To preserve the authority of the European Central Bank, Europe's decisive power, it is essential to ensure its survival

In a significant development, finance ministers of the eurozone, along with the EU commissioner for economic and monetary affairs and the president of the European Central Bank, known collectively as the Eurogroup, have proposed a change in bank restructuring policy. The primary focus of this new policy is to ensure that the financing for bank restructurings will come from creditors, rather than European taxpayers.

The European Stability Mechanism (ESM), a fund primarily comprised of contributions from eurozone countries, has been suggested as the provider of the top-up for these restructurings, in the absence of a fund created by European banks. The financing of this top-up, until such a bank-created fund is established, will be provided by the member states of the Eurozone, who commit additional financial resources according to their capital key shares in the ESM.

However, the new policy leaves much to be desired in practice due to its complexity and potential reliance on public funds. The long-term plan is for European banks to create a fund for such situations, but in the interim, the ESM providing the top-up means taxpayers may still be contributing to bank restructurings.

Moreover, many cases may still require public money due to a long list of exceptions reducing recoverable assets. The BCE, the European Central Bank, has expressed support for new aid for Greece, but under certain conditions. However, Mario Draghi, the President of the BCE, has been relatively silent on the matter in recent remarks.

On a separate note, the BCE's accommodative monetary policy, which has been instrumental in supporting the eurozone's economy, will not last "years" as previously anticipated, according to the German press. The German press has also expressed opposition to the publication of the BCE's minutes.

In conclusion, the shift in bank restructuring policy towards creditor financing is a step towards financial responsibility, but its practical implementation and long-term sustainability remain uncertain. The establishment of a fund by European banks is eagerly awaited to provide a more self-sustaining solution for bank restructurings in the eurozone.