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Ms Bowles said: "Who really understands the implications of the single supervisor? It looks like Banking Union Lite - getting the taste without the commitment - but like monetary union the 'Lite' version will tie together eurozone countries and anyone else who chooses to join with de facto mutualisation in the event of systemic failures. Of course, it is hoped that stays theoretical - but citizens should know."
"Meanwhile, to avoid mutualisation using the ESM to recapitalise Spain's current bank debt is now off the cards and bond buying is linked to other conditionality. So what's the hurry? Why push through a 'good news' story before people get their heads round it when a couple of months extra could deliver the real deal? We are working to this mad timetable but I fear legislate in haste and repent at leisure."
Ms Bowles went on to criticise the Capital Requirements Directive - the implementation of Basel III bank capital rules into EU law - for introducing so many exemptions for the different banking models across Europe. "For all the gung ho about banking union I see no sign of it in the Capital Requirements Directive, which is still an exemption-fest to cater for all the different banks across Europe. Is the intention for the ECB to stop European countries from applying all these exemptions? - I think we should know and be up front about it."