Barroso pushes EU banking union / France seeks eurozone stability package / Clamour for change on Europe’s banks / Bundesbank warns on EU banking union

Report of a FT interview with José Manuel Barroso, President of the European Commission, June 2012 discussing the challenges facing the EU in the context of the eurozone sovereign debt crisis.

Hu suggested that all 27 EU countries should submit their big banks to a single cross-border supervisor as part of a banking union to be enacted as soon as 2013. The EU needed to take 'a very big step' towards deeper integration if the bloc was to learn the lessons of the sovereign debt crisis.

Mr Barroso said he believed the political winds were beginning to change. In Berlin, Paris and London, he said, national leaders had begun to articulate a recognition that only through common European solutions – including further integration – can the eurozone survive.

However, Germany’s Bundesbank warned of possible risks from banking union in the EU, saying it would be tantamount to a back-door pooling of sovereign debt, unless accompanied by fiscal union that allowed control over national budgets.

ESO: Background information: City safeguards set Britain at odds with EU http://www.europeansources.info/record/city-safeguards-set-britain-at-odds-with-eu/

ESO: Background information: Brussels looks to bank investors not taxpayers http://www.europeansources.info/record/brussels-looks-to-bank-investors-not-taxpayers/

ESO: Background information: A Sneak Peek at Tomorrow's Europe http://www.europeansources.info/record/a-sneak-peek-at-tomorrows-europe/

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