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Will a European banking union help or hinder the UK economy?

12 December 2012 Last updated at 13:58 GMT

European finance ministers are meeting in Brussels on Wednesday ahead of a meeting of EU leaders on Thursday, when they will decide whether to set up the new banking union.

The House of Lords committee says it is essential and that it will restore stability.

Mats Persson, director of independent think tank Open Europe, told BBC Radio 5 live Wake Up To Money if this solution would help or harm the UK economy.