The Eurogroup is committed to strengthening the banking union in the face of the collapse of the SVB
Paschal Donohoe, president of the meeting of eurozone finance ministers (Eurogroup), pointed out on Monday that the collapse of Silicon Valley Bank (SVB) in the United States is a reminder that banking systems can have “shocks” at any time and has defended the importance of strengthening the banking union in the face of possible future turbulence.
Following these statements, Donohoe has assured that there is no “direct exposure” of the European banks to the fall of the SVB and that the situation on this side of the Atlantic is “very different” since the system has guarantees despite the ” volatility” that has caused the bankruptcy in international markets.
Along the same lines, the European Commissioner for the Economy, Paolo Gentiloni, has stated that the bankruptcy of Silicon Valley Bank is a “clear reminder” that the European economy not yet “out of the woods”. “At EU level, the presence of this bank is very, very limited, so we do not see direct consequences,” said Gentiloni, despite the fact that the European authorities will “closely” follow the evolution of the situation after the ” decisive” reaction of the US authorities.
Similarly, the executive director of the European Stability Mechanism, Pierre Gramegna, has defended above all that these “turbulences” show how important it is for the banking system have “as many guarantees as possible”.