EU legal services call for rethink of banking union blueprint

According to a legal opinion from the EU Council of Ministers dated 7 October 2013, a proposed agency with sweeping powers to close failing banks in the European Union would violate the bloc's founding treaties and must have its authority narrowed or shared with a core EU institution.

Michel Barnier, European Commissioner for Internal Market, has said in an interview that he could imagine the bloc's permanent rescue fund (ESM) as the agency for resolving bankrupt lenders. It would be part of a banking union scheme.

ESO: Background information: Commission proposes Single Resolution Mechanism for the Banking Union http://www.europeansources.info/record/press-release-commission-proposes-single-resolution-mechanism-for-the-banking-union/

EUObserver, 09.10.13: Bank resolution plan breaches EU rules, lawyers say http://euobserver.com/news/121719

Deutsche Welle, 09.10.13: EU's Barnier suggests ESM as banking resolution agency http://dw.de/p/19wVz

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