The United Kingdom has finally made a decision on the fate of the wished-for European banking union. Upon negotiating with the EU member states, London has lifted the objections and push towards the creation of the new financial regulatory body after it had received back-up for a declaration stating that voting rules agreed on for the EBA will be respected.
The final adoption of the law is on the agenda of today’s meeting of finance ministers in Luxembourg. Representatives of EU-28 are believed to sign off on the bill and kick-start the establishment of the banking union. European Central Bank Executive Board member Joerg Asmussen expressed his faith in the successful result of today’s meeting and said that the Union is making slow but steady progress on all elements of the banking union. He added that if there is a sound legal base created in Luxembourg, they can really speed up preparations, hire people and buildings. Mr. Asmussen called the UK’s lift really good news for the banking union.
EU finance ministers agreed last year that the European Central Bank (ECB) should be given more power in regulating eurozone lenders as a first step to be taken towards the creation of the banking union, which is believed to bring closer banks and sovereigns and bring confidence to investors.
The UK’s decision to send the draft of the banking union law to finance ministers, with the aim that it be favored without further talks, is a sign that London is close to being dealt with.
