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The dispute over how to set up a single body to restructure or unwind bust banks across Europe saw a German-led group of countries firmly pitted against southern European nations, the European Central Bank and the EU Commission, in an argument over the legal basis for such an authority. Commissioner Michel Barnier, in charge of financial services, insisted that contentious discussions in an early phase were normal. The goal is to better protect savers and shield taxpayers from having to fund further bailouts, he said. "So this takes time, it doesn't fall out of the sky," he said. The euro countries have already agreed to set up a centralized bank oversight to be anchored with the ECB due to take effect next year. Setting up the next step to deal with failed banks is seen as crucial to completing the banking union, which analysts bill as Europe's most important initiative in turning the tide on the bloc's three-year-old debt crisis. The banking union's goal is to make the supervision and rescue of banks the job of European institutions rather than leaving weaker member states to fend for themselves.
[Associated
Press;
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