• Germany edition
 
Merkel welcomes EU's new banking watchdog
Photo: DPA

Merkel welcomes EU's new banking watchdog

Published: 13 Dec 2012 10:36 GMT+01:00
Updated: 13 Dec 2012 10:36 GMT+01:00

German Chancellor Angela Merkel Thursday praised a new EU accord to create a supervisor to oversee banks across the eurozone and urged the release of urgently needed funds for Greece.

Addressing lawmakers in the Bundestag lower house of parliament, she said the deal clinched earlier in Brussels just hours before an EU summit was of inestimable value and had met German concerns.

"It cannot be valued highly enough that eurozone finance ministers agreed overnight on a legal framework and the outlines of a common supervisory mechanism for banks," she said.

And she thanked German Finance Minister Wolfgang Schäuble, saying that Berlin's "core demands" had been met in the agreement.

The complex bank supervision deal is a key step towards a banking union which EU leaders hope will ring-fence banks in trouble to prevent future crises.

It will allow eurozone banks to be recapitalised directly, rather than through governments, so as to avoid adding to their growing debt burden.

The European Central Bank (ECB) will manage the eurozone system in tandem with the London-based European Banking Authority, which covers all 27 EU states, and national supervisors.

From March 2014, banks with assets worth more than €30 billion or equal to 20 percent of a state's economic output will come under the ECB remit.

The ECB will also have to right to intervene in cases involving smaller banks but it is expected that national supervisors will have the main responsibility in this category.

Turning to Greece, Merkel said she hoped the Eurogroup would approve the payment of the next tranche of aid for Greece later on Thursday, adding "anyone dealing with Greece's circumstances knows that it is urgently necessary."

"The implemented buy-back programme of state bonds has provided an important contribution to the improvement of its capacity to bear debt," she added.

On Wednesday, Athens announced it had attracted offers worth €31.9 billion under the debt buy-back scheme.

The buy-back aims to cut Greece's debt by about €20 billion and is vital to unblock pending loans from the European Union and International Monetary Fund, which were frozen earlier this year owing to reform delays.

AFP/bk

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

18:34 December 13, 2012 by likosmokeses
Where is smart2012?
Today's headlines
Dortmund's Klopp again rules out Man U job
Photo: DPA

Dortmund's Klopp again rules out Man U job

Borussia Dortmund's charismatic coach Jürgen Klopp has reiterated he would not be joining Manchester United despite UK media reports linking him to the vacant manager's job following David Moyes' dismissal. READ () »

Minister's jet grounded twice in a month
Foreign Minister Steinmeier reboards his plane after the delay. Photo: DPA

Minister's jet grounded twice in a month

German Foreign Minister Frank-Walter Steinmeier had to wait for two hours on a runway on Wednesday night due to a technical glitch on his plane - the second problem the jet has had in a month. READ () »

German of the Week
'It's important people are confronted with cancer'
Photo: Marina Proksch-Park

'It's important people are confronted with cancer'

Images of children with cancer often evoke weakness and defeat. But Marina Proksch-Park shows them enjoying life. The photographer who has sparked an online campaign with her pictures is The Local's German of the Week. READ () »

CDU candidate forced to remove Turkish logo
Yasar Calik. Photo: Facebook/Yasar Calik

CDU candidate forced to remove Turkish logo

A Christian Democrat (CDU) town council candidate has apologized and withdrawn campaign bags on which he had printed a new party logo where the Turkish crescent appeared inside the "C" for Christian. READ () »

Cheap flights get pricier as airlines expand
Lufthansa's daughter company Germanwings is one of the faster-growing budget airlines in Germany. Photo: DPA

Cheap flights get pricier as airlines expand

Budget airlines are expanding their range of routes from Germany but ticket prices are climbing along with them, a report from the German Aeronautics Centre (DLR) revealed on Thursday. READ () »

Ecclestone lawyers: Bribes never happened
Bernie Ecclestone with his lawyers in a Munich court on Thursday morning. Photo: DPA

Ecclestone lawyers: Bribes never happened

UPDATE: Formula One supremo Bernie Ecclestone went on trial in Germany on Thursday, denying charges of bribery that threaten to land the British billionaire in jail. READ () »

Minister praises Erasmus 'success story'
Photo: DPA

Minister praises Erasmus 'success story'

A revamped version of European student exchange programme Erasmus officially launched in Berlin on Thursday with Germany's education minister praising the scheme as a Europe-wide “success story”. READ () »

Turkey tourists lose call to prayer refund bid
Photo: DPA

Turkey tourists lose call to prayer refund bid

A German couple has lost their legal fight to get a refund for a Turkish holiday which they said was ruined by the calls to prayer from a nearby mosque. It is just one of a series of court claims by picky German tourists. READ () »

Germany halts arms sales to Russia
Russian troops surround a Ukrainian base in Crimea. Photo: DPA

Germany halts arms sales to Russia

Germany has stopped selling arms to Russia due to the current “political situation”, according to reports on Thursday. The sale of military equipment to Russia by German firms has been criticized by the country’s Nato allies. READ () »

Truck kills man lying in middle of road
Photo: DPA

Truck kills man lying in middle of road

Police were searching for witnesses on Wednesday morning following a mysterious road accident in which a 25-year-old man was killed as he lay in the middle of the road. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
National
Germany sold €40 million of arms to Russia
Photo: DPA
National
Girls find live ammunition in Easter bonfire
Photo: Facebook/screenshot
Berlin
Germany's most viral advert for an apartment?
Gallery
11 things you need to know about German beer
Photo: DPA
Politics
Interview with AfD - 'If Britain goes, Europe is lost'
Photo: DPA
National
Police damage own water cannon with eggs
Photo: DPA
National
Let us start work later after World Cup nights, unions says
Photo: DPA
Society
Crystal meth use hits record level
Photo: DPA
Rhineland
Elderly man taped €200,000 to his genitals
Photo: DPA
Business & Money
What's the unemployment rate in your area of Germany?
Photo: Galerie Bilderwelt
Gallery
World War I in colour photos
Photo: DPA
Society
JobTalk: Why you should teach English in Germany
Advertisement:
Photo: DPA
National
330,000 sign up against TV licence fee
Photo: Submitted
Frankfurt
'I'll get even with my old pal Schwarzenegger'
Photo: DPA
Gallery
Ten great inventions you (probably) didn't know were German
Photo: J. Arthur White
Berlin
Clashes in Berlin as refugees tear down their own camp
Photo: DPA
Gallery
The 10 best German employers to work for
CurrencyFair
Sponsored Article
Why it pays to avoid banks when making overseas transfers
Mr. Lodge
Sponsored Article
How to find a furnished rental in Munich
Sponsored Article
How to make a lasting impression in business
Photo: DPA
Society
Nine jobs you can only do in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,072
jobs available
Toytown Germany
Germany's English-speaking crowd