Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

A thin line between fact-checking and propaganda in Gaza social media coverage

Read more

DEBATE

Gaza: How to Stop the Spiral? Israel Readies For Ground Offensive (part 2)

Read more

DEBATE

Gaza: How to Stop the Spiral? Israel Readies For Ground Offensive

Read more

FOCUS

Ireland's missing babies casting light on a dark history...

Read more

WEB NEWS

World Cup 2014: Germany-Brazil inspires the Web

Read more

THE INTERVIEW

Boutros-Ghali: 'I wanted to reform the UN'

Read more

IN THE PAPERS

57 000 little problems

Read more

IN THE PAPERS

The Sarkozy 'threat'

Read more

BUSINESS DAILY

Budget challenge for India's new government

Read more

  • US prepared to negotiate Gaza ceasefire, Obama says

    Read more

  • Manhunt as FIFA partner flees Rio hotel to avoid arrest

    Read more

  • French companies will have to accept anonymous CVs

    Read more

  • Ukrainian forces close in on Donetsk

    Read more

  • Germany asks US intelligence station chief to leave country

    Read more

  • Hamas rockets reaching deeper into Israel

    Read more

  • UN chief Ban Ki-moon appoints new Syria mediator

    Read more

  • Video: Muslims in China confront obstacles to Ramadan fasting

    Read more

  • Tour de France passes WWI Chemin des Dames battlefield

    Read more

  • Senegalese man awarded French visa in gay marriage debate

    Read more

  • Israel steps up airstrikes as diplomacy gets under way

    Read more

  • Argentina beat Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge congressional action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

Europe

EU agrees on ‘historic’ banking union ahead of summit

© AFP

Text by FRANCE 24

Latest update : 2013-12-19

EU finance ministers on Wednesday agreed on a landmark deal to create a single body to regulate and shore up banks, which was hailed as the most ambitious project to integrate Europe’s economy since the adoption of the Euro as the common currency.

European leaders hope the new banking union will go a long way towards helping them avoid the kind of financial crises that have plagued the region in recent years. The agreement came just hours before a key summit of the EU’s 28 heads of state in Brussels.

“I believe this accord is historic,” French Finance Minister Pierre Moscovici told reporters, after the deal was announced. “It’s therefore a day that is definitely important for the European Union.”

Leaders have been quick to point out that financing for the new bank rescue agency will come from the bank themselves and their creditors – not the government and taxpayers.

Banks to foot the bill

At a related meeting earlier on Tuesday, eurozone ministers reached an initial agreement that says banks will have to provide 55 billion euros over 10 years to pay for shutting down or spinning off ailing financial institutions.

The accord foresees other rescue measures in case the 55 billion euro fund is not ready before a bailout is needed.

The fine points of the new banking union still must be thrashed out by the ministers and their governments, and a long list of proposals must then be adopted by the European Parliament to become law.

EU banking commissioner Michel Barnier told journalists Wednesday that he was confident the new rulebook and the new regulatory body “will be operational in 2015.”

However, some observers warned that even when the 55 billion euro pot is filled, it won’t be enough to deal with a severe banking crisis, like the 2007-8 one, that led to bailouts requiring hundreds of billions of euros.

(FRANCE 24 with AFP, AP)

Date created : 2013-12-19

  • TALKING EUROPE

    Eurozone crisis: Why does Europe need a banking union?

    Read more

  • BUSINESS DAILY

    Russian bailout only temporary fix to Ukraine’s problems

    Read more

  • RBS to create internal 'bad bank' for €45 billion of toxic loans

    Read more

Comments

COMMENT(S)