TOKYO (MNI) – The European Union is likely to have to delay the
introduction of a planned centralized banking supervision at least until
the middle of next year, the Nikkei reported on Friday, citing European
Central Bank Governing Council member Ewald Nowotny.

The EU had planned to begin putting the new oversight regime into
practice as early as in January 2013, with the aim of helping regain
confidence in European banks by introducing common standards for
evaluating their assets.

Referring to Spain, Nowotny was quoted by the newspaper as saying
that “One has to give Spain time.”

“In Spain, a number of reforms have been started,” he said in an
interview with the Nikkei.

Nowotny, meantime, downplayed the significance of Standard and
Poor’s decision to slash the sovereign debt rating for Spain, saying
that was a “strange move.”

He also stressed that there is now “little doubt” that the eurozone
will continue to exist despite lingering concerns about a possible exit
by Greece from the system.

Nowotny also ruled out prospects for more aggressive monetary
action by the European Central Bank, saying that “for the time being, I
see no strong case for a rate cut.”

“One should give time for these programs (such as government bond
purchasing) to develop,” he said.

tkeditorial@mni-news.com
** MNI Tokyo Newsroom: 81-3-6860-4821 **

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