Germany sees legal problems with Barnier plan on bank resolution

Reuters

BERLIN, Oct 9 (Reuters) - Germany opposes a proposal putforward by EU regulation chief Michel Barnier to use theEuropean Commission as a banking resolution agency only for alimited time as part of the bloc's banking union plans, afinance ministry spokesman said on Wednesday.

"Barnier's proposal does not clear up the legal concerns,nothing has changed in Germany's position," the spokesman toldreporters. "Even a transitional solution has to be legallysustainable and workable," he said, adding Germany still aimedfor an agreement this year on banking union.

The EU is struggling to agree on how to set up a frameworkto deal with stressed European lenders. Barnier suggested thatthe European Stability Mechanism (ESM) could take over the roleof a resolution agency after the Commission.

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