A prerequisite for the success of the banking union is that sound, economically reasonable conditions are created for all participants. After all, the banking union is a form of insurance. As with any insurance policy, only losses and damages that were not already known before the policy was concluded may be covered. Therefore, legacy risks, namely those risks that have accumulated under the responsibility of national supervisory authorities, must also be borne by the respective member states. It is not acceptable for banks in Greece, Cyprus, Spain or Portugal that are close to collapse to be restructured by the banking union, and even more so without the refinancing costs of these institutions increasing as a result and the capital owners having to accept losses. That would be tantamount to a bail-out. – It may be that a transfer union is seen as desirable or unavoidable. But then it must be approved by the national parliaments and not under the guise of a banking union.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
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