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News Summary: EU, Germany clash on plan for banks

The Associated Press

German Finance Minister Wolfgang Schaeuble, front right, talks with French Finance Minister Pierre Moscovici, left, during the EU Finance Ministers meeting, at the European Council building in Brussels, Tuesday, July 9, 2013. Ministers from the 28 European Union countries meet before the summer break to discuss the state to the EU economy. (AP Photo/Yves Logghe)

BANK OVERSIGHT: The European Union's executive branch on Wednesday proposed to give itself powers to decide what happens to banks that need rescuing. But Germany, home to Europe's biggest economy, objected.

THE EU'S PLAN: The EU Commission would act to rescue or wind down a bank after hearing advice from a board consisting of the European Central bank, its own officials and national authorities.

GERMANY'S OBJECTION: But Germany feels the proposal "gives the Commission powers that we believe it cannot have according to the current treaties" and would "slow down rather than speed up the road the banking union," said Chancellor Angela Merkel's spokesman.