MNI BRIEF:  Euro Central Bankers Reject  2-Speed CMU As “Terrible Idea”

Senior Euro Zone central bankers rejected the idea of a two-speed Capital Markets Union as mooted by former ECB President Mario Draghi at an event hosted by the ECB and national central bankers in Brussels Tuesday.

Central Bank of Ireland Director for Policy and Risk Gerry Cross said it would be a “terrible idea”. Looking to the patchy record of success with EU enhanced cooperation in other sectors, Cross said, “it very often doesn’t lead to optimal solutions “. Bank of Italy’s Silvia Vori, deputy director general for economics agreed, saying it had to be a “common project”, with all the countries in the Union, while Bank of Spain Deputy Governor Margarita Delgado warned it could create “two layers of countries, two layers of investors and two layers of investment managers” instead of the open-borders capital market it was meant to.