Malta’s Fenech Says EU Plan for Banking Union May Cause Turmoil

European proposals to reshape the crisis-struck euro area, including creating a banking union, may cause further turmoil on financial markets, said Malta’s Finance Minister Tonio Fenech.

The 10-year road map released on June 26 by four officials led by European Union President Herman Van Rompuy was a “hasty proposal” that will only “contribute to confuse and create more market exasperation,” Fenech said in an interview in Malta’s capital Valletta. “One must examine such proposals in detail, as banking union is a rather grand word which will definitely cause further turmoil on financial markets.”

Fenech also said that the proposals should have been presented at the ministerial level before being included in the agenda of the European leaders meeting in Brussels starting from today.

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