German Politicians Reach Agreement on Banking Union

Angela Merkel’s conservatives and the Social Democrats (SPD) have struck a deal on the contours of a European banking union under which a body attached to the Ecofin council – not the European Commission – would decide when to close failing banks.

Several sources involved in coalition talks between the parties told Reuters the two camps had also agreed that funds from the European Stability Mechanism (ESM) should not be directly available for winding down financial institutions.

The sources said a number of legal questions still needed to be resolved. But the goal is to sign off on the agreement early next week so that Finance Minister Wolfgang Schaeuble can go to a meeting with his EU colleagues on Thursday with a firm German position on the issue.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza