Asmussen says EU Q2 growth partly temporary

That’s not good news.

  • Says survey indicators confirm expected slow recovery
  • ECB’s legal service agrres with EU lawyers that single bank resolution agency can be set up within existing EU treaty
  • ECB’s legal opinion on SRM due in autumn
  • ESM could lend to resolution fund and be paid back from banks later
  • ESM can function as backstop for resolution fund before enough money accrues from bank contributions
  • ESM may be allowed to lend to SRM fund in the future
  • Draghi will answer asset-review questions in October

Olli Rehn

  • France has much more to do on economic reforms but has begun substantial program on reforms
  • EC assessing Spanish pension reform
  • Too early to say how Spain will exit program

Dijsselbloem

  • Nov 22nd Eurogroup meeting will discus national budgets

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