Eurozone finance ministers agree banking union deal

Eurozone finance ministers have agreed on a pact on how to deal with failing banks in the region.

It aims to create a €55bn fund, financed by the banking industry, over the next 10 years.

The fund would be managed by a new agency, which will decide on how to deal with failing banks.

According to latest reports, European leaders  aim at signing off on a deal so that this banking union can kick off in 2015. The deal is part of wider plans to building a banking union as the region’s economies look to avoid taxpayer-funded bank bailouts.

However, the leaders are still divided over how banks will be re-capitalised in the early years while the new arrangements for banking union are taking shape.

“The final pillar for the banking union has been achieved,” Germany’s Finance Minister Wolfgang Schaeuble told journalists.

 

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