|
He said the idea to expand the role of the euro zone's bailout
fund known as the European Stability Mechanism, making it also a
common backstop for the Single Resolution Fund for banks, had
now wide-ranging support within his Eurogroup.
The EU's bank-financed rescue fund for failing lenders was set
up as part of a banking union plan during the financial crisis,
but it still does not have enough cash to cope with a large
banking crisis, meaning it would require a safety net.
The backstop issue, along with a common insurance scheme for
European depositors, had long blocked the completion of the
banking union, but a recent about-turn in Europe's powerhouse
Germany in support of a backstop has opened the way for a deal.
Speaking at a conference in Lisbon, Centeno said "only some
details need to be fine-tuned in the negotiations such as the
decision process in using the backstop and its introduction
date, which could be before 2024".
"But I expect that at the end of the month we could have an
agreement in principle. It will be just a step, but it will
change the way investors evaluate the risk of a banking crisis,"
said Centeno, who is also Portugal's finance minister.
He also expected the June 28-29 European Council meeting to
advance reforms of the bailout fund, which should provide it
with more powers and instruments, such as a euro zone budget for
investment and stabilization, as well as crisis-management and
crisis-prevention roles.
(Reporting By Andrei Khalip and Sergio Goncalves; Editing by
Toby Chopra)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
|
