The EUROPEAN commission does not want to force into Sweden or other EU countries in the euro, but it will be more attractive to join in. At the same time, there is an urgent need to complete the banking union in order to increase resilience to new crises.
It said the EU ekonomikommissionär Pierre Moscovici at an SNS seminar in Stockholm on Thursday.
He noted that we now find ourselves in a situation with a wide-ranging discussion on the way forward for the EU and the EMU in particular, there is an ”option window” to strengthen cooperation. Hopefully, a decision can be taken at the december summit to take new steps.
A strong and stable EMU will benefit all EU countries. The deepening process must take place between all countries, both inside and outside the euro area.
He noted that EUROPEAN commission president Jean-Claude Juncker, declared recently that the euro is a currency for all the countries in the EU. The door is open for all countries that can and want to go with, it is a club which is open.
But he reiterated that he wants to be clear that the EUROPEAN commission does not want to, or have no ability to force countries in the eurozone who don’t want to go with.
The idea is to make the euro area so attractive so that everyone wants to go with.
”No one is forced, everyone is welcome,” he said.
He stated that at the time that efforts to strengthen the banking union should continue, it comes to reduce the ”moral hazard”-problem. The banking union is to prevent financial crises in the future. Important progress has been made towards a genuine fiscal union, with lower risk, safer institutions and a common strategy for dealing with bad loans.
”But it is urgent to complete the banking union,” he said.
We have already built a common banking supervision, and I think, in the form of the SSM, the SRM and the SRF. The creation of this common structure occurred against the background of a comprehensive tillgångsgranskning.
“The banking sector is now more solid than it was before 2008,” he said.
Two things are now required: to complete the joint deposit-guarantee scheme and to the completion of the financial support fund, SRF.
Risk reduction and risk sharing are related. Some banks continues to be burdened by bad loans, which suppresses the ability to lend and constitute a vulnerability for the euro area. It also requires a continued effort to reduce the link between banks states.
In the longer term , they want to also promote a discussion about the deeper sharing of risk, which may possibly give out common eurobonds, he said.
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