European leaders have agreed the framework for the new Eurozone banking supervisor’s role.
It’s hoped the plan will be adopted by the end of this year, and thousands of banks across the single currency member states could be under ECB supervision by 2014.
It marks another step on the way towards the point where the ESM bailout fund would be able to recapitalise banks directly.
Speaking at the end of a marathon session of talks on day one of an EU leaders summit in Brussels, President of the European Commission Jose Manuel Barroso outlined some of the plans for the supervisor:
