Europe News

Moscovici: No problems left on the table

Reporting by Julia Chatterley & writing by Kiran Moodley
Euro zone to have common backstop: Moscovici

French Finance Minister Pierre Moscovici said there were "no problems" left on the table between euro zone finance ministers during talks over a banking union, and that a "clear and historic" agreement needed now to be finalized.

Moscovici was speaking after marathon talks Tuesday which saw the French minister and his colleagues reach a potential agreement to provide within a decade a common backstop for the European Union's new bank rescue system.

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"Yesterday night we had a very fruitful, long, meeting of minister of the euro zone," he told CNBC. "We achieved a global agreement on a principle of a single resolution mechanism, and the establishment of a single resolution fund, clear decision making process, and the existence of a backstop."

"So now we've got to go on with this discussion with our colleagues from out of the euro zone. Maybe they will have some problems or some points that they want to be solved; we are ready for that. But we must end this meeting with a clear and historic decision building a single resolution mechanism."

(Read more: Europe's banking plans: Backstops and bail-ins)

Ministers have already agreed on the first plank of banking union, making the European Central Bank supervisor of the region's largest banks from the end of 2014, but the second pillar - "the single resolution mechanism" - is yet to be decided. The second pillar regards an agency for winding up problem banks and a fund to pay for the clean-up.

As the ministers gathered in Brussels this week, German Chancellor Angela Merkel underscored the importance of the negotiations to complete banking union and said she hoped they would reach a deal before she and other EU leaders meet on Thursday.

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The Germans have been the biggest obstacles ahead of the meeting, as the country wants to avoid having its banks and population paying out more to bail lout struggling euro zone counterparts.

However, Moscovici said that there were no major disagreements left on the table after the talks.

"We found an agreement which is satisfying for everybody," he said. "Between the countries of the euro zone, there is no problem lying on the table. Maybe some details here and there. But globally we found agreement."

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