France and Germany clashed at a banking union conference in Berlin today over procedures on closing failing banks. Germany wants the power to be in national governments hands while France wants the European Commission to have ability to wield the axe. The idea of banking union is great but in typical European fashion getting everyone to agree on how it should work is the hard part.
German deputy finance minister Thomas Steffen says that the basic decision to close a bank should be taken at the national level while a formal decision should be made by the EU council rather than the EC. He claims that it would be a conflict of interest for the commission to make the decision. French treasury chief Roman Fernandez, would rather the buck stops with the commission than the EU. The EU plan designed by Michel Barnier wants the powers to lie with the commission.
Why do I get the feeling that this banking union is going to drag on and on and on?
