ESM’s Regling asks EU parliamentarians to support monetary cooperation

Klaus Regling, the managing director of the European Stability Mechanism (ESM), on Monday suggested that European parliamentarians should support measures that would strengthen the European Monetary Union.

He made the remarks at the Inter-parliamentary Conference on the Stability, Economic Coordination and Governance of Monetary Union of the EU, which began in Helsinki on Monday.

Regling said it is clear that the ESM’s role would be “much easier” with a complete banking union and a pan-European deposit insurance.

“For this to happen, euro countries need to agree on a mutually acceptable balance between risk-reduction and risk-sharing,” Regling said.

Regling said in an interview with Finnish national radio Yle that he “understands the concerns of the Nordics”.

He noted that countries of the North think typically that they do not need a joint deposit protection. “But in the next crisis the sufferers may be others than the banks in the south,” Regling said.