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2013.06.21 13:39

Minister of Finance calls for EU Agreement on banking resolution

DELFI|The Lithuania Tribune2013.06.21 13:39

Lithuanian Minister of Finance Rimantas Šadžius has called on the EU Economic and Financial Affairs (ECOFIN) Council in Luxembourg on 21 June, 2013 to focus on bank restructuring financed by the banking sector and urged to have an agreement on Friday. 

Lithuanian Minister of Finance Rimantas Šadžius has called on the EU Economic and Financial Affairs (ECOFIN) Council in Luxembourg on 21 June, 2013 to focus on bank restructuring financed by the banking sector and urged to have an agreement on Friday.

Efforts are made that the restructuring of the banks encountering problems would be financed by this sector, not by taxpayers. Bank recovery and resolution is the main item in the very busy agenda of this Council, a week before the discussion in the European Council. It is very important that we reach a general approach on Friday,” said Minister Šadžius.

The proposal on the Bank Restructuring Directive, submitted a year ago by the European Commission, aims at embedding new preventive, early intervention and restructuring instruments, designating national institutions responsible for their application, establishing Funds for financing restructuring instruments. It is one of the elements of the establishment of the EU Banking Union.

The agreement by the EU finance ministers would signal a start of negotiations with the European Parliament. The directive is among the priorities of the Lithuanian Presidency of the EU Council, which will start on 1 July.

The ECOFIN is also to approve Council recommendations for the EU Member States as part of the European semester of economic and financial policy coordination and surveillance.

Recommendations for Lithuania in 2013–2014 include the need to secure fiscal consolidation for economic growth, revise some elements of the tax system, continue work on the pension reform, reduce social exclusion and promote measures improving energy efficiency of buildings.

The Council is also expected to end the excessive deficit procedure for Lithuania, Latvia, Hungary, Italy and Romania, countries that have attained their budgetary goals. The Council should extend the deadlines to correct excessive deficits for Spain, France, Portugal, Slovenia, Netherlands and Poland while also initiating the excessive deficit procedure for Malta and giving notice to Belgium to undertake additional measures to correct its deficit.

The Council is also expected to adopt the recommendation on Latvia’s accession to the euro area from 1 January, 2014 (only Member States whose currency is the euro vote), to be further discussed later by the European Council.

In the margins of the Council, minister Šadžius is to sign an agreement on avoidance of double taxation with his Cyprus colleague Harris Georgiades.

On 19 July in Brussels, minister Šadžius has met with the Chair of the European Parliament Committee on Regional Development Danuta Hübner as well as members of the EP Committee for Economy and Monetary Affairs Wolf Klinz and Sylvie Goulard.

  

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