The ECB is preparing to add 800 permanent staff members in order to commence the supervision of Eurozone banks in July of 2014. These 800 new jobs are just the start for ECB jobs creation plan. Up to 2,000 full-time staff will be required by 2017 for the ECB to assume full supervisory duties.
Mario Draghi’s plan to save the euro is beginning to take shape. First, he promised to do “whatever it takes.” Then, he rolled out a bond-buying scheme to keep distressed sovereigns and the banks that hold their debt afloat. Now that these banks have not failed, the ECB needs to hire employees to supervise them. Pure genius.
With 2,000 employees being required to supervise 6,000 banks, the ECB hopes that easy lending terms will encourage the creation of 57 million more banks so that the 19 million unemployed people in the Eurozone could be hired to supervise them.
It is not all good news on the banking union front. There still has not been an agreement on how the Eurozone countries will pay for a joint depository insurance scheme and resolution authority.