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Finance Minister Michael Noonan speaking with Jorg Asmussen, Member of the Executive Board of the European Central Bank (left), during the Eurogroup meeting earlier this week. Yves Logghe/AP/Press Association Images

Extra Banking Union meeting needed after ministers fail to reach agreement

Eurogroup ministers met earlier this week on the topic, but only agreed on general principles.

EUROZONE FINANCE MINISTERS will hold an extra meeting next week to discuss ambitious plans for a Banking Union after only general agreement was reached yesterday, sources said.

The 17 eurozone ministers will meet Tuesday, according to aides to Dutch Finance Minister and Head of the Eurogroup Jeroen Dijsselbloem.

On Wednesday, they will join their 11 non-euro colleagues to resume difficult negotiations on a Single Resolution Mechanism (SRM) which will have the authority to close down a failing bank before it can damage the economy.

Eurozone and then EU ministers met Monday and Tuesday this week but reached agreement only on the general principles involved, short of their aim to come up with a final document for EU leaders to approve at a summit later this month.

It was agreed then that the 28 would meet next Wednesday in an effort to get a full agreement.

The plan is for the SRM to work from November 2014 in tandem with a Single Supervisory Mechanism (SSM), which was only agreed after 13 months of tough negotiations.

The SSM, the SRM, plus a deposit guarantee system also under discussion to reassure savers at times of stress, are the main elements of Banking Union which is designed to ensure that the banks avoid the risky excesses of the past.

- © AFP, 2013

Read: Brussels talks on Banking Union expected to last well into night >

More: Creation of Single Supervisory Mechanism for eurozone banks is approved >

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