Germany, France to Devise New Proposals to Shore Up Eurozone - Paris

© Sputnik / Alexey Vitvitsky / Go to the photo bankReflection of the EU flag in a window of a building in Brussels.
Reflection of the EU flag in a window of a building in Brussels. - Sputnik International
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Germany and France will devise new proposals to shore up the eurozone monetary union, the Elysee Palace said Thursday following a joint cabinet meeting.

PARIS (Sputnik) — Earlier the European Central Bank (ECB) offered to amend the rules of the European System of Central Banks in connection with Brexit, to transfer the authority regulating the deals, in particular, the euro-denominated ones, to the European Union.

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The London Clearing House (LCH), which is owned by the London Stock Exchange (LSE), is currently clearing most of the euro-denominated interest rate swaps — the common derivative contract used by companies in the European Union. The average daily turnover of euro-denominated derivatives cleared by the LCH is about $850 billion, accounting for about 75 percent of such deals in the EU.

"The content of the proposals on this issue will be developed later, but France and Germany already recognize that the current architecture of the eurozone contains persistent shortcomings, and share a desire to provide new initiatives to strengthen it," the Elysee Palace said.

In accordance with ECB recommendation, the regulator and national central banks of the eurozone will control the risks that may affect monetary policy, the operation of payment systems and the stability of the euro. The recommendation was sent to the European Parliament and the Council for the adoption, the central bank said.

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