Plan to deal with problem banks to be unveiled today

A detailed proposal to restructure or wind up problem banks with minimal cost to taxpayers while countries build up funds to pay the cost in the longer term will be announced by the European Commission today.

But Germany is suspected of wanting to slow down banking union, warning a new resolution authority may need changes to the EU treaties, while France is pushing to set it up quickly.

Berlin has warned that unless the proposal is watertight under the current EU treaty, they will veto it. The commission said they have limited their proposal to what can be achieved under the current treaty.