Scaring away the specter of the financial crisis has been the leitmotiv of the EU since the collapse of the Silicon Valley Bank on March 13 and the European leaders have conspired to do so during their meeting in Brussels these days. But they have not had it easy. While the heads of the Executives of the euro zone were meeting with the president of the European Central Bank at the euro summit, the Deutsche Bank collapsed in the stock market dragging the rest of the European banks. There has not been the traditional press conference after the appointment, but both the heads of government and Christine Lagarde herself, in her case behind closed doors, have insisted on the “resilience” of the sector.
EU leaders conspire to scare away the specter of the financial crisis
Further
“The euro area banking sector is resilient because it has strong capital and liquidity positions. The banking sector in the euro area is solid because we have applied the internationally agreed regulatory reforms to all of them after the financial crisis”, was Lagarde’s message, according to EU sources present at the meeting.
The German Chancellor, Olaf Scholz, has also sent a message of calm by assuring that “there is no reason” to be concerned: “It is a very profitable bank.” “For years we have made the right decisions to stabilize the banks in Europe”, the Social Democrat said at the press conference after the European Council: “The European banking system is robust and stable and we have the necessary supervision structures”. “The foundations of European banks are solid and we can celebrate the requirement of the regulations on the matter,” said the Frenchman, Emmanuel Macron, according to Europa Press.
Duties: complete the banking union
In the Spanish government they have also been saying for days that the concern in the case of the banks is “zero”. “From the point of view of today’s turbulence, there has been no change in the position of the leaders”, Pedro Sánchez stated about the five paragraphs of the declaration of the euro summit.
The main message left by the chief executives is the need to complete the banking union, which is one of the pending duties after the 2008 crisis. “The banking union has greatly strengthened the resilience of the EU banking system. Our banking sector is resilient, with strong capital and liquidity positions. We ask that the efforts to complete our banking union continue, ”says the text of the conclusions.
Lagarde has also insisted on that idea. “Recent developments [ha dicho sobre el colapso del Silicon Valley Bank y el posterior crisis de la entidad Credit Suisse] they remind us how important it has been to continually improve regulatory standards. Now we need to make progress in completing the banking union”, she has expressed.
The call is for the creation of a deposit guarantee fund at the European level, which is opposed by Germany, which does not want to pool risks. “I have logically proposed that we have a European guarantee fund, because that would raise greater confidence in the markets and our citizens and would avoid the risk of fragmentation in Europe”, Sánchez replied.
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