The full G20 statement:
We fully support the actions of the Euro Area in moving forward with the completion of the Economic and Monetary Union. Towards that end, we support the intention to consider concrete steps towards a more integrated financial architecture, encompassing banking supervision, resolution and recapitalization, and deposit insurance.
All the pertinent parts were leaked earlier but this stands out:
The adoption of the Fiscal Compact and its ongoing implementation, together with growth-enhancing policies and structural reform and financial stability measures, are important steps towards greater fiscal and economic integration that lead to sustainable borrowing costs.
It all read as if the fiscal union of Europe is already a done deal. I suppose it’s necessary but its future downfall will be that it was forged behind closed doors, not the ballot box.
For now, however, it’s good news for risk assets. Europe seems to be on the same page, things are happening.
