Now listening to @OlafScholz's session at #BAM20 in replay mode. Striking how he explicitly talks the language of fiscal union, even with rhetorical hedges: e.g. "move to a completely new level (...) that moves us closer to a fiscal union." bam.bruegel.org/events-new/key…
Expanding on his vision for fiscal union @OlafScholz at #BAM20 doesn't shy away from the most difficult bit. "The next step is that we understand that we need more own resources (...) there is no room of maneuver for postponing a decision (...) this is the decisive moment."
Sharp contrast between @OlafScholz's emphasis on own resources at #BAM20 and @ThierryBreton's "no taxes for our fellow European citizens" discourse on the day of the deal's announcement.
Also @OlafScholz at #BAM20: "A fiscal union without avoiding tax arbitrage will not work" - again embracing fiscal union remarkably explicitly, and signaling a new push for minimum level of corporate taxation across the EU. bam.bruegel.org/events-new/key…
On banking union, @OlafScholz at #BAM20 describes his approach as "have a view on the endgame" then work backwards from there - in contrast to fiscal union, where he basically said the path is the goal. This was already the German stance last year, with some constructive effect.
Asked about EDIS, @olafscholz at #BAM20 elaborates on his holistic approach to banking union: "EDIS is one of ten aspects (...) We need a whole scenario of a banking union that works". He rejects the EC design for EDIS (with some justification) but not the concept.
Re-upping a point he made in past years, @OlafScholz at #BAM20 specifies that EDIS also requires "a common way of supervision of any small bank". This is logical, since smaller banks are the ones most likely to trigger deposit insurance. Not everyone in Germany agrees though.
