EU finance ministers start descending on Brussels this evening for what is expected to be at least two days of marathon negotiations over the second leg of the EU’s nascent banking union: a new agency to deal with failing banks and an accompanying rescue fund to recapitalise them or wind them down.
Senior EU officials have begun to worry that, despite this being the second such gathering in as many weeks, differences are still so significant that a deal may not get done by the time the ministers’ bosses – the EU’s presidents and prime ministers – arrive in Brussels Thursday for their own end-of-the-year summit.
But if it falls to them, officials say the heads of government are unlikely to make final decisions on the resolution system at their two-day summit – and would only set new political parameters for their finance ministers, who might be forced to come back to Brussels over the winter holiday. Joy to the world.
So just where are the differences? The Lithuanians, as holders of the EU’s rotating presidency, helpfully produced a 19-page note for all delegations heading into tonight’s start of the talks, which Brussels Blog got its hands on and posted here. A summary on its main points after the jump. Read more