Eurogroup meeting sees leaders clash over banking union

(Pictured: Eurogroup president Jeroen Dijsselbloem, Source: Reuters)

At a meeting of Eurogroup finance ministers today there has been much confusion over banking union. German finance minister Wolfgang Schäuble kicked things off with an op-ed in this morning's FT. While saying that banking union is an "urgent necessity" he also stated that treaty changes would be necessary.

This would be a timber-framed, not a steel-framed, banking union. But it would serve its purpose and buy time for the creation of a legal base for our long-term goal

(Financial Times)

Spanish Prime Minister Rajoy has said that the EU must adopt a banking union as soon as possible, along with measures to provide credit to SMEs. He said that were was more the EU could do, and no time to lose. Portugal's Pedro Passos Coelho also suggested that the Eurozone should act now.

Eurogroup president Jeroen Dijsselbloem has said that members will have to wait for an agreement that should be ready by June.