Wolfgang Schaeuble has expressed Germany's opposition to the plans
The European Commission is to outline plans for a single authority that will be responsible for winding down eurozone banks that get into trouble.
The blueprint for a "single resolution mechanism" is due to be unveiled by EU commissioner Michel Barnier later.
It is likely to put the Commission on a collision course with Germany, which argues that such an authority would be in breach of EU treaties.
The authority is part of wider plans for a European banking union.
The banking union project is designed to prevent a repeat of the global banking crisis.
The single resolution mechanism will give a single authority the power to close or restructure any eurozone bank that runs into trouble.
This would override the decisions of authorities in individual EU states, which are currently in charge of winding down failed banks.
Germany, the biggest economy in the eurozone, has voiced its objections to the creation of a single authority, arguing that it would require a new European treaty that may take years to agree.
On Tuesday, the German finance minister, Wolfgang Schaeuble, warned that the plan risked creating "new uncertainty in markets".
Source: BBC News - Business http://www.bbc.co.uk/news/business-23253365#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
