–Source: Decision On State Insolvency Rule Not Likely Until Oct
BERLIN (MNI) – A European Union decision on Germany’s proposal to
allow orderly insolvencies of EU member states is unlikely before
October, a high ranking German government official said Wednesday.
“That is one of the topics that has not yet been discussed” in the
task force on crisis resolution and fiscal discipline chaired by EU
Council president Herman Van Rompuy, the German source said.
The task force’s final recommendations on new measures that can be
implemented without changing the EU treaties are due in October. In a
second step, the Van Rompuy group will then discuss more far reaching
reforms that would require altering the treaties, the German official
said.
All EU members “are aware that the German proposal on state
insolvencies is part of the assignment for the task force. Van Rompuy
has said that and also [German] Finance Minister [Wolfgang] Schaeuble,”
the source stressed.
“There exist theoretically two possibilities,” the official
elaborated. The Van Rompuy group could still discuss the German state
insolvency proposal in October or it could delay it until the follow-up
process.
“I would expect the latter to happen because the matter is
sufficiently complex that one could not discuss it in the next three
weeks,” the official said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$G$$$,M$X$$$,MGX$$$,M$$CR$,MT$$$$,M$$FX$]
