Brussels - The Czech Republic is determined to veto the proposed EU banking union. According to Czech PM Petr Necas, the project may threaten the stability of the Czech banking sector.
A majority of EU countries nonetheless plan to proceed with the project, even though other member countries such as Britain, Sweden, Poland or the Netherlands have objections too.
EU leaders agreed Thursday on a Brussels summit to complete the legal framework for the banking union by the end of 2012. The union will then be gradually implemented during the course of 2013.
German Chancellor Angela Merkel said that "quality must come before speed."
"The risk of a Czech veto is still here," Necas said about the banking union compromise reached by Germany and France. The Czech government doesn't have enough information about the project, said the prime minister.
"Not only the Czech Republic, but some other countries, such as Sweden, pointed out that we do not know all those proposals related to the banking union," said Necas.
"We are very cautious in relation to the incessant creation of new institutions, positions and posts," said Necas about the idea of EU powers over national budgets, proposed by German Finance Minister Wolfgang Schauble.
"Rather, we should analyze the operation of the measures currently in place," suggested Necas.