Euro-Area Reform Plan Held Hostage by Italy-Germany Clash
- Finance ministers yet to agree on roadmap for banking union
- Italian concerns delay full deal on reform of bailout fund
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The euro area failed to make significant progress on completing its banking union or reforming its bailout fund, as political turmoil in two of its largest economies torpedoed hopes for an agreement.
In talks that went late into the night on Wednesday, finance ministers gathered in Brussels couldn’t overcome longstanding differences, missing a goal to finalize a package to strengthen the single currency by year-end. Instead, they made marginal progress, leaving key technical issues open, while only agreeing to keep talking on others.