"It certainly may still be improved and that's something that in the next two months in discussion with the European Parliament we will need to look at it," he said during a panel discussion at the World Economic Forum in Davos, Switzerland.

German Finance Minister Wolfgang Schaeuble, speaking on the same panel, said without a sound legal basis the bank resolution fund "will be destroyed" by courts.

On the issue of economic reform in the euro zone, Rehn hoped Italy could deliver: "I'm looking forward to Italy using its recently born stronger political stability to launch a bold privatisation plan and reforms."

(Writing by Paul Carrel; Editing by Janet Lawrence)