World Economy

ECB Running Out of Time

ECB Running Out of TimeECB Running Out of Time

The European Central Bank and the lenders it oversees are running out of time in their push for rules to foster cross-border mergers, Bloomberg reported. European Union regulations need to change so consolidation makes financial sense, the ECB and firms say. But their shared urgency has been stymied by politicians from Germany and smaller states who want to make sure closer ties don’t expose them to excessive risks from other countries. Eurozone leaders meet at the end of this month to discuss further integration of the currency zone, including the so-called banking union intended to remove barriers to expansion. “Banking union is not in place, and there are not yet enough benefits for banks to consider merging,” said Pauline Lambert, a bank analyst at Scope Ratings. While some steps have been taken, thorny issues like deposit protection need to be tackled. “I am not sure there will be real progress on this front at the summit,” she said.

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