EUROPEAN UNION finance ministers backed plans yesterday to make cross-border banking mergers easier.

However, they refrained from confronting Italy over its recent handling of two mergers that have led to calls for the resignation of Antonio Fazio, governor of Italy’s central bank.

The ministers discussed a report from Charlie McCreevy, Internal Market Commissioner, on obstacles to cross-border bank mergers and ways to remove them.

Speaking for Britain, which holds the EU presidency, Gordon Brown said: “We backed the European Commission’s work in emphasising the importance of creating the right environment for cross-border mergers and acquisitions to enhance the European Union’s global attractiveness to foreign investment.

“This is a progressive move I believe will have the support of the full council (of ministers) in December.”

The Commission wants to make it harder for national regulators to block a foreign takeover on prudential or suitability grounds. Mr Brown said there was “virtual unanimity” on the report but final approval was deferred until next month because Poland wanted more time to analyse it.

A Polish diplomat said the country needed more time as it was still forming a new government after recent elections.

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