VILNIUS, Lithuania, Sept. 13 (Xinhua) -- European Union finance ministers and central bank governors on Friday expressed their intention to quicken the progress of Single Resolution Mechanism, which is the second step in building a genuine Banking Union in Europe.
According to a statement by European Commission,the EU finance ministers and central bank governors have discussed the Single Resolution Mechanism (SRM) for the first time at the ECOFIN level.
"Swift progress towards the Banking Union is essential to ensure financial stability and growth in the internal market, as well as sound framework of financial system. In the light of this, the Single Resolution Mechanism must be agreed as soon as possible," said Rimantas Sadzius, Lithuanian finance minister who chaired the ECOFIN Council.
European Central Bank Executive Board member Joerg Asmussen also said there was no time to lose for banking union.
Members of the European Parliament (MEPs) gave their green light to the Single Supervisory Mechanism (SSM)one day early, a new oversight system which involves the transfer of considerable bank supervisory powers from national to EU level.
The Lithuanian presidency is concentrating efforts on reaching general approach on SRM in the Council in November 2013.
Moreover, the EU cleared a legal hurdle which is needed to change the EU treaty before setting up the new mechanism.
"It is also the view of our legal service at the ECB that Article 114 is indeed a solid and robust legal base. That means we now see a consensus among the legal experts of the Council, the Commission and the ECB and this should enable us to move forward," Asmussen said.
However,German voiced opposition to establishing such new central resolution body.
"Resolution should generally be done by national authorities and not by the EU Commission," German Finance Minister Wolfgang Schaeuble told the Boersen Zeitung newspaper. "It is not an appropriate central resolution authority.
"Instead, where necessary in disputed cases, a central resolution board should be able to take binding decisions when there are conflicts between national resolution authorities," he said.