The Minister of Foreign Affairs, José Manuel García-Margallo, said Monday that the launch of a banking union and a European banking supervisor so that banking aid to US does not count as “possible” debt and has defended that it can begin to operate in January 2013 “regardless of its objective scope of control”.
What US intends is that financial aid to banks does not count as public debt
So that the aid to the banks does not compute as public debt the condition is that there is a European supervisor, ”he explained in statements to the press upon his arrival at the meeting of EU foreign ministers.
After the last contacts he has had in the face of the summit held by the Heads of State and Government next Thursday and Friday in Brussels with the banking union at the center of the debate, Margallo has ensured that “in principle” the implementation of single banking supervision should not have “difficulties.
“In principle I have been told that there would be no difficulties,” said Margallo, who responded with an “Inshalla” when asked if US is confident that the monitoring mechanism is working in early 2013, as US wants. “Even the tail is all bull,” he admitted nonetheless.
Germany has questioned so far that the single banking supervision may be working at the beginning of 2013, as US aspires so that the loan of up to 100,000 million euros agreed by the Eurogroup for problematic Spanish financial institutions does not count as debt.
Berlin insists single supervision only cover nationalized and systemic banks
But resists that the European Central Bank that must play a central role in the new supervisory mechanism controls German regional banks. Brussels has proposed that the single supervisor controls all the Eurozone banks in 2014.
Margallo has insisted that for banking aid to US it does not count as debt “it is enough that there is a banking supervisor, regardless of its objective scope of control.”
“The rest of the questions are indifferent to us. In other words, if that European supervisor is going to supervise only the nationalized banks and the systemic banks and in a second stage all the banks or if from the first moment he has to exercise his supervisory action and control over all the banks ”, he stressed.
LOWER THE PREMIUM TO 200 POINTS
Margallo has left in the hands of the Ministry of Economy in any case to decide if US asks for the second bailout if the European Central Bank undertakes to buy Spanish debt in the secondary markets guaranteeing that the Spanish risk premium is reduced to about 200 basis points.
“That has to be decided by the Ministry of Economy. If the risk premium stood at 200 basis points, the Spanish landscape would really be infinitely clearer than it is now, we would have to allocate much less money to pay interest on the debt and therefore we would have much greater margin to finance the welfare state and to create employment, ”explained the minister.