Cyprus FinMin calls for the acceleration of the completion of EU’s banking and capital markets’ union

The integration of the EU banking union and the association of capital markets were the two main issues on the agenda of the EUs 28 Finance Ministers meeting held in Sofia, Bulgaria, Cyprus Finance Minister Haris Gerogiades has said, stressing the need to accelerate the pace on both these directions.

Georgiades on the sidelines of the meeting that “the completion of the banking union involves pressure, difficulties and is demanding, especially for a country such as Cyprus where the banking system is still burdened by the mistakes and omissions of the past. “We believe that with the completion of the banking union, a confidence-building environment will be created also for Cyprus and that is precisely why we are working in this direction and we are fully aligned with the joint effort to complete the European banking union,” the Minister said.

He also noted that “and in a similar way we consider the integration of the European Capital Markets Association as equally important”, clarifying that “we must indeed provide alternative financing options to European businesses.”

“We have to give choices to investors in the European area and that is why we feel that there is also a need to accelerate on this front, namely the completion of the framework of the Union of Capital Markets and the efficient regulation and as an EU Member State we are ready to support and participate in this effort. “

Asked by CNA to determine the timing of the decisions, the Minister replied that “we need to reach a decision-framework until next June at the latest, which will guide our next steps”.

Invited to comment on the issue of the reduction of possible bank risks before any solidarity is unblocked at the level of the future banking union, the Minister said that “for states like Cyprus, the completion of the banking union is demanding, has difficulties, creates pressure that we need to manage it effectively, but we know that at the end of the road we will have an environment that creates trust and stability and a truly sound banking system.”

The Minister of Finance held a bilateral working meeting with his French counterpart Bruno Lemmer, on the sidelines of the Eurogroup and Ecofin. During the meetings he reviewed with his counterparts the aforementioned issues.

Source: Cyprus News Agency