Eurozone ministers in banking deal

Written By Unknown on Kamis, 19 Desember 2013 | 08.54

18 December 2013 Last updated at 18:46 ET

Eurozone finance ministers have reached a long-awaited deal over banking reform after many negotiations.

The deal aims to create a 55bn euro ($75bn; £46bn) single resolution fund, financed by the banking industry, over the next 10 years.

That fund would be backed a new agency, which will help decide how to deal with failing banks.

EU financial markets commissioner Michel Barnier tweeted that it was a "momentous" day.

The agreement will give Brussels a range of new powers to prevent banking failures, and ministers hope it will put an end to the need for future taxpayer-funded bailouts.

The next step will involve negotiations with the European Parliament.

Long time coming

The 17 nation eurozone has been working towards a so-called "banking union" for some time.

The ministers' overall aim is to form a banking union that would give European authorities the powers to supervise banks, and wind them up when necessary.

The banking crisis forced a number of European governments to spend large sums of money supporting banks whose lending had turned bad.

Over the main years of the crisis, European governments spent 1.5 trillion euros (£1.3tn; $2tn) propping up the banks.


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