Merkel calls for EU body to monitor major banks

German Chancellor Angela Merkel said last night that she would discuss the need for a European body to monitor major banks in talks with EU Commission President Jose Manuel Barroso. European institutions needed more powers otherwise monetary union would not function, the Chancellor said in a short statement in Berlin before the discussions with Barroso. "We will ... be talking about to what extent we need to put systemic banks under a specific European supervisory authority," she said. This was a medium term goal, she added. "The world wants to know how we conceive the political union that will accompany monetary union, and we have to provide an answer to this question in the foreseeable future," she said. Barroso called for a structured approach in the debate, which could include a "banking union". "Some elements of this banking union would be more integrated financial supervision and also more integrated deposit guarantees. It is important to have this long-term vision about more Europe," he said. The pair were meeting to prepare an EU summit at the end of June.