Debt crisis: Bundesbank scuppers all talk of EU banking union
Germany’s central bank has shot down EU proposals for a European banking union, warning categorically that eurozone liabilities cannot be shared without a fundamental shift towards fiscal and political union.
The Bundebank’s vice-president Sabine Lautenschlaeger hammered home the point in what is a clearly co-ordinated push to kill the plan. “The result would be a pooling of the governments’ liabilities through the back door,” she said. Photo: Alamy
By Ambrose Evans-Pritchard, 9:20PM BST 12 Jun 2012 –
Andreas Dombret, a key board member of the Bundesbank, said the grand plan by Brussels is premature and unworkable as constructed.
“It has to follow a deeper fiscal union as it would imply significantly increased risk sharing amongst countries,” he told a Bank of America conference in London.
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