News Summary: Taking time with bank supervision
CAUTIOUS APPROACH: German Chancellor Angela Merkel plans for a new European banking supervisor must not be rushed and sees no need for joint European deposit insurance.
THE BACKGROUND: Creating a banking supervisor is a key part of Europe's attempts to end its three-year debt crisis, partly because it has to be in place before other measures can be considered. The European Commission has irked Berlin with plans to have the new supervisor oversee every bank in the eurozone, rather than just the biggest.
RELATED ISSUES: Other issues include a Europe-wide deposit insurance plan; a single method for winding down bankrupt banks; and allowing the European bailout fund to directly help banks in trouble, relieving the financial risk such rescues to individual states.