ECB’s Buch Opposes EU Push to Weaken Bank Output Floor

The clash matters because the output floor is the backstop that keeps banks from using internal models to shrink capital requirements, so any move to weaken it is a direct test of how far competitiveness arguments can bend prudential rules. Buch's public opposition signals the ECB's supervisory arm will defend the agreed framework, setting up friction with the EU's competitiveness agenda. The open question is whether the promised legislative proposals actually touch the floor, or whether the push loses momentum once supervisory objections are weighed.