The European Commission today presented its proposal for a Single Resolution Mechanism and Single Bank resolution Fund as an important complement to establishing Europe's Banking Union following adoption of the Single Supervisory Mechanism. The new proposals will deal with the winding down of indebted financial institutions and bring stability and unity to the recovery or winding down of banks in difficulty across the EU.

The ALDE group has been calling for this measure to be tabled ever since it was first promised by EU leaders in June last year as a key part of the much needed new financial architecture.

Verhofstadt contradicts Schauble on urgency of SRM.

ALDE President Guy Verhofstadt said: "The Commission has done its job. It is now up tot he Council to show that it also means business and is prepared to see through on its rhetoric of creating a stable banking sector in Europe that is the fundamental requirement to economic recovery. The crisis has taught us the need for a centralised system that applies the rules consistently and uniformly, free from undue political pressure."

"Wolfgang Schauble's legal insistence on Treaty changes must not be allowed to slow down the rapid agreement and implementation of this framework. We no longer have the luxury of waiting for a major Treaty revision. We must all get behind these proposals now, before we are hit by another collapse of a major bank."

"This new system must also include a proper European Resolution fund to protect the depositors and the tax payers from being once again called upon to pick up the bill for bailing out irresponsible banking activities. By doing so, we will not only ensure creditors and bondholders that the cost of a resolution will be shared by a contribution of this fund but we ensure that they are not put off from investing in European banks in the future".