Brussels, 29/01/2016 (Agence Europe) - On Thursday 28 January, several social democratic leaders called for a more progressive economic and monetary union (EMU) that they say should begin with completion of Banking Union in the eurozone.
“We hope for rapid progress in agreeing a deposit insurance scheme for the eurozone to improve the stability of the financial sector,” explained MEP Maria João Rodrigues (S&D, Portugal) in a press release. Fellow Portuguese member of the same group at the European Parliament Elisa Ferreira has been given the task of piloting talks on the European deposit guarantee system (EDIS). At the EU Council of Ministers, where Germany has questioned the legal basis of this draft legislation, a special working group has been set up to negotiate and identify initiatives in parallel that could scale back the financial risks (see EUROPE 11448).
Rodrigues added: “We also insist on moving ahead with discussions on a eurozone fiscal capacity that would enable greater economic convergence and safeguard the wellbeing of our citizens during future economic shocks.” Such a move would no doubt require a change in the European treaties, a challenge that France and Germany are not prepared to take on at this stage. During his New Year speech to French ambassadors, the French president, François Hollande, announced Franco-German EMU proposals by the end of the year (see EUROPE 11474). (Original version in French by Mathieu Bion)