Kalousek fears plans for banking union may jeopardise financial market

Finance Minister Miroslav Kalousek said today he fears plans for the establishment of a union of banks within the European Union might jeopardise the single financial market in the EU. Some European politicians, including European Commission head Jose Barroso, are calling for the establishment of the bank union in reaction to the current crisis. However, Mr Kalousek says it is not possible to expect that all countries will participate in the bank union and warns that if the union were formed by only some countries, it might be the end of the single financial market in the EU. The plan – which entails greater integration of the banking sector, stronger regulation and changes in insurance policies and bank guarantees - will be discussed by EU governments and heads of states at a summit in Brussels next week.