A European Commission proposal last week, entitled “A roadmap to stability and growth”, highlighted the need for a co-ordinated approach to bank recapitalisation and a plan to tackle uncertainty around sovereign solvency. But bankers are concerned the European Union may be taking the wrong route to combating the debt crisis.

The document said: "The crisis threatens to become systemic. A solution to break the vicious circle between doubts over sustainability of sovereign debt, the stability of the banking system and the EU's growth prospects is more necessary than ever."