BRUSSELS (Reuters) European Union states will be left with little “wriggle room” under plans by the bloc's executive to turn globally agreed tougher bank rules for more than 8,000 lenders into law.The accord, known as Basel III, was endorsed by world leaders last November and will phase in tougher bank capital and liquidity requirements over six years from 2013.EU financial services chief Michel Barnier will publish a draft EU law in July based on the global agreement.“The core of Basel III will be in it,” a source involved in the process said yesterday.Banks including Deutsche Bank, BNP Paribas and HSBC will all have to comply.Basel III is a set of minimum requirements but the EU executive Commission wants them to become a ceiling inside the bloc to ensure a common approach across the 27 member states.“The Commission clearly wants to take advantage of the current situation to push to further integration,” the source said.Policymakers in countries like Britain have said the EU law should give local regulators the discretion to ask banks to top up capital levels.Barnier said he would not compromise on Basel III's “level of ambition” and that the new law would be an opportunity to make progress towards a single rulebook for the bloc's banks.“We want to impose the same capital rules demanding ones across all of Europe,” Barnier told a news conference after a meeting of EU finance ministers in Brussels.“That won't stop, in some cases, supervisors from demanding higher capital to reflect specific risks at one or more institutions, or to reflect risks in a national economy,” Barnier said.In Frankfurt, one of Barnier's internal market officials defended the Commission's plan to introduce the bank rules in the form of a directly binding regulation.The draft law will supplement an earlier directive, a form of legislation that has to be transposed into national law, a process that can introduce inconsistencies.“Directives have not proved their worth in this area,” Kai Spitzer told a Bundesbank conference on banking regulation.The financial crisis showed that differences in national applications of rules had led to competitive distortions and differing intensity in application of the rules, Spitzer said.The draft law is set to allow so-called “silent participations” to be included in regulatory capital, but only if they meet 14 conditions.Some Austrian and German banks use this form of non-voting capital, with both debt and equity characteristics, that has been criticised by international regulators who fear it may not be readily at hand to absorb losses when needed.