, “