European Central Bank Executive Board member Yves Mersch has said it would be close to suicide not to agree on a mechanism to close down non-viable banks. Reuters reports: The resolution mechanism - still not finalized - is the second pillar of the banking union, which complements the unified banking supervision under the auspices of the ECB, together marking the most ambitious step towards closer European integration since the launch of the euro. Mersch said he was confident an agreement on the Single Resolution Mechanism (SRM) could be reached, though “whether the outcome will then be satisfactory from every point of view, that’s again a new discussion”.
“I do not know of anyone who would have a plan B for a suicide. And not having an SRM would be very close to suicide,” Mersch said, when asked whether there was a plan B in case no agreement was reached before European elections in May. After two days spent trying to finalize the plan to tackle non-viable banks. European ministers said they disbanded on Tuesday with broad agreement, but officials said key questions remained open.
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