The EU’s state aid rules and by the rules were followed then the two Italian banks were rescued in June.
But there is reason to review and strengthen the legislation, particularly in light of the large differences between euro area countries national legislation.
It said the president of the eurogroup Jeroen Dijsselbloem at a press conference after the eurogroup meeting on Monday.
He defended the ECB’s and the commission’s decision to allow Italy to use national law rather than EU bankkrislagstiftning.
”The decision was taken within the legal framework. The eurogroup did not criticise the decision of the authorities,” he explained.
The extent to which banks ‘ creditors must take losses (bail-in) depends on the legal framework used, said Jeroen Dijsselbloem.
With the Italian legislation, it became less.
But he promised to hold discussions in the future about how the harmonisation of national insolvency laws can be accelerated.
The eurogroup also discussed the action plan for measures against the banks ‘ bad loans.
There was not enough support to create a european bad bank.
”A single solution for all does not work. The extent of bad loans is very different between countries and between banks,” said Jeroen Dijsselbloem.
Within a country, a centralized management of the bad loans in a bad bank to be effective, but not at EU level. The euro countries are too different. Loans to small businesses in Italy are a different essence than a loan to small businesses in Ireland.
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