English
The Banking Union does not represent a solution to solving the problems caused by financial instability, and Romania should postpone becoming part of this structure at least until joining the Eurozone, economic analyst Călin Rechea said.
The gradual approach of creating the Union does not contribute to increasing stability, but to the contrary, the amounts made available to the Single Resolution Fund are insufficient, and the costs of the loans the latter could take out would be relatively big in the absence of a common guarantee at the European level, he said.
The system for establishing the amount of the contributions favors the major banks, and the centralization of oversight and control leads to increased fragility, due to the elimination of the system's ability to self regulate, Călin Rechea also said. He warned about the increasingly greater role the shadow banking system plays in the financing of the economy, due to the lack of regulations.
An alternative to the creation of a banking union would be the fragmentation of the banking system, the economic analyst says.
The reasons why the states which are members of the EU, but do not belong to the Eurozone, should not participate in the Banking Union include, in the opinion of Călin Rechea, the uncertainty of their contributions to the Single Resolution Fund and the low influence that they would have within the Single Resolution Mechanism, the impossibility of stopping the deleveraging phenomenon, as well as the outlook of having to bear fiscal costs for foreign crises.
Being part of the Banking Union would increase Romania's borrowing costs, would create competitive disadvantages for the local banks, but would not eliminate the need for the intervention of the government in order to finance troubled banks, he said.
"We can't just join the European Union out of solidarity", Călin Rechea said in closing.
Euro
Dolar SUA
Franc elveţian
Liră sterlină
Gram de aur
