View more on these topics

Germany to present “crisis resolution” plans

Germany is looking to present plans next month for a permanent insolvency mechanism for the eurozone to put in place rules for emergency funds for countries facing debt rescheduling.

According to a report in the Financial Times, the German government believes the only way private lenders can be forced to help pay for the consequences of a future financial crisis, such as the Greek debt crisis, is with a permanent “crisis resolution” mechanism in place.

The new mechanism would replace the £385bn European Financial Stability Facility, which was set up in June as an emergency measure after the Greece rescue plan.

The EFSF is only meant to last for three years, and Germany – who is the largest guarantor – does not want to extend the scheme.

The scheme could require changes being made to the Lisbon treaty.

A senior German government official told the FT: “There are people who say we need no such permanent mechanism. But we must be prepared. The EFSF will be finished in three years. We can not go back to the status quo ante.”

Recommended

Andrea Rozario

The fees factor

The charges gap between lifetime mortgages and ordinary loans is widening and borrowers don’t feel they are getting a good deal Annie Shaw reports

david_hambridge.gif

The crash of cash

September was the 18th consecutive month that the UK bank rate has stayed at a record low of 0.5 per cent and this is likely to remain the case for some time. This is not great news for savers who have traditionally relied on the interest from bank and building society deposits to supplement their […]

PROFILE.jpg

Eddie Grant

The new PFS president is intent on raising the image of financial services so it is an attractive career for young people and he believes that advisers will continue to raise the bar in terms of standards and qualifications Interview by Natalie Holt

India budget and the liquidity supercycle

Kunal Desai, manager of the Neptune India Fund, comments on how India’s 2017 budget will impact the Indian economy and equity market. Read article here: Important Information – for Investment Professionals only. Not for Retail Clients.Investment risksThe Neptune India Fund may have a high volatility rating and past performance is not a guide to future […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment