EU Commission President, Jose Manuel Barroso has joined the growing call for all banks within the 27 Members States of the EU to be subject to a single cross-border supervisor, a single EU-wide deposit guarantee scheme and a single rescue fund. According to Mr Barroso, legislation could be in place as soon as 2013.
The UK and Germany are seen to be rather more cautious. The UK is supportive of the idea in principle, but sees the issue of central regulation as one which relates to banks within the single currency area only and not the entire EU. However, it will be relieved to hear that Mr Barroso believes that the UK should be able to opt out of the plan if it so chooses. For its part, Germany also largely supports European banking regulation but is wary of the risk that it will end up supporting banks in the weaker EU periphery countries, seeing the issue as being inextricably linked to the more fundamental issue of greater fiscal union.
An FT interview with Mr Barros is available here:
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