Domestic interests prevail as ministers fail to reach solution on banking union

The EU banking union, intended to save banks from bringing down states, is teetering on the edge as countries battle to save their domestic interests.

Ireland is watching carefully as an agreement on cutting the cost of its €32 billion banking debt depends on the union being established.

The disagreements between finance ministers was so forceful at their meeting in Brussels yesterday that they abandoned efforts to reach a solution and instead called a special meeting for Dec 12.