THIS WEEK:Tensions are mounting ahead of this week's EU summit as finance ministers again discuss the controversial banking union plans following the split over the establishment of a new European single supervisor to keep wayward banks in check.

Finance ministers will meet on the eve of the summit, which takes place in Brussels this Thursday and Friday, to examine a detailed plan for completing a banking union and strengthening euro zone fiscal policy, in a bid to convince the markets that they’re serious about taming the bloc’s fiscal crisis.

The 27 finance ministers remained split last week on the establishment of a new European single supervisor to keep the banks in check and were forced to schedule an extraordinary meeting this week after Germany and France clashed over plans to put the European Central Bank in charge of supervising banks.

Last week, European Council president Herman Van Rompuy tabled proposals to deepen the economic and monetary union, fleshing out plans for a two-tier Europe with the euro zone at its core.

The paper is expected to provoke debate at this week’s summit, where a “specific and time-bound road map” for deepening the EMU is anticipated.