The European Union is set to unveil brand new financial laws on 6 June which will afford national regulators the power to seize failing banks, break them up and impose losses on those who hold their bonds.
The legislation could also oblige member states to bail out struggling banks in other EU countries in a move which could upset some of the Union's more financially stable economies.
The new laws have been prompted by renewed fears that a run on the bank could be about to take place in Greece after they failed to appoint a new executive in their recent parliamentary elections.
Economies around Europe are facing up to the reality that Greece may exit the Euro and default on its loans if its people decide to vote for anti-Europe parties in a rerun of the elections scheduled for 17 June.
The new financial powers which could come into effect by 2014 would attempt to prevent a banking collapse from having disastrous effects across the EU economies. The laws would require governments to hold 1% in banking deposits as surety against bank failure.
The law also provides for the creation of local funds which could see British money used to prop up a bank in another member state if that bank had branches in both territories and was set to fail. This moves the EU a step closer to a centralised banking bail-out fund: something which is favoured by the European Central Bank.
Michel Barnier is the European Commissioner charged with overseeing banking regulation.
Discussing the proposals recently he said: "When supervisors identify a risk, there would be an early warning that could trigger a number of decisions including a ban on some banking activities, a ban on dividends being paid out and a change of management."
"If the crisis becomes very serious and there is a need for an orderly bankruptcy, there would be a mechanism that could manage that," he added.