• Germany's news in English

Merkel's partners oppose EU banking union

The Local · 6 Jun 2012, 17:17

Published: 06 Jun 2012 17:17 GMT+02:00

Facebook Twitter Google+ reddit

Several members of the pro-business Free Democrats (FDP) expressed their disapproval of the scheme, which Merkel herself has said could only be conceivable at the end of a long process of European integration.

A banking union would simply be "a new, admittedly creative, way to tap German solvency," said Christian Lindner, a leading FDP member, in the business daily Handelsblatt.

"Every eurozone country has to take responsibility for its own banks," added Lindner, one of the party's rising stars.

The FDP's parliamentary head, Rainer Brüderle, said a banking union "would give the impression that we don't have confidence in the mechanisms already in place."

Members of Merkel's own centre-right Christian Democratic Union (CDU) have also expressed reservations. CDU lawmaker Michael Fuchs insisted: "Our savers cannot be liable" for the deposits of people in other countries.

Speaking before a meeting with European Commission Jose Manuel Barroso on Monday, Merkel said that in the medium-term, Europe must clarify "to what extent we have to place systemically relevant banks under specific European supervision."

The Commission was due later Wednesday to release proposals to avoid taxpayer bailouts and ensure that essential functions - including working cash machines - are maintained in the event of a bank collapse.

The latest proposal to resolve the sovereign and banking debt crisis is to integrate the eurozone's national banking systems to prevent investor flight or bank runs in one country, such as ailing Spain, from dragging down the entire system.

Story continues below…


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

19:26 June 6, 2012 by Karl_Berlin
Quote: The FDP's parliamentary head, Rainer Brüderle, said a banking union "would give the impression that we don't have confidence in the mechanisms already in place."

We furking don't!
20:19 June 8, 2012 by raandy
Karl_Berlin I was just about to paste the same text.

This is the problem and the solution is leagues away,

"Every eurozone country has to take responsibility for its own banks," added Lindner, one of the party's rising stars. And when they collapse as in Spain , where is the liquidity going to come from? in a true union you would pool the debt, this is obviously not a true union. people in solvent countries cheer, and those in insolvent countries cry for Euro bonds.
13:25 June 9, 2012 by AlexR

When Lindner says that "Every eurozone country has to take responsibility for its own banks," this is simply pure ignorance or extreme hypocrisy. And since Lindner can't be so ignorant, I suppose that he's just hypocritical.

When he says that "every eurozone country has to take responsibility for its own banks", he actually means that "every tax payer/citizen of eurozone has to take responsibility for the banks' huge failures".

For more than a decade the banks were granting huge loans to the PIIGS and the rest (countries, companies, individuals) while being completely aware that at least the PIIGS economies were not robust enough and the "lending bubble" could burst in case that the economy gets worse. This isn't called "responsible lending" in my books, it's called "gambling".

After the bubble burst in US and spread fast in Europe the banks refused to take any responsibility for their gambling and transfered the responsibility, with the help of the politicians, to the tax payers. All those big bailout packages to Greece and the rest of the PIIGS, which are combined with harsh austerity, are not actually go to bring their economies in order, since more than 90% of the money go back to those banks to pay the previous loans.

And the irony of this is that while for 3 years are continuously bombarded by the media with the "profligate PIIGS", there are very scarce reporting about the "profligate banks" that are the other partner of the story. For example, in the media there was thousands of articles and huge outcry for the last two years about the 130 billion euro bailout package for Greece but only few reports that almost went unnoticed that in just two months (January to February) the ECB gave 1.3 *trillion* euros of tax payers money to the European banks.
13:59 June 11, 2012 by Sastry.M
May be presently the time is ripe for drawing up a Swindler's L:ist of International Speculative Bankers.
Today's headlines
Outrage over ruling on 'brutal' gang rape of teen girl
The now convicted suspects, sitting in court in Hamburg. Photo: DPA.

A 14-year-old girl was gang-raped and left partially clothed and unconscious in freezing temperatures. Now prosecutors are appealing the sentences for the young men found guilty, most of whom will not set foot in jail.

Dozens of Turkish diplomats apply for asylum in Germany
Demonstrators holding a giant Turkish flag protest against the attempted coup in Istanbul in July. Photo: DPA.

Since the failed putsch attempt in Turkey in July, Germany has received 35 asylum applications from people with Turkish diplomatic passports, the Interior Ministry confirmed on Wednesday.

Hertha Berlin fan club criticised for 'anti-gay banner'
Hertha BSC beat FC Cologne 2-1. Photo: DPA

A 50 metre fan banner apparently mocking the idea of gay adoption has overshadowed Hertha BSC's win in the Bundesliga.

Germany stalls Chinese takeover of tech firm Aixtron
Aixtron headquarters in Herzogenrath. Photo: DPA

The German government on Monday said it had withdrawn approval for a Chinese firm to acquire Aixtron, a supplier to the semiconductor industry, amid growing unease over Chinese investment in German companies.

Politicians call for tough sentences for 'killer clowns'
File photo: DPA.

Now that the so-called 'killer clown' craze has spread from the US to Germany, elected officials are drawing a hard line against such "pranks", with some threatening offenders with jail time of up to a year.

Nearly one in ten Germans are severely disabled
Photo: DPA

New figures reveal that 9.3 percent of the German population last year were considered severely disabled.

The Local List
Germany's top 10 most surreal sites to visit
The Upside-Down House, in Mecklenburg–Western Pomerania. Photo: Olaf Meister / Wikimedia Commons

From upside-down houses on Baltic islands to a fairy-tale castle near the Austrian border, Germany is a treasure trove of the extraordinary.

Bavarian critics back Merkel for Chancellor again
Photo: DPA

The Christian Social Union (CSU) have long delayed backing Angela Merkel as their candidate for Chancellor in next year's general election. But now key leaders are supporting her publicly.

Four taken to hospital after hotel toilet bursts into flames
File photo: DPA.

Four guests at a Nuremberg hotel were taken to hospital due to smoke inhalation early Monday morning after a toilet there burst into flames.

Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German towns, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd