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MNI BRIEF: ESM Deal On Track For Nov. 30-EU Source

(MNI) Brussels

Senior EU sources remain confident the Nov. 30 meeting of eurozone finance ministers will agree a compromise that will enable the Italian government to overcome parliamentary opposition to a reform of the European Stability Mechanism and make way for an early launch of a backstop for the Single Resolution Fund.

The deal would involve Italy accepting demands from some Nordic and other member states to implement further measures to further reduce its banks' stock of bad loans, while the latter would concede that additional prudential requirements would not be applied to Covid-era borrowing. These would be ringfenced.

MNI first reported the potential deal last month, and a well-placed EU official said it was still on track.

MNI Brussels Bureau | david.thomas.ext@marketnews.com
MNI Brussels Bureau | david.thomas.ext@marketnews.com

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