The European Commission is to unveil the next building block of its ambitious banking union on Wednesday, with proposals for dealing with failing banks.
EU Internal Markets Commissioner Michel Barnier gives a press conference at EU headquarters in Brussels on June 26, 2013. Proposals presented by Barnier on Wednesday are for a resolution mechanism -- comprising both a resolution board and a resolution fund -- which will click into action once the ECB has sounded alarm on any bank in trouble.
The Single Resolution Mechanism (SRM) -- viewed sceptically in Germany -- will give the Commission the power to shut down any of Europe's 6,000-plus banks, even if the national authorities of the country involved disagree.
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