Andreas Dombret, a member of the Deutsche Bundesbank executive board, this week told colleagues at a meeting of an Organisation for Economic Co-operation and Development (OECD) working party that banking union cannot solve the eurozone crisis, though he said it will be a "milestone for European financial integration", should it be completed.

Nevertheless, he said, in Europe and around the world, "financial and structural reforms need to give incentives for increased private sector investment".