Draghi: Press ahead with banking union

European Central Bank president Mario Draghi put his weight behind a EU banking union in a trip to Berlin yesterday, two days after Germany led an attack on a proposal to centralise control of failing lenders.

German finance minister Wolfgang Schäuble sought to keep responsibility for failing banks in national hands during two days of meetings last week in Vilnius, Lithuania. He led a chorus of dissent against the Commission’s plan to give itself final say over when to close banks and to create a €55bn common fund for resolution costs.

If Germany derails momentum towards a year-end deal on a single resolution mechanism, it may imperil efforts to restore confidence in the eurozone’s financial system. Mr Draghi said the EU needs to press ahead.