-
THE DRAWBRIDGE MENTALITY, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
A united front of German banks has opened up, refusing any kind of interference from a supervisory body – in this case the ECB – due to their little idiosyncrasies and their little hidden frailties, but also the risk of being made to contribute via a European fund to the saving of other countries’ establishments. The savings banks, mutuals and regional banks (Landesbanken) which comprise it represent 70% of the deposits held in Germany.
Talking of deposits, the prospect of a separation of deposit activities from speculative activities has … Read the rest
-
THE WINDOWS MUST REMAIN CLOSED, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
By rejecting the quartet’s plan, (which has, moreover, already been watered-down) before the summit has even been held, the German deputy foreign affairs minister, Michael Link has placed himself in the avant-garde of all those opposing any attempt at a compromise. The “iron chancellor’s” hard-line approach has not changed: political union first, but not yet, and possibly the rest after that. There is a risk that the only thing left of the elaborate construction, already proposed only in its broadest outlines (even for that of the banking union component) is the … Read the rest