Two EU leaders on Monday called for quick establishment of single resolution mechanism (SRM) as the next step of the European Banking Union.

European Council President Herman Van Rompuy reiterated achievements of the EU in the past week, including proposals on single supervisory mechanism (SSM), the Eurogroup's decision on Greece, as well as European Council's conclusion on completing economic and monetary union (EMU).

"The progress achieved on the establishment of the SSM marks a breakthrough. It will strengthen our financial sector," said Van Rompuy at the European Parliament.

"If we had had this level of supervision 10 years earlier, the financial crisis would never have been so severe," he added.

He said that the next step should be forming the SRM.

"A single resolution mechanism will be required, with the necessary powers to ensure that any bank in participating Member States can be resolved with the appropriate tools," said Van Rompuy.

President of the European Central Bank (ECB) Mario Draghi, the most powerful man in the field of eurozone monetary policy and perhaps in the field of banking supervision soon, also listed establishing the SRM as one of the two priorities for the EU.

"The aim of resolution is to deal with non-viable banks through measures that include their orderly winding down and closure while preserving financial stability," Draghi said.

"Such a mechanism will make it possible for banks to fail in an orderly manner," he added.

The other priority, according to Draghi, was to improve the functioning of economic union, which might include decreasing excessive imbalances in eurozone and continuing structural reform.

He also defended the ECB's capability to separate banking supervision and monetary policy.

"The ECB will establish clear guiding principles and internal operating practices to ensure effective separation of monetary policy and financial supervision," Draghi said.

Though both leaders claimed the past EU summit a fruitful one, analysts doubt its result and describe it as a disappointing one.

Janis Emmanouilidis, senior policy analyst with European Policy Center, a top think-tank in Brussels, pointed out in a report that the Council failed to live up to the expectations raised and the objectives set earlier in the year.

"The EU 27 rather gave the impression that they could take advantage of the relative calm in the markets and take a breather," said Emmanouilidis.

"The eurozone is still far away from reaching the comfort zone and that complacency could undermine the regained confidence in the euro and the future of the EU," he warned. Endietm