Brussels, 07/06/2012 (Agence Europe) - The British prime minister, David Cameron, says he understands why eurozone nations are looking into the option of setting up a 'Banking Union' to boost Economic and Monetary Union. He was speaking on Thursday 7 June in Berlin after a meeting with the German chancellor, Angela Merkel. The two politicians sais the budget pact, that the UK has not signed up to, is important for financial stability, but not enough in itself.
If eurozone nations look in practice at the Banking Union idea at the European summit at the end of the month, then London will defend the interests of the City of London tooth and nail and will not take part. The UK will not join any type of Banking Union in the eurozone, said Britain's Chancellor of the Exchequer George Osborne on BBC Radio Four, promising that the UK will ensure British financial industry interests are ringfenced. He said that the creation of a common savings guarantee scheme would require changes to the EU treaty and therefore the UK's agreement.
Earlier in the day, interviewed on ARD, Merkel said that stronger budget and political union could give Brussels greater powers. She said that more ambitious countries must not be held back by others that are dragging their feet - even if that meant they had to leave the eurozone and a two-speed Europe was set up. The European Commission, which is keen on the EU27 remaining in its current format, does not see Merkel's comments as a threat. A Commission spokesperson said that there was very wide agreement with Germany on the need for deeper economic and monetary union and the Commission is working for EU unity while doing what is needed for the eurozone. The spokesman added that the euro was the EU's currency and all member states would join it in time, when conditions allow. (MB/transl.fl)