Vice-President of the European Commission (EC) Joaquín Almunia has insisted that the European plan to form a bank union under a single supervisor is "'not a pipe dream'.

However, Almunia admits that the implementation might take "years", instead of months, according to the report from the Spanish newspaper El País.

The EC official did ask Eurozone member states to "find in this painful crisis the necessary drive so that solutions won't be temporary". He also noted that the Spanish banks would begin their recapitalisation "in November".

In any case, Almunia avoided making comments on the possibility of a bailout for Spain stating only that the country is not in a position similar to that of Ireland, Greece or Portugal.

In his opinion, the closest situation is that of Cyprus that is "negotiating" financial assistance with the European authorities.

JM

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