Kenny Calls Banking Union a `Test’ for Europe's Leaders

Irish Prime Minister Enda Kenny said progress on a European banking union marked a “credibility test” for the the bloc’s leaders as finance ministers gathered to move the project forward.

Asked whether German Chancellor Angela Merkel was standing by her government’s reservations on measures such as a unified supervisory and bank-resolution mechanisms due to campaign pressure in an election year, Kenny said European leaders must follow through on the decision they made a year ago.

“The decision was made by everybody and it was agreed by everybody, and the point now is to implement it and make it work,” Kenny told reporters at a meeting of the European People’s Party in Vienna. “Everybody understands that this is a fundamentally important part of the financing” of the EU.

Germany has resisted elements of a banking union that was agreed upon at a June 2012 summit, including a centralized mechanism to wind down failed banks. German Finance Minister Wolfgang Schaeuble said yesterday that he’ll “fight with all my strength” so that the resolution authority won’t be considered by EU leaders.

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