Skip to main content

REQUISITION OF EUROZONE FINANCE MINISTERS TO SUPPORT INTEGRATED BANKING UNION TO FOSTER FINANCIAL STABILITY 2013

To: The Right Honorable Federal Ministry of Finance Dr Wolfgang Schäuble

From: Athinarayanan Sanjeevraja

Date: June 24, 2013

RE: Requisition of Eurozone Finance Ministers to support integrated banking union to foster financial stability 

Suggestion: We need a truly integrated banking union to foster financial stability

Good Morning Minister. Let me start by paying my respects to you and through you to. “Financial Times, London reported that EU fails to agree on bank bailout rules after nearly 18 hours of negotiation last Saturday morning”. European banks are still in distress because some of the banks still hold large quantities of debt. We cannot force non-euro countries to abide by the same rules as eurozone members because they have no access to the ECB for liquidity. But all eurozone countries should abide bank bail out rule. Why do eurozone finance ministers not willing to share the burden of a bail out? The eurozone sovereign debt cannot be managed effectively at the national level because it is very expensive process when done at national level, it contributes heavily to their sovereign debt burdens and it ignores cross border externalities. Moreover, fiscal position of the many eurozone governments is vulnerable. But financial stability needs fiscal backstop which is politically controversial at eurozone. Thus, national level approach seems highly inefficient.

Minister, we need a truly integrated banking union in which bind rule among national governments to share the burden of failing banks. We have to commit moving towards integrated banking union in which bank regulation and supervision, deposit guarantee and the handling of troubled banks. This would make the single market in European banking substantially more effective. Thus, it would foster financial stability by weakening the link between debt-burdened governments and troubled banks. The essence of burden sharing is that government commit on a voting scheme that determines the bail out decision. It can limit the degree of loss of eurozone sovereignty through eurozone finance minister’s cooperation. If eurozone finance ministers are non-cooperative, the bank recapitalisation policy is inefficient. Thus, it cannot help to achieve eurozone financial stability.             

Minister, I most humbly prayed you as a responsible leader of eurozone member states, implementing the burden sharing agreements can facilitate the efficient resolution of cross border externalities and thus foster financial stability across eurozone.

Minister, please accept, your Excellency, the assurances to support integrated banking union to foster financial stability. Delays always ramp crisis resolution costs upward.   

Sincere Regards,
Athinarayanan Sanjeevraja.   
Athinarayanan Advisory Authority
Athinarayanan Twitter   

Copy to all Eurozone Finance Ministers

1. Austria Finance Minister - Dr. Maria Fekter
2. Belgium Finance Minister - Mr. Koen Geens
3. Cyprus Finance Minister – MR. HARRIS CHR. GEORGIADES
4. Estonia Finance Minister – Mr. Jürgen Ligi
5. Finnland Finance Minister - Ms. Jutta Urpilainen
6. French Finance Minister - Mr. Pierre Moscovici 
7. German Finance Minister - Dr Wolfgang Schäuble
8. Greece Finance Minister – Mr. Giannis Stournaras
9. Ireland Finance Minister – Mr. Michael Noonan
10. Italy Finance Minister - Mr. Fabrizio Saccomanni
11. Luxembourg Finance Minister – Mr. Luc Frieden
12. Malta Finance Minister – Prof. Edward Scicluna
13. Netherland Finance Minister- Mr. Jeroen-Dijsselbloem
14. Portugal Finance Minister – Mr. Vitor Gaspar
15. Slovenia Finance Minister – Dr.  Uros Cufer
16. Slovakia Finance Minister – Mr. Peter Kažimír

17. Spain Finance Minister – Mr. Cristobal Montoro  

Comments

Post a Comment

Popular posts from this blog

Nagorno-Karabakh conflict

To put things into perspective, Nagorno-Karabakh is not an independent entity but an occupied territory of the Azerbaijan Republic and is recognised by the international community and the UN. The fact that the Armenian Prime Minister's son is doing his military service in the Armenian army located in Azerbaijan's Nagorno-Karabakh and started an undeclared war against Azerbaijan, occupied Nagorno-Karabakh and 7 adjacent regions of Azerbaijan, and massacred and forcefully deported Azerbaijani aborigines was the main reason for the lack of peace in the region. The laws of armed conflict failed to protect the Nagorno-Karabakh civilian population, individual civilians, and civilian property. The laws of armed conflict failed to discriminate between those taking parts in the fighting in Nagorno-Karabakh. The laws of armed conflict failed to protect the environment as war causes severe or long term damage to the environment. The fact here is that there is a number of international doc...
Post a Comment
Read more

THANK YOU NOTE TO FORMER CHIEF JUSTICE OF INDIA DR A S ANAND

To: The Hon’ble   Dr. Justice A.S. Anand, Former Chief Justice of   India & Empowered Committee Chairman From: Athinarayanan Sanjeevraja Date: Wednesday, July 25, 2012 RE: Thank you and the members of Empowered Committee and the five judge constitution Bench of Supreme Court Judges.   My lord, please accept my heartfelt thank you and the members of Empowered Committee and the five judge constitution bench of Supreme Court Judges on behalf of myself and all of the people in Tamilnadu for saving lakhs of farmers in the southern districts of Tamilnadu and the fine report you made. I wish you continued success in what you are doing my lord. The completion of the remaining judgement on Mullaperiyar will require Dharma. Every judgement should apply Dharma. Dharma should not be destroyed in any of our judgement. My lord, As you knew that “ according to lease agreement indenture granted full right, power and liberty to the Tamilnadu to construct make...
Post a Comment
Read more

THANK YOU NOTE TO RUSSIAN PRESIDENT HON. VLADIMIR PUTIN FOR ARMENIA, AZERBAIJAN AND RUSSIA PEACE TREATY

  To:     The Right Honourable Russian President Hon. Vladimir Putin From: Athinarayanan Sanjeevraja Date: January 9, 2021 RE:     Thank you note to Russian President Hon. Vladimir Putin for Armenia, Azerbaijan and Russia peace treaty. l Suggestions: Hon. President, I wrote to you in the month of October 26, 2020 for your government to stop selling arms to Armenia and Turkish President to stop selling arms to Azerbaijan. But you signed peace deal between Armenia, Azerbaijan and Russia is a real diplomatic victory for you and your government. You want to have good relationships with both ex-Soviet Republics (Armenia and Azerbaijan). Now Armenia is close to Russia more than ever and Azerbaijan is close cooperation with Russia as Russia has military presence in Azerbaijan for the first time in 30 years. You did a great job President as you know the value of peaceful conflict resolution. This would allow you to play the role of peacemaker....
Post a Comment
Read more