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A fresh approach to complete the banking union in the eurozone

A fresh approach to complete the banking union in the eurozone

A fresh method of complete the banking union in the Eurozone

Negotiations on the banking union in the Eurozone have already been stuck since the Italian government assembled a blocking minority opposing further discussions on proposals to lessen legacy risks in banks’ balance sheets. This column argues that completing the banking union should once more get priority, and that the European deposit insurance scheme could progress immediately by giving in its early phase that the ESM would provide a liquidity line to national deposit guaranty schemes that had exhausted their funds, without sharing of losses.