Creating a union of financiers across Europe represents an essential step towards stabilizing the region's ailing economic system.
That is the opinion of Herman Van Rompuy, president of the European Union (EU), who believes this would help foster a more collective fiscal policy network in the area in order to assist its recovery.
Speaking in an interview with German newspaper Welt am Sonntag yesterday (24 June), Mr Van Rompuy said a banking union is a "fundamental element" of efforts to tackle the debt crisis.
"I think we can move forward there more quickly than in other areas," he noted.
This comes after a review by eurogroup last week established that banks in Spain will need up to €62 billion ($77 billion) in additional funding if they are to survive the current downturn.
Leaders from around the EU are scheduled to hold a two-day summit in Brussels later this week (28 and 29 June) to discuss how they can go about improving resolution policies.
By Tony Aynsley