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2012-12-14 09:59:33
EU leaders have agreed on a roadmap for eurozone integration beyond the deal on
centralised banking supervision, German Chancellor Angela Merkel said.
Specific dates have not yet been agreed for the phases of integration.
But the EU summit chairman, Herman Van Rompuy, said a deal should be reached
next year on a joint resolution scheme for winding up failed banks.
Mr Van Rompuy's far-reaching roadmap is the main topic of the two-day Brussels
summit, set to end on Friday.
The deal to make the European Central Bank (ECB) the chief regulator should
pave the way for direct recapitalisation of struggling eurozone banks by the
main bailout fund, the 500bn-euro ( 406bn; $654bn) European Stability Mechanism
(ESM).
Spain is especially anxious to get that help for its debt-laden banks.
At a late-night news conference, Mrs Merkel said "we agreed a roadmap for the
future development of the currency union and talked about different aspects of
this that are important.
"Above all, it was important to define when we do what."
June deadline
Mr Van Rompuy said he would present detailed plans for deeper economic
integration in time for the June 2013 EU summit. They would include "mutually
agreed contracts for competitiveness and growth between governments and EU
institutions".
Much closer EU scrutiny of national budgets is envisaged, including penalties
if governments rack up unsustainable debts.
Eurozone banking deal
ECB to act as chief supervisor of eurozone banks and lenders
ECB to co-operate closely with national supervisory authorities
Direct oversight of banks with assets greater than 30bn euros ($39bn; 24bn) or
with 20% of national GDP
National supervisors to remain in charge of other tasks
Non-eurozone countries that wish to take part can make close co-operation
arrangements
Contractual agreements on things such as taxation and labour market policy are
likely to require changes to the EU treaties - so these are likely to be put
off until after the European elections in mid-2014.
The UK, along with Denmark, has a formal opt-out from joining the euro, and
will not be part of the new banking union. But the UK's banking pre-eminence in
Europe means it is taking an intense interest in the negotiations.
New rules on prudent banking are seen as vital to bolster the euro, as bank
failures triggered the financial crash.
The measures are also aimed at preventing banking failures, of the type that
happened in Greece and Spain, ending up on the books of eurozone governments.
Under the deal expected to take effect in March 2014, banks with more than 30bn
euros ($39bn; 24bn) in assets will be placed under the oversight of the
European Central Bank.
The ECB would also be able to intervene with smaller lenders and borrowers at
the first sign of trouble, the BBC's Europe Editor Gavin Hewitt says.