On Tuesday, German Chancellor Olaf Scholz urged greater uniformity in European financial markets and called for the completion of a European banking union, referring to it as a “priority.”
The European Central Bank’s banking union initiative was created after the financial crisis to centralize oversight of large institutions.
Laptops 1000Despite German resistance, a combined deposit protection scheme—a crucial plan component—has not been agreed upon.
With an emphasis on securitization—the pooling of assets to repackage and sell to investors—German Finance Minister Lindner advocated for advancements in the capital markets union to increase the financing options available to businesses.
“The capital markets union will be working on this instrument in the upcoming weeks and months,” Lindner stated, adding that securitization is far less common in our day-to-day economic lives than is feasible and required.
