EU fi­nan­cial min­is­ters clash over bank su­per­vi­sor plan

Ger­many balks at cen­tral con­trol while some na­tions call it ‘es­sen­tial.’

Austin American-Statesman - - BUSINESS - Europe Ital­ian Fi­nance Min­is­ter Vit­to­rio Grilli (left) talks with Dan­ish Fi­nance Min­is­ter Mar­grethe Vestager dur­ing the EU fi­nance min­is­ters meet­ing in Brus­sels on Tues­day. Un­able to agree on the is­sue of a sin­gle bank reg­u­la­tor, they will meet again Dec.

BRUS­SELS — Fi­nance min­is­ters of the Euro­pean Union locked horns Tues­day over the cre­ation of a sin­gle bank­ing su­per­vi­sor for the euro area, which is sup­posed to be a key tool for avoid­ing fu­ture fi­nan­cial crises.

The union’s lead­ers agreed in June to cre­ate the sin­gle reg­u­la­tor un­der the aegis of the Euro­pean Cen­tral Bank. Shortly af­ter­ward, the Euro- pean Com­mis­sion pro­posed phas­ing in the sys­tem start­ing Jan. 1.

But sharp di­vi­sions have emerged among mem­ber states over how many of the 6,000 banks in the euro area should be cov­ered by the new sys­tem; how to en­sure that coun­tries out­side the sys­tem have a way to re­buff reg­u­la­tions they dis­like; and how to en­sure that the cen­tral bank keeps mon­e­tary pol­icy sep­a­rate from its de­ci­sions on bank su­per­vi­sion.

As min­is­ters strug­gled to reach agree­ment dur­ing their

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