Nearly six months after knuckling down to work on the next stage of overhauling EU bank rules, finance ministers will meet in Luxembourg on Friday to acknowledge that they aren’t where they want to be.
Rather than being able to hail progress in the next steps of the euro area’s ambitious “Banking Union” reform programme, instead they have to tackle fundamental splits over how to take the project forward. If they can.
The divisions are laid bare in a package of documents prepared by the Netherlands, which holds the rotating presidency of the EU, and which is trying to chart a course for future negotiations before handing the reins over to Slovakia at the end of the month.
To pick through the splits, the FT Brussels blog has posted an annotated copy of the main Dutch document here (just click on the parts highlighted yellow:)
At the centre of the ruckus is the Commission’s proposal for the euro area to create a centralised system to guarantee bank depositors, known as the EDIS.