Piia-Noora Kauppi, the managing director of Finance Finland (FFI), has welcomed the alliance annunced yesterday by eight EU member states to develop the Economic and Monetary Union of the EU (EMU).
Minister of Finance Petteri Orpo (NCP) and his counterparts from seven member states issued a joint statement on the architecture of the EMU on Tuesday, placing particular emphasis on the importance of market discipline and the readiness of member states to take responsibility for their own economies.
“The Finnish financial sector views that the Finnish government has taken a rational approach to developing the EMU,” Kauppi stated to journalists in Brussels on Tuesday.
She drew attention especially to the commitment of the member states to completing the banking union. The finance ministers yesterday expressed their willingness to continue their negotiations for a common fiscal backstop and technical discussions concerning the European Deposit Insurance Scheme (EDIS).
Kauppi estimated that the ministers have rightly recognised the importance of public support for initiatives launched by the European Union.
“Citizens will certainly appreciate the rational and moderate position of the ministers on the EU’s deposit insurance scheme, because the rapid expansion of joint liability would increase moral hazard-related problems and could result in uneven burden sharing,” she explained.
“Those who have taken good care of their affairs, such as Finnish banks and their customers, could easily end up having to foot the bill.”
She also emphasised that all banks and banking systems in the banking union should be deemed healthy before increasing joint liability. “Each country is responsible for seeing to this and shouldering the costs. The banks must also be tested before increasing joint liability,” said Kauppi.
Aleksi Teivainen – HT
Photo: Daniel Roland – AFP/Lehtikuva
Source: Uusi Suomi