• Intention of ESM was that it wouldn’t be used
  • Have to rely on existing treaties for bank union
  • Determined to continue on the path of regulation
  • Must regulate international shadow banking system
  • Bank resolution fund to be built up over 10 years
  • Rejects weakening of bail in rules in bank union talk
  • Doesn’t see compromise on SRM at next weeks meeting
  • Doesn’t want a German but a competitive Europe (led by Germany
  • Favours treaty changes to get better governance
  • In favor of thinking about first steps to end risk free treatment of government bonds

Being very forthright today isn’t he?