Denmark, one of the few European nations that has allowed some of its banks to fail, is pushing hard for strict rules in all 27 countries.
“Beyond our main point that banks will have to pay for themselves, we believe rules must apply for everybody and competition must be equal,” Danish Economy Minister Margrethe Vestager said on June 24.
Swedish Finance Minister Anders Borg countered that nations, especially those outside the euro zone, need to be able to step in when financial stability concerns become paramount. “Rigid” rules would increase credit risks and imperil economic recovery, he said yesterday.
“We cannot go into a banking resolution with a straitjacket on,” he said. “Dealing with crisis, you need a certain degree of flexibility.”
ECB President Mario Draghi said in Paris today that “it’s very important that whatever regulation finally comes out is mindful of creating a situation of order.”