Doubts plague Europe’s pledge for banking union

By John O’Donnell – Concerns are growing among European investors and lawmakers that plans for a eurozone banking union will end up half-baked, with the financial backstops required to underpin the ambitious scheme unlikely to be in place for years.

“Originally the idea of a banking union was to have deposit guarantees to stop the outflow of money from Spain,” said Sharon Bowles, who chairs the European Parliament‘s influential economic and monetary affairs committee.

“But they are shying away from mutualization and all you are left with is supervision, which if left on its own would have more drawbacks than benefits. It could split the (EU) single market.” more>

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