Luxembourg's chances for hosting EBA just got a little better
Grand-Duchy still in running to host European Banking Authority after plans to merge EU agencies concerned with financial markets was dropped.
The EU Commission has ruled out the possibility of merging the European Banking Supervisory Authority (EBA) with other supervisory authorities.
"We are sticking to the model of the three individual supervisory authorities, as there is not much support for a merger," said EU Monetary Commissioner Valdis Dombrovskis in Brussels on Wednesday.
The merger argument had been used in Paris and Berlin to increase their chances of hosting the future seat of the EU agency EBA, which is being relocated from the UK in the wake of Brexit.
Frankfurt is already home to the European Supervisory Authority for Insurance and Occupational Retirement Provision (EIOPA).
The merger of the EBA and EIOPA had been mooted in Brussels, which may have been a deciding factor in connection with the relocation of the EBA.
German Finance Minister Wolfgang Schäuble previously pitched this idea in Brussels.
According to Schäuble, it was "very sensible" to merge the EBA with the insurance supervisory authority after the UK's exit from the EU.
Paris, home to the European Securities and Markets Authority (ESMA), had a similar argument.
Luxembourg had feared a merger would essentially end competition for the future seat of the EBA, thereby rendering the Grand-Duchy's chances hopeless.
The Commission dispelled these concerns on Wednesday.
The selection decision for the seat of the EBA is to take place in November by secret ballot in the EU Council of Ministers.
Negotiations among the various candidate states are ongoing.
(By Diego Velazquez in Brussels, translated from German by Barbara Tasch)
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