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| Version 1 | Version 2 |
|---|---|
| Brussels plans EU-wide banking union from 2013 | Brussels plans EU-wide banking union from 2013 |
| (about 2 hours later) | |
| A single regulator to oversee banks across all 27 European Union states could be in place as early as 2013 according to the European Commission. | A single regulator to oversee banks across all 27 European Union states could be in place as early as 2013 according to the European Commission. |
| A controversial new bank bailout fund financed by a tax on financial institutions is also planned. | A controversial new bank bailout fund financed by a tax on financial institutions is also planned. |
| The proposal includes an EU-wide deposit guarantee scheme to protect savers in the event of a bank collapse. | The proposal includes an EU-wide deposit guarantee scheme to protect savers in the event of a bank collapse. |
| The UK has said it would not sign up to a full banking union, suggesting it should only be for eurozone members. | The UK has said it would not sign up to a full banking union, suggesting it should only be for eurozone members. |
| The BBC understands a timetable for the plan will be agreed at a European Council Meeting on 28 and 29 June in Brussels. | |
| 2013 start | 2013 start |
| European Commission President Jose Manuel Barroso supports rapid implementation of the plan with initial provisions, such as common bank supervision, being introduced as early as January 2013. | European Commission President Jose Manuel Barroso supports rapid implementation of the plan with initial provisions, such as common bank supervision, being introduced as early as January 2013. |
| But, a commission spokesman was keen to point out that "talks between Mr Barroso and the other presidents [of the European Council, Eurogroup and European Central Bank] were in the early stages". | But, a commission spokesman was keen to point out that "talks between Mr Barroso and the other presidents [of the European Council, Eurogroup and European Central Bank] were in the early stages". |
| He added that some elements of banking union could be achieved quite quickly without changes to existing EU treaties whilst others would be more complicated and take longer. | He added that some elements of banking union could be achieved quite quickly without changes to existing EU treaties whilst others would be more complicated and take longer. |
| However, the vice-president of the Bundesbank warned that "comprehensive changes to EU treaties" would be needed. | However, the vice-president of the Bundesbank warned that "comprehensive changes to EU treaties" would be needed. |
| Sabine Lautenschlaeger added that banking union should go hand-in-hand with fiscal union to ensure governments do not undermine EU financial stability by breaking budget spending rules. | Sabine Lautenschlaeger added that banking union should go hand-in-hand with fiscal union to ensure governments do not undermine EU financial stability by breaking budget spending rules. |
| UK reluctance | UK reluctance |
| The commission favours banking union for all 27 EU members including the UK which is home to many of Europe's biggest banks. | The commission favours banking union for all 27 EU members including the UK which is home to many of Europe's biggest banks. |
| The BBC's Paul Mason says: "I understand that the ECB backs the plan." | The BBC's Paul Mason says: "I understand that the ECB backs the plan." |
| But the UK government has indicated its reluctance to sign up to closer EU ties. | But the UK government has indicated its reluctance to sign up to closer EU ties. |
| It prefers a body that only covers banks in the 17-member eurozone. | It prefers a body that only covers banks in the 17-member eurozone. |
| Europe's leaders have been criticised for not acting speedily enough during the debt crisis. Now the European Commission is proposing the creation of a banking union faster than many could have imagined. | Europe's leaders have been criticised for not acting speedily enough during the debt crisis. Now the European Commission is proposing the creation of a banking union faster than many could have imagined. |
| By next year the Commission wants a pan-EU banking supervisor, an EU wide deposit insurance scheme, and an EU rescue fund. In other words another step towards greater economic integration. | By next year the Commission wants a pan-EU banking supervisor, an EU wide deposit insurance scheme, and an EU rescue fund. In other words another step towards greater economic integration. |
| Countries would lose some powers, but most economists believe such changes are needed if the debt crisis is ever to be solved. | Countries would lose some powers, but most economists believe such changes are needed if the debt crisis is ever to be solved. |
| However it would support a strengthened single market in financial services for all 27 EU states. | However it would support a strengthened single market in financial services for all 27 EU states. |
| The UK could not be forced to sign up, it can opt out, our Brussels correspondent Matthew Price said. | The UK could not be forced to sign up, it can opt out, our Brussels correspondent Matthew Price said. |
| "But if a significant number of countries press ahead without the UK on another major European issue, Britain could be left on the sidelines," he said. | "But if a significant number of countries press ahead without the UK on another major European issue, Britain could be left on the sidelines," he said. |
| Taxpayers v shareholders | Taxpayers v shareholders |
| Governments in the UK, Belgium and other EU states have been criticised for spending large sums of taxpayers money to rescue banks from insolvency. | Governments in the UK, Belgium and other EU states have been criticised for spending large sums of taxpayers money to rescue banks from insolvency. |
| Many claim bank shareholders reaped the gains during profitable years whilst taxpayers have been left to cover the losses from the financial crisis. | Many claim bank shareholders reaped the gains during profitable years whilst taxpayers have been left to cover the losses from the financial crisis. |
| Mr Barroso's plan would create a bank rescue fund from levies on financial institutions across the EU, effectively reducing company profits and shareholder dividends. | Mr Barroso's plan would create a bank rescue fund from levies on financial institutions across the EU, effectively reducing company profits and shareholder dividends. |
| This would also remove the possibility of one set of taxpayers, for example, in Germany, having to bail out savers in another country such as Spain. | This would also remove the possibility of one set of taxpayers, for example, in Germany, having to bail out savers in another country such as Spain. |