German Chancellor Angela Merkel suggested yesterday (4 June) that the EU should consider putting its largest banks under Brussels' direct supervision, paving the way to a more centralised oversight of the region's financial sector. The proposal to create a Europe-wide authority overseeing and ultimately guaranteeing the banks' stability, which echoes a similar call from European Central Bank President Mario Draghi last week, comes as EU leaders are trying to rebuild confidence in Europe's battered banking sector. But rich countries such as Germany have been lukewarm about the idea because of fears it could eventually lead to them bailing out other countries' banks. Ahead of a meeting with European Commission President, José Manuel Barroso, Merkel told reporters that the pair "will also talk about to what extent we have to put systemically (important) banks under a specific European oversight." European institutions needed more powers otherwise monetary union would not function, the Chancellor said in Berlin, echoing also proposals made by Barroso last week. The idea of a eurozone banking union with a bail-out potential has been making headway in recent days, as Spain's banking crisis has deepened. The Commission had already proposed a single deposit guarantee scheme years ago, Barroso explained, but it had been unanimously rejected by member states. This time around though, a number of countries were pressing for such a scheme. "The world wants to know how we conceive the <b>...</b>
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