Topic: Global financial crisis
BRUSSELS, October 19 (RIA Novosti)
- Greeks May Fail to Agree With Creditors by EU Summit Date
- European Commission Planning Eurozone Bank Control Law
- Spain’s 2013 Budget to Save $51 Bln
- Markets Slide as ECB Chief Fails to Stop Eurozone Scare
- Europe Markets Choke as Greece and Spain Flounder
- Eurozone Agrees to Bail Out Spanish Banks
Participants of the European Union summit agreed on the gradual formation of the banking union in 2013, Olivier Bailly, a spokesman for the European Commission, said.
Bailly wrote in his Twitter account that there had been an “agreement on a political framework for the end of 2012 and a gradual implementation in 2013.”
Following marathon talks at the previous summit in June, Eurozone nations agreed a new eurozone banking supervisor will be established before the end of this year, and that once this has been established then the European Stability Mechanism will be able to recapitalize failing banks directly, without the loans going via sovereign accounts and adding to the debts burdens faced at a nation level.
Diplomats say that the final deal that would commit EU’s 27 member states to agree on a supervising body for eurozone banks will be signed by the end of the year.
The decision will immediately relieve pressure on Spain which in June sought a 100 billion euro rescue for its troubled banks. It will also relieve pressure on Italy which is widely expected to be the next nation to seek EU assistance.
Add to blog
You may place this material on your blog by copying the link.
Image Galleries: Wildfires Rage in Russia's Tver Region
Infographics: World War I, 1914-1918
If attempts to drag Russia into a direct military conflict in Ukraine are successful, it would be a catastrophe for Russia comparable to the 1979-1989 Afghan war. There is no direct evidence that the US is trying to bring about a second Afghan war, but indirect evidence abounds.