ECOFIN EU Presidency's Steinbruck confirms deal on cross-border banking |
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Tue, 27 Mar 2007 14:40
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BRUSSELS (AFX) - German finance minister Peer Steinbruck, whose country currently holds the EU presidency, confirmed that EU finance ministers have reached a political agreement in favour of new rules on cross-border banking deals and will vote formally on the matter at their next meeting in May.'The (cross-border banking) directive will be voted on formally at our May council,' he said at a news conference after the finance ministers' meeting.The European Commission's proposals for reforms to the EU directive on cross-border mergers and acquisitions between banks will make it more difficult for national regulators to block such deals.'This directive is necessary because unnecessary obstacles have been put forward by national supervisors,' said EU internal market commissioner Charlie McCreevy, also speaking after the ecofin meeting.Current EU rules allow national regulators to block proposed mergers if they consider that the 'sound and prudent management' of the bank may be jeopardised.Under the new rules, supervisory authorities now have 60 working days to clear any acquisition and 'sound and prudent management' is limited to five criteria.It also forbids member states from 'gold-plating' the proposals, i.e. they may not impose more stringent requirements than those set out in the directive.The measures are seen as a response to events in 2005, when the EU took legal action against Italy over the involvement of its central bank in the takeover battle for Banca Antonveneta SpA.Earlier this month, the European Parliament approved a first reading of the directive.frances.robinson@thomson.comfr/fr/sljCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Macroeconomics highlights to 15:30 GMT 