The Professor is not there. Italian premier Mario Monti does not like the idea of creating an EU fund for the restructuring and resolution of banking crises. A project that he judges "not very ambitious". The proposal was contained in the report presented two weeks ago by the big four of the Union: the president of the European Council Heman van Rompuy, the number one of the Commission José Manuel Barroso, the leader of the Eurogroup Jean-Claude Juncker and the head of the ECB Mario Dragons.
“For Italy – Monti said today during the Ecofin meeting – the Commission's proposal is certainly a step in the right direction, but it is still based on a decentralized approach, both as regards the resolution fund and its financing, And it is not ambitious enough to address the current sources of instability” on the markets.
The Commission's idea would be to establish common criteria and forms of cooperation, including mutual loans, between national bank resolution funds. There would therefore be no centralized European fund.
“At the June summit – added Monti – the leaders of the Eurozone adopted a more advanced general framework on the road to integration, immediately requesting the establishment of a centralized supervisory mechanism. And in the report of the four presidents there is a clear vision on single banking supervision, which is accompanied by a resolution fund, combined with a deposit guarantee scheme”.
According to the Premier, "this more comprehensive approach could help prevent new crises in the future". In short, "it is essential to have indications so that the Commission's current proposal is in line with the more ambitious approach proposed by the Van Rompuy report", concluded Monti.
