The banking union was created to help solve the euro zone crisis by separating the problems of government debt and bank failures. It involves the ECB supervising banks, setting up ways to handle banking crises, and encouraging banks to diversify. The union has three main parts: supervising banks, resolving banking issues, and guaranteeing deposits. However, there are challenges like deciding which countries should be included and how regulations will be decided. The union could lead to more federalism in the EU. It's important to consider how this will affect the ability of governments to influence bank policies and support public banks. One option is to restructure banks to focus on safe lending and separate risky activities. The question remains whether the ECB should have the power to make these important decisions for European countries.