Ireland set to oppose EU plans on cash buffers for funds
The proposal could force European funds, an important source of short-term financing for banks, companies and governments, to shut down, said Finance Minister of State Simon Harris. Ireland seeks support from other EU states against the plan to enforce “crude” cash buffers, which may have “horrendous” unintended consequences, he said.
“Ireland shares the EU view and the commission’s view that we have to better regulate shadow banking,” Mr Harris said. “To go ahead with a capital buffer structure as a regulatory instrument would damage the industry here, but also throughout the EU, and could lead to an outflow of investment from Europe.”
