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Less than a month before the decision-making summit on euro area reform, the European Commission presents a report showing the most reluctant countries that much has already been done in terms of risk reduction and that it is time to accelerate. the conclusion of the banking union.
"The work has been slow," said Vice President of the European Commission for the Euro during an interview with reporters in Brussels, which also involved Expresso. For Valdis Dombrovskis, the discussions are not blocked, but countries must make considerable efforts to advance the various issues.
The creation of a European Deposit Guarantee Scheme (EDIS) continues to be a mirage and poor credit ratios in countries such as Greece (44.9%), Cyprus (28.1), Portugal ( 11.7%) and Italy (10%) do not help speed up the process.
The figures, available on the website of the European Central Bank, however, show a positive downward trend. In the case of Portugal, the ratio of poor loans to total loans is more than four percentage points below 15.5% a year ago. The EU average also fell from 4.6% to 3.4%.
The non-performing loans (NPL) continue to fall substantially, "said Dombrovskis, citing a general trend, while in Portugal there is also a positive trend towards reducing bad debts in the banking system, but stresses the need for more initiatives. for example, to accelerate the restructuring of credit or the sale of non-performing loans.
The Portuguese problem is that, despite the continuing decline, the proportion of poor credit remains well above the EU average of 3.4%. High ratios remain behind countries such as Germany, the Netherlands or Finland, which are below this average and who are resisting the continuation of bank risk sharing projects, including the creation of banks. 39, a common guarantee of deposits.
On Wednesday, the Commission takes another step to convince the most skeptical when publishing the report. "Progress has been made in reducing risk, and we believe this allows us to move towards risk-sharing elements," Dombrovskis said.
The message is political and important, but the Vice-President of the Commission also knows where are the negotiations between the finance ministers led by the president of the Eurogroup, Mario Centeno.
Valdis Dombrovsksis knows that the creation of a "political roadmap" for the implementation of EDIS is on a "slower trajectory" and that it is well below what the proposals of Brussels were to conclude what is considered an important pillar of the Banking Union. Only a European Deposit Guarantee Scheme can guarantee Portuguese, German or French depositors.
Last year, Brussels again proposed that the EDIS system be implemented in a "more progressive" way, which, in the first phase, was intended only to support liquidity, without involving the controversial pooling of funds. banking risks. "But here too, the discussions were slow," Dombrovskis admits.
The creation of a brake is more advanced (security net) to the Single Resolution Fund. You can receive the final blessing of the heads of state and government at the December 14 eurozone summit. When it is operational – and it is said that this could be before 2024 – the financial support mechanism of last resort will allow that in the event of a very serious banking crisis, it is not the citizens who pay the redemptions. In case of bankruptcy and resolution of a European bank, if the FUR does not have enough money to repay it, she can use a credit line from the European Stability Mechanism.
But for many analysts, endorsing this "brake" is the easiest part. Difficult is to operate EDIS or create a budget for the euro area.
A year and a half after the European elections, Dombrovskis speaks at a "decisive stage", not only in terms of decisions relating to the Banking Union, but also in terms of progress in the Capital Markets Union ( CMU). For the Vice President of the Commission for the euro, the latter takes even more importance in the approach of the EU exit from the EU, planned for the March 29th.
This Wednesday, the report on poor credit, is annexed to a communication on the situation of the CMU.
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