Il Germany's government has spoken out in favor of greater European integration of banking sector supervision, possibly to be entrusted to ECB. But Berlin, according to reports from Dow Jones, has also pointed out that "Banking union" projects must not provide for mutualisation of debts.
Meanwhile, European diplomatic sources have revealed to the German newspaper Die Welt that the president of the EU Council, Herman Van Rompuy, "has the agreement of the 27" Member States to entrust the European Central Bank with the role of banking supervisor.
"The heads of state and government will have to decide by the end of next week (at the European summit on 28 and 29 June) which ECB will take on the role of supervisor of European banks in the future," the source said. For its part, the Eurotower has already expressed a willingness to assume this role in the context of a unified supervisory system.
