Tension builds around Merkel to support banks

Continuous tension builds up around Angela Merkel, as Mariano Rajoy pushes to determine a proper remedy for the debt crisis and reinforce the support for bank protection. On 2 June Rajoy emphasized the need to strengthen the banking union and backed up the idea of establishing a centralized structure to recapitalize investors. However, Merkel, also on 2 June, strengthened her position against debt sharing and stated that under no conditions Germany would support euro bonds.