Rehn: ESM banking firewall should be considered

European Economic Affairs Commissioner Olli Rehn has said a Eurozone firewall to recapitalise banks should be considered "a serious possibility".

Olli Rehn said the ESM could soon be allowed to intervene in troubled banks such as in Spain, where banks are struggling to find more than €80bn.

He said such a move would end the cycle of state and banking bailouts.

A "banking union" has previously been backed by the deputy head of the IMF and the ECB chief Mario Draghi.