Germany ‘plans banking union without treaty change’

German officials have drawn up controversial plans to force through a eurozone banking union without requiring new laws or treaties.

Until now, Germany has insisted that a system of common rules to take control of the banking system would require a change in the Lisbon treaty, requiring approval from the EU’s 28 member states.

However, officials in Berlin are now drawing up plans to force through a union without a treaty change, according to Reuters.

Bypassing the need for a treaty change would make the process of creating a banking union far quicker as it would prevent members states from holding referendums.

According to the reports, high-level German officials are working on the plans with eurozone officials and could unveil a solution after German elections this month.

Berlin now wants to use article 114 of the EU Treaty, which allows certain industries to be harmonised across the eurozone, to impose EU control of the banking system.

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