A grave mistake’ Germany FURIOUS as Italy allowed to break EU banking rules
GERMANY has lashed out at bureaucrats in Brussels after it allowed Italy to bend official rules, clearing Rome to pump billions of taxpayers’ cash into struggling banks.
By LANA CLEMENTS: published 19:19, Tue, Jun 27, 2017
Politicians in Berlin said the European Commission made a “grave mistake” that “discredited” the EU’s banking union when it allowed Italy to side-step official rules.
Bank investors are now supposed to swallow some losses if state cash is used to bailout or rescue banks.
But Rome has resisted the rules, as many retail investors are ordinary Italian savers who would be set to stage a fierce backlash against the Government in the event of suffering losses.
Over the weekend, Italy’s government was allowed to cut a deal that will cost it £14billion (€17bn) as the good assets of failed lenders Popolare di Vicensa and Vento Banca are taken over by the country’s biggest retail bank Intesa Sanpaolo.
Markus Ferber, an ally of German chancellor Angela Merkel said the deal means that “the promise that the taxpayer will not stand in to rescue failing banks any more is broken for good”
German chancellor Angela Merkel last year ruled out a state rescue of Deutsche Bank amid fears the lender looked close to the brink.
And last month Spain adhered to rules, as Santander bought toxic lender Banco Popular for a nominal €1, in deal that saw shareholders lose everything.
It’s thought Italy may have been allowed to bend rules to help the pro-EU government amid growing support for the anti-Brussels 5-Star movement.
But across the eurozone, and especially in Germany, the move has created anger.
Carsten Schneider, a Social Democrat Bundestag whip and budget policy expert,said: “This decision will discredit continuing the completion of the banking union and moves the common deposit-guarantee scheme into the distant future.
“It cannot be that bank wind-downs under national rules offer better conditions for creditors than under the European regime
He added that the Italian government’s decision was “a grave mistake”.
Philippe Lamberts, a Belgian Green party member of the European Parliament negotiated and helped write the banking law introduced last year, told the Financial Times: “It was all for nothing.
“This is a bad day for Europe. It’s another hit to European Integration.
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Happy Independence Day
One year on from the UK voting to Leave the European Union.
June 23, 2017
It was a year ago today that Nigel Farage dared to dream and the British people voted for an independent United Kingdom.
Defying the odds and defeating the establishment, June 23rd 2016 saw the country rise up and vote for Britain to take back control of borders, money and laws.
It was a truly astonishing, truly historic day that will go down in the history books as a turning point in the history of our country, Europe and even the world.
Never let us forget what what this democratic uprising was about: a self-governing United Kingdom out of the single market, out of the customs union, free to negotiate global trade deals and able to control migration, bringing it down to sensible, sustainable levels.
Whilst establishment politicians do all they can to backslide on Brexit, the country whether having voted Leave or Remain, is now largely united behind Britain’s Brexit future. It is incredibly exciting. We must now hope the politicians do not betray the people and that we can look forward to an exciting new chapter of our country’s future unfolding over the next few months and years.
Westmonster will be there, covering every twist and turn, every step of the way.
Happy Independence Day.
EU Army plans risk muddying lines of command and fragmenting unity
Published Jun 21, 2017
UKIP MEP Bill Etheridge, the party’s Defence Spokesman, lambasted the EU today as the threat of a European Army marched ever closer.
One of Germany’s most senior defence officials became the latest to add his voice to calls for a European army.
Hans-Peter Bartels, Germany’s national defence commissioner, called for NATO’s EU members to organise their militaries into a single force.
Mr Bartels used the criticism of President Trump as justification, saying Europe’s defences were “too fragmented”.
Mr Etheridge, MEP for the West Midlands, said: “From Nick Clegg’s ‘Dangerous fantasy’, we see the reality taking shape.
“Bring the EU NATO forces together under one umbrella, risks muddying the lines of command and fragmenting the unity that has prevented a world scale war for more than 70 years.
“This just shows why it is so important to get a clean Brexit. Imagine our armed forces, instead of swearing allegiance to the Queen, doing the same to a cognac-swilling Jean-Claude Juncker!”
Mike Hookem condemns plans for a EU Army – UKIP