Germany sees legal problems with Barnier plan on bank resolution
BERLIN Oct 9 (Reuters) - Germany opposes a proposal put forward by EU regulation chief Michel Barnier to use the European Commission as a banking resolution agency only for a limited time as part of the bloc's banking union plans, a finance ministry spokesman said on Wednesday.
"Barnier's proposal does not clear up the legal concerns, nothing has changed in Germany's position," the spokesman told reporters. "Even a transitional solution has to be legally sustainable and workable," he said, adding Germany still aimed for an agreement this year on banking union.
The EU is struggling to agree on how to set up a framework to deal with stressed European lenders. Barnier suggested that the European Stability Mechanism (ESM) could take over the role of a resolution agency after the Commission.