ECB’s Liikanen: Banking union a loooooong-term project

  • More cooperation in European fiscal policy justified
  • Most of bank supervision to be delegated to national supervisors
  • Credible banking union plan may help solve current crisis
  • Rapid combinaton of national deposit protection systems not possible
  • Common deposit protection could start with big banks
  • Inflation expectations have remained moderate in euro zone
  • Debt yields based on doubts over euro’s future “unacceptable” (what ya gonna do about it big boy!!)

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