Merkel under pressure over ECB banking union role

Angela Merkel is coming under mounting pressure from the Bundesbank and the sister party of her Christian Democrat (CDU) group to block EU plans to make the European Central Bank the central supervisor of a eurozone banking union.

At the June EU summit leaders indicated that a deal had been reached to create a eurozone banking union to be supervised by the Frankfurt-based bank. The EU executive is expected to present legislative proposals in mid-September. However, the German Chancellor...