Why Germany Should Embrace a Banking Union Good News About Bird Flu

摘要

Germany is hitting the brakes on a banking union crucial to the long-term survival of the euro on the grounds that it needs a better legal foundation. That position would be a lot more convincing if Germany were doing more to reduce the threat its largest financial institutions pose to the European economy. The banking union, which European Union leaders agreed in December to create, is supposed to help sever the unhealthy link between banks and governments. Empowering the European Central Bank to supervise financial institutions throughout the euro area could discourage cozy and often corrupt relations at the national level between banks and politicians.