{{Leaders of the European Union in Brussels have agreed October 18, to a deal for a eurozone-wide banking supervisor in 2013 that is designed to help prevent future catastrophic bank failures that could threaten the monetary union.}}<\/p>\n
The agreement sets the stage for development of a legal framework to allow the European Central Bank to give emergency funds to ailing banks directly without going through national governments — bailouts which, in turn, have required bailouts for the nations themselves, as was seen in Greece and Ireland.<\/p>\n
The move is necessary to “break the vicious circle between banks and sovereigns,” said European Council President Herman Van Rompuy in a press conference early Friday. <\/p>\n
“Next hurdle to set up a single supervisory mechanism to prevent banking risks and cross-border contagion from emerging … built with the integrity of the single market in mind.”<\/p>\n
The leaders set a goal of approving the legislative framework by January 1, with the new supervisory mechanism “operational in the course of 2013,” Van Rompuy said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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