This report from the House of Lords EU Sub-Committee on Economic and Financial Affairs looks at EU proposals for rescuing failing banks, and finds them to be inadequately funded, overly complicated and politically unrealistic. The report also calls on the UK Government to get strongly involved in the plans. As the eurozone moves towards closer integration the UK will need to work hard to influence the debate, which it needs to do for its own good, for the good of the City of London, and the good of all 28 members of the EU. Other findings of the report include: banking union is vital to the success of the EU plans, but the proposed resolution mechanism for dealing with failing banks is not fit for purpose; financial stability can only be achieved through a common deposit guarantee scheme; without a workable banking union, the vicious circle linking bank debt and sovereign debt will not be broken; although politically remote, the eurozone’s safety could require both debt mutualisation and a system of financial transfers; the Committee welcomes the decisive action taken by the European Central Bank to tackle the eurozone crisis, but warns that its credibility as bank supervisor must not be jeopardised as it undertakes its comprehensive assessment of the banking system.